Search found 646 matches

by terran
Tue May 22, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: More aggressive investments in Traditional or Roth IRA?
Replies: 2
Views: 330

Re: More aggressive investments in Traditional or Roth IRA?

Yes, given that the more aggressive investment has a higher expected return, it makes sense to put it in the account that doesn't incur tax on growth. Of course, realize that the roth is all yours, but the traditional is a "shared" investment with the government, with your share only being equal to ...
by terran
Tue May 22, 2018 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Should we max out all tax advantaged accounts?
Replies: 9
Views: 925

Re: Should we max out all tax advantaged accounts?

Yes on saving that much. Maybe on whether that much should go into tax-deferral. If you will have a pension too, probably no. If you will not have a pension it is much harder to guess. That's a good point that whether or not you'll you have a pension is a good thing to consider in the traditional v...
by terran
Tue May 22, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: High Deductible Healthcare Plan
Replies: 5
Views: 411

Re: High Deductible Healthcare Plan

During the period you're on the high deductible plan, your HSA account is likely free. Once you move to the same plan, that non-connected HSA account will likely start charging monthly fees. That's a good point. There are some HSA providers that don't charge fees (Lively comes to mind) that you cou...
by terran
Tue May 22, 2018 6:58 am
Forum: Personal Finance (Not Investing)
Topic: High Deductible Healthcare Plan
Replies: 5
Views: 411

Re: High Deductible Healthcare Plan

No, you wouldn't be able to roll them over into a new plan. HSAs are individual plans. For the second question, I think you're asking if you can use the HSA belonging to the person who drops their plan for medical expenses after you switch to a family plan? I don't see why that would be a problem. Y...
by terran
Mon May 21, 2018 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: HSA checking account question
Replies: 1
Views: 175

Re: HSA checking account question

I have asked several different questions about HSA accounts, but I realize I had the interest rate wrong on the checking account. My employer matches $1200 per year that must go into a 1% checking account at a local bank. I moved almost everything to Lively at the end of last year paying a $25 tran...
by terran
Mon May 21, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2206

Re: Frontloading 401k Mistake

Both employers could refuse to return the excess contributions. You would not be able to deduct them, have no way to establish basis and they would be taxable on withdrawal. Are you saying that the only penalty for leaving excess contributions in a tax deferred 401(k) is that you don't get the dedu...
by terran
Sun May 20, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a phrase for that?
Replies: 14
Views: 1096

Re: Is there a phrase for that?

I think you're asking if there's a phrase for reaching a point where you've amassed a large enough retirement portfolio that you can stop contributing, but not withdraw and it will grow to be enough to support you by the time you're near normal retirement age? I've heard that called Barista FI. As i...
by terran
Sun May 20, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Investment allocation
Replies: 13
Views: 561

Re: Investment allocation

alex_686 wrote:
Sun May 20, 2018 11:51 am
terran wrote:
Sun May 20, 2018 11:38 am
I'm confused. Isn't that exactly what I said?
I misread your post. Sorry, you are right.
No worries. Always good to have things said another way. Never know what might click for someone.
by terran
Sun May 20, 2018 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Investment allocation
Replies: 13
Views: 561

Re: Investment allocation

I agree that the allocation should be considered as a whole across all accounts, but there are better things to put in particular accounts, so to the extent possible while keeping your desired overall asset allocation, you may consider putting particular investments in certain accounts. I have to s...
by terran
Sun May 20, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Investment allocation
Replies: 13
Views: 561

Re: Investment allocation

I agree that the allocation should be considered as a whole across all accounts, but there are better things to put in particular accounts, so to the extent possible while keeping your desired overall asset allocation, you may consider putting particular investments in certain accounts. For example,...
by terran
Sun May 20, 2018 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Allocation and reaching retirement goal yrs before retirement
Replies: 4
Views: 376

Re: Allocation and reaching retirement goal yrs before retirement

Not really what you asked, and if you don't want to retire even though you could that's totally fine, but if the only thing stopping you is that you can't get the money out penalty free, do realize that there are ways around that.
by terran
Sun May 20, 2018 10:23 am
Forum: Investing - Help with Personal Investments
Topic: 457: Trad or Roth?
Replies: 14
Views: 715

Re: 457: Trad or Roth?

You seem to have a good understanding of the main concept in Traditional vs Roth : it's all about marginal tax rate now vs marginal tax rate in retirement. To summarize your current situation: Income: $103K Age: 42 planning to retire at 55 Tax deferred: $350K + $18.5k/year 403(b) Roth: $200k + $5.5k...
by terran
Sat May 19, 2018 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Would like to simplify my portfolio. Any thoughts?
Replies: 23
Views: 858

Re: Would like to simplify my portfolio. Any thoughts?

Wow, that simplified! You wouldn't try to tackle anything emerging markets? Meh, probably not. I wouldn't oppose it if you want to either though, in which case I'd shoot for approximating the total international market. My international exposure comes from total international market ETFs/funds, so ...
by terran
Sat May 19, 2018 6:06 pm
Forum: Investing - Help with Personal Investments
Topic: Would like to simplify my portfolio. Any thoughts?
Replies: 23
Views: 858

Re: Would like to simplify my portfolio. Any thoughts?

Here's what I would do SCHB Us Broad Market ETF, 46.9% 42-80% SLYV SPDR S&P 600 Small Cap ETF, 15.23% SCHF, Schwab International ETF, 14.95% 14-40% SCHH, Schwab REIT ETF, 10.06% SCHE, Schwab Emerging Markets ETF, 5% SCHC, Schwab International Small Cap ETF, 4.83% SCHZ, Schwab US Aggregate Bond ETF, ...
by terran
Sat May 19, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Interesting situation - work for British company directly, while living in US
Replies: 3
Views: 213

Re: Interesting situation - work for British company directly, while living in US

When you say as a contractor, does that mean you'll receive a 1099 at the end of year, or will you be a W2 employee?
by terran
Sat May 19, 2018 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 95
Views: 6603

Re: Helping Adult Children (but not too much)

I wrote a longer reply, but the forum ate it, so here's the cliff notes version. This is based on what my in-laws, who would probably be considered well, off, did/do for us. I think they've struck a pretty good balance. Give "normal" (birthday and holiday) gifts similar to what you've given until no...
by terran
Sat May 19, 2018 8:21 am
Forum: Investing - Help with Personal Investments
Topic: Same funds within IRA and Taxable
Replies: 26
Views: 1635

Re: Same funds within IRA and Taxable

If you don't plan to tax loss harvest, then wash sales don't matter, so you can just not worry about it. You can always change what's in your Roth without tax consequences, so if you change your mind about tax loss harvesting you can always make the change then (or turn off dividend reinvestment and...
by terran
Sat May 19, 2018 7:58 am
Forum: Personal Consumer Issues
Topic: Hardwood around the perimeter but plywood under the rug
Replies: 12
Views: 1188

Re: Hardwood around the perimeter but plywood under the rug

The plywood isn't original (because it wasn't available when the house was built), so somewhere along the line someone wanted carpet (with a wood border) and decided this was the cheapest way to get what they wanted, so no red flags. You won't get the fairy tale story of "we just ripped up the carpe...
by terran
Wed May 16, 2018 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7474

Re: Can a <median household save 1 year of expenses every year?

So, if I'm following this correctly, paying cash for things is an expense, but taking loans out for things and paying back the loans is "saving"? If that's the case, that makes no sense to me. No, taking out loans for things is spending (usually because you want to spend more than you have and/or e...
by terran
Wed May 16, 2018 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7474

Re: Can a <median household save 1 year of expenses every year?

how do you find a place with public transport without having good tax base and/or HCOL? They don't build shiny new subway system in Dumbfolk, MT do they? Buses are public transit too. In my experience Public Universities often cause publicly funded (and therefore open to the public, often free) fai...
by terran
Tue May 15, 2018 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7474

Re: Can a <median household save 1 year of expenses every year?

If you are including a couple kids in your scenario, you enter EITC and CTC territory. Two kids MFJ at $38k AGI gives $2648 EITC (2017 chart, bit higher for 2018 likely) and 2x $1400 refundable CTC for 2018. For NYS, EITC is matched at 30% ($794) and CTC matched at 33% (unclear how will work on inc...
by terran
Tue May 15, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7474

Re: Can a <median household save 1 year of expenses every year?

There are so many things I could learn from you terran (Edited: Thank you, Winterfan), I don't know where to begin. 1) How did you get your cell phone bill so low? 2) Also, you're electric bill is low, but I found out I can actually shop for electric providers here in Central Texas. So, next year I...
by terran
Tue May 15, 2018 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7474

Re: Can a <median household save 1 year of expenses every year?

$900 rent (2 bedroom apartment) Notable exceptions: > We do have a car, but we walk to work and could walk, bike or take public transit to get groceries, so I've excluded car maintenance, insurance and replacement from this. > I haven't accounted for state income tax, so I'm effectively assuming th...
by terran
Tue May 15, 2018 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7474

Re: Can a <median household save 1 year of expenses every year?

Is there anyone here, in this forum, that lives in a household making less than $59,000 gross income per year that saves as much money as they spend, every year? We both make and spend more than this, but by basing this on our actual situation and eliminating some of our extravagances I'll take a c...
by terran
Thu May 10, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Geico condo insurance (Homesite)
Replies: 7
Views: 675

Re: Geico condo insurance (Homesite)

This may depend on where you live, but my understanding is that unlike other Geico products, they act as an agent for homeowner's/renter's insurance from other companies, they don't provide it directly. They weren't competitive on Renter's insurance for us despite being great for vehicle and umbrell...
by terran
Fri Apr 06, 2018 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2729

Re: Passthrough deduction affected by solo 401k?

When all is completed, notify the old provider that they can close the now orphaned account. They may or may not care and just clean up the account at some time in the future, because it is empty and idle. Note: There is no reason to terminate the plan. It will only complicate things. Yes, thank yo...
by terran
Fri Apr 06, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2729

Re: Passthrough deduction affected by solo 401k?

If I set up my i401k with TDA and in the future want to do IRRs, can I transfer my account from TDA to Etrade? Does anyone know if that can be done? I'd be interested to know about moving a solo 401k too. If it turns out that Roth is more favorable I might be looking to move from Fidelity to one of...
by terran
Thu Apr 05, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Amended return forgotten direct rollover with no tax liability change
Replies: 0
Views: 287

Amended return forgotten direct rollover with no tax liability change

Thanks to another thread I realized it didn't occur to me to account for the direct trustee-to-trustee transfer my wife made of her 403(b) from her old employer's plan to her new employer's plan in 2017. I just checked at her old record keeper''s website and there are indeed a couple of 1099R's sitt...
by terran
Wed Apr 04, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2729

Re: Passthrough deduction affected by solo 401k?

I hadn't thought of the 20% pass-thru deduction in this context, but it raises the issue that those with low to modest net self-employment earnings should be even more conservative with employer contributions in during 2018. It may be prudent to wait until IRS guidance or even after 01/01/2019 to m...
by terran
Wed Apr 04, 2018 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 40
Views: 2729

Re: Passthrough deduction affected by solo 401k?

I understand that, as this thread points out, contributing to a self employed retirement plan can reduce the pass-through deduction in as much as it reduces taxable income below QBI. What I haven't been able to find a straight answer on is whether contributing to a self employed retirement plan redu...
by terran
Sun Mar 25, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: IRA Contribution Limits
Replies: 7
Views: 847

Re: IRA Contribution Limits

What is your situation -- does your work not provide a retirement plan, or do you work for yourself by any chance? There are some extra options for self employed people. We relocated last fall for my wife's job. I am not self employed but quickly picked up a contract position during my transition. ...
by terran
Sat Mar 24, 2018 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Contribution Limits
Replies: 7
Views: 847

Re: IRA Contribution Limits

Correct, there are no income limits for employer sponsored plans. She can contribute up to $18.5k to a 401k.

What is your situation -- does your work not provide a retirement plan, or do you work for yourself by any chance? There are some extra options for self employed people.
by terran
Sat Mar 24, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Contribution Limits
Replies: 7
Views: 847

Re: IRA Contribution Limits

She can definitely contribute to an IRA. Whether or not the contribution is deductible will depend on your income. Since she and/or her employer contribute to a workplace retirement plan, she should look here for what those limits are in 2017 (and here for 2018 ). She may or may not be able to contr...
by terran
Thu Mar 22, 2018 4:34 pm
Forum: Personal Consumer Issues
Topic: Please help with my moving situation
Replies: 6
Views: 441

Re: Please help with my moving situation

I am moving from the east coast to the west coast - literally cross-country! The good news is my new employer is footing the bill so I can spare no expense. Can anyone recommend the best moving service for such a long distance interstate move? I would want the movers to pack, label, move, and unpac...
by terran
Wed Mar 21, 2018 11:56 am
Forum: Investing - Help with Personal Investments
Topic: FSTVX/ITOT vs SPTM tax loss harvesting, dividend reinvestment and wash sales
Replies: 10
Views: 894

Re: FSTVX/ITOT vs SPTM tax loss harvesting, dividend reinvestment and wash sales

There was a previous IRS publication that stated that ordinarily shares of different mutual funds are not substantially identical. I think that sentiment is still in effect at the IRS. I would not hesitate to, and will if the opportunity arises, TLH VOO for IVV (both S&P 500 ETFs). So your position...
by terran
Wed Mar 21, 2018 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Can you validate the tax calculation from my CPA. It doesn't seem right to me
Replies: 17
Views: 1771

Re: Can you validate the tax calculation from my CPA. It doesn't seem right to me

Having tax withheld from a W2 job does not necessarily mean you've already paid tax on that income. You still calculate your total tax on all income from all sources, then subtract amounts already paid to arrive at total amount still due. You still pay self employment tax (15.3%) on all net profits ...
by terran
Fri Mar 16, 2018 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: FSTVX/ITOT vs SPTM tax loss harvesting, dividend reinvestment and wash sales
Replies: 10
Views: 894

Re: FSTVX/ITOT vs SPTM tax loss harvesting, dividend reinvestment and wash sales

Personally, I would not hesitate to use any of these three funds for TLH purposes. Of course, I would never hold FSTVX in a taxable account because of its tax inefficiency, but I do in fact use ITOT as a partner for VTI Thanks! That's actually another reason for this question. I ran across a recent...
by terran
Fri Mar 16, 2018 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: New HSA provider Lively offers investments for $30/yr fee
Replies: 257
Views: 34217

Re: New HSA provider Lively offers investments for $30/yr fee

A $0 balance is showing at Lively as it should, but they're also showing a $0 investment balance which seems kind of odd. Has anyone noticed a delay between TD Ameritrade balances and investment Balances shown at Lively? Maybe that's updated once a day at close of business? And pushing money to Liv...
by terran
Fri Mar 16, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: New HSA provider Lively offers investments for $30/yr fee
Replies: 257
Views: 34217

Re: New HSA provider Lively offers investments for $30/yr fee

I found the timelines posted here helpful in know what to expect during this process, so here's what the process looked like me my recent transfer: 3/1 - Requested distribution check from HSA Bank because the balance what above the daily limit for ACH withdrawals. Also opened account with Lively and...
by terran
Fri Mar 16, 2018 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: FSTVX/ITOT vs SPTM tax loss harvesting, dividend reinvestment and wash sales
Replies: 10
Views: 894

FSTVX/ITOT vs SPTM tax loss harvesting, dividend reinvestment and wash sales

I just invested in SPTM at TD Ameritrade in my HSA and I'm wondering if I can turn on dividend reinvestment or if that would be a bad idea if I own FSTVX and/or ITOT at Fidelity? ITOT follows the S&P Total Market Index and FSTVX follows the Dow Jones US Total Stock Market Index while SPTM follows th...
by terran
Wed Mar 14, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA Conversion to Roth: Should I bother? [What is "earned income"?]
Replies: 23
Views: 1277

Re: What constitutes earned income for trad/Roth IRA contributions?

* That Savers Credit will more cover the Self-Employment taxes that are owed. The balance of the credit will go unused. This isn't actually quite true. If you look through Form 8880 you'll see that the Savers Tax credit is the smallest of: 1) 10%, 20%, or 50% (depending on income) of $2000 2) 10%, ...
by terran
Tue Mar 13, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions
Replies: 23
Views: 1394

Re: HSA Contributions

I could be wrong, but I'm fairly sure that only the primary insured can make HSA contributions, so that would be your spouse. [see corrections below - thanks!] Since you're both covered he/she can contribute up to the family max. Ignoring that, many payroll deducted HSA contributions avoid FICA tax...
by terran
Thu Mar 08, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k - Make employer contributions w/o employee contributions?
Replies: 2
Views: 158

Re: Solo 401k - Make employer contributions w/o employee contributions?

No, you can still make employer contributions whether or not you make employee contributions. However, that case you might consider opening a SEP IRA instead as the record keeping requirements are lower and the limit is exactly the same. The exception to this would be if you currently make backdoor ...
by terran
Thu Mar 08, 2018 8:39 am
Forum: Personal Finance (Not Investing)
Topic: When does the 1-year HSA rollover clock start and end?
Replies: 12
Views: 978

Re: When does the 1-year HSA rollover clock start and end?

Well, actually, you can still move 100% of the money from Optum to Lively once a year and mark the "keep account open" box on the transfer form. None of this requires an indirect rollover. I still don't see why this is the preferred method here. There's no guarantee the "Keep Account Open" box will...
by terran
Thu Mar 08, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: When does the 1-year HSA rollover clock start and end?
Replies: 12
Views: 978

Re: When does the 1-year HSA rollover clock start and end?

I don't know whether the fund leaving the HSA counts as my receiving it. I can't trust I will remember it correctly so I just use the drift method. One less thing to worry about. Just curious why you're choosing to use the indirect rollover method rather than a trustee-to-trustee transfer? Fees are...
by terran
Wed Mar 07, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: When does the 1-year HSA rollover clock start and end?
Replies: 12
Views: 978

Re: When does the 1-year HSA rollover clock start and end?

So it sounds like the technically "right" answer is the date I received the check/ACH transfer -- in this case 3/5, so as long as I receive the next check/transfer 3/6/2019 or later I would be compliant? I don't know whether the fund leaving the HSA counts as my receiving it. I can't trust I will r...
by terran
Wed Mar 07, 2018 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Taxes on Self-employment and earning Social Security Credit
Replies: 5
Views: 474

Re: Taxes on Self-employment and earning Social Security Credit

I can speak to how this works as a sole proprietor. - Is this "Earnings" before or after taxes (SS, Medicare, SE, etc.)? Social security earnings are your net profit, after expenses, minus the employer half of self employment tax. So if you multiply Schedule C, line 31 by 0.9235 that will give you y...
by terran
Wed Mar 07, 2018 2:02 am
Forum: Personal Finance (Not Investing)
Topic: When does the 1-year HSA rollover clock start and end?
Replies: 12
Views: 978

Re: When does the 1-year HSA rollover clock start and end?

Put another way, when is the soonest I can I initiate another rollover (indirect through me, not trustee-to-trustee) next year given a timeline this year that looks like this: 3/1 - initiated withdrawal from the "from" HSA; 3/2 - check sent made out to me; 3/5 - check received; 3/6 - check deposite...
by terran
Wed Mar 07, 2018 12:58 am
Forum: Personal Finance (Not Investing)
Topic: When does the 1-year HSA rollover clock start and end?
Replies: 12
Views: 978

When does the 1-year HSA rollover clock start and end?

If I perform an indirect, not trustee-to-trustee, rollover from one HSA to another by taking a distribution from an HSA and sending a deposit to the other HSA, when does the clock start and end to make sure I only make one rollover per rolling 12 month period? Options that would make sense to me: Wh...