Search found 266 matches

by NightFall
Mon Dec 12, 2016 3:23 pm
Forum: Personal Investments
Topic: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?
Replies: 19
Views: 1599

Re: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?

1) Put enough in deductible retirement accounts to get down to the 15% tax bracket. I feel stupid asking this but what is the taxable income amount that would put us in the 15% tax bracket? I suppose if we each have a Solo 401K we'd be able to put $40K each tax deferred which would bring our taxabl...
by NightFall
Tue Nov 29, 2016 4:39 pm
Forum: Personal Investments
Topic: Are we on the right track for retirement?
Replies: 14
Views: 2345

Re: Are we on the right track for retirement?

I'm missing something huge. How are you in the 28% tax bracket? At 6500*12=78000/year, you are in the 15% tax bracket. 78000 - 12600 (standard deduction) = 65400 65400 - 4050*2 (personal exemptions) = 57300 <- taxable income 15% bracket MFJ is: $18,551—$75,300. 28% bracket MFJ is: $151,901—$231,450....
by NightFall
Mon Nov 07, 2016 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: What 529 plan are TX residents using?
Replies: 46
Views: 8564

Re: What 529 plan are TX residents using?

I've been late at this but need to get college savings started for my little ones. For residents of TX, what plan are you using for the 529? Oldest is still in elementary. I will likely seed with ~$40-50k and then make monthly payments (at an undetermined value as of yet). There are contribution li...
by NightFall
Sun Nov 06, 2016 8:59 pm
Forum: Personal Investments
Topic: New to investing
Replies: 3
Views: 507

Re: New to investing

Congrats on saving some money and welcome to the forum. I would suggest the wiki pages as a great place to start. One of the core ideas of many here is that investing doesn't have to be complicated. There is beauty, and even efficiency, in simplicity.
by NightFall
Sun Nov 06, 2016 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Negative mortgage points and taxes
Replies: 1
Views: 598

Negative mortgage points and taxes

We're in the market for a mortgage to pay off our construction loan for a house we're building. We have the option of manipulating our rate via points, which include negative points that generate a higher interest rate but lower closing costs. Negative points become attractive if the mortgage is pai...
by NightFall
Wed Nov 02, 2016 9:52 am
Forum: Personal Investments
Topic: A silver lining in unemployment: Reset cost basis to save on future capital gains?
Replies: 8
Views: 2035

Re: A silver lining in unemployment: Reset cost basis to save on future capital gains?

Sounds good. You might even consider ROTH conversions if you have the money (depending on your situation). Other things to consider: IRA (maybe ROTH) contributions from your W2 income... you might qualify for the saver's credit.
by NightFall
Mon Oct 31, 2016 7:47 pm
Forum: Personal Investments
Topic: Texas Retirement Options (Pension, 403b, 457)
Replies: 3
Views: 1460

Re: Texas Retirement Options (Pension, 403b, 457)

*It seems like option 2 (TRS) would allow me to have more tax-advantaged savings. Basically, I would get to put the 6.8% ($10,880) away in the pension, and could still put the full $18,000 in the 403b/457. Whereas, if I do Option 1 (ORP) I could only put $18,000 away tax advantage. This is not corr...
by NightFall
Thu Oct 27, 2016 7:05 am
Forum: Personal Investments
Topic: 457b to Roth 457b or Roth IRA conversion, worth it?
Replies: 10
Views: 2525

Re: 457b to Roth 457b or Roth IRA conversion, worth it?

How much you pay in taxes for the conversion depends on your marginal tax bracket. Take your yearly income and add your conversion amount to it to try to figure out what your marginal tax bracket is. You would have to make a pretty good income to get to the 28+% bracket, but you might. It's typicall...
by NightFall
Wed Oct 26, 2016 6:33 am
Forum: Personal Finance (Not Investing)
Topic: 529 Fees: Fidelity vs Utah
Replies: 2
Views: 650

Re: 529 Fees: Fidelity vs Utah

To quote Taylor's Morningstar article rating 529 plans, Boosted to Bronze Lastly, we upgraded four direct-sold plans managed by Fidelity to Bronze from Neutral. Increased familiarity with Fidelity's tactical asset-allocation approach as well as reduced fees on the plan's index-based portfolios spurr...
by NightFall
Sun Oct 23, 2016 8:03 pm
Forum: Personal Consumer Issues
Topic: Putting in a Word About Tea - brands, types, etc.
Replies: 85
Views: 11240

Re: Putting in a Word About Tea - brands, types, etc.

I have been a Harney & Sons tea customer for many years. I highly recommend their Earl Grey Supreme, English Breakfast, Irish Breakfast, Paris (black tea with a hint of currant), Formosa Oolong, Mulan White and Bancha (Green). My wife loves the Hot Cinnamon Spice (it is strong and very tasty!) You ...
by NightFall
Mon Oct 17, 2016 6:37 am
Forum: Personal Investments
Topic: SEP IRA or Individual 401k ???
Replies: 1
Views: 360

Re: SEP IRA or Individual 401k ???

We probably need a bit more information. Are you employed otherwise with a traditional W2? If so, what types of retirement plans do they offer and do you participate? Do you have an IRA or Roth IRA? If a traditional IRA, how much is in it (affects whether or not backdoor roth contributions are pract...
by NightFall
Thu Oct 06, 2016 6:30 am
Forum: Personal Consumer Issues
Topic: Johnnie Walker Blue worth the cost?
Replies: 70
Views: 9608

Re: Johnnie Walker Blue worth the cost?

It's not one someone might think of but Wild Turkey 101 is a good price for a decent bourbon. http://scotchnoob.com/2011/04/21/wild-turkey-101-bourbon/ Jim Beam Black is smooth as well. These are all bourbons... perhaps my preference is showing through. Glenfiddich is a good scotch for the money if ...
by NightFall
Tue Oct 04, 2016 6:55 am
Forum: Personal Investments
Topic: Should I stop making IRA contributions
Replies: 14
Views: 1932

Re: Should I stop making IRA contributions

You didn't say how much of the 2.5 million is in tax deferred accounts (is it only 850K?). Most income deferrals have similar RMD-like rules. The income is deferred, meaning that it will be taxed later as well. You should check into the rules on that. Depending on your employer, income deferral may ...
by NightFall
Thu Sep 29, 2016 7:04 pm
Forum: Personal Investments
Topic: New to here. Need help with retirement planning.
Replies: 28
Views: 3259

Re: New to here. Need help with retirement planning.

We had a question about the $18,000 annual contribution limit in regards to the 403b option for individual, and $53,000 limit "combined" elective and non-elective. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-403b-contribution-limits DH employer has a mandatory r...
by NightFall
Thu Sep 29, 2016 6:49 pm
Forum: Personal Investments
Topic: 457(b) vs Taxable Account? Which is better?
Replies: 5
Views: 1426

Re: 457(b) vs Taxable Account? Which is better?

I'll correct you. Your 457b sounds a lot like my 457b. There are a few things you're not taking into account. First, there is no tax drag on your 457 account whereas your dividends are going to be taxed along the way. That gives a minor boost. Another boost comes from the fact that you're not paying...
by NightFall
Thu Sep 22, 2016 6:50 am
Forum: Personal Investments
Topic: Early 30s Looking to Retire in 15 Years
Replies: 29
Views: 5309

Re: Early 30s Looking to Retire in 15 Years

Does she have a 457 available? Many people who have 403b's also have an option for a 457. These accounts act similar to a 403b, although there are differences between governmental and non-governmental accounts. It appears you are currently $300K in debt and would like to retire in 15 years. Whether ...
by NightFall
Thu Sep 15, 2016 11:27 am
Forum: Personal Investments
Topic: Is there a way we can save more, pre-tax?
Replies: 5
Views: 917

Re: Is there a way we can save more, pre-tax?

I-bonds are technically tax deferred for the gains. There is a limit on those each year though. Do you have a 457 available?
by NightFall
Wed Sep 14, 2016 6:46 pm
Forum: Personal Consumer Issues
Topic: Fireplace Inserts
Replies: 17
Views: 3386

Re: Fireplace Inserts

heatilator sc60. It's a wood burning fireplace that comes with a blower and outside air kit so you're not combusting conditioned air. That said, if you really want to heat your house and live in a cold climate, you might consider some of the modern furnaces that create extremely efficient burns.
by NightFall
Fri Aug 26, 2016 1:54 pm
Forum: Personal Investments
Topic: College Savings
Replies: 18
Views: 2798

Re: College Savings

Which one is the best one to open? (we are in IL) I don't know if the IL 529 gives any advantages for residents. There are several good 529s... vanguard does the Nevada one from what I understand. If one child doesn't use it can another child use it (I know some plans allow this but now I can't fig...
by NightFall
Fri Aug 26, 2016 6:38 am
Forum: Investing - Theory, News & General
Topic: Maxing out 401k and Traditional IRA
Replies: 2
Views: 528

Re: Maxing out 401k and Traditional IRA

Most here would suggest a backdoor roth ira contribution, although that's only practical if you don't have a large balance in your traditional ira. If you do a non-deductible ira contribution and leave it there, you have the benefit of tax-free growth. However, compared against a tax efficient inves...
by NightFall
Wed Aug 24, 2016 6:22 am
Forum: Personal Finance (Not Investing)
Topic: Parents have enough for retirement?
Replies: 26
Views: 4787

Re: Parents have enough for retirement?

, I'd also recommend figuring out the best strategy for Social Security. It may make more sense for your mother to take her social security at 62, and then switch to survivor benefits if your father dies first. To delay her social security, both will have to live for quite a while before they break...
by NightFall
Tue Aug 23, 2016 6:32 am
Forum: Personal Investments
Topic: Too much in investments subject to RMD, should I invest some in taxable instead?
Replies: 10
Views: 1441

Re: Too much in investments subject to RMD, should I invest some in taxable instead?

Watty wrote:
Matthew J wrote:So in account with RMD we have 211k and are adding 50.8k a year.
How did you get 50.8k? I see $36K in the two 457 plans.
The OP also has a mandatory contribution of 14.8K.
by NightFall
Mon Aug 22, 2016 9:54 pm
Forum: Personal Investments
Topic: Too much in investments subject to RMD, should I invest some in taxable instead?
Replies: 10
Views: 1441

Re: Too much in investments subject to RMD, should I invest some in taxable instead?

I have a larger balance in my accounts and contribute more per year than you. I am not concerned about it being too much. With that said, many plans have roth options. If you really believe you have too much in tax-deferred, then I would suggest switching to roth contributions. They are almost monot...
by NightFall
Mon Aug 15, 2016 7:57 pm
Forum: Personal Investments
Topic: Where to Put Retirement Investments - Traditional, Roth, 403b?
Replies: 4
Views: 645

Re: Where to Put Retirement Investments - Traditional, Roth, 403b?

According to your other posts, you're a SUNY employee. The NY DCP (your 457b) has pretty good investment options in it and a relatively low custodial fee (4.5 basis points capped at applying to 200K if I read it right). It also has a ROTH option. I didn't look at the 403b. You could use either one (...
by NightFall
Fri Aug 05, 2016 12:40 pm
Forum: Personal Investments
Topic: Struggling with maxing out Roths. Advice?
Replies: 40
Views: 3868

Re: Struggling with maxing out Roths. Advice?

You are 30 years old, you plan on retiring at age 65. Your current Roth IRA balance is $10,000 and your account will earn 6% annually over the next 35 years. You skip two years of contributions. At the end of year 2, the balance in your account has grown to $11,236 and you once again begin making c...
by NightFall
Sat Jul 16, 2016 8:47 am
Forum: Personal Consumer Issues
Topic: What's up with 4K tv? Should I buy one?
Replies: 101
Views: 15252

Re: What's up with 4K tv? Should I buy one?

Personally I would by a 1080p non-smart TV and get a chromecast if you want streaming features. Smart tvs have a significant premium over regular tvs. Plus, this hardware/software is usually outdated quickly. I'd rather replace a $35 stick than a $1000 TV. As others noted, there is little to no cont...
by NightFall
Fri Jul 15, 2016 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Transitioning to early retirement and part time side income/self employment - questions
Replies: 7
Views: 1480

Re: Transitioning to early retirement and part time side income/self employment - questions

I have no knowledge in the area of self employment. Would my best bet be to set myself up as some kind of Sole Proprietorship or Corp? Where can I read up on these arrangements - the legal, financial and tax implications? Also, I currently carry a high level govt. clearance - I believe these become...
by NightFall
Thu Jul 14, 2016 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Networth = Age x Pretax income then divide by 10?
Replies: 49
Views: 11551

Re: Networth = Age x Pretax income then divide by 10?

"Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by 10. This, less any inherited wealth, is what your net worth should be." This formula is from The Millionaire Next Door and is the definition of a Prodigious Accumulator of Wealth. S...
by NightFall
Wed Jul 06, 2016 6:59 pm
Forum: Personal Consumer Issues
Topic: Ransomware Attack
Replies: 17
Views: 2693

Re: Ransomware Attack

This is not a ransomware attack or malware. It is a scam though that takes advantage of how Edge works. You could just use a different browser. However, getting rid of this webpage in Edge is not difficult. You basically have to get Edge to open a different webpage with focus other than the offendin...
by NightFall
Wed Jul 06, 2016 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Picking College and College Scholarships
Replies: 650
Views: 86151

Re: Picking College and College Scholarships

A) In order to be National Merit Commended Student, you need to be top 50K out of 1.5 millions B) In order to be National Merit Semi-finalist, you need to be top 32K out of 1.5 millions C) In order to be National Merit Finalist, you need to be top 16K out of 1.5 millions If your son is not at least...
by NightFall
Mon Jul 04, 2016 8:41 pm
Forum: Personal Investments
Topic: Hoping for an early retirement
Replies: 29
Views: 5279

Re: Hoping for an early retirement

metalworking wrote: I figure I can live off $6000/year
This is a typo, right? Do you mean $6000/month or $60000/year? I wouldn't be able to pay my property taxes on $6000/year.
by NightFall
Sat Jul 02, 2016 5:58 am
Forum: Personal Investments
Topic: Is anyone doing any Roth (post-tax) contributions or only pre-tax?
Replies: 14
Views: 1628

Re: Is anyone doing any Roth (post-tax) contributions or only pre-tax?

Pretax contributions make more sense if you expect your marginal tax bracket to be lower in the future than it is now, which is the case for many people. Roth is the opposite. If you retire early, pretax gives you the flexibility to make Roth conversions at very low rates before SS and RMDs. With th...
by NightFall
Mon Jun 20, 2016 8:47 pm
Forum: Personal Investments
Topic: Should I contribute to my 403b this year?
Replies: 20
Views: 3084

Re: Should I contribute to my 403b this year?

Some 403b's have a roth option for contribution. You could consider that if you expect to be in a much higher tax bracket in retirement.
by NightFall
Wed Jun 08, 2016 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Princess or Royal Caribbean Visa Card
Replies: 3
Views: 611

Re: Princess or Royal Caribbean Visa Card

I wouldn't pick either one. They basically give you 1% back and have difficult redemption policies. Get a cashback credit card that gives more than 1%. Use that to purchase your cruise instead of the "points" you get on the cruiseline credit card. If you want a MasterCard instead of a VISA, I'm sure...
by NightFall
Tue Jun 07, 2016 4:09 pm
Forum: Personal Consumer Issues
Topic: Problems with Exterior Paint Job on Home
Replies: 13
Views: 1671

Re: Problems with Exterior Paint Job on Home

Do any other houses in your neighborhood have paint on them? If those houses don't have peeling paint, I'm not sure I would believe their house won't hold paint argument. Also, why would they offer to strip your house and repaint for $15k if the house won't hold paint? Something seems wrong.
by NightFall
Tue Jun 07, 2016 1:12 pm
Forum: Personal Investments
Topic: Advice requested with a Roth Decison
Replies: 5
Views: 701

Re: Advice requested with a Roth Decison

Welcome to the forum. I'm not sure I understand your 2021 income. You get about $77,000/year from a pension and some sort of RE sale. Why does your income jump $48,000 in addition to the RMD for your wife? Your wife's SS is $30,000. Regardless, if I assume your numbers are correct, I would say that ...
by NightFall
Mon Jun 06, 2016 1:59 pm
Forum: Personal Investments
Topic: Couple 58 trying to catch up advice needed
Replies: 11
Views: 1942

Re: Couple 58 trying to catch up advice needed

Mattshwink, Didn't know we could contribute to IRAs given our income so thanks. I'll pursue that. Alouette Be careful. Matt's advice on funding a "backdoor Roth IRA" is best used by people who have no pretax IRA balances. In that case, you can contribute to a non-deductible IRA and convert to a Rot...
by NightFall
Thu Jun 02, 2016 10:44 am
Forum: Personal Investments
Topic: Savings rate questions and example
Replies: 15
Views: 2021

Re: Savings rate questions and example

It's hard to say. You're saving 47.5K with an additional employer contribution of 4K and spending 50K of a 100K salary. Plus, this person is in trouble with the IRS since they are only paying 2.5% on taxes, which should not cover SS/medicare taxes not to mention federal/state taxes. I suspect your q...
by NightFall
Fri May 27, 2016 6:51 am
Forum: Personal Investments
Topic: How much can I contribute to my SEP-IRA? (W2 employee)
Replies: 7
Views: 1347

Re: How much can I contribute to my SEP-IRA? (W2 employee)

My understanding is that a SEP-IRA is an IRA. So you would be subject to the contribution limits of an IRA (assuming your plan documents allow employee contributions). https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps-contributions I suppose what would be ambiguous for me wou...
by NightFall
Thu May 26, 2016 12:05 pm
Forum: Personal Consumer Issues
Topic: Advice on Mom's Fence / Neighbor
Replies: 57
Views: 6189

Re: Advice on Mom's Fence / Neighbor

I would not assume that just because the fence posts are inside her yard that means the fence belongs to her. The "fence guy" will likely remove the bushes from the fence, but not in a nice way. It sounds in some ways like a courtesy that he's telling her. Fences are a strange thing that can cause p...
by NightFall
Wed May 18, 2016 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Financing a move from one house to another
Replies: 29
Views: 3328

Re: Financing a move from one house to another

Wow, Nightfall, I had no idea getting approved for a mortgage was so difficult. I'm trying to buy a new house from a developer and they require either a loan preapproval from their bank partner or the full price of the house in a bank account, not in mutual funds. I've been working overseas so I co...
by NightFall
Wed May 18, 2016 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Reality check - how am I doing
Replies: 63
Views: 10112

Re: Reality check - how am I doing

The OP has expected expenses of around 30-50K/ year with a retirement package that should provide 120K/year but makes about 175K/year. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=176505&p=2669219 With those expenses, you're doing fine. You have liquid assets of about 20X annual spending at ...
by NightFall
Tue May 17, 2016 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Financing a move from one house to another
Replies: 29
Views: 3328

Re: Financing a move from one house to another

I was recently in a similar situation buying another home before selling the first. We had enough cash to pay for the second home (first was already paid off), but it would leave us cash poor until the first sold. We decided to get a mortgage for roughly half the amount of the house. Getting a mortg...
by NightFall
Tue May 17, 2016 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: the 4% rule
Replies: 14
Views: 2594

Re: the 4% rule

josephfrancis wrote:Does the 4% rule of thumb for drawing down your assets in retirement assume that you are reinvesting your dividends?
Yes.
by NightFall
Sat May 14, 2016 3:17 pm
Forum: Personal Investments
Topic: No 401k at work and $60k in taxable account. Besides IRA and HSA, where could I move this money for tax protection?
Replies: 11
Views: 1332

Re: No 401k at work and $60k in taxable account. Besides IRA and HSA, where could I move this money for tax protection?

I guess I'm missing the upside of this. Let's say my $60k grows to $300k in real dollars over 30 years (that's about 5% per year after inflation). Depending on cap gains rates, I might owe 10%–15% of $240k over the course of retirement. If I had access to a 401(k) right now and could shift more mon...
by NightFall
Fri May 13, 2016 7:05 am
Forum: Personal Investments
Topic: 1st Post, Looking for Financial Advice
Replies: 8
Views: 1196

Re: 1st Post, Looking for Financial Advice

Welcome to the forum and congrats on the marriage and baby. I agree with everything denovo said. Roth is great, but I would probably take the tax deduction unless you foresee your incomes rising dramatically in the future. Based on your post, I would estimate your net worth at about 50% of your year...
by NightFall
Fri May 13, 2016 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Retire Early -or- Not At All
Replies: 31
Views: 5058

Re: Retire Early -or- Not At All

It's not a bad idea to go part time and can help ease the transition to retirement. Once you become financially free, you have the freedom to work because you want to rather than because you have to. I suspect it would improve your outlook on your job immensely. Unless you go the MMM route, it often...
by NightFall
Thu May 12, 2016 9:55 am
Forum: Personal Finance (Not Investing)
Topic: paid off mortgage...what happens next?
Replies: 19
Views: 3823

Re: paid off mortgage...what happens next?

Not sure. I think we just received the paid in full letter. Why would the deed be released? You owned the house prior to paying off the mortgage. Nothing changed.