Search found 4113 matches

by Lafder
Tue Feb 06, 2024 7:39 am
Forum: Personal Investments
Topic: Portfolio & Retirement Plan Review
Replies: 41
Views: 4380

Re: Portfolio & Retirement Plan Review

You have a wonderfully simple set of holdings compared to many first posts I have seen. I would move retirement accounts into lower cost holdings since there is no tax penalty for doing so and the small percentage difference in costs can add up over 20 years. With some of her her taxable at the higher costs, you could set dividends not to reinvest so you at least buy lower cost holdings with profits. It is such a low % of total holdings it doesn't matter much. And just be aware of expense ratios on future purchases. Sometimes higher ER is worth it if there is a reason you want that particular fund. The way I think of my "emergency fund" is that it is the cash I hold for ongoing expenses and I do not count it in my asset allocation...
by Lafder
Tue Sep 05, 2023 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off my mortgage
Replies: 18
Views: 2442

Re: Paying off my mortgage

In my case, the mortgage company contacted us and said "We see your mortgage is below x dollars, please contact us to arrange final payment." We had been paying ahead so it was not just the regular payment amount that was due. When I called, there was enough in the escrow account to make the final payment. So they were able to apply the escrow to the final payment and send us a check for the remainder of escrow. I had no idea they could even do that. They did send us a proof of payoff. And I believe they had filed it with the county removing the mortgage lien on the house. I called our homeowner's insurance and told them there is no mortgage, send future insurance bills to us. Of course you will have to pay your taxes and insuranc...
by Lafder
Tue Sep 05, 2023 11:03 pm
Forum: Personal Consumer Issues
Topic: Best way to store physical gold Jewellary
Replies: 28
Views: 2683

Re: Best way to store physical gold Jewellary

I would use an at home safe. A large (freezer sized) safe, secured to the floor or wall. I would put it in a relatively hidden location out of sight. Ideally in a hidden closet or at the back of a closet. You can also use it to store important documents. These safes are often sold as fire resistant gun safes. Your average home burglar can't break into a safe or steal it. Do not do a smaller safe that a strong burglar could lift and carry out of the house. If they are family jewels that are rarely worn, sure get a safety deposit box. But it is less likely they will ever be worn if they have to be gotten from the bank. And then there is the issue of where to store it between wearing it and getting it from or back to the safety deposit box. la...
by Lafder
Wed Jun 21, 2023 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: state of residence for a dependent adult child (in school)
Replies: 11
Views: 1164

Re: state of residence for a dependent adult child (in school)

fivek thank you for the detail.

No secondary insurance.

So if she can contribute to a Roth and an HSA, the Roth is better right? Since it grows tax free and does not not need to go towards medical expenses?

If her income exceeds the Roth limit, she can put extra into an HSA she will need to open. We are only 2 years into an HSA so it is all very new to me.

Is the max she can contribute to the Roth plus HSA her total income pretax or post tax?

If possible we can help cover more living expenses so all of her income can go to Roth and HSA.

Since tuition can be paid directly, we are under the gift tax amount for the rent and allowance she gets per year. Though it is close. (2 years to go and counting)
by Lafder
Wed Jun 21, 2023 1:36 pm
Forum: Personal Investments
Topic: Windfall advice and portfolio review
Replies: 7
Views: 1727

Re: Windfall advice and portfolio review

Follow up

We paid off our mortgage. Indeed it is a good feeling. No debt for the first time in 30 years.

I have kept more in money market than ever before instead of moving all of the profit from the house to stocks and bonds. I am having a hard time giving up the mm returns vs bonds right now.

And if I put more taxable into stocks, I will need to rebalance the retirement accounts so the bonds are there. So it is a few steps I am being lazy about.

I ended up going with tax managed capital appreciation at VG and the zero cost total market stock fund at Fidelity for the house proceeds that I invested.

No car purchases or splurges.

Thanks for your comments.
lafder
by Lafder
Wed Jun 21, 2023 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: state of residence for a dependent adult child (in school)
Replies: 11
Views: 1164

Re: state of residence for a dependent adult child (in school)

Thank you all. This is helpful and the links are appreciated. It is a private school so no state residency benefit. She is on a partial merit scholarship that is not state dependent. Fortunately/unfortunately we/she do not qualify for additional grants and can cover tuition so no need to take out loans so far. So if she makes over $4300 she can not be claimed as our dependent? Even if we provided more than $30,000 in living expenses plus tuition? (I may have falsely heard it was if we provided more than half of her expenses. She is in a high cost of living city and her rent alone is over 20k/year) She is a dependent on our HSA high deductible health plan. Is the family contribution limit per person or for the entire family? I thought for my...
by Lafder
Wed Jun 21, 2023 1:50 am
Forum: Personal Finance (Not Investing)
Topic: state of residence for a dependent adult child (in school)
Replies: 11
Views: 1164

state of residence for a dependent adult child (in school)

Our 24 yo daughter lives out of state for graduate school. She does not have a car. (Paying for a parking spot is more than the cost of Uber or Lyft) She is still our dependent for tax purposes and on our family health insurance. Does she need to get a driver's license where she is or register to vote there and officially make it her residence? (I am assuming driver's licenses and voter registration are tied to residence?) Or can she keep our home as her residence even though she no longer actually lives here? If it is a rule that she must change her residence she will do it. If it is an option to change her state of residence, what are the pluses/minuses of either? If she becomes a resident of the other state, does it effect her financial ...
by Lafder
Mon Apr 24, 2023 5:33 pm
Forum: Personal Investments
Topic: Should I hire a Fee-Only Financial Advisor ?
Replies: 17
Views: 2656

Re: Should I hire a Fee-Only Financial Advisor ?

Yes post your assets in the asking portfolio questions format.

If you still feel the need for a financial advisor/planner after getting feedback here, you will be better informed and aware of terminology and things to ask about.

I like just asking here since it is many opinions vs just one financial advisor. It really just depends on your own comfort level.

Welcome here!

lafder
by Lafder
Mon Apr 24, 2023 5:19 pm
Forum: Personal Investments
Topic: Short term investment
Replies: 4
Views: 964

Re: Short term investment

Another vote for a money market account at Fidelity or Vanguard.

Much more flexibility than a CD if you find a home sooner than expected.

lafder
by Lafder
Mon Apr 24, 2023 5:04 pm
Forum: Personal Investments
Topic: recommendations on what to do with current SEP IRA
Replies: 3
Views: 331

Re: recommendations on what to do with current SEP IRA

You are selling something at a "down" price and almost immediately buying an equivalent fund at the same "down" price. Sure the value could skyrocket in the short term you are out of the market, but it is unlikely to do so. When I tried to roll my SEP into a solo401k Vanguard did not allow it. So I moved my solo401k to Fidelity and rolled the Vanguard SEP into it. Great if VG now allows rollovers into their Solo401k. That was a real bummer for me since I prefer VG. The backdoor Roth contribution is likely a higher amount than you will lose in a few days out of the market. I protect myself by not looking at the performance the days the rollover is happening. In a few years it will really be irrelevant. Best case scenario,...
by Lafder
Sun Apr 23, 2023 10:48 pm
Forum: Personal Investments
Topic: Chocolatebar's Portfolio
Replies: 146
Views: 12933

Re: Bogleize Chocolatebar's Portfolio

Thanks for trying to explain leverage! (I still don't get it after reading the links, but that is ok)

My % of holdings calculations only work if the total investment account value was 168k. So recalculate if that is the wrong total.

lafder
by Lafder
Sun Apr 23, 2023 5:23 pm
Forum: Personal Investments
Topic: When one reaches FI?
Replies: 35
Views: 3559

Re: When one reaches FI?

What are your household monthly expenses? What are you including in that? Cars will need replacing eventually, as will roofs and other expensive parts of home ownership. How much is your property tax? One way I think about FI, is if you just spent down your money and there was no growth, how many month's of living expenses do you have? That helps me think about how much it actually is. Investments ideally go up over time. But they do not always do so. Would you withdraw a set amount each year to live on, or only pull out growth? Explain where the $30,000 number is coming from? How will your social security income change if you stop work now? I believe the estimated amounts assume continued work. Will your spouse be working or also not worki...
by Lafder
Sat Apr 22, 2023 1:59 pm
Forum: Personal Investments
Topic: Windfall advice and portfolio review
Replies: 7
Views: 1727

Re: Windfall advice and portfolio review

Thank you all for the comments. I am a big believer in safe cars since my parents bought a used Volvo for me as my first car for the reason of safety. Our oldest car is a 2015 Subaru with Eyesight. We have our eyes on a new electric plug in vehicle as our next car. But we can't justify the big expense when our current cars are still very good, yet not worth much as trade ins. We are unsure if this windfall will push us to make the purchase. My husband leans towards investing the windfall, and keeping the mortgage as is, as long as I am still working. I think I am leaning towards paying off the mortgage since that will lower our fixed monthly expenses and increase my comfort with working less and retiring sooner which my husband says he is i...
by Lafder
Sat Apr 22, 2023 12:58 pm
Forum: Personal Investments
Topic: Chocolatebar's Portfolio
Replies: 146
Views: 12933

Re: Bogleize Chocolatebar's Portfolio

Chocolatebar, I admit I do not understand leverage. Wouldn't it be more accurate to show a negative "loan" amount against each of your leveraged accounts? A listing of the amount owed makes more sense to me than saying leverage 1.25x. Admittedly it is my lack of knowledge, but how would I use the 1.25 leverage to calculate the value of the account? Isn't the true value of the account the current value minus loan value since you owe that amount if they call it due? And you owe the amount eventually no matter how well the account does, so it is always a subtraction on account value. I get that it hopefully becomes insignificant since the borrowed amount hopefully grows more than the amount owed back. Isn't that how you leverage, by ...
by Lafder
Sat Apr 22, 2023 11:24 am
Forum: Personal Investments
Topic: Chocolatebar's Portfolio
Replies: 146
Views: 12933

Re: Bogleize Chocolatebar's Portfolio

You are still missing an important detail about looking at your portfolio. Change your % to equal 100% across ALL accounts. This really helps you see the big picture with your holdings. As individual investors, we are never going to beat the institutions with fancy computers and insider information. (My opinion is that they do have information before we do even if only in a completely legal way) If leveraged investments always worked, everyone would do it. The problem is when it doesn't work. Then it sets you back farther than if you had just had a 3 fund portfolio. The reason for having stocks and bonds is that the bonds buffer the big drops when they happen. Think of the tortoise and the hare. Who wins depends on how long and where in the...
by Lafder
Fri Apr 21, 2023 7:45 pm
Forum: Personal Investments
Topic: Chocolatebar's Portfolio
Replies: 146
Views: 12933

Re: Bogleize Chocolatebar's Portfolio

Chocolatebar, I hope you stick around. There is wisdom to be found on Bogleheads! Generally it is a friendly and supportive place. I am sorry posters were harsh when you bared yourself by posting your holdings and hopes and dreams! You started out by saying bogleize my portfolio. This tells me that you understand the benefits of a boglehead portfolio. But there is a transition and shift in beliefs required to change what we come here with, to get to a true boglehead portfolio. And yes it is ok to be on this forum and not follow a strict 3 fund boglehead portfolio and not drive a Toyota Corolla. My suggestion is to go back to your original post and change your percentages to all add up to 100%, instead of 100% per account type. This will rea...
by Lafder
Fri Apr 21, 2023 3:48 pm
Forum: Personal Investments
Topic: Windfall advice and portfolio review
Replies: 7
Views: 1727

Windfall advice and portfolio review

Emergency funds: Yes, checking account at almost 0 interest. 6 plus month's expenses. Debt: Mortgage on primary residence $277,800 at 3.625 interest. 20 years left on a 30 year loan. Tax Filing Status: Married Filing Jointly, with 2 Dependent adult Children (in school) Tax Rate: 24% Federal, 15% capital gains, State 4.9% Age: 55 and 59 Desired Asset allocation : 65% stocks / 35% bonds Desired International allocation: 40% of stocks (I am not committed to this % International) Portfolio size lower 7 figures (3,xxx,xxx) Current retirement assets (low cost mutual funds, using 3 fund portfolio model) Current Asset Allocation 66/34 ( not incl windfall) 35.3% of stocks are International Including windfall: 56.2 %stocks/23.4% bonds/20.4% cash Taxa...
by Lafder
Thu Apr 20, 2023 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to fire an accountant?
Replies: 26
Views: 4369

Re: How to fire an accountant?

Thank you all again for the comments.

I wrote an email listing the mistakes, said I expected to not be billed since a completed return was not done, and because an extension was filed in spite of me providing all info by their deadline.

I was very polite and acknowledged the first year with a client is the hardest.

I got a response of "Thank you" and it was copied to the other person who worked on the return. So I believe it is done with this office.

I have a plan in place to get a new return done.
by Lafder
Tue Apr 18, 2023 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: How to fire an accountant?
Replies: 26
Views: 4369

Re: How to fire an accountant?

All good points. They do not do any type of accounting details for my business other than the return. So there was nothing they prepared other than entering numbers I provided. But, they did not even do that correctly. (using different /wrong numbers, leaving things off) I do not want to pay for the work to generate an inaccurate return, and I do not want to pay for them filing the extension electronically. If they had entered the information without errors it would have been a return that got filed, and no need for the extension. I pointed out the errors on Friday when they finally got a return for me to review, and they still had time to address my concerns and correct the errors and get it in on time. Not creating a usable return, and no...
by Lafder
Tue Apr 18, 2023 11:44 am
Forum: Personal Finance (Not Investing)
Topic: How to fire an accountant?
Replies: 26
Views: 4369

Re: How to fire an accountant?

This was the first year using this accountant at the firm who sold himself to me by saying he was higher tech than the one that left and all documents could be uploaded electronically using a program. I filled out the questionnaire they provided, which was very similar to the last paper and pencil one. There were pages of the questionnaire referring to each extra entity. We have my sole proprietor business, and 2 rental homes. I filled in every blank on the forms they requested. My business provides a service and I am paid directly and the only employee. I included my total collected income, gross receipts taxes collected and paid, expenses, and solo401k contribution on the forms they had me fill out. They were so below my minimum standard,...
by Lafder
Tue Apr 18, 2023 1:26 am
Forum: Personal Finance (Not Investing)
Topic: How to fire an accountant?
Replies: 26
Views: 4369

How to fire an accountant?

***Resolved*** I wrote a termination of services email and it was accepted without rebuttal The accountant I have used the past few years left. I decided to go with a different accountant, one of the partners at the same office. My returns are on file with them. I got my paperwork in by the deadline they requested to do an on time return. The return they presented to me last week had major errors. Wrong max solo401k amount (forgot to include catch up provision which I had to point out to them), penalty for late payment because they did not include my estimated tax payments (they only realized when I questioned why there was a penalty). This really shook my confidence and I went through the return and discovered they used the amount from my ...
by Lafder
Mon Apr 17, 2023 12:24 am
Forum: Personal Finance (Not Investing)
Topic: Selling 6 figure home and downsizing
Replies: 17
Views: 3509

Re: Selling 6 figure home and downsizing

I have been considering the same question. Note a home over 999,999 would be a 7 figure home. In addition to commission costs, you need to consider costs of fixing and cleaning up the home to sell, the costs of moving, the stress of getting ready to sell, showing the home, and the stress of moving. Then in the new home, will it be smaller and you needed to get rid of belongings? Will there be extra expenses fixing up the new home or making it as you wish? Plus the stress of getting settled into the new home. In your current home you have an idea of expenses and possible repairs. The new home will have surprise expenses even with inspections. In my case, we are also considering a house in a similar price range as our current home, but a smal...
by Lafder
Mon Apr 17, 2023 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k 5500-EZ signing as both the employer and plan administrator
Replies: 8
Views: 830

Re: Solo 401k 5500-EZ signing as both the employer and plan administrator

If it lets you check both boxes, check both since it is most correct.

If the online form does not allow you to check both, I would chose Employer over administrator since it seems more important to me. But I see no problem checking just administrator since either employer or administrator is allowed to submit.

You are both, so either is correct.

But it is confusing and contradictory to say "check only one" in one place and "check both boxes" in another.

You are over thinking this.

The thing they care most about is the amounts and the identification number. Your name is there so it shows who submitted it. The form will be received whichever box you check.
by Lafder
Sat Apr 15, 2023 10:54 am
Forum: Personal Finance (Not Investing)
Topic: What legal and repair fees can I add to property cost basis?
Replies: 6
Views: 1063

Re: What legal and repair fees can I add to property cost basis?

Repairs, maintenance and cleaning are generally expenses and do not add to your cost basis. Remodeling and upgrades can add to your cost basis whether it was a rental or your residence at the time. In your case, perhaps the 40k out of pocket could add to your basis depending on what was done. I agree there is a gray area ........were you doing repairs or upgrades? it could be both such as replacing broken tiles with nicer tiles. I would call that adding to cost basis since you end up with something nicer than when you started. Fixing a crack in a foundation sounds like a repair to me. Was there an improvement with the repair? As far as I know, legal fees would be a personal expense that you just pay if you lived in the home at the time. But...
by Lafder
Fri Apr 14, 2023 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: Land Sale
Replies: 16
Views: 1514

Re: Land Sale

I would wait and sell all 60 at once.

Is it 2 parcels for tax purposes? How does the county consider the land and ownership? Who has been paying property tax on the 10 acre parcel?

When you bought the land was there title insurance?

Ask a title company to do a title search and see what they say.

I would trust a title company that is willing to insure ownership/title more than a surveyor or neighbor.
by Lafder
Sat Jan 28, 2023 11:54 pm
Forum: Personal Investments
Topic: From which accounts should my mom gift a large sum of money?
Replies: 90
Views: 8645

Re: From which accounts should my mom gift a large sum of money?

I understand your mom wants to gift her money now while she is alive. She does not have to give the full 17,000 per person at one time. She could give a smaller amount now such as 5000 or 10000, and decide later in the year to give more or not. (And she can repeat her gifting next year and so on. Depending on the age of the grandkids and temperaments of all receiving gifts, several smaller gifts could be more wisely spent) With smaller gifts, she gets the best of both worlds of enjoying giving gifts, and having money for herself if needed. ((I would discourage my mom from giving such a high percentage of her assets and paying unnecessary taxes on it that will not be charged if it is inherited. That would discourage my mom since she dislikes...
by Lafder
Tue Jan 03, 2023 10:42 pm
Forum: Personal Investments
Topic: HSA ? Separate for each spouse, or just 1 ?
Replies: 11
Views: 1081

Re: HSA ? Separate for each spouse, or just 1 ?

My spouse has a Fidelity HSA and I went ahead and opened one for myself today. I am adding agent authorization so we can see each others' when we log onto our own accounts,
by Lafder
Tue Jan 03, 2023 9:33 am
Forum: Personal Investments
Topic: HSA ? Separate for each spouse, or just 1 ?
Replies: 11
Views: 1081

Re: HSA ? Separate for each spouse, or just 1 ?

Thank you all. Those 3 answers covered my exact uncertainties.

I did read that IRS publication. For some reason my brain just does not process the language IRS forms are written in :0 Or I have a psychological block when I try to read them.

Happy New Year to all!
by Lafder
Tue Jan 03, 2023 8:59 am
Forum: Personal Investments
Topic: HSA ? Separate for each spouse, or just 1 ?
Replies: 11
Views: 1081

HSA ? Separate for each spouse, or just 1 ?

We are insured with a high deductible health plan that allows an HSA. It was through my spouses's work and we continued the coverage with COBRA. So it is not direct payroll deductions to fund the HSA. I read that the max contribution for self only is $3850 plus $1000 catch up for him (58 yo), and $3850 for me (54, will be 55 this year, do I get the catch up too?). Family max looks like it would be $8750 including his catch up. Or is it $9750 since I turn 55 this year so we both get a catch up? Does the family limit apply across all accounts if we are able to do a his and her HSA, or is it per account ? Can someone clarify if we do a his and hers what the max for each account would be for this year or if we even can have his and hers? I unde...
by Lafder
Sun Dec 04, 2022 9:23 pm
Forum: Personal Investments
Topic: Solo 401k or SEP Ira ( or something else?)
Replies: 18
Views: 1678

Re: Solo 401k or SEP Ira ( or something else?)

A solo401k is not hard to set up manage. I found that the total contribution amount is higher for the solo401k because you can contribute as the employer and employee on the same income. You can look this up and see the max contribution for a SEP vs solo401k for the same income approximating what you think you will make. ((Thanks for the calculator link Thankyoujack!)) For a solo401k I need to make 215,000 to max the contribution at 67,500 (I am over 50). For a SEP, I could only contribute $40,601 for the same income. I would need to make $400,000 income to hit $61,000 Put another way, for 25,000 business income, I can only contribute: $23,234 to a solo401k $4,646 to a SEP IRA This difference in max contributions really makes a difference o...
by Lafder
Wed Aug 03, 2022 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Underwriter Stating My Wife has $208k in Student Loans That We Know Nothing About
Replies: 40
Views: 5631

Re: Mortgage Underwriter Stating My Wife has $208k in Student Loans That We Know Nothing About

Didn't you say your student loan servicer just changed? It sounds like they got the loan balance from the old and new company, and the original company still had the balance due, yet the new one had it as well. As far as your wife "owing" the same amount, I do not have a simple explanation for that other than spouses finances get tangled at times (I know this should not happen with student loans). Was she by chance a cosignor on any of the loans?. Can you show the underwriter your statements from the old and new student loan companies as well as your and your spouse's credit reports that you pulled? Maybe they will tell your wife where her supposed student loans are and she can get a statement from them saying she does NOT have a ...
by Lafder
Mon Feb 07, 2022 9:50 am
Forum: Personal Investments
Topic: New to Investing: Portfolio Review Please!
Replies: 17
Views: 1623

Re: New to Investing: Portfolio Review Please!

Also look into a spousal Roth. A nonworking spouse can have their own IRA or Roth IRA. That might be a place to invest more money for the long term. I agree you can simplify your holdings. I know it is scary to make changes. I get irrational fears about selling holdings too. It should be just a few clicks on your 401k account. Either sell or transfer. Do not look at prices, it only complicates things. There should be an option for "entire balance" or something like that for the asset you want to sell, then a choice for purchases and it often will give an option for "holdings I already own" or something like that to choose from. If in doubt, call the help line and they can walk you through the transfer. It is all within y...
by Lafder
Fri Feb 04, 2022 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Anyone wish they purchased a smaller house?
Replies: 112
Views: 11586

Re: Anyone wish they purchased a smaller house?

Yes. I enjoy the space and light in my home. But the living room is basically an oversized hallway we rarely use, and there are oversized hallways as well.

It's an easier "problem" to wish I was in a smaller home than to feel crowded and wish I was in a larger home.

My long term plan is to find a smaller sized home I like as much as this one. Utilities and maintenance/repairs should be less in a smaller home. And it will make me be more ruthless about not holding onto things I do not need just because I have the space to store them.

Over 4000 square feet, family of 4. It's not just the square footage that matters, it's the layout too.

lafder
by Lafder
Tue Feb 01, 2022 8:40 pm
Forum: Personal Investments
Topic: 401K Advice Needed
Replies: 5
Views: 801

Re: 401K Advice Needed

Take a closer look at the target date funds offered in your plan. Some are much more complex than the Vanguard Target Date funds.
by Lafder
Tue Feb 01, 2022 10:47 am
Forum: Personal Investments
Topic: 401K Advice Needed
Replies: 5
Views: 801

Re: 401K Advice Needed

Vanguard Target Date retirement fund is an index fund of Total stock market, total international stock market, total bond market, total international bond market. Plus, it rebalances for you to stick to it's target goals, and increases bonds over the years. It is an invest and forget type fund. Vanguard Target date funds are very good and require no management on your part. If you want to hold the individual funds and rebalance yourself from time to time, that is fine. But if this is an old retirement account you want to leave alone, I would move all into the target date retirement fund. If you want to move to an SP500 index fund, that is fine too. It depends on your overall holdings and if you have room to rebalance in your other accounts....
by Lafder
Tue Feb 01, 2022 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Rolling Solo 401k to new workplace plan
Replies: 5
Views: 589

Re: Rolling Solo 401k to new workplace plan

Why do you have to terminate the solo401k?

I think the ability to 100% choose your investments is a good reason to keep it. Plus the real possibility of future self employment income.

I have not heard that you must end a solo401k if you get an employed job. Do you have more info on that? I was planning to keep my solo401k when I retire.

I agree simplification is great. But I would only move it into an employer plan if their options are great and costs are low. Otherwise the extra work of keeping track of a solo401k seems worth it to me.

lafder
by Lafder
Mon Jan 31, 2022 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Where do I find the depreciation on a rental property on my tax return?
Replies: 4
Views: 687

Re: Where do I find the depreciation on a rental property on my tax return?

Since my last post, I think I have read that I need to look at the number of years of "qualifying" residence. We lived in the home 13 years. Rented it 8 years. Starting 2013. If we move back in for 2 years , we will have lived there 15 of 23 years. 15/23 is 65.22% Does this mean that if we move back in for 2 years, we only could exclude up to 65.22% of 500k (=326,100) profit on the sale before we owe capital gains tax on the rest of the "profit? I am hoping we have that much in gains, but I am not sure we do. Who knows where the market will be in 2 years. I am also understanding that the depreciation recapture comes out of the profit from the sale? So from the profit, you subtract the depreciation and I would owe 25% on that....
by Lafder
Mon Jan 31, 2022 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Where do I find the depreciation on a rental property on my tax return?
Replies: 4
Views: 687

Re: Where do I find the depreciation on a rental property on my tax return?

I believe I posted the relevant numbers from the depreciation worksheet/ page that is with my copy of my tax return. ( To me it is all part if my tax return since it is in the packet I get back from my accountant).

I was hoping for help knowing which numbers I should be looking at.

I thought moving back into a rental as my primary residence for 2 years would give us the 500k exclusion for capital gains for a married couple? So it is kind of a "get out of jail free card" for gains on your primary residence. What am I missing on this?

I understand we have to recapture the depreciation as a rental when eventually sold. We are not interested in a 1031 exchange.

lafder
by Lafder
Mon Jan 31, 2022 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Where do I find the depreciation on a rental property on my tax return?
Replies: 4
Views: 687

Where do I find the depreciation on a rental property on my tax return?

I am trying to figure out which numbers on my tax return are the cost basis of my rental home, and which numbers are the total depreciation I will need to recapture, so I understand what I am getting myself into. We are planning to sell our former home, rental of 9 years. We are trying to decide how much $ to put into fixing it up versus sell just cleaned up. We are also considering moving back in for 2 years to avoid the capital gains tax, and sorting out if the stress of a move outweighs the costs/savings. I think I do understand depreciation recapture at up to 25% depending on income, and capital gains tax on any profit as 15% (at our income level). But I am not sure I am clear on what numbers those % are based on. These are from 2020 ta...
by Lafder
Mon Jan 31, 2022 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Mother-in-law financial mess
Replies: 57
Views: 6092

Re: Mother-in-law financial mess

I am sorry for the stress. If she is competent to make her own bad decisions, there may be little you or your spouse can do if she refuses help. I would NOT help her pay off (using your money or her money) credit cards. The best way to insure she does not run up more credit card debt it to be maxed out and not paying her cards. So that is a self limiting problem. It is ok if her credit is bad, it limits additional debt. If she doesn't think there is a problem there is little you can do unless she is truly incompetent. "Bad" choices do not equal legal incompetence. I would find out what SHE thinks her biggest concerns are and try to address what she identifies. Such as, if she says buying food or running out of money at the end of ...
by Lafder
Fri Jul 09, 2021 7:20 pm
Forum: Personal Investments
Topic: Transferring SEP IRA & Roth into Vanguard
Replies: 14
Views: 1033

Re: Transferring SEP IRA & Roth into Vanguard

You can set up a new SEP IRA at Vanguard and move your current SEP to it. That is just changing custodians and the money stays in a SEP the entire time. You should look into a solo401k, if you have no employees other than you and your wife. The max /year can be higher at certain incomes since you can contribute as the employer and employee. When I last checked, Vanguard did not allow you to transfer into solo401k's from outside companies, so I had to start a solo401k at Fidelity since they allowed me to consolidate accounts. I opened a solo401k at Fidelity, and transferred my Vanguard SEP into it. I agree that it is complicated to have a SEP and do a backdoor Roth. That is another reason I switched to a solo401k. They do not count against b...
by Lafder
Mon Feb 01, 2021 11:16 pm
Forum: Personal Investments
Topic: Would you rebalance? Time to update IPS?
Replies: 12
Views: 1444

Re: Would you rebalance? Time to update IPS?

Thank you all for the comments. It helped me pull the trigger and sell some US stocks and buy bonds to get closer to our IPS. Just the peer support of your comments helped me take action. And they helped me see it was ok to wait too. I am seriously thinking about switching to target date funds. I always say I would suggest them for my husband if I died or became incapacitated, since he will likely never rebalance other than by choosing where to withdraw from. So I looked, and LOL, my husband's 401k is managed by Fidelity/Netbenefits. But the Target Date Funds they offer are the Vanguard Target Date funds, which I happen to prefer. My 401k is also Fidelity and it is a solo401k so I can basically hold anything I can get through Fidelity. I am...
by Lafder
Mon Feb 01, 2021 2:06 pm
Forum: Personal Investments
Topic: Would you rebalance? Time to update IPS?
Replies: 12
Views: 1444

Re: Would you rebalance? Time to update IPS?

No pension, just 401k's and Roths. Plus social security we will likely take at the latest possible age. Some rental income as well. Possible inheritance but not of amounts significant to change our plans. If there is any left, it is less than we have saved for ourselves. Jobs relatively stable. But, both of us are burning out on work. I have decreased my hours. He cut back last year. I will probably retire via a slow fade of cutting back over the next decade or more depending on if I am still enjoying my work. My spouse may do a sudden quit when he can not stand it. Our biggest issue with him not having a job is health insurance since we use his employer's plan. If we majorly downsize, we may have enough to retire. But, I would rather work ...
by Lafder
Mon Feb 01, 2021 9:01 am
Forum: Personal Investments
Topic: Where would you tell a 20 yo to invest 5000$
Replies: 59
Views: 5137

Re: Where would you tell a 20 yo to invest 5000$

Thank you all for the comments.

We joke that he should have put it in GME instead of asking me!

Target date or Lifestrategy it will be.............when he gets around to it. I know, time matters........

lafder
by Lafder
Sun Jan 31, 2021 11:18 pm
Forum: Personal Investments
Topic: Would you rebalance? Time to update IPS?
Replies: 12
Views: 1444

Would you rebalance? Time to update IPS?

I really dislike rebalancing by selling one category and buying another (My own magical thinking and anxieties, I can do it if I really need to). Whenever possible, I rebalance by where I put new money going into the accounts. This works most of the time. I do not make a change if it is within 5% of my IPS. But does that mean all 3 categories are off by 5%, or do I need to make a change if just 1 category is off? I know some of you will pick up on me interchanging my/I/Our/We. My spouse trusts me to handle all of this and no longer even asks about it. He has access to all accounts and chooses not to pay attention. We do have power of attorney for each other. So it is our accounts (His, Hers, and Ours) but it is me making the decisions for a...
by Lafder
Sun Jan 17, 2021 5:18 pm
Forum: Personal Investments
Topic: Where would you tell a 20 yo to invest 5000$
Replies: 59
Views: 5137

Re: Where would you tell a 20 yo to invest 5000$

Assume many year timeline, 10-20 years.

Minimal expenses for now, we support him while he is in school. He has a car that should last years.

It is his mom who never learned the $ comes first in all of my years of post grad education!

Here is his official answer " I don't know, 30 years or something. To have it somewhere it will multiply so I have a greater chance of being wealthy when I am older."

lafder
by Lafder
Sun Jan 17, 2021 4:30 pm
Forum: Personal Investments
Topic: Where would you tell a 20 yo to invest 5000$
Replies: 59
Views: 5137

Where would you tell a 20 yo to invest 5000$

My son just asked me about investing his savings of 5000$ instead of letting it sit in his savings.

He does not have a job to do a Roth or IRA, he is a full time student.

I would say a late year target date retirement, lifestrategy growth, or total stock market, or SP 500.

What do you recommend?

lafder
by Lafder
Mon Jan 04, 2021 8:44 am
Forum: Personal Investments
Topic: Let Extra Money Sit In Emergency Fund, Invest in VG Growth Index, Pay down LOC?
Replies: 7
Views: 535

Re: Let Extra Money Sit In Emergency Fund, Invest in VG Growth Index, Pay down LOC?

Is the line of credit still open so you can pull from it if you need $ ? If yes, I would figure out what amount you want to have as cash. I have heard 1-12 months' expenses for an emergency fund. Then I would pay the amount over what you need to feel comfortable towards the LOC. The LOC has a guaranteed expense of the interest rate. Only you can decide whether it feels better to have cash sitting in your other account and paying the interest payments on your LOC, or having less cash and less debt on the LOC. I could take some of my emergency fund and pay down my mortgage for a guaranteed savings of the interest rate. But I feel more secure having the extra cash even if it is earning basically nothing other than peace of mind :) My answer is...
by Lafder
Mon Jan 04, 2021 8:15 am
Forum: Personal Investments
Topic: I’m about to turn 18, how can I invest for maximum lifetime gains and where do I start?
Replies: 29
Views: 2529

Re: I’m about to turn 18, how can I invest for maximum lifetime gains and where do I start?

If and when you have earned income, I would try to max a Roth IRA. But, think of that as something you will not take out until retirement. If you want an account you can withdraw from sooner, just a plain investment account without special retirement account designations. KISS, keep it simple. A total stock market index fund, or Vanguard LIfe Strategy Growth, or a later year (close to when you will be 65 as a rough estimate) Target Date retirement fund. The latter 2 are all in one accounts with a mix of mutual funds. The Life Strategy growth has mostly stock as does the target date retirement account. The difference is that the target date retirement accounts add a higher % bonds with age. I helped my daughter set up a Roth with her first j...
by Lafder
Mon Jan 04, 2021 7:49 am
Forum: Personal Investments
Topic: Back door Roth - Converting Traditional IRA to Roth
Replies: 28
Views: 1962

Re: Back door Roth - Converting Traditional IRA to Roth

The bottom line is:

If you are doing non deductible IRA to Roth conversions, you want your IRA balance to be zero by 12/31 each year. This will greatly simplify things.

I would go ahead and convert the entire IRA to Roth and pay the income tax this year on gains. This will simplify all of your future back door Roth transactions and reporting.

:)
Lafder