Search found 1228 matches

by nolesrule
Fri Jun 21, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA Question
Replies: 8
Views: 636

Re: Dependent Care FSA Question

So with two children and a maxed out dependent care of $5,000, you can still receive a $1,000 Child and Dependent Care Credit? No. You will receive a credit calculated on non reimbursed expenses. Non reimbursed expenses are total actual expenses capped at $6k (for 2+ children) less reimbursements f...
by nolesrule
Thu Jun 20, 2019 7:19 am
Forum: Personal Finance (Not Investing)
Topic: HR telling my wife not to contribute 100% of her salary to 401k
Replies: 24
Views: 4300

Re: HR telling my wife not to contribute 100% of her salary to 401k

Payroll should be capable of subtracting FICA and benefit payroll deductions from the calculated amount to adjust the contribution.
by nolesrule
Tue Jun 18, 2019 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Waiting to prepay mortgage until you can pay the whole thing off?
Replies: 28
Views: 3230

Re: Waiting to prepay mortgage until you can pay the whole thing off?

1) This actually results in immediate cash flow benefits (whereas steadily prepaying your mortgage does not until the mortgage is paid off) You can possibly recast the mortgage after making a large principal payment and without changing any terms of the loan, lower your P&I payment going forward. I...
by nolesrule
Sun Jun 16, 2019 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Tax win-win - Appreciated shares contributed to a Donor Advised Fund (DAF)
Replies: 6
Views: 474

Re: Tax win-win - Appreciated shares contributed to a Donor Advised Fund (DAF)

I'm not clear on how you calculated the tax savings. What tax bracket and what else would you be itemizing? The tax savings itself is on the amount itemized above the standard deduction. $3000 in saved taxes on the $30k DAF contribution with nothing else itemized is ~53% marginal tax rate (3k / (30k...
by nolesrule
Sun Jun 16, 2019 9:25 am
Forum: Personal Investments
Topic: Convert my VG mutual funds to ETFs to save basis points?
Replies: 39
Views: 2551

Re: Convert my VG mutual funds to ETFs to save basis points?

Intraday volatility on ETFs is usually greater than the fee spread, so you could easily lose the fee advantage just on trade timing. Of course it can also work out to your benefit.
by nolesrule
Thu Jun 13, 2019 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Additional inspections other than general inspection for new construction home in Orange County, FL area?
Replies: 31
Views: 1409

Re: Additional inspections other than general inspection for new construction home in Orange County, FL area?

J G Bankerton wrote:
Thu Jun 13, 2019 1:18 pm
synthfan23 wrote:
Thu Jun 13, 2019 12:11 pm

Ok. Thanks.
My son lives in Florida and his home insurance is more than his property tax, this is Pinellas county. Is it the same with you?
Not the OP, but that was true when I lived in Pinellas. We moved away about 5 years ago.
by nolesrule
Wed Jun 12, 2019 1:07 pm
Forum: Personal Investments
Topic: mechanics of backdoor roth conversion for MFJ couple
Replies: 7
Views: 505

Re: mechanics of backdoor roth conversion for MFJ couple

I believe I can contribute up to $12,000 to an IRA account for subsequent conversion to a roth IRA (backdoor), as the limit entails $6k each for me and my spouse. Can I do a single transaction with $12k? or do I need to do two separate transactions for $6k each, since the limits are for individuals...
by nolesrule
Tue Jun 11, 2019 4:31 pm
Forum: Personal Investments
Topic: Update:High interest ARM extra payment vs. 401K...yes another one
Replies: 22
Views: 932

Re: High interest ARM extra payment vs. 401K...yes another one

It might be worth looking into a cash-out refinance to lower the rate if the balance is too low. And then put the money back into the new mortgage.
by nolesrule
Mon Jun 10, 2019 1:27 pm
Forum: Personal Investments
Topic: 401(k) Stock Fund vs. Company stock price
Replies: 7
Views: 507

Re: 401(k) Stock Fund vs. Company stock price

Because the NAV price is just a share price for the fund. It doesn't have to be a multiple of the stock prices being held. Look at a mutual fund compared to its underlying holdings Think about it this way, the stock fund could have started at a specific per/share price that had nothing to do with th...
by nolesrule
Mon Jun 10, 2019 7:20 am
Forum: Personal Investments
Topic: 401(k) Stock Fund vs. Company stock price
Replies: 7
Views: 507

Re: 401(k) Stock Fund vs. Company stock price

Company stock funds are essentially like a mutual fund or Collective Investment Trust where it solely holds the company stock and probably some cash for liquidity. The performance should be identical to the actual stock less a little cash drag, so price per share is irrelevant.
by nolesrule
Sat Jun 08, 2019 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Self-employment tax for K1 & W2 income
Replies: 5
Views: 317

Re: Self-employment tax for K1 & W2 income

Only Social Security tax is capped. All self-employment income is subject to Medicare taxes. You should read through Schedule SE and instructions to determine how Self Employment taxes are calculated when you have a mix of self-employment and W-2 income.
by nolesrule
Wed Jun 05, 2019 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 14296

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

That's why I think we need a visual. Visuals work better for some people than others. Previous contributions effect the withdrawal rate on future contributions, but not vice versa. That's where the layers come in. And because most people don't pull everything out in one withdrawal, that's why the w...
by nolesrule
Wed Jun 05, 2019 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 14296

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

I see what your saying now. I still don't think the cake analogy is correct since what you're doing is increasing the size of the cake rather than adding on another layer. Although the layer visual can adequately depict the brackets. Sort of like volume markers in a beaker. You are increasing the s...
by nolesrule
Tue Jun 04, 2019 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 386
Views: 14296

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

I see what your saying now. I still don't think the cake analogy is correct since what you're doing is increasing the size of the cake rather than adding on another layer. Although the layer visual can adequately depict the brackets. Sort of like volume markers in a beaker. You are increasing the s...
by nolesrule
Tue Jun 04, 2019 5:57 pm
Forum: Personal Investments
Topic: To Roth 401(k) or not
Replies: 20
Views: 1407

Re: To Roth 401(k) or not

Your contribution amount doesn't come out at your effective rate. It's stacked on top of all other previous contributions when it comes out across every withdrawal you eventually make. So the correct question to ask is what rate that individual contribution amount will come out at in withdrawal? @F...
by nolesrule
Tue Jun 04, 2019 5:43 pm
Forum: Personal Investments
Topic: To Roth 401(k) or not
Replies: 20
Views: 1407

Re: To Roth 401(k) or not

I've always believed I will be a a lower tax bracket in retirement. ... While I will be in the 24% marginal bracket (single filer), almost all of my income will be eligible for the QBI 20% deduction. With the deduction, that really makes my marginal rate more like 19-20%; and Do you still believe y...
by nolesrule
Tue Jun 04, 2019 10:02 am
Forum: Personal Investments
Topic: To Roth 401(k) or not
Replies: 20
Views: 1407

Re: To Roth 401(k) or not

I've always believed I will be a a lower tax bracket in retirement. ... While I will be in the 24% marginal bracket (single filer), almost all of my income will be eligible for the QBI 20% deduction. With the deduction, that really makes my marginal rate more like 19-20%; and Do you still believe y...
by nolesrule
Tue Jun 04, 2019 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Change to Homeowners Policy
Replies: 6
Views: 734

Re: Change to Homeowners Policy

Often times these policy changes happen because a new state law changes the coverages.
by nolesrule
Mon Jun 03, 2019 9:30 pm
Forum: Personal Investments
Topic: Is VMFXX better than VMMXX now?
Replies: 28
Views: 2728

Re: Is VMFXX better than VMMXX now?

And VMMXX is fully taxed as ordinary income in most states. Minor correction. VMMXX is not fully state taxable in most states. Last year 28.23% of income was from Federal obligations. It's not 100%, but it's not nothing either. Unless you're talking 6 figures of dividends, it's a minor difference b...
by nolesrule
Sun Jun 02, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: How to get the lowest mortgage rate?
Replies: 29
Views: 3463

Re: How to get the lowest mortgage rate?

We did our refinance through Mortgage Professor 2.5 years ago. Everything was smooth. Next time around, I'd probably get quotes from Mortgage Professor, bankrate and zillow's lowest rate offerings to compare, because they don't all list the same offerings.
by nolesrule
Tue May 28, 2019 7:57 pm
Forum: Personal Investments
Topic: pay off an ARM mortgage or not?
Replies: 58
Views: 3374

Re: pay off an ARM mortgage or not?

thank you all for your suggestions. a guarantee of 5.125% return by paying it off makes a lot of sense. Except that it does not. The "guaranteed 5.125%" return rate isn't 5.125, but close to 2.65% instead. Those who deem the home loan interest rate being equal to a "rate of return" of an investment...
by nolesrule
Tue May 28, 2019 10:49 am
Forum: Personal Investments
Topic: Best way to backdoor Roth IRA
Replies: 37
Views: 2855

Re: Best way to backdoor Roth IRA

Its been a while since I converted, when I start the process this is what I see on Vanguard You may maximize the benefit of the conversion if you pay taxes from a separate nonretirement account instead of withholding during the transaction. If you choose not to have taxes withheld you'll remain lia...
by nolesrule
Sat May 25, 2019 7:13 am
Forum: Personal Investments
Topic: Best way to backdoor Roth IRA
Replies: 37
Views: 2855

Re: Best way to backdoor Roth IRA

Silly question but when the funds are settled and available in the traditional ira Vanguard account, would you get an option or a button, convert and then yiu can hit that and convert to roth Ira!? In My Accounts > Balances & Holdings view, there will be a "Convert to Roth IRA" link. It's there all...
by nolesrule
Fri May 24, 2019 7:19 am
Forum: Personal Investments
Topic: Best way to backdoor Roth IRA
Replies: 37
Views: 2855

Re: Best way to backdoor Roth IRA

Since we are not eligible for Roth, two years ago I was hit with a tax penalty for doing this back door roth (may be I screwed my taxes up) :confused I opened a traditional IRA brokerage with vanguard, put $5000 in Money mkt converted the whole amount to Roth IRA in VG after 2 weeks. While filing f...
by nolesrule
Sun May 19, 2019 1:47 pm
Forum: Personal Investments
Topic: why buy any bonds in your portfolio?
Replies: 24
Views: 3101

Re: why buy any bonds in your portfolio?

We don't have a savings account option in our 401k. The stable value and money market funds available in our 401ks have always had lower total returns than the bond funds with higher expenses.
by nolesrule
Sat May 18, 2019 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: At what NW do I have disposable income?
Replies: 85
Views: 5976

Re: At what NW do I have disposable income?

When your income exceeds payments for shelter (only basic phone and internet, no streaming services or cable), food (at home), taxes, medical, basic transportation, 15% retirement savings, giving, and adequate insurance. Our non disposable income would be roughly 1/2 of our total income. Then multi...
by nolesrule
Thu May 16, 2019 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: How do Bogleheads update their 401k contributions once they are able to max?
Replies: 19
Views: 1598

Re: How do Bogleheads update their 401k contributions once they are able to max?

You won't go over, or your payroll department isn't doing its job.

Now, if you're talking about ensuring you get a a full per-paycheck match, you may need to lower your percentage if the raise is enough so that paychecks at the end of the year won't fall short of the full match.
by nolesrule
Wed May 15, 2019 11:41 am
Forum: Personal Investments
Topic: Is my 401K fees too high - have Pro Rata fees and Plan Service Fees
Replies: 13
Views: 459

Re: Is my 401K fees too high - have Pro Rata fees and Plan Service Fees

I'd take it over my plan. Currently 0.71% fees + $24/year. On top of much higher expense ratios.
by nolesrule
Tue May 14, 2019 6:44 am
Forum: Personal Finance (Not Investing)
Topic: W-2 earner looking to lower effective tax rate
Replies: 33
Views: 4011

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

If you choose to max out the HSA then you should be able to “save” on paying FICA taxes by asking your employer to make your contributions “pre-tax” instead of using your take home pay to do it. Not fully true, with the OP being in 37% bracket. That bracket suggests the OP is earning well above the...
by nolesrule
Mon May 13, 2019 6:46 am
Forum: Personal Investments
Topic: Best interest bearing savings account?
Replies: 28
Views: 3312

Re: Best interest bearing savings account?

Vanguard Prime Money Market is only partially taxable in most states. In 2018 28.23% of income was from U.S. government obligations.
by nolesrule
Sun May 12, 2019 10:08 am
Forum: Personal Finance (Not Investing)
Topic: W-2 earner looking to lower effective tax rate
Replies: 33
Views: 4011

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

If you have a family HDHP plan, you should be contributing the max family amount to the HSA, which is $7k in 2019 (inclusive of employer contributions).
by nolesrule
Mon May 06, 2019 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house without a realtor
Replies: 49
Views: 4566

Re: Buying a house without a realtor

Well, apparently if you live in New Jersey and you are looking to build out of state, you need an agent or the builder's won't even talk to you. Something about New Jersey having a non-solicitation law... even if the potential buyer is the one who initiates contact.
by nolesrule
Fri May 03, 2019 7:13 am
Forum: Personal Finance (Not Investing)
Topic: BOA Bill Pay - Joint Account
Replies: 7
Views: 744

Re: BOA Bill Pay - Joint Account

Every account I have with a bill pay feature is this way. The information is tied to the user, not the account.
by nolesrule
Wed May 01, 2019 12:23 pm
Forum: Personal Investments
Topic: Kids Gift Money in a Vanguard Target Retirement Fund
Replies: 30
Views: 1341

Re: Kids Gift Money in a Vanguard Target Retirement Fund

Follow up question: If I save kid gift money in my brokerage account without adding their name to it, would I someday have to pay gift tax for giving them their money? Only to the extent that the amount exceeds the annual gift tax exclusion limit. Amounts that exceed the annual exclusion limit only...
by nolesrule
Tue Apr 30, 2019 12:47 pm
Forum: Personal Investments
Topic: Kids Gift Money in a Vanguard Target Retirement Fund
Replies: 30
Views: 1341

Re: Kids Gift Money in a Vanguard Target Retirement Fund

I periodically buy the VT ETF in UTMA accounts for my kids. Timeframe is long enough that I'm not concerned about holding bonds. Tax gain harvest periodically to raise the cost basis. That's cool. Is the UTMA what you're using for any specific purpose? Or just to create a financial kickstart for yo...
by nolesrule
Tue Apr 30, 2019 10:28 am
Forum: Personal Investments
Topic: Kids Gift Money in a Vanguard Target Retirement Fund
Replies: 30
Views: 1341

Re: Kids Gift Money in a Vanguard Target Retirement Fund

I periodically buy the VT ETF in UTMA accounts for my kids. Timeframe is long enough that I'm not concerned about holding bonds. Tax gain harvest periodically to raise the cost basis.
by nolesrule
Tue Apr 30, 2019 7:55 am
Forum: Personal Investments
Topic: How much should a High Yield Savings account pay at 2.20% APY
Replies: 5
Views: 1258

Re: How much should a High Yield Savings account pay at 2.20% APY

The APY represents a full year with compounding, so any math that is strictly based on that will be high for the first 6 months and low for the second six months. Assuming monthly compounding, the APY translates to about a 2.18% rate. So at first it would be a little over $1.55/day or about $46.59 i...
by nolesrule
Mon Apr 29, 2019 10:32 am
Forum: Personal Investments
Topic: Buying a home w/cash vs taking a mortgage and investing
Replies: 39
Views: 4571

Re: Buying a home w/cash vs taking a mortgage and investing

Are you actually going to be able to recoup your costs for steps 1 and 2 with a higher sale price?
by nolesrule
Mon Apr 29, 2019 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Overfunded 401k
Replies: 10
Views: 885

Re: Overfunded 401k

Was she a HCE in 2018 based on her 2017 income?
by nolesrule
Sun Apr 28, 2019 1:08 pm
Forum: Investing - Theory, News & General
Topic: HSA AA/Location - What you do and Why ?
Replies: 18
Views: 1342

Re: HSA AA/Location - What you do and Why ?

We live in NJ so the investment portion is 100% US Treasury Fund. But since the returns are relatively low, we use the HSA to reimburse medical expenses, as we have 2 kids going through orthodontics currently, and use the HSA for costs above what we can put in the LP FSA for dental/vision. We're als...
by nolesrule
Fri Apr 26, 2019 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Taxes: marginal rate now vs effective rate in retirement
Replies: 198
Views: 9603

Re: Taxes: marginal rate now vs effective rate in retirement

Effective rate = tax / income Marginal rate = change in tax / change in income The delta income can be any amount. Next dollar is essentially an instantaneous marginal rate, but it's not practical for making decisions on more than $1. If the marginal rate on a larger incremental change in income (fo...
by nolesrule
Fri Apr 26, 2019 7:01 am
Forum: Personal Investments
Topic: Made a mistake putting bond funds in taxable account - how to correct mistake?
Replies: 37
Views: 3980

Re: Made a mistake putting bond funds in taxable account - how to correct mistake?

The suggestion is to place the bonds in tax-deferred accounts. If your entire TSP is Roth, you do not want bonds in there. All Roth accounts should have only equities. I suggest no change to your portfolio. The suggestion for bonds is they be placed in a tax-advantaged account because they are not ...
by nolesrule
Thu Apr 25, 2019 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Taxes: marginal rate now vs effective rate in retirement
Replies: 198
Views: 9603

Re: Taxes: marginal rate now vs effective rate in retirement

You're right that certain situations (eg. unemployment) could reduce those future contributions. There are lots of situations that can INCREASE your future taxable income though too, such as: -Inheriting a Traditional IRA -Having paid-off rental properties -Switching jobs to an employer that pays o...
by nolesrule
Thu Apr 25, 2019 9:02 am
Forum: Personal Finance (Not Investing)
Topic: 1099 vs W2
Replies: 13
Views: 551

Re: 1099 vs W2

Edit: The difference between employer-paid SS and self-employed SS should be included in the 1099 hourly rate, e.g. you should have the same net income at the end of the year with both options - if that is not the case (e.g. they are giving the same hourly rate for both but only paying the employer...
by nolesrule
Thu Apr 25, 2019 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Taxes: marginal rate now vs effective rate in retirement
Replies: 198
Views: 9603

Re: Taxes: marginal rate now vs effective rate in retirement

Assume 30 years to retirement, $400k current tax-deferred savings, $74k/year tax-deferred contributions and plan to max out each year, married, 8% expected return, 3% inflation, 4% withdrawal rate. Taxable withdrawals = FV(8%-3%, 30, -74000, -400000) x 4% = $265,810.07 (inflation-adjusted) ... As i...
by nolesrule
Wed Apr 24, 2019 7:44 pm
Forum: Personal Investments
Topic: Individual 401k question
Replies: 9
Views: 329

Re: Individual 401k question

Thank you, my vanguard flagship rep told me it was illegal. Maybe he was only thinking in terms of vanguard's individual 401k. I wasn't ready to believe What he said as gospel. I have dealt with TD Ameritrade before and was happy when I used them. Thanks for the direction! Vanguard does not allow i...
by nolesrule
Wed Apr 24, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes: marginal rate now vs effective rate in retirement
Replies: 198
Views: 9603

Re: Taxes: marginal rate now vs effective rate in retirement

Guys, The only way to accurately calculate how much tax will be owed and which investment vehicle was correct is through hindsight. If retirement is 5 years away, you can get a pretty darned good idea of which route is best as you'll have a pretty darned good idea of what your income streams & expe...
by nolesrule
Wed Apr 24, 2019 1:09 pm
Forum: Personal Investments
Topic: Is company’s 401k match based on base salary or social security salary?
Replies: 41
Views: 2704

Re: Is company’s 401k match based on base salary or social security salary?

The match is based on compensation. Compensation is defined in the Plan Documents. SS Wages are not compensation, as the SS wage number is reduced by certain pre-tax benefits deducted from compensation (and of course is capped by the wage base).
by nolesrule
Wed Apr 24, 2019 11:08 am
Forum: Personal Investments
Topic: Will my adjusted income be smaller?
Replies: 8
Views: 585

Re: Will my adjusted income be smaller?

If you contribute to a Traditional 401k, then your contributions will be subtracted from your taxable income. Contributions to a Roth 401k do not reduce your taxable income. The maximum you can contribute to a Traditional and/or Roth 401k is $19000 for 2019. A bit of a correction...the maximum cont...
by nolesrule
Wed Apr 24, 2019 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Examples of financial accounting rules not applicable to personal finance?
Replies: 60
Views: 2689

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

To name just a couple that are not usually applicable to personal finance: - Accrual basis accounting - GAAP footnote disclosures Some concepts are similar. I prepare personal financial statements (balance sheet, income statement, cash flow statement). But I use cash basis accounting rather than ac...