Search found 539 matches

by Gufomel
Tue Apr 12, 2016 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - Tax Question
Replies: 6
Views: 866

Re: Backdoor Roth - Tax Question

Ok so the first contribution was made in December 2014. So you're fine there. It doesn't seem to me that you have any issues with over-contributing. Sounds like you have a $5,500 contribution for 2014 and a $5,500 contribution for 2015, which is fine. If you're going to contribute $11,000 for 2015, ...
by Gufomel
Tue Apr 12, 2016 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Help with tax return/W4
Replies: 10
Views: 951

Re: Help with tax return/W4

You may want to consider both you and wife setting your W-4 and "Married but withhold at single rate", and 2 allowances for each of you. The below website is a great place to run various scenarios of how much will be withheld from your paycheck based on your filing status and allowances. http://www....
by Gufomel
Tue Apr 12, 2016 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - Tax Question
Replies: 6
Views: 866

Re: Backdoor Roth - Tax Question

Electron's question above may really be the issue. If you didn't select to contribute the January 2015 contribution for 2014, then you over contributed for 2015. If this is the case, you probably want to talk with your IRA custodian real quick before the April 18th deadline to talk about getting the...
by Gufomel
Tue Apr 12, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - Tax Question
Replies: 6
Views: 866

Re: Backdoor Roth - Tax Question

A few questions first: 1) Was your $5500 contribution to the Traditional IRA in January 2015 made for the year 2014? 2) Were both of your $5500 contributions (January 2015 and late 2015) nondeductible contributions? I assume so but just confirming. 3) Were your rollovers from Traditional IRA to Roth...
by Gufomel
Mon Apr 11, 2016 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Renting out and renting
Replies: 7
Views: 759

Re: Tax Question: Renting out and renting

In that case, I say sell. It sounds like your only reason (or at least highest priority reason) for not wanting to sell is the value is less than what you bought it for. Do you have strong reason to believe (and support for believing) that prices are rising in your city - and more specifically your ...
by Gufomel
Mon Apr 11, 2016 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Renting out and renting
Replies: 7
Views: 759

Re: Tax Question: Renting out and renting

Is there any chance you would move back into your current house? It sounds to me like you're definitely moving out of that house, but you're just trying to decide where to go next. Maybe I'm misunderstanding, but if that is the case then you should definitely sell your current house. Doesn't sound l...
by Gufomel
Mon Apr 11, 2016 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Best Tax Software for US Expat
Replies: 6
Views: 3510

Re: Best Tax Software for US Expat

I don't have any suggestions for software, but just wanted to say kudos to you for doing expat taxes by hand. Those are not the easiest returns. Good luck finding some software to make your life easier.
by Gufomel
Mon Apr 04, 2016 6:59 pm
Forum: Investing - Theory, News & General
Topic: To Buy or Rent a Home? Weighing Which Is the Better Choice
Replies: 16
Views: 3826

Re: To Buy or Rent a Home? Weighing Which Is the Better Choice

Using the calculator in the article, I intentionally tried to make the home buying criteria as unfavorable as possible (within reason) for a home that is within my budget (I currently rent). Despite that, based on the calculator in order for renting to be better than buying, I would have to find a r...
by Gufomel
Mon Apr 04, 2016 6:03 pm
Forum: Personal Investments
Topic: Filed taxes, but exceeded 2015 Roth IRA limit
Replies: 6
Views: 668

Re: Filed taxes, but exceeded 2015 Roth IRA limit

Got it. I'm actually talking to the Vanguard rep right now, and he also mentioned that there is another option, albeit not frequently used. That is to do an excess contribution removal, and instead of moving it to my non-retirement account, moving it into my 2016 Roth IRA. Obviously, considering I'...
by Gufomel
Mon Apr 04, 2016 5:46 pm
Forum: Personal Investments
Topic: Roth IRA Question
Replies: 15
Views: 996

Re: Roth IRA Question

What is your 2015 adjusted gross income & taxable income? This may eliminate a lot of confusion for everyone. bill AGI-67990 taxable income - 67990 I think you're missing at least a standard deduction and personal exemption? Your taxable income is likely lower than your AGI. Regardless, I believe y...
by Gufomel
Mon Apr 04, 2016 5:35 pm
Forum: Personal Investments
Topic: Filed taxes, but exceeded 2015 Roth IRA limit
Replies: 6
Views: 668

Re: Filed taxes, but exceeded 2015 Roth IRA limit

You're welcome. The re-characterization must be done before the 2015 tax return due date (I think you can do it prior to the October 15th extended deadline even if not filing an extension, but I would do it by April 15th to be safe). The conversion back to a Roth can be done at any point (assuming t...
by Gufomel
Mon Apr 04, 2016 5:30 pm
Forum: Personal Investments
Topic: Roth IRA Question
Replies: 15
Views: 996

Re: Roth IRA Question

What is your 2015 adjusted gross income & taxable income? This may eliminate a lot of confusion for everyone. bill AGI-67990 taxable income - 67990 I think you're missing at least a standard deduction and personal exemption? Your taxable income is likely lower than your AGI. Regardless, I believe y...
by Gufomel
Mon Apr 04, 2016 5:15 pm
Forum: Personal Investments
Topic: Filed taxes, but exceeded 2015 Roth IRA limit
Replies: 6
Views: 668

Re: Filed taxes, but exceeded 2015 Roth IRA limit

Note that you must withdraw or recharacterize contributions plus earnings on those contributions. With Option 1, you are subject to tax plus 10% early withdrawal penalty on any earnings you withdraw and move to a non-IRA account (your contributions are withdrawn tax and penalty free). With Option 2,...
by Gufomel
Fri Mar 25, 2016 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA penalty
Replies: 10
Views: 1257

Re: Roth IRA penalty

As posted above, you can recharacterize the 2015 Roth IRA contributions to a Traditional IRA by October 15, 2016 and file an amended return. You may not be able to "backdoor" it to a Roth without paying any tax. You mentioned that you recently rolled over a 401k to a Traditional IRA. If you're plann...
by Gufomel
Thu Mar 24, 2016 3:59 pm
Forum: Personal Investments
Topic: I generally invest in Roth accounts, but should I invest in a Traditional IRA?
Replies: 57
Views: 4469

Re: I generally invest in Roth accounts, but should I invest in a Traditional IRA?

Allan Roth has written about this. You can google him. He knows more about investing than me. He suggested in a blog posting having both. pretty simple. We do not know the future: our earnings, tax rates or tax policies re TIRA or Roths. Taxes rates and policies can be changed. The classic answer i...
by Gufomel
Wed Mar 23, 2016 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Capital One 360 - customer service
Replies: 1
Views: 1014

Capital One 360 - customer service

I am considering opening an account with Capital One 360 to get the $500 bonus on a $50k deposit in the account for 90 days (possibly $1000 total if I understand correctly that both my wife and I could open separate accounts with $50k each). I understand that this offer is available until March 31, ...
by Gufomel
Thu Mar 03, 2016 12:30 pm
Forum: Personal Investments
Topic: Where to park emergency fund?
Replies: 17
Views: 2472

Re: Where to park emergency fund?

If ready access to $$ in your high yield savings account is an issue, you could pair up a money market account and have check/debit card access on the MM side, then just internally transfer the money at Alley, Discover, AmEx, etc. from savings to checking as needed. No 2-3 days delay for an ACH tra...
by Gufomel
Fri Sep 18, 2015 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Residency in one state, working in another, and taxes
Replies: 3
Views: 860

Re: Residency in one state, working in another, and taxes

Oregon is one of the many states from which it is very difficult to break your tax residency once you are domiciled there. It's not as easy as getting a driver's license in another state or just stating that you are resident of another state. This can be seen as tax avoidance. If you decide to not f...
by Gufomel
Tue Aug 04, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: "A different kind of retirement calculator"
Replies: 32
Views: 5799

Re: "A different kind of retirement calculator"

Someone who had a $750,000 portfolio in 1975 almost certainly had a much larger portfolio in 1973! Certainly a hugely important overlooked piece of information in this comparison. Sure, sequence of returns would have hurt someone retiring in 1973 vs 1975, but not to the extent this example seems to...
by Gufomel
Mon Jul 27, 2015 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: State (MA) tax withholding and federal deduction
Replies: 4
Views: 647

Re: State (MA) tax withholding and federal deduction

Makes sense. I wouldn't see an issue with making MA estimated tax payments up to your expected balance due. I would be concerned about paying anything much in excess of that. I assume the reason you're considering paying in excess of the expected balance due is that you can take a deduction this yea...
by Gufomel
Mon Jul 27, 2015 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: State (MA) tax withholding and federal deduction
Replies: 4
Views: 647

Re: State (MA) tax withholding and federal deduction

If you've met safeharbor threshholds through tax withholdings for both US and MA purposes, I don't see what clydewolf has raised being a concern. Possibly I'm missing something. I'm assuming you are only thinking about making a sufficient MA estimated tax payment to get your 2015 MA tax return balan...
by Gufomel
Sat May 23, 2015 6:06 am
Forum: Investing - Theory, News & General
Topic: Taking out a HELOC to invest
Replies: 19
Views: 7238

Re: Taking out a HELOC to invest

Thanks everyone for your responses. However, maybe I didn't phrase my question well enough (or maybe I'm just not fully understanding the responses). If you would not pay extra on your mortgage because you believe its financially smarter to invest that money, why would you not take out a loan with t...
by Gufomel
Fri May 22, 2015 4:08 pm
Forum: Investing - Theory, News & General
Topic: Taking out a HELOC to invest
Replies: 19
Views: 7238

Taking out a HELOC to invest

I don't own a home (but intend to in the near future), so I can't answer the question posed in this post from personal experience. I would like to hear homeowners' answer to this question based on their personal experience. I often see the advice on here (and elsewhere) to not make any additional lu...
by Gufomel
Sat May 16, 2015 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Expat Roth 401(k) contribution query
Replies: 1
Views: 407

Re: Expat Roth 401(k) contribution query

Are you tax equalized by your employer (your employer pays your foreign tax liability and takes the foreign tax credit on your US tax return, and you are held to a "stay at home" US tax liability as if you had remained working in the US?). Or are you a basically a local employee in the foreign count...
by Gufomel
Sun May 03, 2015 2:38 pm
Forum: Personal Consumer Issues
Topic: Received a new license plate/number in the mail
Replies: 23
Views: 3004

Re: Received a new license plate/number in the mail

3 letters and 3 numbers would cover over 17.5 million plates. 6 letter format would cover over 300 million plates. I'm not sure what you were getting at, but are you saying it couldn't be right that they are out of combinations? I was just going based off of this website. https://ftp.dot.state.tx.u...
by Gufomel
Sun May 03, 2015 2:16 pm
Forum: Personal Consumer Issues
Topic: Received a new license plate/number in the mail
Replies: 23
Views: 3004

Received a new license plate/number in the mail

I just received a new license plate in the mail today. I live in Texas and the license plate format was changed a while back, and they've been slowly rolling out to everyone. Also, they ran out of 6 character numbers, so all new license plates are now 7 characters. However, I was surprised to see th...
by Gufomel
Tue Mar 24, 2015 9:38 pm
Forum: Personal Investments
Topic: HSA as a retirement account
Replies: 2
Views: 590

HSA as a retirement account

I haven't seen this discussed on here, though I've only been reading this forum for a few weeks. Maybe this is unconventional, but it seems like an HSA would be great for long-term savings, even as long a horizon as retirement. I'm 26 and currently have only a small (<2k) balance in my HSA, as I onl...
by Gufomel
Sun Mar 22, 2015 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Forgot to file Form 8889
Replies: 2
Views: 2305

Forgot to file Form 8889

I forgot to file Form 8889 for HSA with my 2014 tax return. 2014 was the first year I had an HSA. My contributions were through my employer, so I received the deduction for my contributions through payroll. My employer also contributed to the HSA. I took no distributions. My W-2 showed HSA contribut...
by Gufomel
Sun Mar 08, 2015 8:44 am
Forum: Investing - Theory, News & General
Topic: Vanguard Total Stock Market Index Fund (VTSAX)
Replies: 16
Views: 10612

Vanguard Total Stock Market Index Fund (VTSAX)

I see a lot of people here that adamantly favor the 3 fund portfolio, in which VTSAX is a major component (along with Total International and Total Bond). In your opinion, isn't VTSAX too highly weighted in large cap (approximately 75%) with very little in small cap (less than 10%)? For US stocks, I...
by Gufomel
Sat Mar 07, 2015 6:54 am
Forum: Personal Investments
Topic: CD's for Short-term savings
Replies: 6
Views: 1019

Re: CD's for Short-term savings

Ok I definitely could not risk not having the money for 5 years. So I won't do that if that's a possibility. Thanks for the feedback.
by Gufomel
Fri Mar 06, 2015 11:04 pm
Forum: Personal Investments
Topic: CD's for Short-term savings
Replies: 6
Views: 1019

Re: CD's for Short-term savings

Another thought on the EWP, does it reduce your taxable interest income? Is the gross interest minus EWP what gets reported on your 1099-INT? Edit: I've answered my own question. You report the full interest but the EWP is claimed as an above the line deduction on your Form 1040 regardless of if you...
by Gufomel
Fri Mar 06, 2015 11:01 pm
Forum: Personal Investments
Topic: CD's for Short-term savings
Replies: 6
Views: 1019

Re: CD's for Short-term savings

I see. That's good insight on the retroactive change to EWP. Never would have considered that, but it's certainly a risk if that's been done in practice (even if not yet by Ally). I'm not sure I really understand what you were saying about the put. Probably more risky than what I'm wanting to do. Bu...
by Gufomel
Fri Mar 06, 2015 10:47 pm
Forum: Personal Investments
Topic: CD's for Short-term savings
Replies: 6
Views: 1019

CD's for Short-term savings

I currently have an online savings account with Ally Bank. The primary purpose for the savings is for a house downpayment. I currently have about $100,000 saved. I am unlikely to use the savings within 1 year, though it would be entirely possible to use it within 2 years. The current interest rate o...
by Gufomel
Sun Feb 15, 2015 9:00 pm
Forum: Personal Investments
Topic: Sector Allocation
Replies: 14
Views: 1425

Re: Sector Allocation

Your allocation looks fine to me. Not far off from what mine is, although I don't have bonds or REITS and my International is 30%. Your explanation for ETFs makes sense since you want to keep a low ER. Aside from those two big issues, there isn't inherently any deal-breaking issue with ETFs on the ...
by Gufomel
Sun Feb 15, 2015 8:25 pm
Forum: Personal Investments
Topic: Sector Allocation
Replies: 14
Views: 1425

Re: Sector Allocation

Bene, Sorry I wasn't clear. I was just talking about split between domestic portion of the portfolio. Here's a breakdown of my goal allocation (ignoring the discussion in my initial post about sector allocation: 60% U.S. equity (40% S&P 500 Index and 20% small/mid cap index) 25% International equity...
by Gufomel
Sun Feb 15, 2015 8:01 pm
Forum: Personal Investments
Topic: Sector Allocation
Replies: 14
Views: 1425

Re: Sector Allocation

I agree that VTSAX seems to be way too heavily invested in large cap. I lean towards a combination of 2/3 VOO and 1/3 VB. What do you think?

And thanks for the feedback on sector allocation.
by Gufomel
Sun Feb 15, 2015 7:38 pm
Forum: Personal Investments
Topic: Sector Allocation
Replies: 14
Views: 1425

Re: Sector Allocation

Thanks Forty
by Gufomel
Sun Feb 15, 2015 7:23 pm
Forum: Personal Investments
Topic: Sector Allocation
Replies: 14
Views: 1425

Re: Sector Allocation

This post was already near the bottom of the page after getting approved by moderator, so I just wanted to give it one bump to see if anyone has any thoughts.
by Gufomel
Sat Feb 14, 2015 10:29 pm
Forum: Personal Investments
Topic: Sector Allocation
Replies: 14
Views: 1425

Sector Allocation

For 2-3 years my Vanguard portfolio has consisted basically of 3 funds (S&P index, US small-cap, and international). Please note this is entirely IRA investments.I automatically invest a certain percentage every month. I was recently introduced to Personal Capital, which gives a pretty detailed anal...