Search found 323 matches

by Greenman72
Thu Jul 18, 2019 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Just Bought an Annuity
Replies: 166
Views: 14777

Re: Just Bought an Annuity

Also, IOVA's are extremely useful for people who have large stashes of money that they know they will never use. (Yes--these people exist.) I have a client who makes about $2m per year in oil & gas royalties. He also has several million dollars in securities that he never ever plans to use--he just...
by Greenman72
Wed Jul 17, 2019 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Pass-Through S-corp, should I open solo 401k or SEP?
Replies: 3
Views: 310

Re: Pass-Through S-corp, should I open solo 401k or SEP?

Ultrashort version - the 401k is slightly better then the SEP. You can contribute more and it doesn’t have to get aggregated if you do a Roth conversion.

However, once you reach $250k in the 401k, you have an additional tax filing to do. It’s not difficult, but it’s one more thing to stay on top of.
by Greenman72
Tue May 28, 2019 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: "Soft" question on student loans
Replies: 72
Views: 3102

Re: "Soft" question on student loans

There is no single correct formula for "financial parenting." Perhaps you are trying to impose your non-financial values upon clients who do not share the same values and that is frustrating you? This is possible. But it's less about "values" and more about "fungibility" and behavioral finance. Are...
by Greenman72
Tue May 28, 2019 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: "Soft" question on student loans
Replies: 72
Views: 3102

Re: "Soft" question on student loans

Here's what a student loan really is: debt that, if you can't afford to pay it, will never go away unless you die, can't be bankrupted, can't be refinanced (as of a recent law change), and lenders will never, ever do an "offer in compromise" or similar negotiated deal and accept a reduced amount up...
by Greenman72
Tue May 28, 2019 9:58 am
Forum: Personal Finance (Not Investing)
Topic: "Soft" question on student loans
Replies: 72
Views: 3102

Re: "Soft" question on student loans

In my case I plan to pay for my kids university because I can afford to do both. For the vast majority of Americans, especially the financially illiterate ones, they'll be lucky if they can do either one. And please don't focus on the specifics of the example. It's just an anecdote that represents ...
by Greenman72
Tue May 28, 2019 9:20 am
Forum: Personal Finance (Not Investing)
Topic: "Soft" question on student loans
Replies: 72
Views: 3102

"Soft" question on student loans

In the very recent past, I have met with multiple clients who all say some variation of the same thing. The details differ somewhat, but the basic message is the same. "I bought my daughter a car and financed it. Later my daughter bought a house and she financed it. But when she went to college, I p...
by Greenman72
Wed May 22, 2019 8:37 am
Forum: Personal Finance (Not Investing)
Topic: I evaluated taking SS at age 62 versus age 70
Replies: 67
Views: 5072

Re: I evaluated taking SS at age 62 versus age 70

^+1.

Strange flex, but ok.

Actually, it's very easy to determine the optimal age to begin taking Social Security. All I need to know is what age you plan to die. If you provide that, I'll give you an exact answer.
by Greenman72
Wed May 15, 2019 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 3022

Re: Benefits of becoming an independent contractor

^Contacting a professional is against our religion. I hope you get banned for even suggesting it.

How dare you suggest that a totally clueless person actually.....*gasp*....pay for help!?!?!?
by Greenman72
Wed May 15, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 3022

Re: Benefits of becoming an independent contractor

or a "shareholder's meeting" in Vegas or Orlando. Aren't you a CPA. Come on, a shareholder's meeting for one shareholder??? Well, his wife could also be a shareholder. I would probably allow this, depending on how much money they made and how much the shareholder's meeting cost. If you made $500,00...
by Greenman72
Wed May 15, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 3022

Re: Benefits of becoming an independent contractor

Haven't read all the replies, but here is my ultrashort take on the matter: Assuming you have work to do, and won't starve....independent contractor is almost always better than employee. In fact, assuming that you're making enough to cover the additional costs of being a contractor (continuing ed, ...
by Greenman72
Wed May 15, 2019 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Question on tax implications and what needs to be done
Replies: 22
Views: 1688

Re: Question on tax implications and what needs to be done

You should look carefully at the safe harbor rules which permit you to pay an amount equal to your 2018 tax in equal quarterly installments if your AGI was less than $150,000 or 110% of that amount if greater than $150,000. If you fall under those provisions you can then pay the balance in April 20...
by Greenman72
Tue May 14, 2019 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Buying a "new" car - Advice pls
Replies: 76
Views: 6426

Re: Buying a "new" car - Advice pls

So essentially what you're saying is, if I plan on driving it that long or "until the wheels come off", I don't need to take into account its resale/salvage value or depreciation, correct? If you plan to drive it forever and ever and ever amen, and never ever ever plan to sell it, why would you car...
by Greenman72
Tue May 14, 2019 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Buying a "new" car - Advice pls
Replies: 76
Views: 6426

Re: Buying a "new" car - Advice pls

Reminds me of my mom: She was debating getting a new (used) car. She asked the car salesman whether she should keep driving hers or buy a new one. (I told her never to ask a barber whether you need a haircut.) He told her, "It's better to sell a car for $1,000 than to wait until it's worthless. At l...
by Greenman72
Tue May 14, 2019 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Buying a "new" car - Advice pls
Replies: 76
Views: 6426

Re: Buying a "new" car - Advice pls

Personally--in my experience, new cars cost a whole lot less than used cars, once you take into account all of the expenses associated with the car. I've owned many used cars that crapped out after 2-3 years, and usually had significant maintenance expenses associated with them. The only new car I'v...
by Greenman72
Tue May 14, 2019 6:28 am
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1101

Re: How to Figure Payroll Taxes for S-Corp?

^ +1 to "there is no standard practice. Some do and some don't."

I know that there are CPA firms out there in the world that will still do payroll. But they will probably cost about the same (if not more) than a payroll company.
by Greenman72
Mon May 13, 2019 10:31 am
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1101

Re: How to Figure Payroll Taxes for S-Corp?

I'm a CPA and I also do not do payroll.

My advice--cough up the money and pay for a payroll service, such as Paychex. Once you take into account the value of your time, you will realize that it costs a lot less than you think.
by Greenman72
Mon May 13, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Leaving My CPA
Replies: 22
Views: 2471

Re: Leaving My CPA

I should add this--I'm a CPA. I work with a lot of CPA's. And rarely do I ever see CPA's giving advice. It's just not in their DNA. They record history and put it on a government-prescribed form. To the extent that you CAN get a CPA to give advice, it will be limited to 1.) this year, and 2.) what's...
by Greenman72
Mon May 13, 2019 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Leaving My CPA
Replies: 22
Views: 2471

Re: Leaving My CPA

Hi I have had same CPA for last 20 years (My Brother) . He does my year end returns but does not offer any tax advice, tax loss harvesting , tax strategies. I asked him about NUA and he shrugged his shoulders. I provide him all my receipts and for $600 he files my taxes. I am of the mind to leave h...
by Greenman72
Sat May 11, 2019 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: W-2 earner looking to lower effective tax rate
Replies: 33
Views: 4054

Re: W-2 earner looking to lower effective tax rate

Easiest way to pay less in tax—make less money.
by Greenman72
Wed May 08, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Going solar
Replies: 29
Views: 2333

Going solar

We just had a hailstorm where I live. Golf-ball sized hail. I haven't got an adjuster out to look at it yet, but I anticipate getting some money for my roof. If I'm going to have to replace the roof anyway, I'm debating on installing some solar panels. My electric bill is ~$350 per month (it costs a...
by Greenman72
Tue May 07, 2019 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Will vs POD?
Replies: 16
Views: 1924

Re: Will vs POD?

^when the court says it’s closed, it’s closed.

At least until it gets re-opened.
by Greenman72
Mon May 06, 2019 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Will vs POD?
Replies: 16
Views: 1924

Re: Will vs POD?

.....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it..... As a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on th...
by Greenman72
Mon Apr 29, 2019 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a hail-damaged car?
Replies: 42
Views: 2531

Re: Buying a hail-damaged car?

^I should add that the owner is upside-down on the car by about $13k. That may have something to do with the payout. Maybe the "real" payout is $36k, 23 to the owner, and 13 for gap insurance.
by Greenman72
Mon Apr 29, 2019 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Overfunded 401k
Replies: 10
Views: 896

Re: Overfunded 401k

willygreen wrote:
Mon Apr 29, 2019 8:40 am
If we don't send them the money, the letter says they will send her a 1099-MISC for the amount.
Hmmmmm.....let me see. Let's assume that you're in the 24% tax bracket. You can either pay them $7,000 or you can pay $1,680 in taxes.

Let me think about this for a while.
by Greenman72
Mon Apr 29, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a hail-damaged car?
Replies: 42
Views: 2531

Re: Buying a hail-damaged car?

How much are you really saving by buying that car for $23k? I don't know what trim and features your coworker got, but there are tons of Muranos without body damage on the market for that price. https://www.autotrader.com/cars-for-sale/Nissan/Murano/New+York+NY-10109?makeCodeList=NISSAN&searchRadiu...
by Greenman72
Mon Apr 29, 2019 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a hail-damaged car?
Replies: 42
Views: 2531

Buying a hail-damaged car?

We had a pretty bad hailstorm out here last week. Golf-ball sized. My car is a 15-year Mazda Tribute. 225k miles. It's still a good car, but I'm wondering how long it will last. (Yes, it got some dings last week too, but there's zero chance that I'll pay $1,000 to fix a $500 car.) A coworker has a b...
by Greenman72
Sun Apr 28, 2019 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Advice
Replies: 10
Views: 1145

Re: Financial Advice

Look at https://garrettplanningnetwork.com/ or http://www.feeonlynetwork.com/. You can often find financial advisors that work on an hourly or project basis depending on what you need. Definitely interview folks on your shortlist. Most people will not charge for the first hour-long meeting that cov...
by Greenman72
Sat Apr 27, 2019 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with this car?
Replies: 7
Views: 856

Re: What to do with this car?

I just got rid of a quality, but older model car by giving it to a church. There was a teenager who just got out of a bad situation (abusive, alcoholic parents) who needed a ride. Worked out for all of us.
by Greenman72
Fri Apr 26, 2019 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a Financial Advisor
Replies: 41
Views: 2086

Re: Becoming a Financial Advisor

...I might have to work for an advisory firm that may or may not be thrilled by my plan. Boy, you can say that again. "Hi, my name is mchampse, and I'd like to come to work at your RIA. My business plan is to give away our principal product (which is our knowledge) for free to half the clients. The...
by Greenman72
Thu Apr 25, 2019 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Form 709
Replies: 8
Views: 456

Re: Form 709

Plus, the IRS allows you to front-load 528’s with five years of exemption, so you could have put in $140k and still been safe.

Edit - the lawyer beat me to it. But I wonder why he says that he would rather file the 709’s than have the CPA do it. Seems like tax compliance is a CPA’s job.
by Greenman72
Thu Apr 25, 2019 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a Financial Advisor
Replies: 41
Views: 2086

Re: Becoming a Financial Advisor

I think the barrier to entry which includes a years-long apprenticeship is too high for this. And then it takes a lot of work to build a client base. Do you want to put in that work in order to give people vanilla advice for little to no money? The little to no money isn’t a concern for me, though ...
by Greenman72
Wed Apr 24, 2019 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Financial planning for the ill informed
Replies: 35
Views: 3148

Re: Financial planning for the ill informed

In practice, this is what I think you'd be facing. 1. You have to take (and pass) the Series 65. Probably not a hard task, but one that does involve some studying, just because it is a lot of legal mumbo-jumbo. (Once you pass, you can forget everything you learned. It is 100% useless in real life.) ...
by Greenman72
Wed Apr 24, 2019 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Examples of financial accounting rules not applicable to personal finance?
Replies: 60
Views: 2710

Re: Examples of financial accounting rules not applicable to personal finance?

Texanbybirth wrote:
Wed Apr 24, 2019 1:10 pm
For me as a CPA, I spend enough time running someone else's books to run my family's the same way. It's just not something I care enough about when I'm off work! :beer
+1
by Greenman72
Wed Apr 24, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Examples of financial accounting rules not applicable to personal finance?
Replies: 60
Views: 2710

Re: Examples of financial accounting rules not applicable to personal finance?

Suppose I purchase a computer on 4/20/2019 w/ credit card and will payoff credit card bill on 5/15/2019. Should I recognize the expense on April (using accrual) or May (using cash basis)? You will debit "Computer Expense" and credit "Credit Cards Payable" on 4/20/19. Then you will debit "Credit Car...
by Greenman72
Wed Apr 24, 2019 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Examples of financial accounting rules not applicable to personal finance?
Replies: 60
Views: 2710

Re: Examples of financial accounting rules not applicable to personal finance?

I am a CPA, which means I have taken all of the financial accounting classes. I am also a certified financial planner, which means I have taken all of the personal financial planning classes. It would be quicker and easier to tell you what financial accounting rules ARE applicable to personal financ...
by Greenman72
Wed Apr 24, 2019 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Credit Card Madness, Seeking Help
Replies: 23
Views: 2987

Re: Credit Card Madness, Seeking Help

This advice isn't exactly what you're looking for, but I feel compelled to offer it anyway. I have a good friend who used to be a divorce lawyer. And he said that of all the divorces that he did, he has almost never seen a situation where a either husband or wife (with property and kids) were better...
by Greenman72
Tue Apr 23, 2019 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Suddenly, even lower opinion of financial planners/money managers
Replies: 67
Views: 5938

Re: Suddenly, even lower opinion of financial planners/money managers

confusedinvestor wrote:
Tue Apr 23, 2019 11:06 am
Rick is starting hourly financial planning model, you can listen to the latest Boglehead post with Rick and Allan.
Straight from the horse's mouth....
Rick Ferri wrote:
Sat Apr 06, 2019 12:58 pm

I am not a financial planner and do not do financial plans.
by Greenman72
Tue Apr 23, 2019 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Suddenly, even lower opinion of financial planners/money managers
Replies: 67
Views: 5938

Re: Suddenly, even lower opinion of financial planners/money managers

I've talked to 50+ financial planners / advisors but yet to find a 100% 'boglehead' CFP (exclusion Roth A, Ferri R ) I wouldn't consider Rick Ferri a "financial planner". He himself says that he doesn't do financial planning. I do think he is an excellent investment advisor, though. (I know a lot l...
by Greenman72
Mon Apr 22, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Suddenly, even lower opinion of financial planners/money managers
Replies: 67
Views: 5938

Re: Suddenly, even lower opinion of financial planners/money managers

^ A few thoughts: 1. If you want to give financial advice for free, then there's no reason to register. You only need to register if you want to get paid. 2. You are correct in your assessment that there are very few barriers to entry to be a "financial advisor". Like I tell all my customers, "Docto...
by Greenman72
Mon Apr 22, 2019 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Suddenly, even lower opinion of financial planners/money managers
Replies: 67
Views: 5938

Re: Suddenly, even lower opinion of financial planners/money managers

You’re a CPA? Then perhaps you should not use your experience to pass judgment on the difficulty of the test? No, I am neither CPA or attorney, and do not possess an accounting, finance, or law degree. For what it's worth, my fall/winter "on a whim" project will be to qualify for and sit for the CP...
by Greenman72
Mon Apr 22, 2019 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Suddenly, even lower opinion of financial planners/money managers
Replies: 67
Views: 5938

Re: Suddenly, even lower opinion of financial planners/money managers

When I first entered the investment advisory world, I had to take three tests. (To note—until this point, I was a grenade-catcher in the Marine Corps. I knew absolutely nothing about personal finance. Didn’t know the difference between a stock and a bond and a mutual fund.) Series 7 - hardest Of the...
by Greenman72
Sat Apr 20, 2019 3:55 pm
Forum: Investing - Theory, News & General
Topic: American Funds vs Vanguard
Replies: 69
Views: 4594

Re: American Funds vs Vanguard

For the record, American Funds’s front end load is the same as pretty much every other fund family. Starts at 5.75% and goes down to zero once you have $1m invested. I think you may be operating from past history, I remember paying those loads back in the 80s and 90s. These days most of the large (...
by Greenman72
Sat Apr 20, 2019 1:53 pm
Forum: Investing - Theory, News & General
Topic: American Funds vs Vanguard
Replies: 69
Views: 4594

Re: American Funds vs Vanguard

Does that really sound favorable to you: “ If someone held a gun to my head and said I couldn’t have my index funds, American Funds is one of the least-bad active fund providers. ” There is no way that I would ever pay a front-load. Period. End of Discussion. The sales loads and 12b-1 fees are ther...
by Greenman72
Sat Apr 20, 2019 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Canada/Permanent US Resident- Does anyone pay capital gain when house is inherited?
Replies: 10
Views: 290

Re: Does anyone pay capital gain when house is inherited?

Being from the US, and living in a state with no income tax, I can’t opine on the Canadian tax system.

However, in the US, I would say “no capital gains tax”. The house is stepped up in basis, and the estate tax exclusion is actually ~$11.4m.
by Greenman72
Sun Apr 14, 2019 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Late K1
Replies: 9
Views: 982

Re: Late K1

You can wait for the IRS to issue an assessment, in which case you will likely owe just the additional $200 tax, plus interest. +1 Wait on the IRS's matching letter. Then pay the bill. Amended returns are a headache. And if you go to a CPA, they will charge more than that just to file the amendment...
by Greenman72
Sun Apr 14, 2019 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: No need to file a tax extension form?
Replies: 27
Views: 1774

Re: No need to file a tax extension form?

You’re right. If you don’t owe, there’s no penalty.

But how do you know you don’t owe? You haven’t finished your return.

Think of Filing a 4868 as your insurance. That insures you against having to pay the 5% per month penalty. And it’s free. There’s no reason NOT to do it.
by Greenman72
Sat Apr 13, 2019 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Filing extension, how to estimate payment (Inheritance, no K1 yet)?
Replies: 8
Views: 732

Re: Filing extension, how to estimate payment (Inheritance, no K1 yet)?

Why is every single person on Bogleheads completely resist the idea of paying a professional to do anything? You can either worry about this and do it yourself, or you can pay somebody else to do it. That is, you can either spend 10 hours worrying about it, give yourself a migraine, and forego $200/...
by Greenman72
Fri Apr 12, 2019 4:31 pm
Forum: Investing - Theory, News & General
Topic: For those who were wondering what really happened...
Replies: 19
Views: 8304

Re: For those who were wondering what really happened...

I'm still waiting on my royalty check for the "Core 4" name that you stole from underneath me.
In case you've forgotten my address, you can PM me.
by Greenman72
Fri Apr 12, 2019 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Tax: Schedule E
Replies: 8
Views: 921

Re: Tax: Schedule E

From the Schedule E Instructions: "If you qualify as a real estate professional, rental real estate activities in which you materially participated are not passive activities. For purposes of determining whether you materially participated in your rental real estate activities, each interest in rent...
by Greenman72
Fri Apr 12, 2019 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 401K vs. SEP-IRA
Replies: 18
Views: 758

Re: Individual 401K vs. SEP-IRA

I can only think of a couple reasons to do a SEP IRA vs. a one-participant 401k You can always adopt a one-participant 401k later even if you don't have self-employed earned income that year and rollover the SEP IRA. If this is true, then why not opt for the (much easier) SEP, then when you're read...