Search found 1875 matches

by nolesrule
Sun Apr 18, 2021 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Prepay Mortgage as EF
Replies: 9
Views: 577

Re: Prepay Mortgage as EF

If you mean prepay your monthly payments, then they won't get applied until they are due so you won't save on interest. I'm also not sure a lender will do that much in advance. If you mean prepay an amount equal to 6 months worth of payments against the principal balance, sure you'll save the intere...
by nolesrule
Fri Apr 16, 2021 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 321
Views: 21635

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

That's not true if you keep your payments the same amount they were. Just because the liability is reduced (in my case to 775/month) - you can still pay the old amount. We have kept the same overpayment schedule for a little while now. . .1,764.00 every 2 weeks But if you do that you haven't improv...
by nolesrule
Fri Apr 16, 2021 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax Misc 2021
Replies: 10
Views: 738

Re: Kiddie Tax Misc 2021

Just be careful about other sources of unearned income. Bank interest and dividends will also contribute toward the total unearned income. We were a little overzealous this year with Tax Gain Harvesting our kids' UTMA brokerage accounts and STCG + interest + non-qualified dividends exceeded $1100 so...
by nolesrule
Fri Apr 16, 2021 7:03 am
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 321
Views: 21635

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

Paying down your mortgage can improve cash flow if you elect to recast your mortgage during the course of your mortgage pay down process. Our monthly PITI used to be $1,600.00/month but now it is around $775.00/month due to recasting our mortgage during pay down. We will have our mortgage hopefully...
by nolesrule
Thu Apr 15, 2021 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 321
Views: 21635

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

Paying down does not improve cash flow by one penny. Paying down your mortgage can improve cash flow if you elect to recast your mortgage during the course of your mortgage pay down process. Our monthly PITI used to be $1,600.00/month but now it is around $775.00/month due to recasting our mortgage...
by nolesrule
Thu Apr 15, 2021 11:49 am
Forum: Investing - Theory, News & General
Topic: I Bonds variable rate @ 3.54% in May
Replies: 60
Views: 7298

Re: I Bonds variable rate @ 3.54% in May

Remember that an I Bond purchase is illiquid for the first year (you can't sell it) and there is a 3 month interest penalty for redemptions in the first 5 years. I don't see why people would be inclined to sell stocks to get this I Bond interest rate that's only guaranteed for 6 months. I Bonds are ...
by nolesrule
Wed Apr 14, 2021 6:26 pm
Forum: Investing - Theory, News & General
Topic: I Bonds variable rate @ 3.54% in May
Replies: 60
Views: 7298

Re: I Bonds variable rate @ 3.54% in May

We just do automatic monthly purchases from new income.
by nolesrule
Wed Apr 14, 2021 2:51 pm
Forum: Personal Investments
Topic: Backdoor Roth conversions (Multiple accounts)
Replies: 7
Views: 460

Re: Backdoor Roth conversions (Multiple accounts)

As long as you aren't exceeding the $6k total contribution limit it does not matter how many accounts.
by nolesrule
Wed Apr 14, 2021 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 321
Views: 21635

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

Paying down does not improve cash flow by one penny. Paying down your mortgage can improve cash flow if you elect to recast your mortgage during the course of your mortgage pay down process. Our monthly PITI used to be $1,600.00/month but now it is around $775.00/month due to recasting our mortgage...
by nolesrule
Wed Apr 14, 2021 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Does it make sense that a car dealer needs to do a hard pull if you pay in full by check (cash)?
Replies: 79
Views: 7169

Re: Does it make sense that a car dealer needs to do a hard pull if you pay in full by check (cash)?

The last 2 cars we purchased were not financed. Bought a 7 year old used car in 2013 from a large dealership about 90 minutes away with a deposit paid by credit card and a promise to mail them a check for the balance. Bought a new car in 2015 and they let me drive the new car to my house (10 minutes...
by nolesrule
Tue Apr 13, 2021 4:33 pm
Forum: Personal Investments
Topic: I Bonds [Can we buy in our kids' names?]
Replies: 22
Views: 5818

Re: I Bonds [Can we buy in our kids' names?]

Not sure I understand. Money is gifted to child. Legal guardian administers child money, until of legal age. I don't see a gift being revoked. Once you gift it in an offical capacity you can't (or at least shouldn't) then mingle it with the guardian's assets. He will pay for his auto insurance... w...
by nolesrule
Tue Apr 13, 2021 2:59 pm
Forum: Personal Investments
Topic: I Bonds [Can we buy in our kids' names?]
Replies: 22
Views: 5818

Re: I Bonds [Can we buy in our kids' names?]

Thesaints wrote: Tue Apr 13, 2021 12:07 pm Not sure I understand. Money is gifted to child. Legal guardian administers child money, until of legal age. I don't see a gift being revoked.
Once you gift it in an offical capacity you can't (or at least shouldn't) then mingle it with the guardian's assets.
by nolesrule
Tue Apr 13, 2021 11:51 am
Forum: Personal Investments
Topic: I Bonds [Can we buy in our kids' names?]
Replies: 22
Views: 5818

Re: I Bonds [Can we buy in our kids' names?]

Buying for an infant would still leave the parent with almost 18 years before eventually redeeming the bond, pay taxes at the child rate, and pocket the money ? Only disadvantage would be using part of the 15k annual gift exemption, which could otherwise be used to contribute to a 529 plan. Who is ...
by nolesrule
Tue Apr 13, 2021 11:38 am
Forum: Personal Investments
Topic: I Bonds [Can we buy in our kids' names?]
Replies: 22
Views: 5818

Re: I Bonds [Can we buy in our kids' names?]

Buying for an infant would still leave the parent with almost 18 years before eventually redeeming the bond, pay taxes at the child rate, and pocket the money ? Only disadvantage would be using part of the 15k annual gift exemption, which could otherwise be used to contribute to a 529 plan. Who is ...
by nolesrule
Mon Apr 12, 2021 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: avoiding tax implications for child with inherited IRA
Replies: 8
Views: 814

Re: avoiding tax implications for child with inherited IRA

The child's tax rate on ordinary unearned income for $1101-2200 is 10%.
by nolesrule
Mon Apr 12, 2021 11:45 am
Forum: Personal Investments
Topic: Buying a 1.5M house in Austin. Should I pull it?
Replies: 51
Views: 5357

Re: Buying a 1.5M house in Austin. Should I pull it?

Huh--I sort of understand what you're saying, but the value of stocks and real estate can fluctuate wildly. Is the essence of something being liquid that it can be converted into cash quickly? Sure, that's true of stocks, but it's also conceivable that someone can sell his house in a day or two (at...
by nolesrule
Sun Apr 11, 2021 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 122
Views: 4861

Re: Do budgets work?

Budgeting is kind of silly, to me. If I budget $30 for gas, and goes up in price, will I let myself run out of gas? Most expenses in life are coming at you regardless of your Excel spreadsheet. No, you would adjust your budget so that spending in other areas keeps you expense neutral. I see my budg...
by nolesrule
Fri Apr 09, 2021 9:27 am
Forum: Personal Finance (Not Investing)
Topic: CPA Saying I Have Excess HSA Contribution
Replies: 32
Views: 2096

Re: CPA Saying I Have Excess HSA Contribution

From Line 6 instructions: If you are treated as having family coverage for each month, divide the amount on line 5 equally between you and your spouse, unless you both agree on a different allocation (such as allocating nothing to one spouse). Enter your allocable share on line 6. Bold is my emphasi...
by nolesrule
Fri Apr 09, 2021 9:02 am
Forum: Personal Investments
Topic: Paycheck: full benefits deducted for partial period?
Replies: 5
Views: 508

Re: Paycheck: full benefits deducted for partial period?

If your benefits started on 4/1 you will start paying the going per-paycheck rate on the paycheck that includes 4/1. Health insurance is monthly and not daily pro-rated. If you are on a 26 check cycle, you may pay 1/24 (skipping the 3rd check in 3 check months) or 1/26 of the annual cost per payche...
by nolesrule
Fri Apr 09, 2021 6:55 am
Forum: Personal Investments
Topic: Paycheck: full benefits deducted for partial period?
Replies: 5
Views: 508

Re: Paycheck: full benefits deducted for partial period?

If your benefits started on 4/1 you will start paying the going per-paycheck rate on the paycheck that includes 4/1. Health insurance is monthly and not daily pro-rated. If you are on a 26 check cycle, you may pay 1/24 (skipping the 3rd check in 3 check months) or 1/26 of the annual cost per paychec...
by nolesrule
Thu Apr 08, 2021 10:09 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1589

Re: Backdoor Roth in Vanguard question

Retiredjg, Bolderboy, I'm going to backtrack a little bit and explain how I've been doing the backdoor Roths. For a few years, I've done the backdoor Roths by making the contributions in year X+1 and converting them a few days later but always selecting and reporting it for year X. For example, I w...
by nolesrule
Wed Apr 07, 2021 7:20 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1589

Re: Backdoor Roth in Vanguard question

jeanpierremelville wrote: Tue Apr 06, 2021 8:50 pm In 2021, it is showing up as rollover contributions under "contribution details".

JPM
That means the money coming in was rolled over or converted. It doesn't count toward contributions limits for the year in question.
by nolesrule
Tue Apr 06, 2021 11:50 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1589

Re: Backdoor Roth in Vanguard question

In 2021 details is the Roth amount showing under the column "Contributions" or "Rollover Contributions"?
by nolesrule
Sun Apr 04, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Megacorp imposed 401k After-tax contribution cap
Replies: 26
Views: 2353

Re: Megacorp imposed 401k After-tax contribution cap

My wife is an HCE and her MegaCorp caps total employee contributions for HCEs at 15%. As a result, her Mega backdoor Roth is rather mini. I've also looked through the documents and saw that the ultra-high earners are limited to 6% salary deferral and 2% after-tax. It's been awhile, but I think non-H...
by nolesrule
Sun Apr 04, 2021 9:23 am
Forum: Personal Investments
Topic: Help Establishing a Boglehead-Friendly Strategy!
Replies: 11
Views: 1004

Re: Help Establishing a Boglehead-Friendly Strategy!

The one important element that I have NOT figured out is how it could possibly be better to do your own TLH in a fashion that gets you results equal to Betterment (or Wealthfront, but I already have a Betterment account), particularly for someone in the highest federal tax bracket. I understand the...
by nolesrule
Sat Apr 03, 2021 12:53 pm
Forum: Personal Investments
Topic: Help Establishing a Boglehead-Friendly Strategy!
Replies: 11
Views: 1004

Re: Help Establishing a Boglehead-Friendly Strategy!

alban03755 wrote: Sat Apr 03, 2021 9:03 am Our gross income is > 650k per year
Where's the rest of the money going?

Are you doing backdoor Roth IRAs?

Do you have taxable investment accounts?

You need to look at your portfolio as a whole and not just focus on the workplace retirement accounts.
by nolesrule
Fri Apr 02, 2021 7:23 am
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6760

Re: Why do I owe so much in Taxes?

So on the 15th you are paid 1/24 of your salary and on last day you are paid 1/24 of salary + bonus. I don't think the issue is that bonus is withheld at 22% but rather at the marginal withholding rate. This is the case when the bonus is combined with a regular salary on a single paycheck. The probl...
by nolesrule
Fri Mar 26, 2021 7:50 am
Forum: Personal Investments
Topic: Solo 401(k) Employee Salary Deferral question
Replies: 8
Views: 540

Re: Solo 401(k) Employee Salary Deferral question

Thanks for the correction. If you don't contribute anything as employEE in any of the buckets1&3.......How much max can employER contribute to bucket-2 ? only approximate 18.5% of the business profit ? The max for self employed sole proprietors is 20% of (business profit - 1/2 SE taxes). There ...
by nolesrule
Thu Mar 25, 2021 7:27 pm
Forum: Personal Investments
Topic: Wash Sale Clarification
Replies: 11
Views: 717

Re: Wash Sale Clarification

5) I am now considering buying a little VWO in taxable so that wash sale loss can go towards new VWO cost basis. 6) I wasn't trying to do a TLH, so not interested in able to use the losses for this tax year, main concern is not letting the losses go to a black hole! Thanks in advance! This won't wo...
by nolesrule
Thu Mar 25, 2021 12:43 pm
Forum: Personal Investments
Topic: Married/Exceed income limit & back door Roth IRA
Replies: 5
Views: 334

Re: Married/Exceed income limit & back door Roth IRA

If I can rollover the balances to 401k, would it be best to recharacterize/move to the 2021 $6000 to a traditional IRA (now with $0 balance) and pay any taxes on earnings, and then convert back into the Roth? If you recharacterize to traditional and then convert to Roth there are no taxes on earnin...
by nolesrule
Wed Mar 24, 2021 2:59 pm
Forum: Personal Investments
Topic: Wash Sale Clarification
Replies: 11
Views: 717

Re: Wash Sale Clarification

5) I am now considering buying a little VWO in taxable so that wash sale loss can go towards new VWO cost basis. 6) I wasn't trying to do a TLH, so not interested in able to use the losses for this tax year, main concern is not letting the losses go to a black hole! Thanks in advance! This won't wo...
by nolesrule
Wed Mar 24, 2021 2:17 pm
Forum: Personal Investments
Topic: Wash Sale Clarification
Replies: 11
Views: 717

Re: Wash Sale Clarification

5) I am now considering buying a little VWO in taxable so that wash sale loss can go towards new VWO cost basis. 6) I wasn't trying to do a TLH, so not interested in able to use the losses for this tax year, main concern is not letting the losses go to a black hole! Thanks in advance! This won't wo...
by nolesrule
Wed Mar 24, 2021 10:14 am
Forum: Personal Finance (Not Investing)
Topic: help understanding Pro Rata in ROTH conversion
Replies: 9
Views: 345

Re: help understanding Pro Rata in ROTH conversion

So from what you are saying it sounds like I will actually get taxed twice on that $7000, or at least $6300. I am retired, so I don't have an option for a workplace plan. Now I think I just have to let that $7000 sit all by itself in the traditional IRA. No, you never get taxed twice. What happens ...
by nolesrule
Wed Mar 24, 2021 7:43 am
Forum: Personal Finance (Not Investing)
Topic: (another) traditional vs. roth 401k question
Replies: 3
Views: 354

Re: (another) traditional vs. roth 401k question

The comparison is marginal rate now vs. marginal rate later. It doesn't matter whether it lowers your tax rate now to a lower bracket. Remember in the future when you withdraw in retirement, you have to fill up all the lower tax brackets with income before you pay taxes at the 32% rate. At only $700...
by nolesrule
Fri Mar 19, 2021 2:59 pm
Forum: Personal Investments
Topic: Which to fund first? Roth IRA or solo 401k?
Replies: 25
Views: 1628

Re: Which to fund first? Roth IRA or solo 401k?

Just a reminder that in a Solo 401K, Roth employee contributions do not reduce QBI; Roth employER contributions do. There are no Roth employER contributions. So if I have a Roth 401K, my employer cannot match contributions? (I probably should have added that employer contributions are considered pr...
by nolesrule
Fri Mar 19, 2021 12:38 pm
Forum: Personal Investments
Topic: Which to fund first? Roth IRA or solo 401k?
Replies: 25
Views: 1628

Re: Which to fund first? Roth IRA or solo 401k?

Just a reminder that in a Solo 401K, Roth employee contributions do not reduce QBI; Roth employER contributions do. There are no Roth employER contributions. So if I have a Roth 401K, my employer cannot match contributions? (I probably should have added that employer contributions are considered pr...
by nolesrule
Fri Mar 19, 2021 10:52 am
Forum: Personal Investments
Topic: Which to fund first? Roth IRA or solo 401k?
Replies: 25
Views: 1628

Re: Which to fund first? Roth IRA or solo 401k?

pshonore wrote: Fri Mar 19, 2021 10:03 am Just a reminder that in a Solo 401K, Roth employee contributions do not reduce QBI; Roth employER contributions do.
There are no Roth employER contributions.
by nolesrule
Fri Mar 19, 2021 7:23 am
Forum: Personal Investments
Topic: Which to fund first? Roth IRA or solo 401k?
Replies: 25
Views: 1628

Re: Which to fund first? Roth IRA or solo 401k?

How much would the maximum employer contribution be? As an S-Corp it's limited to 25% of your W-2 payroll compensation.
by nolesrule
Wed Mar 17, 2021 7:10 am
Forum: Personal Investments
Topic: Avoiding Pro Rata on Roth IRA Conversion
Replies: 13
Views: 1453

Re: Avoiding Pro Rata on Roth IRA Conversion

When we first opened the IRA at Vanguard, we were required to deposit $3,000 into it. This came from a personal checking account. Then we rolled over W2 401ks into it. So, it now contains (3k from a personal checking account - post-tax) + (197k in pre-tax dollars from W2 401ks). So most of the fund...
by nolesrule
Tue Mar 16, 2021 1:42 pm
Forum: Personal Investments
Topic: $58k contribution limit question- W2 + i401k
Replies: 6
Views: 336

Re: $58k contribution limit question- W2 + i401k

Harry beat me to it. By the time I looked up the aggregation of 403b with a solo 401k since I didn't want to go from memory, he provided the correct answer. All 403b contributions will reduce the contribution limit to your solo 401k.
by nolesrule
Tue Mar 16, 2021 1:31 pm
Forum: Personal Investments
Topic: $58k contribution limit question- W2 + i401k
Replies: 6
Views: 336

Re: $58k contribution limit question- W2 + i401k

SE= 40,000 x 0.9235 x 0.038 (since medicare at 3.8% rather than 2.9%) --- no social security tax since maxed out in W2 role SE= $1,404 1/2 SE = $702 The Additional Medicare Tax (0.9%) is not calculated on Schedule SE so it is not part of Self Employment taxes. See Schedule SE for the proper SE tax ...
by nolesrule
Tue Mar 16, 2021 12:13 pm
Forum: Personal Investments
Topic: tIRA/SEP IRA issue
Replies: 8
Views: 542

Re: tIRA/SEP IRA issue

If you have to do a Backdoor Roth for regular IRA contributions, you might want to think twice about opening a SEP IRA.
by nolesrule
Mon Mar 15, 2021 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Is 7K mortgage a month too much for 13K (combined) post tax monthly income?
Replies: 101
Views: 8849

Re: Is 7K mortgage a month too much for 13K (combined) post tax monthly income?

HMSVictory wrote: Sun Mar 14, 2021 10:52 am
How do you go from 300k a year to 13k take home? You have 12k in withholding and taxes???????
We're at 14.5k/month on 310k in a state with lower taxes. We have insurance, HSA, LPFSA and 2 maxed 401ks. Insurance costs can vary greatly.
by nolesrule
Mon Mar 15, 2021 1:44 pm
Forum: Personal Investments
Topic: After tax 401k v. Back door Roth v taxable
Replies: 27
Views: 1354

Re: After tax 401k v. Back door Roth v taxable

SanAntionetta wrote: Mon Mar 15, 2021 1:30 pm He took time out of working to go back to school so he is already pretty far behind as it is.
Don't think of it as Mine and Yours. Instead look at it as a single portfolio made up of multiple accounts with a common goal.
by nolesrule
Mon Mar 15, 2021 1:42 pm
Forum: Personal Investments
Topic: After tax 401k v. Back door Roth v taxable
Replies: 27
Views: 1354

Re: After tax 401k v. Back door Roth v taxable

0.5% isn't great but it's not terrible when combined with the low ERs. I'm with lakpr and would hold the entirety of any bond allocation in that account to slow the growth of admin fees relative to the overall portfolio. I did this when I was at an employer where the ERs were around .75 and the admi...
by nolesrule
Sat Mar 13, 2021 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: RESOLVED - Form 8606 Issue
Replies: 3
Views: 387

Re: HELP! - TurboTax Online IGNORES large parts of form 8606

There is an alternate worksheet that can be used to do the math and carry it over to the 8606. Usually the form will have an asterisk with a note indicating this Worksheet 1-1 of Publication 590-B (note this is the 2019 version, not 2020). https://www.irs.gov/publications/p590b#en_US_2019_publink100...
by nolesrule
Fri Mar 12, 2021 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Is my mortgage lender jerking me around?
Replies: 13
Views: 1283

Re: Is my mortgage lender jerking me around?

No, that's not normal. You have an incompetent loan officer there.
by nolesrule
Fri Mar 12, 2021 12:15 pm
Forum: Personal Investments
Topic: Solo 401k Contribution not tax-deductible in New Jersey ?
Replies: 10
Views: 609

Re: Solo 401k Contribution not tax-deductible in New Jersey ?

I know nothing. But the state seems to disagree. Unless there is some reason why the link is not applicable to your wife’s situation. https://www.state.nj.us/treasury/taxation/njit11.shtml This is accurate. And if you want to see it in the actual NJ-1040 instructions for Schedule NJ-BUS-1, it's on ...
by nolesrule
Wed Mar 10, 2021 10:35 am
Forum: Personal Finance (Not Investing)
Topic: children roth ira
Replies: 29
Views: 2096

Re: children roth ira

Thanks bruce. my accountant said it's a very vague area with the IRS. he said he's seen plenty of his customers set up "babies roth ira" for their kids. he said the main thing is as long someone has been paying taxes on the 1099-int/div plus gains on brokerage is what the IRS has been foc...