Search found 1517 matches

by teen persuasion
Thu May 13, 2021 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: The Biggest Mistakes People Make With Social Security
Replies: 123
Views: 8867

Re: The Biggest Mistakes People Make With Social Security

The basic math says if you do not have enough money saved up to cover your living expenses, why would you retire? If you are retiring just to not have to work anymore and collect SS, then that is just being lazy. If you choose not save enough (or couldn't) over the years, you need to work to age 70...
by teen persuasion
Thu May 13, 2021 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Mother is looking to refinance and asking me to co-sign
Replies: 125
Views: 6668

Re: Mother is looking to refinance and asking me to co-sign

If she can't afford the house now - how is she going to afford it in 5 or 10 years? It's the high-interest mortgage payments she can't afford. Paying off that mortgage will be a giant step forward. After that she'll need some financial planning as you suggest. It sounds like her soc sec income is m...
by teen persuasion
Mon May 10, 2021 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Should I tear down my house?
Replies: 57
Views: 5762

Re: Should I tear down my house?

Don't destroy a lovely old house just because you want a new house. Especially if you don't intend to stay there forever.

Sell the old house unremuddled to someone who prefers older houses, and buy yourself the new house you want.
by teen persuasion
Fri May 07, 2021 12:08 pm
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8784

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

Biggest concern in my mind is the part about living to 85. Why such an early age? I know many people who get to their 90's and a few over 100. I agree. That's a terrible number to use for financial planning purposes unless the OP is in VERY poor health. Another agree - I plan out to 105, at least. ...
by teen persuasion
Fri May 07, 2021 8:57 am
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8784

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

Biggest concern in my mind is the part about living to 85. Why such an early age? I know many people who get to their 90's and a few over 100. I agree. That's a terrible number to use for financial planning purposes unless the OP is in VERY poor health. Another agree - I plan out to 105, at least. ...
by teen persuasion
Fri May 07, 2021 7:32 am
Forum: Personal Investments
Topic: 24 y/o and making $55k - should I go traditional or Roth 401k?
Replies: 24
Views: 1979

Re: 24 y/o and making $55k - should I go traditional or Roth 401k?

I currently contribute $800 per paycheck to a traditional 401k through my company. This will put me right near the max yearly contribution limit by the end of the year. I also have a Roth IRA that I max. Once I knock off $15k of taxable income to get that portion out of the 22% tax bracket, should ...
by teen persuasion
Wed Apr 28, 2021 11:45 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3334

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

Is it not better to have dedicated college savings so you don't have to stop putting money in retirement those years? It seems like even a taxable account would be better than just skipping saving entirely. I can maybe understand if you're not using all your space, but if you're already maxing reti...
by teen persuasion
Wed Apr 28, 2021 11:27 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3334

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

Scenario 2: Max out retirement accounts before kids go to college More money in retirement accounts Continue to save in retirement accounts to stay under threshold Pay for college from Roth IRA The issue that I have with this scenario is that it probably works fine for 1 kid, but less likely for 2....
by teen persuasion
Mon Apr 26, 2021 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3334

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

Private colleges have plenty of money to give you but they're going to dig into your home equity, what cars you drive and all your retirement accounts. This depends on whether the private college uses FAFSA or CSS (or both.) CSS is much more intrusive in terms of what they want to know. My daughter...
by teen persuasion
Mon Apr 26, 2021 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3334

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

D) 85K + 85K = 170K . Roth IRA contribution over 18 years = 12K X 18 = 216K . OP could use Roth IRA contribution to pay for college education while hidden from FAFSA. KlangFool My Roth IRA is way more valuable to me for retirement. I wouldn't want to blow it on paying for college if there were othe...
by teen persuasion
Mon Apr 26, 2021 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3334

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

The current FAFSA rules and the new and improved FAFSA rules are two different animals. How old your kids are, and when they begin college, matters. You can walk thru the current FAFSA EFC calculations to see how you'd fare right now, but if your kids are a few years out its the new FAFSA rules you ...
by teen persuasion
Mon Apr 26, 2021 7:50 am
Forum: Personal Investments
Topic: Saver's Credit-2020 taxes and UI
Replies: 13
Views: 1296

Re: Saver's Credit-2020 taxes and UI

First, thanks to everybody for your replies. Secondly, I posted another tax question about what I should do for my 2021 taxes in my other thread about severance pay at: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=346946&p=5969239#p5969239 Yes, I believe I started from my existing H...
by teen persuasion
Mon Apr 26, 2021 7:15 am
Forum: Personal Investments
Topic: Investment for my son college
Replies: 17
Views: 1955

Re: Investment for my son college

So, besides these two questions that we have solved, do you think it's a good idea to give my son a good start for his financial future buy him (but in my name) a Vanguard Target Retirement Fund with an initial amount of $15K and put an additional $1k every January for the coming years untill I wil...
by teen persuasion
Sun Apr 25, 2021 3:17 pm
Forum: Personal Investments
Topic: Saver's Credit-2020 taxes and UI
Replies: 13
Views: 1296

Re: Saver's Credit-2020 taxes and UI

Did you start at the free file link on the NYS tax website? https://www.tax.ny.gov/pit/efile/default.htm We used TurboTax from the NYS free file link, and could claim the Saver's credit w/o paying for an upgrade. I've learned the hard way that you have to start from NYS's link for it to be free. Don...
by teen persuasion
Fri Apr 23, 2021 8:13 am
Forum: Investing - Theory, News & General
Topic: Hit Millionaire Status! [Does anyone shift when they hit a milestone?]
Replies: 132
Views: 18382

Re: Hit Millionaire Status! [Does anyone shift when they hit a milestone?]

...I hit $1M with wife at 35, then we divorced!... The $1M also happened to me at 35 and also ended up divorced a year later though at 40... If you're thinking at 31 that it can't happen to your current relationship we would have that in common. Serious and important question for you guys: Are ther...
by teen persuasion
Thu Apr 22, 2021 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 145
Views: 15644

Re: Are Roth Accounts Overrated?

Roth conversions require tax inefficiency on the front end because you have to save five years of expenses in a brokerage account to make the whole thing work. There are other paths to Roth conversions. You can use withdrawals from tax-deferred accounts to fund your spending needs (or early withdra...
by teen persuasion
Wed Apr 21, 2021 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 145
Views: 15644

Re: Are Roth Accounts Overrated?

Roth accounts are much more advantageous to us than taxable accounts. Investment income is taxed as ordinary income at the state level. Investment income over ~$3600 would make us ineligible for federal EITC (max ~$6600) and thus state EITC, too (30% of federal). Even in the zero LTCG bracket, LTCG ...
by teen persuasion
Wed Apr 21, 2021 10:11 am
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 492
Views: 34948

Re: "Nobody's ever regretted paying off the mortgage."

all tax sheltered space That must be where the unicorns live. I bet it's pretty there. a few credits That's probably what you feed the unicorns, right? some are refundable credits That must be like unicorn birthday cake. wait... in unicorn land I can magically pay no taxes for all these investments...
by teen persuasion
Tue Apr 20, 2021 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Question About Claiming Son as Dependent
Replies: 37
Views: 2392

Re: Question About Claiming Son as Dependent

1. Claiming a child as a tax dependent can be beneficial to the parent in that the child tax credit or credit for other dependents may be available. It wasn't to us; besides, he missed out on the stimulus money he could've claimed which was way more than the $500 we got as "other dependent tax...
by teen persuasion
Tue Apr 20, 2021 7:23 am
Forum: Personal Finance (Not Investing)
Topic: Question About Claiming Son as Dependent
Replies: 37
Views: 2392

Re: Question About Claiming Son as Dependent

[...] Your son will have to file tax return whether you claim him as a dependent or not. Yes, you can claim your son as a dependent. Just because you can claim doesn't mean you should or you have to. What would be your benefit for claiming him as your dependent? [...] There is not much benefit to c...
by teen persuasion
Sun Apr 18, 2021 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Factoring tax credits towards being able to Semi-FIRE
Replies: 17
Views: 1354

Re: Factoring tax credits towards being able to Semi-FIRE

So if you plan to have little new savings for a few years, you might use those years to transfer portions of your taxable account to Roth IRAs. You'd be eliminating any tax drag on taxable transferred to Roth - yes, you are currently enjoying 0% LTCG federally, but states often tax investment income...
by teen persuasion
Sun Apr 18, 2021 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Factoring tax credits towards being able to Semi-FIRE
Replies: 17
Views: 1354

Re: Factoring tax credits towards being able to Semi-FIRE

Putting on my Dr. Phil hat, am I being a party pooper to suggest that the discussion of the wife going part time would not have started in the OP's household if the wife was entirely happy with the current arrangement where she works all day, has to live extremely frugally and doesn't have time or ...
by teen persuasion
Sat Apr 17, 2021 9:17 pm
Forum: Investing - Theory, News & General
Topic: Roth v. Traditional - Does effective tax rate matter?
Replies: 22
Views: 2215

Re: Roth v. Traditional - Does effective tax rate matter?

Effective rate isn't useful. It's marginal rate you want to look at. Your marginal rate may or may not be your tax bracket. With credits, you have to consider whether and how much of a credit is refundable vs nonrefundable, and whether it phases out with higher AGI or other measure, like w2 wages, o...
by teen persuasion
Sat Apr 17, 2021 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Factoring tax credits towards being able to Semi-FIRE
Replies: 17
Views: 1354

Re: Factoring tax credits towards being able to Semi-FIRE

I’m currently SAHD 29y/o with wife 25 y/o working full time earning 40k a year. With higher CTC and EITC we would have a negative tax liability of about 15k if wife dropped from full time to part-time. We think we can trade off working part time every couple of years and not touch any accounts. We ...
by teen persuasion
Fri Apr 16, 2021 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Factoring tax credits towards being able to Semi-FIRE
Replies: 17
Views: 1354

Re: Factoring tax credits towards being able to Semi-FIRE

How do you get to $15k/yr, does that include state versions of each credit? You said "both kids", so I'm figuring on 2 young kids: $3600 CTC * 2 + $5920 max EITC for MFJ w/ 2 kids = $13120. Next issue: the increases are only approved for this year, right now. Not a great long-term plan un...
by teen persuasion
Fri Apr 16, 2021 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Factoring tax credits towards being able to Semi-FIRE
Replies: 17
Views: 1354

Re: Factoring tax credits towards being able to Semi-FIRE

How do you get to $15k/yr, does that include state versions of each credit? You said "both kids", so I'm figuring on 2 young kids: $3600 CTC * 2 + $5920 max EITC for MFJ w/ 2 kids = $13120. Next issue: the increases are only approved for this year, right now. Not a great long-term plan unt...
by teen persuasion
Tue Apr 13, 2021 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: First child entering college in the fall... need some advice
Replies: 186
Views: 12247

Re: First child entering college in the fall... need some advice

So, just got some great news, our oldest child has been accepted into two top US universities and will be choosing between them for her undergraduate education. (These are both private universities; we did explore our state university and we determined that for her field of study, the private schoo...
by teen persuasion
Tue Apr 13, 2021 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: First child entering college in the fall... need some advice
Replies: 186
Views: 12247

Re: First child entering college in the fall... need some advice

So, just got some great news, our oldest child has been accepted into two top US universities and will be choosing between them for her undergraduate education. (These are both private universities; we did explore our state university and we determined that for her field of study, the private schoo...
by teen persuasion
Tue Apr 13, 2021 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Second career / semi retirement math
Replies: 7
Views: 816

Re: Second career / semi retirement math

I'm planning for a variation of this - the higher earner is retiring this year, I plan to continue my part-time job. We have exceeded our target stash, but there's a few good reasons for me to continue receiving earned income. First, I'm still having fun at my job. Second, we still have a teen at ho...
by teen persuasion
Thu Apr 08, 2021 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bill split between spouses
Replies: 82
Views: 4641

Re: Tax bill split between spouses

Not exactly the same scenario, but we have to do some coordination between our tax returns and our college student's returns, to maximize total family tax refunds. To maximize AOTC (which a dependent college student cannot claim themselves) we have the student claim a calculated portion of their sch...
by teen persuasion
Fri Apr 02, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6864

Re: Why do I owe so much in Taxes?

Quick and dirty first pass:

Difference between fed withholding divided by additional income on higher check:

6345 - 1684 = 4661

4661 / 21100 = ~.22 or 22%

So, yes, they are withholding 22% on the additional income.
by teen persuasion
Fri Apr 02, 2021 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Asking for more Merit aid? College decision day 5/1
Replies: 39
Views: 2522

Re: Asking for more Merit aid? College decision day 5/1

The student needs to make the request. In my experience, the colleges don't want to hear from helicopter parents, their customer is the student. The student gets the bills; if I, the parent, want to be on the billing account, I'm only on it for payment purposes. I can't see the breakdown, just the ...
by teen persuasion
Fri Apr 02, 2021 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Asking for more Merit aid? College decision day 5/1
Replies: 39
Views: 2522

Re: Asking for more Merit aid? College decision day 5/1

The student needs to make the request. In my experience, the colleges don't want to hear from helicopter parents, their customer is the student. The student gets the bills; if I, the parent, want to be on the billing account, I'm only on it for payment purposes. I can't see the breakdown, just the b...
by teen persuasion
Fri Apr 02, 2021 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Asking for more Merit aid? College decision day 5/1
Replies: 39
Views: 2522

Re: Asking for more Merit aid? College decision day 5/1

We've had both good and poor results with this. DD1 was gapped a significant amount by her first choice school. When she petitioned for an increase in aid, they offered only parent loans. When we objected to loans at 50% of our HHI per year, they gently suggested she might be happier elsewhere. She ...
by teen persuasion
Thu Apr 01, 2021 10:38 pm
Forum: Investing - Theory, News & General
Topic: What am I missing? Don't max out your 401k.
Replies: 80
Views: 10837

Re: What am I missing? Don't max out your 401k.

I don't agree with many of the points here but could see why a low income worker up to maybe 60K couldn't afford to max out the 401K, if 19,500 is too much to save per year that is a valid reason. But if you are making 70K or more I think you can max out the 401K while also saving in taxable, there...
by teen persuasion
Wed Mar 31, 2021 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Starting a 5304-SIMPLE at different institution
Replies: 6
Views: 262

Re: Starting a 5304-SIMPLE at different institution

Thanks Duckie. I asked a couple people and they are primarily through Edward Jones and American Funds. My research of these institutions indicates their fees would about eat up any employer contributions to the point it would be senseless to set it up. However, apparently the local EJ office knows ...
by teen persuasion
Sun Mar 28, 2021 11:52 am
Forum: Personal Investments
Topic: With hitting zero owed federal taxes, should I allocate a % to Roth 401k?
Replies: 28
Views: 2002

Re: With hitting zero owed federal taxes, should I allocate a % to Roth 401k?

The increased child tax credits this year from the new American Rescue Plan Act are fully refundable, so you don't need a tax liability to claim the full amount of the credit. This means any traditional 401k tax deferral would still give you a deduction at your marginal tax rate. Can you explain mo...
by teen persuasion
Sun Mar 28, 2021 10:01 am
Forum: Personal Investments
Topic: Sell taxable investments to fund Roth IRAs? [EITC and CTC]
Replies: 17
Views: 1868

Re: Sell taxable investments to fund Roth IRAs?

The enacted law is summarized at this Congressional Research Service report. That is as good as any IRS publication. https://crsreports.congress.gov/product/pdf/R/R46680 (page 9) If you can get your AGI under $39,000 (2020 number; 2021 will be higher), you would then also get the full Saver's Credi...
by teen persuasion
Thu Mar 25, 2021 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on Scholarship
Replies: 4
Views: 500

Re: Tax on Scholarship

We've had our dependents claim their taxable scholarships as income on their returns. Part of it was the portion of the scholarship exceeding tuition, and part was $4k so that we could say we had paid $4k in tuition OOP to be eligible for AOTC. The dependent student's standard deduction will depend ...
by teen persuasion
Thu Mar 25, 2021 10:39 am
Forum: Personal Finance (Not Investing)
Topic: American Rescue Plan - question about taxes
Replies: 3
Views: 284

Re: American Rescue Plan - question about taxes

I believe that higher CTC is for 2021, not the past year. They are discussing sending periodic prepayment, $250 or $300 monthly equivalent.

So nothing to do now, until the IRS gives more guidance on the IU issue.
by teen persuasion
Thu Mar 25, 2021 8:21 am
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

Thanks teen P. I think I get it. Tried searching for Roth conversion ladder on the wiki here. Didn't see any search results. Here are some explanations: https://www.madfientist.com/how-to-access-retirement-funds-early/ https://mindingmythirties.com/what-is-a-roth-conversion-ladder-and-why-you-might...
by teen persuasion
Wed Mar 24, 2021 9:41 pm
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

Edit: don't you pay the 10% penalty regardless of why you withdrew from Trad 401k? I.e. doing roth conversions before 59.5 would mean you *have* to pay the 10% penalty? If you convert the early distribution (pre 59.5 years old) to Roth IRA, there isn't a 10% early withdrawal penalty. If you spend i...
by teen persuasion
Wed Mar 24, 2021 9:11 am
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

@teen persuasion Thanks. We agree on two things: 1. Roth conversions are not universally advantageous 2. Roth conversions can be advantageous The question remains - under which conditions and to what extent are Roth conversions advantageous? The answer needs to include dollars, percentages and age ...
by teen persuasion
Wed Mar 24, 2021 7:53 am
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

@teen persuasion Thanks. We agree on two things: 1. Roth conversions are not universally advantageous 2. Roth conversions can be advantageous The question remains - under which conditions and to what extent are Roth conversions advantageous? The answer needs to include dollars, percentages and age ...
by teen persuasion
Tue Mar 23, 2021 7:58 am
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

@CloseEnough There is/was a thread a couple of weeks ago on this site or the FIRE site that fleshed this out. My simple question to Roth conversion supporters is/was this: What is the quantified benefit of Roth conversions during the life expectancy of the investor? The answer to the question is pr...
by teen persuasion
Mon Mar 22, 2021 12:50 pm
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

chassis » Sat Mar 20, 2021 10:50 pm Let it ride. And be prepared for RMDs as previously mentioned. You will see mentions of Roth conversions. I view them as gimmicky and unnecessary. The stated gain from Roth conversions, if this information can be squeezed out of the posters, is tiny in the big pi...
by teen persuasion
Mon Mar 22, 2021 8:57 am
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

chassis » Sat Mar 20, 2021 10:50 pm Let it ride. And be prepared for RMDs as previously mentioned. You will see mentions of Roth conversions. I view them as gimmicky and unnecessary. The stated gain from Roth conversions, if this information can be squeezed out of the posters, is tiny in the big pi...
by teen persuasion
Sun Mar 21, 2021 8:42 am
Forum: Personal Investments
Topic: What do most people do with a 401K upon retirement if they dont need it?
Replies: 169
Views: 15609

Re: What do most people do with a 401K upon retirement if they dont need it?

My wife and I are both state workers and are "expected" to have a combined pension of $170K a year once retired and plan to live on this amount. We currently max out our 401K's and put a decent amount into VTSAX through Vanguard as well as fund our daughters UTMA account. The 401K's shoul...
by teen persuasion
Sat Mar 20, 2021 9:15 am
Forum: Investing - Theory, News & General
Topic: Early Retirement and Absorbing the 10% Withdrawal Penalty
Replies: 46
Views: 4420

Re: Early Retirement and Absorbing the 10% Withdrawal Penalty

A couple of points: 1) A lower income family (50k), likely doesn't get a ton of benefit from tax deferrals, and paying 10% penalty on them likely wipes out the advantage of using the 401k to begin with (including a modest employer match). 2) Taxable investing is not too bad as long as you don't hol...