Search found 60 matches

by mrsgoldilocks
Tue Sep 21, 2021 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate
Replies: 38
Views: 3725

Re: Real Estate

Speaking from my experience of self-managing a few SFHs, there are a lot to learn in real estate management, i.e. the aptitude of the county/state towards rentals (some can be super hostile and picky), finding the right property managers and tenants (can be hit or miss). When investing in real estate, you need to remember, it involves a lot of costs i.e. repair/maintenance. and those costs are going skyrocketing these days. You're also bearing more risks, i.e. non-paying tenant (it's not that easy to evict tenants. in a lot of states, it takes 3 months to successfully evict a tenant even in non-covid time), tenant trashing your place, liabilities, tax, insurance, commission to find tenant etc etc. Also, real estate is not a liquid asset. If...
by mrsgoldilocks
Fri Jun 25, 2021 4:28 pm
Forum: Personal Investments
Topic: Sell rental home?
Replies: 18
Views: 2089

Re: Sell rental home?

This is an inheritance? So you have the step up in basis reducing taxes if you sell. I would sell because the numbers aren't great on profitability and your taxes are lower right now on the sale of it. Golden opportunity as depreciation recapture and LTCG should be zero right now due to step up in basis (this is what I believe to be the case, but verify with a tax professional). Agreed. Since you're now at the step-up basis, it's a perfect time to sell and capture the value of the house. [I'm also not an accountant, but i'm pretty sure it's the case unless the law has changed.] Rentals are complicated. I know a lot of ppl using the 1% rules which I honestly think it is very hard to come by in a lot of areas, and it doesn't apply in a lot o...
by mrsgoldilocks
Wed Jun 23, 2021 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 question...
Replies: 16
Views: 2938

Re: Rule of 55 question...

retiredjg wrote: Tue Jun 22, 2021 9:11 am
mrsgoldilocks wrote: Tue Jun 22, 2021 8:29 am I asked our 401K plan administrator about rule of 55. But apparently, he said our plan only allows non-penalty withdrawal strictly starting age 59 1/2. I don't know if he never runs into anyone asking this particular question so he just answers from the top of his head, or it is for real that our company doesn't allow this.
What you need to ask about is withdrawal options upon retirement. See if there are flexible withdrawals rather than "must take it all".
Thanks. I will go for it.
by mrsgoldilocks
Tue Jun 22, 2021 11:28 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 7203
Views: 1413661

Re: Credit Card Recommendations

Citi Double cash mastercard
by mrsgoldilocks
Tue Jun 22, 2021 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Buy and hold blighted property in neighborhood with future potential
Replies: 50
Views: 4520

Re: Buy and hold blighted property in neighborhood with future potential

One thing you need to consider is that when you own a property, it's not like stock which you can let it sit there and ignore it for 20 years. A property needs constant attention. 1) if you plan to renovate it and rent it out. Currently, renovation cost is skyrocketing because of the cost of material and the crazy house market. so renovation will be a very big cost. if you rent it out, I'm not sure what kind of tenants you can find given your description of the area. 2) if you don't plan to renovate and just want to let it vacant and waiting for it to be appreciated. You still need to 1) pay tax/insurance, 2) most insurance company will not really insure a forever vacant property as it's a big liability 3) even if it's vacant, the city may ...
by mrsgoldilocks
Tue Jun 22, 2021 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 question...
Replies: 16
Views: 2938

Re: Rule of 55 question...

I am planning for early retirement and most likely I will stay with my current employer for another 10-15 years.

I asked our 401K plan administrator about rule of 55. But apparently, he said our plan only allows non-penalty withdrawal strictly starting age 59 1/2. I don't know if he never runs into anyone asking this particular question so he just answers from the top of his head, or it is for real that our company doesn't allow this.

But I suspect a lot of 401k plans don't allow this the rule of 55 as it's not mandatory by law and it is not really bringing any benefits to the company. Plus, it really may not be that many ppl wants to access their 401 saving at age of 55.
by mrsgoldilocks
Mon Jun 21, 2021 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Depend on Social Security?
Replies: 54
Views: 5695

Re: Depend on Social Security?

Same as the OP, I'm around 20 - 30 years away from my "official" retirement age. Personally, I do not take social security payment in my retirement planning. Not that I think I will receive $0 payment, but the projected amount on my "statement" assuming that I work at the same level of income (inflation adjusted?) until retirement age. That's highly unlikely, so my benefits will be "reduced" because of that. How much it will be reduced? I'm not so sure yet.
by mrsgoldilocks
Mon Jun 21, 2021 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: How did you find your tax expert?
Replies: 12
Views: 1534

Re: How did you find your tax expert?

Thanks all for your replies so far! My current complexities that led me to this point are: small business (LLC) questions and tax optimization double-checking that I have been and will continue to be doing all the right things with our Backdoor Roths (I have read the Boglehead wiki and many forum posts on it, but I can't fully reconcile it with TurboTax, and I'd like an expert to confirm my personal situation) one-time question about a lump sum payment we received this year that I think was categorized by the employer as 1099-MISC, but I am unsure it should be. Also questions on paying quarterly estimated payments on that lump sum. Nothing else yet. I assume I'll have random tax questiona as life moves forward. yes, it is a good idea to ha...
by mrsgoldilocks
Mon Jun 21, 2021 1:42 pm
Forum: Personal Consumer Issues
Topic: Opinions on Montessori beyond the preschool years
Replies: 15
Views: 3076

Re: Opinions on Montessori beyond the preschool years

WorkToLive wrote: Mon Jun 21, 2021 1:16 pm I went to what is now Butler Montessori.

My kids went to what is now Fernwood Montessori.

My nieces went to Aiden Montessori and then to Oneness Family Montessori.
Got it. I will look into it. thanks.
by mrsgoldilocks
Mon Jun 21, 2021 1:38 pm
Forum: Personal Consumer Issues
Topic: Do you use a Kindle? Are they worth trying?
Replies: 133
Views: 11237

Re: Do you use a Kindle? Are they worth trying?

Pros 1) easier for your eyes when reading in the dark 2) pretty light weight. 3) carry a lot of books especially nice when traveling or if you always misplace your books. 4) books are always much better price in kindle version 5) a lot of public library lets you borrow e-book in kindle version Cons 1) that never happened to me. But I heard that when you own a book in kindle, it's only a right to read it as long as the publisher still has a deal with amazon. If that deal is gone, your book can simply disappear from your device even you did pay for it. 2) for books that you need to read with reference to diagrams or charts, or a book that you want to study deeply, I think it's not that ideal to read it on kindle. all in all, I really like my ...
by mrsgoldilocks
Fri Jun 18, 2021 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Am I thinking about the mortgage interest deduction correctly?
Replies: 22
Views: 2393

Re: Am I thinking about the mortgage interest deduction correctly?

If i understand your post correctly, you just want to figure out what extra tax deduction you should have if you can itemize and your mortgage interest should be 100% deduction ( if there is no SALT cap). You're not complaining, but simply curious. Recently, I ask this on bogleheads https://www.bogleheads.org/forum/viewtopic.php?f=2&t=350810&p=6054944 and the fellow bogleheads help me the understand that while my mortgage interest is not 100% deducted now, but the tax reform also has other details that put me in a better tax position, i.e. it removes marriage penalty and generally lower tax bucket. And this whole SALT cap expires in 2025, so your mortgage interest can lower your tax burden starting 2026 IF there is no further tax la...
by mrsgoldilocks
Fri Jun 18, 2021 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Can I get a mortgage based on my investments instead of salary?
Replies: 27
Views: 4799

Re: Can I get a mortgage based on my investments instead of salary?

Yes, I think you should be able to especially you're paying 75% down.
by mrsgoldilocks
Fri Jun 18, 2021 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Are there federal taxes paid by individuals other than form 1040 line "total tax"?
Replies: 77
Views: 9633

Re: Why do many people owe the IRS taxes?

And when ppl get a refund from IRS, they are so happy and feel like they should throw a party. What to celebrate for?? you're just getting your interest-free loan to IRS back ... :oops: For many people taxes are a black box, incomprehensible. They do taxes that they don't particularly understand (which is somewhat fair as the tax code is somewhat Byzantine/opaque) and get a result. If the result is that they get money, that is a pleasant surprise, particularly if they fear owing. Not saying this is a good way to handle taxes, or at all rational, but I do get it. Totally agreed. So every year after I file tax for my parents, my 70+ years old mom will ask me how much refund she is getting. I explain to her that she didn't withhold any tax, s...
by mrsgoldilocks
Fri Jun 18, 2021 10:32 am
Forum: Personal Investments
Topic: How Am I Doing? 39 year old asking for a checkup
Replies: 19
Views: 4195

Re: How Am I Doing? 39 year old asking for a checkup

I guess what makes me the most anxious is that we don't have a taxable account and I really thought I'd have a bigger portfolio by now. We needed to go liquid to "weather the storm" and now just trying to save cash to buy the next home. So let me have it, how can I improve? Thoughts I can somewhat understand why you're anxious. If I was in your shoes, I would be too. (1) no taxable is a little behind for your income (2) having 420K sitting around waiting for a buy opportunity on a house can be very uneasy, and who knows when you can find your house and then by then, is that still affordable? It's just an unknown hanging over you. (3) in a VHCOL area, you probably have a lot of peers who seem to achieve a lot more, and have alread...
by mrsgoldilocks
Fri Jun 18, 2021 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Are there federal taxes paid by individuals other than form 1040 line "total tax"?
Replies: 77
Views: 9633

Re: Why do many people owe the IRS taxes?

My knowledge of the tax system is very poor, and I want to make sure I am not owing any taxes to the IRS. Are there other taxes that the IRS collects from individuals usually (I do not mean in very special circumstances, just typical people)? I suspect OP posted this topic because OP doesn't want to have federal tax overdue by the time OP files tax return. To avoid this, do the followings. 1) If you file your own tax, or even you have an accountant doing that, you should have a year to year tax comparison. Look over that and see how your federal/state tax increases/decreases over time. Then, compare that to your withholding, i.e. your W2 or your quarterly estimated tax and adjust accordingly. 2) if your main source of income is W2, it is i...
by mrsgoldilocks
Thu Jun 17, 2021 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: delete
Replies: 4
Views: 495

Re: Refinancing rental rate

I currently live in a condo that has a 15-year mortgage with a 3.09% rate that originated in 2014(100k balance). We are closing on a single-family home on next week and planning to keep condo as a rental unit. I thought of refinancing condo loan to see if I can get a better late. But I am seeing rate is much higher for investment property. We will move out in 3 weeks and will rent out in few months. Is there anything that can be done to get a lower rate? The goal of refinancing is not to improve cash flow, but to save on interest without early payoff. Yup. 3.09% is hard to beat. It is probably not that much saving on interest because of (1) fee to secure the mortgage and (2) after all, your balance is only 100K and (3) you in fact only hav...
by mrsgoldilocks
Wed Jun 16, 2021 9:37 pm
Forum: Personal Consumer Issues
Topic: Opinions on Montessori beyond the preschool years
Replies: 15
Views: 3076

Re: Opinions on Montessori beyond the preschool years

When did your children stop going to Montessori school and why? My daughter is eight and is attending an AMI-accredited Elementary Montessori program. She is in her third year as an Elementary student after completing four years of Primary (2 1/2 - 6 1/2). We plan to keep her in the program since she is thriving there through its end when she is 12 (6th grade). We may transfer her to a Montessori adolescent program at that time for 7-8 grades, but are undecided as of yet. We are big believers in the Montessori philosophy with its focus on community, student-led pacing and learning, group work, untimed activities, opportunities to plan and execute going outs, hand-on math and language, among other things like no homework. The no homework po...
by mrsgoldilocks
Wed Jun 16, 2021 3:46 pm
Forum: Personal Investments
Topic: Gut check at 24 years old - not sure if I should feel this behind
Replies: 51
Views: 5638

Re: Gut check at 24 years old - not sure if I should feel this behind

Totally no need to grind. As a 24 years old, you're doing a lot better than a lot of your peers, so you should give yourself a round of applause. I wish I have be seriously on learning how to invest and actually putting my money to work when I was 24!! Don't think too much about HCOL or LCOL. If HCOL area is a better fit to your life style and good for your health, just go. You can always make/save money, but I'm really think one should not delay all fun and enjoyment just to save more $$. With the way you go, career-wise and that you're already serious about investing, in no time (actual time frame really depends on market and your input), you will have > $1M, then 2 and then 3. By then, you will realize, having another M under your belt w...
by mrsgoldilocks
Wed Jun 16, 2021 12:50 pm
Forum: Personal Investments
Topic: need some helps to understand bond funds
Replies: 1
Views: 374

need some helps to understand bond funds

I have always been focusing on "growth" of my portfolio, not so much on preservation/safety. Now that I'm in my early 40s, and we have been in situation when yield is super low, and inflation is spiking. I saw a lot of posts in bogleheads discussing if total bond fund is still a good choice. (Well, actually, VBTLX is the only bond fund I have.) So I have been looking into Inflation-protection fund i.e. VAIPX, VTAPX. What are the pros and cons between "regular" bond funds i.e. total bond market, inter-term bond index, short-term bond index vs the inflection protection fund i.e. VAIPX, VTAPX? I think I understand diff cap and value/growth categories in stock, but bond seems to be a totally diff animal. and I'm a bit confus...
by mrsgoldilocks
Wed Jun 16, 2021 12:41 pm
Forum: Personal Investments
Topic: When does term life insurance become unnecessary?
Replies: 22
Views: 3734

Re: When does term life insurance become unnecessary?

When no one is actually relying on your support, or what you have in your "estate" is enough to support the person to the time he/she can be independent, then, you can drop your term life.

My husband and I got our 20 years term life when my son was born to mitigate the risk that if one or both of us pass away, our family will have a safety net until my son graduates college.
by mrsgoldilocks
Wed Jun 16, 2021 11:49 am
Forum: Personal Finance (Not Investing)
Topic: HSA: How do u do it?
Replies: 20
Views: 1840

Re: HSA: How do u do it?

Same here. 100% planning to use it much later in life. Maybe when I need LTC?! Basically, you invest the HSA balance just like you are investing your IRA/Roth/401k with a long haul approach. And keep all your receipts (EOBs, receipts on FSA-eligible items) if you plan to "reimburse" your today's expense in the future. If not, you can discard your receipts. Utilize this strategies only if you do have means to pay out of pocket on those medical expenses. Say, if your out of pocket expense is 3000 this year, and if you get reimbursement from the HSA for this $3K, and then you will simply put that $3K into a taxable, then it's MUCH BETTER OFF to leave the $3000 in your HSA. Remember, you can only contribute to HSA if you have a high d...
by mrsgoldilocks
Tue Jun 15, 2021 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Utilizing Life insurance as a tax mitigation
Replies: 65
Views: 6558

Re: Utilizing Life insurance as a tax mitigation

When it comes to insurance, you need to look no further than Stinky. Whole / permanent life insurance is a great deal for the person selling you that. Let me tell you my story. I had just turned 30. Met an investment guy at a networking event. (Northwestern Mutual.) Sold me on whole life insurance. Since 2005, I have been paying $261/month for the policy with a $200,000 death benefit. The current value of the policy is about $64,000. Of that, about $12,000 is investment gain. The rest is my own money. It's gained a total of $12,000 over 17 years. Now, go to portfoliovisualizer.com. Plunk in a $1 starting investment with a monthly contribution of $261. Choose any fund -- I chose Vanguard's S&P 500 investor shares, since that fund starte...
by mrsgoldilocks
Tue Jun 15, 2021 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 47
Views: 6134

Re: Long Term Care Insurance

The last 7 years of money into the LTC insurance is a sunk cost. Yes, it's very painful to see it gone, but it shouldn't really affect your current decision to continue the LTC. Can you check if it's possible that you and your wife can be self-insured? you can use projection based on your asset allocation to get a sense of where your balance will be when you're 80. Plus, a lot of care at the old age can managed by having a part time helper in the house; that will be drastically lower in cost compared to a nursing home or facility. While I don't know much details, I am leaning towards not paying the premium and just walk away. Now, you're still in 50s, and you're facing a 77% hike. Who know what will happen in 10, 20 or 30 years. Since it is...
by mrsgoldilocks
Tue Jun 15, 2021 9:54 am
Forum: Investing - Theory, News & General
Topic: I'll never regret not having international funds in my portfolio
Replies: 282
Views: 27754

Re: I'll never regret not having international funds in my portfolio

I think there is no right or wrong answer here, as we all don't know the future.

But even if you don't have international funds in your portfolio, it doesn't mean that you are not exposed to the international markets because US companies do business internationally too. Hence, in a way, you have exposure and that may be enough to diversify your portfolio.
by mrsgoldilocks
Tue Jun 15, 2021 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Advice on Buying Condo
Replies: 18
Views: 2154

Re: Advice on Buying Condo

As an real estate investor myself (I have 4 SFH rentals), I strongly against buying condo. 1. condo doesn't appreciate as much as SFH or townhomes. 2. Condo fee is eating too much into the profit. and you have no control how the condo association going to use the money and who they will hire. But of course, if your building is only 4 units, it may be easier. And your condo fee will not go down. It will only go up and up. 3. in terms of financing, if your building renter vs owner ratio reaches certain point, you may have a hard time to finance the property. meaning your buyer will also have a harder time to finance it. At least that the case I heard about in MD. 4. particularly to your building, since you mention it's historical, do you know...
by mrsgoldilocks
Tue Jun 15, 2021 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Having a Baby-- Budgeting?
Replies: 38
Views: 4974

Re: Having a Baby-- Budgeting?

For a baby between 0-2 yrs of age, how much would you budget in expenses monthly (daycare, diapers etc)? We are a dual income family of 2 physicians about to have a baby in September and want to know how much to budget. I've heard that daycare costs can be up to 2k a month-- I'm not sure if that's because I'm in a HCOL area though. Thanks. First, congratulation!! As someone with a 4.5 years old living in HCOL area, here is what i have: 1. Have you considered Au Pair? Not sure how difficult to arrange during the COVID. 2. You should start looking for day care ASAP. Because of COVID a lot of daycare sites reduce the number of kids in the center, so it is even harder to secure a spot than before. And good school/day care spots are like gold. ...
by mrsgoldilocks
Mon Jun 14, 2021 6:34 pm
Forum: Personal Investments
Topic: 529 Maryland vs Arizona
Replies: 15
Views: 1568

Re: 529 Maryland vs Arizona

Great post!! Same here in MD, have been contributing to MD 529 due to the tax advantage for state tax deduction. I have fully contribute ($2,500 per parent) since our son is born 4 years ago. Grandparents also contributing to our 529 to take advantage of the state deduction. I always wonder how to roll over and if there is any pull back on the state deduction. If anyone has actually rolled over from MD 529 to another 529 plan and then still continue contributing to their MD 529 to take advantage of the tax deduction, can you share your experience? is it really no penalty for the previous state tax deduction? When I look into opening another 529 plan, it usually has an option to "roll" outside 529 contribution over, but once that ...
by mrsgoldilocks
Mon Jun 14, 2021 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Loans for Medical school
Replies: 24
Views: 3041

Re: Loans for Medical school

Since you didn't mention any specific details on your finances, it is hard to give the best best opinion. But as someone with inlaws and parents in their 70s, while I'm in my early 40s with a young kid. Here are some thoughts: 1. I will not support my kids' med. school if I have to take out a loan for it. Yes, I plan to support his undergrad and I have already setup a 529 for it. But after that, If I'm loaded, and have millions in my taxable, yes, I am gladly to support. If not, i think it's reasonable not to get myself into debt for it. 2. My parents paid for my college and I came out of collage without any student loan, and I am forever grateful for it. If I want to further my study, I will take care of it myself. I personally don't feel ...
by mrsgoldilocks
Mon Jun 14, 2021 11:12 am
Forum: Personal Investments
Topic: Decrease/stop 403b contribution for self and contribute to children's Roth IRAs
Replies: 15
Views: 1509

Re: Decrease/stop 403b contribution for self and contribute to children's Roth IRAs

I'm looking for thoughts on the possible reasons why this may not be a good idea. Currently, I am unable to come with any - only good reasons why I should. I've been thinking of reducing/stopping current max tax-deferred 403b contributions with a 7% fixed return and contributing to my two responsible young adult (18 & 21) children's Roth IRAs. College expenses already planned for. I figured that I can contribute max for the three of us ($6,000, $6,000, $7,000) the next five years before retiring and that would be my 'gift' to them to get started. Hopefully, they will continue to do so. I am a 57-year-old single woman and plan to retire at 62, at the latest 65. If all goes as expected, I will be receiving an NYC teacher's pension. Curre...
by mrsgoldilocks
Mon Jun 14, 2021 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Investing vs paying down mortgage
Replies: 23
Views: 3332

Re: Investing vs paying down mortgage

We are in the similar boat as you guys, but we are in our early 40s, and we just refi to 2.5%/30 years in Oct 2020 and since then was paying extra every month as if it's a 15 years mortgage. But recently, I was debating again if we should go pay down mortgage or we should invest, and we finally decided to invest the extra payment every month (auto-invest). The reasons being: 1) it is unlikely the mutual fund will not come ahead of 2.5%. and it is probably not that easy to get another 2.5%/30 years again. 2) once money is put into your house as equity, it is not that easy to get it out. Yes, you can refi cash out, but it is costly and it's not going to be done quickly (like in a matter of couple days), we rather the money is on our account f...
by mrsgoldilocks
Mon Jun 14, 2021 9:05 am
Forum: Personal Investments
Topic: 529 Maryland vs Arizona
Replies: 15
Views: 1568

Re: 529 Maryland vs Arizona

Great post!! Same here in MD, have been contributing to MD 529 due to the tax advantage for state tax deduction. I have fully contribute ($2,500 per parent) since our son is born 4 years ago. Grandparents also contributing to our 529 to take advantage of the state deduction. I always wonder how to roll over and if there is any pull back on the state deduction. If anyone has actually rolled over from MD 529 to another 529 plan and then still continue contributing to their MD 529 to take advantage of the tax deduction, can you share your experience? is it really no penalty for the previous state tax deduction? When I look into opening another 529 plan, it usually has an option to "roll" outside 529 contribution over, but once that r...
by mrsgoldilocks
Thu Jun 10, 2021 9:10 pm
Forum: Investing - Theory, News & General
Topic: Should I invest in I Bonds?
Replies: 48
Views: 4616

Re: Should I invest in I Bonds?

We consider our Ibonds to be emergency funds, we don't emotionally consider them as "investments." We have built it up to $50K so far. We are happy to mostly ignore it but know it will keep up with inflation so that the real value of emergency funds will be the same in 10 or 20 years. Please note there is a lock-in period of 1 year before you wan withdraw from I-Bonds, in case you are planning to keep this as an emergency fund. After 1 year, yes you can withdraw anytime with a 3 month interest penalty. Yep, that is a good reminder for anyone reading this. $40k of our Ibonds are available for withdrawal now, the other $10K not till next year. So for this year, it would be more accurate to say our emergency fund is $40K (more than ...
by mrsgoldilocks
Thu Jun 10, 2021 9:08 pm
Forum: Investing - Theory, News & General
Topic: Should I invest in I Bonds?
Replies: 48
Views: 4616

Re: Should I invest in I Bonds?

Same here. Also, i think it's good to purchase the i-bonds in smaller chucks. Instead of buying 10K as 1 transaction, I made 10 x $1K purchase. So in case, i need to access it for emergency, I can redeem just enough to cover my situation, and I will not be forced to redeem the whole 10K. You can partially redeem I Bonds at treasury direct. Minimum partial redemption is $25 and you have to leave at least $25 unredeemed. So there's no reason to break up purchases for redemption reasons. Spreading them out for the 1 year unavailability might be wise. We purchase quarterly in 2 accounts, offset by a month in each account. Ok. learn something new again. :happy As a first time i-bond investor, I probably didn't read enough ... Thanks for letting...
by mrsgoldilocks
Thu Jun 10, 2021 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Time to reach 1M and 2M milestones
Replies: 426
Views: 136835

Re: Time to reach 1M and 2M milestones

To calculate how fast your stock/mutual fund account can grow, you can try to use ... https://www.portfoliovisualizer.com/monte-carlo-simulation Put in your starting balance and annual contribution, your AA (it can be just asset class or specific ticket number), and then, it simulates and give you the possible outcome of your balance and the likelihood for that to happen. In no time, if you are discipline to putting in as much as you can, it really can reach 1M without you realizing ... (given that you are not the type checking your account everyday). Yes, I do think reaching the first 1M is hard because your income is probably not that high so after paying the essentials, you don't have much left to invest. But when you reach 1M, your inco...
by mrsgoldilocks
Thu Jun 10, 2021 8:45 pm
Forum: Investing - Theory, News & General
Topic: Should I invest in I Bonds?
Replies: 48
Views: 4616

Re: Should I invest in I Bonds?

We consider our Ibonds to be emergency funds, we don't emotionally consider them as "investments." We have built it up to $50K so far. We are happy to mostly ignore it but know it will keep up with inflation so that the real value of emergency funds will be the same in 10 or 20 years. Please note there is a lock-in period of 1 year before you wan withdraw from I-Bonds, in case you are planning to keep this as an emergency fund. After 1 year, yes you can withdraw anytime with a 3 month interest penalty. Yep, that is a good reminder for anyone reading this. $40k of our Ibonds are available for withdrawal now, the other $10K not till next year. So for this year, it would be more accurate to say our emergency fund is $40K (more than ...
by mrsgoldilocks
Thu Jun 10, 2021 8:43 pm
Forum: Investing - Theory, News & General
Topic: Should I invest in I Bonds?
Replies: 48
Views: 4616

Re: Should I invest in I Bonds?

investmax wrote: Thu Jun 10, 2021 5:15 pm
lakpr wrote: Thu Jun 10, 2021 3:32 pm
mrsgoldilocks wrote: Thu Jun 10, 2021 1:12 pm 5. If you use the proceed in higher education for your kid, it's also tax free (another ++)
I was under the same impression, but it had been recently pointed out to me that there are income limits for this exclusion.

https://www.treasurydirect.gov/indiv/pl ... cation.htm

The limits for 2020 are: $97,350 if single, head of household, or qualifying widow(er); $153,550 if married filing jointly.

These limits are announced in Form 8815, and therefore always lag by an year.
The I-Bonds interest earnings are exempt from State Tax, regardless of income.
Yes, right. I think i read about it. :happy Thanks for pointing it out. another reason for it to be a keeper in my whole financial picture.
by mrsgoldilocks
Thu Jun 10, 2021 8:42 pm
Forum: Investing - Theory, News & General
Topic: Should I invest in I Bonds?
Replies: 48
Views: 4616

Re: Should I invest in I Bonds?

lakpr wrote: Thu Jun 10, 2021 3:32 pm
mrsgoldilocks wrote: Thu Jun 10, 2021 1:12 pm 5. If you use the proceed in higher education for your kid, it's also tax free (another ++)
I was under the same impression, but it had been recently pointed out to me that there are income limits for this exclusion.

https://www.treasurydirect.gov/indiv/pl ... cation.htm

The limits for 2020 are: $97,350 if single, head of household, or qualifying widow(er); $153,550 if married filing jointly.

These limits are announced in Form 8815, and therefore always lag by an year.
Ouch. Thanks for pointing that out. This is the first year I started buying I-bond, so thanks!! Then, even without my point #5, just that it's tax-deferred and exempt from state tax is good enough for me to use I-bond to hold my cash.
by mrsgoldilocks
Thu Jun 10, 2021 8:40 pm
Forum: Personal Investments
Topic: I bonds are only worth it with maxed retirement accounts right?
Replies: 32
Views: 4771

Re: I bonds are only worth it with maxed retirement accounts right?

For me, I Bonds is my emergency funds so I don't think it's related to retirement account at all. They are 2 totally diff animals. i.e. money I put into retirement account has a penalty if I withdraw before certain age, but I Bonds can be served as my saving and it's redeemable after 12 months.
by mrsgoldilocks
Thu Jun 10, 2021 1:12 pm
Forum: Investing - Theory, News & General
Topic: Should I invest in I Bonds?
Replies: 48
Views: 4616

Re: Should I invest in I Bonds?

I also just started my i-bond journey in June 2021. I wish I started earlier ... But like everyone said, there are a couple of things to keep in mind. 1. there is a holding period of 1 year. after 1 year, and before 5 years, if you redeem, you will have to forfeit the last 3 months of interest. 2. Every SSN can buy only $10K. 3. Interest is compounded i believe semi-annually. and right now the inflation portion is 3.4% but that's only lock for 6 months. 4. Interest grow tax free in the account as long as you don't redeem it (big +++ for me) 5. If you use the proceed in higher education for your kid, it's also tax free (anther ++) I purchased 5K already. and plan to put in another 5K by Oct. and probably will get my spouse to get 10K too. I'...
by mrsgoldilocks
Wed Jun 09, 2021 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Too late to overpay 2020 tax to get $5k paper I bonds?
Replies: 14
Views: 1895

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

SnowBog wrote: Wed Jun 09, 2021 8:31 pm
mrsgoldilocks wrote: Wed Jun 09, 2021 8:27 pm May i ask why do you want to get paper I bonds? Isn't easily to purchase and manage the electronic I bonds on line?
Presumably, because $5k paper bonds as part of a tax refund are in addition to the $10k electronic limit, bringing the total to $15k (or $25k for MFJ).
Got it. 2021 is the first year I get into I bond, so there are things I don't know.
by mrsgoldilocks
Wed Jun 09, 2021 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Use 529 funds or continue to pay out of pocket?
Replies: 11
Views: 1698

Re: Use 529 funds or continue to pay out of pocket?

Honestly, paying all 3 kids' undergrad tuition is already a big big gift to them. Since you are behind on your retirement contribution, you should get back on track as soon as you can.
by mrsgoldilocks
Wed Jun 09, 2021 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Replies: 1772
Views: 194787

Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

I was alerted to: Washington State Long Term Care Trust Act https://www.ltc-associates.com/education-center/who-pays-for-long-term-care/public-programs/washington-state-long-term-care-trust-act/ Short-term care benefit, publicly funded by a 0.58% payroll tax on all wages and remuneration, withheld quarterly by employers Only Washington residents can qualify for benefits Residents who move out of state for 5 or more years forfeit both benefits and premiums Benefits are paid in $100 "stackable" units, up to a $36,500 lifetime maximum ---- From my reading, regardless of the amount of tax paid, people get the same benefit. So it is punitive for high income earners. I was never in the market for long term care but there are exemptions...
by mrsgoldilocks
Wed Jun 09, 2021 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Too late to overpay 2020 tax to get $5k paper I bonds?
Replies: 14
Views: 1895

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

need403bhelp wrote: Wed Jun 09, 2021 7:09 pm Thanks for your past help!

I usually overpay taxes with Form 4868 yearly to get $5k paper I bonds. This year, IRS extended tax deadline to June 15 for our state due to unusual winter storm. I'm looking to file Form 4868 now, but it appears it is too late to do so for 2020 tax year.

Is there any way to overpay my tax liability at this point and request $5k paper I bonds with refund? Or did I make a mistake and now it is too late?

Thanks!
May i ask why do you want to get paper I bonds? Isn't easily to purchase and manage the electronic I bonds on line?
by mrsgoldilocks
Wed Jun 09, 2021 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: HSA money, use it or save it for later
Replies: 95
Views: 12295

Re: HSA money, use it or save it for later

Hi, Just trying to get some opinions on how you view it, so this year family will have some medical expense due to medical elective procedure, which costs several thousands. In a situation where you have more than enough emergency fund and enough fund in HSA for full reimbursement, it is better save the HSA fund and use for later, or just submit the cost and get the money out? Thanks. Personally, I'm taking my HSA as a great investment vehicle to prepare for the time when I may face expensive medical bill, i.e. LTC hopefully never ... so I delay reimbursement as long as I can. Plus, I don't know how long I can still contribute to the HSA account. so once the money is gone, it's gone. I still feel really bad that I don't know about Roth ear...
by mrsgoldilocks
Wed Jun 09, 2021 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 2483
Views: 291477

Re: anyone regret paying off mortgage early

6 years in to a 15 year, 3.0% mortgage, remaining balance 5 figures This year we decided to "do something" about our mortgage. So far we've made a large principal payment. Then became interested in inflation and began thinking about my mortgage as a (small?) hedge against inflation. I hesitated. Then I learned about Series I Bonds and maxed out 10k for myself for the year (currently 3.54%). I am dedicating this money as a "mortgage equivalency fund." Next, my wife will buy 10k. When I bought I Bonds, I exchanged 10k of bonds in a 403b for equities. In other words, we have a full-blown mental accounting circus going on over here. It's hard to know what's optimal, but I think one element that's undersold in this thread is...
by mrsgoldilocks
Tue Jun 08, 2021 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 2483
Views: 291477

Re: anyone regret paying off mortgage early

For all those who stated that they regret paying off their mortgage, I'm just wondering, is it not possible to take out a new mortgage on your home and then use that money to invest while you start paying your monthly mortgage for another 30 years? I mean, if you have to use that word regret about eliminating your mortgage, then why don't you try to get it back and use the money to invest instead? And if you wouldn't do this, why not? Yes, it's possible to take a loan out of your equity with a HELOC or cash out refi (at least, those are the 2 means I know). I don't know a lot about HELOC, but for cash out refi, I know the following (please correct me if I'm wrong). 1. Cash out refi involves quite a hefty fee. For example, if I have no mort...
by mrsgoldilocks
Tue Jun 08, 2021 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 2483
Views: 291477

Re: anyone regret paying off mortgage early

Thanks everyone for you input. Talked to my husband, so we decided to keep our mortgage and invest the diff in a vanguard fund that's dedicated to hold the monthly diff of our 30 vs 15 years mortgage; so we can see how it goes. I certainly can report this experiment back after 15 years: :wink:

Honestly speaking, I believe we won't "regret" (which is a strong word as pointed out by a few response) the decision either way. But it is nice to have the option at year 15 to decide if we still want to pay off the mortgage or we want to keep it.
by mrsgoldilocks
Tue Jun 08, 2021 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: $10K SALT deduction cap in Tax Cuts and Jobs Act (TCJA) expires by the end of 2025??
Replies: 18
Views: 2116

Re: $10K SALT deduction cap in Tax Cuts and Jobs Act (TCJA) expires by the end of 2025??

Did you have to pay AMT pre-TCJA? I have high SALT too, but would hit AMT every year where it's all taken away, so TCJA is saving me money (SALT limit under TCJA is 10k, while under AMT it's $0). Yes, you're right. I do hit AMT every year before, but not any more. But my AMT is not that big yet; at least in 2017, it's not that much. The 1040 form is highly misleading because it shows AMT as an "extra" tax added to your base tax. In reality it's calculated completely separately, with separate brackets and deductions, then the difference with your regular tax is shown on the 1040, only to be added back together a few lines later. So whether you have 5k or 50k SALT, the true total doesn't change at all (ie, regular tax will go down ...
by mrsgoldilocks
Tue Jun 08, 2021 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a trust with an attroney in Maryland
Replies: 22
Views: 1484

Re: Setting up a trust with an attroney in Maryland

We put our assets in revocable trusts years ago. Doing so will simplify having others take over and manage our affairs if we become incapacitated while alive. I have experience with trying to help someone in this position and found that no financial institution would accept a perfectly legal durable power of attorney, drafted by an expert estate planning lawyer. NOT A SINGLE INSTITUTION WOULD ACCEPT THE DPOA. Most companies would not even look at it. In this case, fortunately, the person was still able to move assets from the accounts where the companies would not recognize the DPOA to trust accounts. Had they not been able to do that, it would have been a disaster. As it worked out, the person had a few accounts that I did not know about,...
by mrsgoldilocks
Tue Jun 08, 2021 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 2483
Views: 291477

Re: anyone regret paying off mortgage early

Hyperchicken wrote: Tue Jun 08, 2021 12:08 pm
mrsgoldilocks wrote: Tue Jun 08, 2021 10:47 am
N.Y.Cab wrote: Tue Jun 08, 2021 10:13 am There used to be a tax angle to make it worthwhile but the standard deduction increase (with SALT deduction limit) after 2017 essentially eliminated the deductibility of mortgage interest payment.
Totally, it's painful. But I also read that the SALT deduction limit in Tax Cuts and Jobs Act (TCJA) is in fact only temporary. It expires by the end of 2025.
It's not painful, it's great - double standard deduction, so now you don't depend on having mortgage interest. Nothing has been taken away from you, and something has potentially been given to you.
Yes, i just looked over my tax. I think I still came out ~ 1% down in my effective tax rate from 2017 to 2020. I should have thought through it. it did have pro and con.