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04-02-2021, 04:37 PM | #10051 | |
Scooby Specialist
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Location: ***23567;***12373;***12356;***
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Quote:
They make dodging gains taxes on the sale of an investment property possible, but not easy.
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04-02-2021, 04:49 PM | #10052 | |
Scooby Specialist
Member#: 304128
Join Date: Dec 2011
Location: Baltimore
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Quote:
EDIT: just checked, Looks like there a bit more involved of course due to the fact that you have to arrange for an intermediary to handle the funds and the actual exchange to make it legal. Last edited by Tim_; 04-02-2021 at 05:01 PM. |
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04-02-2021, 05:45 PM | #10053 |
Scooby Newbie
Member#: 143938
Join Date: Mar 2007
Chapter/Region:
NWIC
Location: Oregon
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Oof. Paperwork doesn't sound fun. Besides, there's nothing else in this price range available to buy with the proceeds.
Rental agreement is month to month, so I can raise the rent anytime, I just haven't gotten around to it The new laws here limit the yearly increase to just under 10%, unless they move out (which they almost did last summer). I did try to refinance it to a 15 year @3.3ish, but the bank came back and said we didn't have enough employment history. Though the same bank did the refi on our primary without an issue I'll have to try somewhere else. Our rental agent is going to drive by and let me know what she thinks. Thanks for the thoughts. |
04-03-2021, 05:42 PM | #10054 |
Scooby Specialist
Member#: 304128
Join Date: Dec 2011
Location: Baltimore
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some lenders are not good with investment property loans and it only gets more difficult if you own in an LLC (which I do). So with that said, you just have to reach out to other lenders til you find one that will work with you. Get a little canned email template with your financials (credit score, household income) and the numbers on the property (current loan balance and rate, current monthly rent) and shoot it out to some lenders. Once you get some quotes then you can take the best ones and price match them. I would encourage you to go with a 30 over a 15. You'll have better cash flow and its better for your DTI as well. Some lenders will not even bother looking at YOUR finances as long as the rent covers the mortgage on the rental.
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04-03-2021, 07:04 PM | #10055 |
Scooby Newbie
Member#: 252955
Join Date: Jul 2010
Chapter/Region:
NESIC
Location: great wall-> on the good side
Vehicle:/\__ /(__ |
Does anyone use Blockfi for their interest rates? I have a little bitcoin there, but contemplating moving some cash to take advantage of the 8.6 % on stablecoin like GUSD. I know there is some risk as they aren't insured? However seems relatively low risk as long as its not my whole savings.
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04-11-2021, 07:40 PM | #10056 |
Scooby Specialist
Member#: 292403
Join Date: Aug 2011
Chapter/Region:
Tri-State
Location: In Van Down By Rockaway River
Vehicle:2012 Legacy Graphite |
Can someone explain why I can’t take old 401ks and turn them into a 529 for my son/ get a little for a car down payment? Or is this a completely foolish idea?
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04-11-2021, 07:51 PM | #10057 | |
Scooby Specialist
Member#: 450808
Join Date: Jul 2016
Chapter/Region:
SCIC
Location: Anaheim
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Quote:
https://www.fool.com/millionacres/re...roperty-loans/ +1 for a 30 vs. 15 year as far as cash flow/DTI. Most lenders don't charge prepayment penalties anymore. Find an amortization calculator online (or ask your lender to crunch the numbers for you) to figure out how much extra you'd have to throw at the mortgage each month to pay off the 30 in the same time as the 15, while simultaneously reaping the benefits of the lower monthly obligation and having the additional cash in case you need in a crunch. |
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04-11-2021, 09:29 PM | #10058 | |
Scooby Specialist
Member#: 58504
Join Date: Mar 2004
Chapter/Region:
South East
Location: Ready to try OpenECU.org!!!
Vehicle:2004 STi Aspen White / Silver |
Quote:
I'd strongly recommend keeping the 401ks or rolling them into an IRA. Find another way to fund the 529, even if it's a small contribution. So in order of priority: Emergency living expenses 401k / retirement savings 529 |
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04-12-2021, 06:44 PM | #10059 |
Scooby Specialist
Member#: 292403
Join Date: Aug 2011
Chapter/Region:
Tri-State
Location: In Van Down By Rockaway River
Vehicle:2012 Legacy Graphite |
Damn. Ok.
Just wish I could do more than that. |
04-12-2021, 08:11 PM | #10060 |
Scooby Specialist
Member#: 58504
Join Date: Mar 2004
Chapter/Region:
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Location: Ready to try OpenECU.org!!!
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04-16-2021, 03:39 PM | #10061 |
Scooby Newbie
Member#: 107150
Join Date: Feb 2006
Chapter/Region:
TXIC
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Just want to echo a comment someone made on here (or Reddit, can't remember) that when transferring securities from one brokerage to another, make sure the new brokerage has the cost basis correct.
One of my brokerages shut my account down a few years back because I was working overseas and apparently there was some sort of conflict with how they run their business. They liquidated some assets without telling me and then transferred the others to a crappy brokerage. I only recently got everything transferred back to a common brokerage, recently sold some stocks, and of course the cost basis showed 0. I went in to talk to the first brokerage today and the guy, although helpful, acted like he had never had to look up a report from a few years back. I'm inferring by this that most people don't check to see that their cost basis is correct if they're transferring. Anyway...make sure you check this; otherwise, the new brokerage will assume your cost basis was 0 and you'll be taxed way more than you should be when you decide to sell. |
04-16-2021, 08:05 PM | #10062 |
Add Lightness
Moderator Member#: 13699
Join Date: Dec 2001
Chapter/Region:
NESIC
Location: Hopkinton, MA
Vehicle:2021 Building It Better |
Good advice. Only needed for taxable account. IRA, 401k, Roth, doesn't matter.
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04-19-2021, 05:10 PM | #10063 | |
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Member#: 42454
Join Date: Aug 2003
Chapter/Region:
SWIC
Location: AZ
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Quote:
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04-19-2021, 07:20 PM | #10064 |
Scooby Newbie
Member#: 203905
Join Date: Feb 2009
Location: MI
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Yeah. Time to move for different interest rates.
Is it better to drop it into a fidelity account and grab a low risk bond that can pull 3%? Maybe not if you have to pay capital gains after a year I guess. |
04-20-2021, 08:43 AM | #10065 |
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Tri-State
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Figured it'd get more traction here:
Starting a new job. New Jersey. Need to fill out W4 etc. I have (1) son, 7 months, wife, house, etc. How many allowances do I claim? And I definitely list my son as a dependent? |
04-20-2021, 10:17 AM | #10066 |
Scooby Specialist
Member#: 21356
Join Date: Jul 2002
Chapter/Region:
NESIC
Location: Can't catch me!
Vehicle:2017 Subaru Corolla STI Limited SE-R Type (R) |
Might want to use this to estimate how much will be withhold based on allowances and dependents:
https://www.irs.gov/individuals/tax-...ding-estimator More allowances, less withholding, more you might have to pay at end of year. gripe: I might have to think about that too for next year |
04-20-2021, 10:23 AM | #10067 |
Add Lightness
Moderator Member#: 13699
Join Date: Dec 2001
Chapter/Region:
NESIC
Location: Hopkinton, MA
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I hate, HATE owing. I've also got a not-insignificant 1099 income (selling tradelines), so both wife and I claim zero, withhold at single rate. I also use fed refund to buy paper iBonds, so want $5k minimum to be coming back to me. Hit it pretty close for 20 return, getting back the bonds plus $99.
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04-20-2021, 07:31 PM | #10068 | |
Scooby Specialist
Member#: 58504
Join Date: Mar 2004
Chapter/Region:
South East
Location: Ready to try OpenECU.org!!!
Vehicle:2004 STi Aspen White / Silver |
Quote:
I kept my state tax withholding at zero. We usually get a refund, or owe a small amount, usually because our small biz did exceptionally well. That won't be a problem for 2020! |
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04-21-2021, 04:00 PM | #10069 |
Scooby Newbie
Member#: 203905
Join Date: Feb 2009
Location: MI
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Is it possible to have too heavy of an investment in a 401k? If someone maxed it out from age 24-65 they would have more than 3+ million dollars inside it (55k starting salary, 3% growth, 6% return assumed). If a dual income house did this, you'd have double that in 401k's.
The reason this came up is that I never knew that there were required minimum distributions after age 72 and that they are based on your balance and expected life span. As I ran some calculations assuming a (~3M balance at age 72) you'll be required to pull out ~4% or 137k. But by the time you get to age 80 the number climbs up to 5% or roughly 187k. Those figures double if you have two accounts. There is a tipping point in there that you'll be pulling out more due to requirements than you ever made as income over the course of your working career. Which has some serious tax implications or I would think it does anyway. |
04-21-2021, 04:18 PM | #10070 | |
Scooby Guru
Member#: 92634
Join Date: Aug 2005
Chapter/Region:
RMIC
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04-21-2021, 04:26 PM | #10071 | |
Scooby Newbie
Member#: 4052
Join Date: Feb 2001
Location: Present!
Vehicle:I am Sloth and I approve this message |
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04-21-2021, 04:37 PM | #10072 | |
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Member#: 203905
Join Date: Feb 2009
Location: MI
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Quote:
I'm doing some reading and this is along the lines of what I'm seeing. Some articles are talking about diversity and most people say yes (mutual funds, stocks, bonds, etc) but it comes down to a diversity of where the funds are located for taxes (tax deferred, taxable, tax free, etc). |
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04-21-2021, 04:41 PM | #10073 | |
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Member#: 171486
Join Date: Feb 2008
Chapter/Region:
International
Location: Hiding from The Google
Vehicle:2019 911 GTS Silver |
Quote:
BUT, what if you cannot work until 65 and have to start drawing earlier? At some point some will have 'too much' money saved up. But you could always take out more than you need and just spend it, paying at the highest tax bracket. i.e. 65 years old, $6M in saved, and just say F*** it and take $500k out one year, pay huge tax obligation and spend the excess on a vacation / car / property etc. As a self-employed contractor I do not get a pension. So effectively have to save to generate enough cash to meet my expected/desired lifestyle. I am planning on stopping at 60, the wife wants me to stop at 55. But if I have to stop at 50 I will be glad that I am saving at the rate that we are. As you alluded to, most 80 yr old people are not burning through $187k/year, thus depending on where they park it (hopefully not a checking account) then their wealth may start to grow again. Not perfect case scenario (meaning you saved to much) is that you saved too much and that your wealth continues to grow until you are dead. You are taking out less than you are able to spend, but continuing to save the 'excess'. There are many cases of people in their 90s who saved too much that are worth $10M+ b/c of this problem We are in the fortunate position that assuming I can work until 60 (meaning not draw on savings), that we don't need to save any more in a tax sheltered manner due to having more than you need b/c you are forced to start withdrawing your $$$. As mentioned above, every advisor has told me to start buying property rather than putting $$$ in the stock market. But depending on if you can incorporate and save within the corporation this is not a forced issue. We save most of our savings within the corporation where it too can grow sheltered. Real issue is that we will never be in the situation of being F-You rich, but have enough to not worry within reason. F-you rich is all relative, having $1M in the bank will be F-you rich, but to others even $10M will not be there. Even ULNWI at the bottom end ($30M+)are on the cusp of F-you $$$. One of my colleagues best friend is worth $100+ M and is upset he had to sell his jet (based on crunching the numbers) Most of the people I work with are in a similar scenario, meaning you die being HNWI (<$5M) to very HNWI ($5M +). Some will be UHNWI. My best friends will likely be seeing a $10-100M payout from the sale of a company that is in the works. The only difference between the different very HNWI and UHNWI is how many homes you have, how many luxury cars you CAN have, and the vacations you take. The other difference is how you earned your $$$. All the UHNWI I know are in business, invented something etc. The HNWI saved and invested like regular people saving (albeit larger amounts), with a much higher percentage investing in individual stocks versus mutual funds. Bottom line Financial planning would be much easier if you knew the following: 1. When you would stop working (or would be forced to stop working) 2. How long you would need the savings to generate income (for whomever dies last). 3. Will you be needing to be in a nursing home. For some this is an increased cost. For others, this drops their annual expenditures. i.e. people living on $200k+/year are spending less in a nursing home. 4. If you are trying to be responsible, you may end up saving too much. |
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04-21-2021, 05:06 PM | #10074 |
Scooby Guru
Member#: 92634
Join Date: Aug 2005
Chapter/Region:
RMIC
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Solution to the 59.5 problem is substantially equal periodic payments.
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04-21-2021, 07:48 PM | #10075 |
Scooby Specialist
Member#: 58504
Join Date: Mar 2004
Chapter/Region:
South East
Location: Ready to try OpenECU.org!!!
Vehicle:2004 STi Aspen White / Silver |
I believe there is also a "Rule of 55" that allows you to make penalty-free 401k withdrawals at age 55 if you are laid off, furloughed, or quit your job.
You are still required to pay the taxes, and only your most recent employer's plan may be used. Other 401ks from previous employers are not eligible. Your employer sponsored 401k plan automatically withholds 20% of withdrawals for Fed Income Tax. But you do not incur the 10% penalty. You should check to see if your plan allows "Rule of 55" withdrawals. This does not apply to IRAs. |
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