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Weekday Help Thread for the week of January 15, 2018 by AutoModerator in personalfinance

[–]dequeued 4 points5 points  (0 children)

Make sure you're taking care of your retirement savings and have a solid emergency fund on top of a down payment first. Home ownership can be somewhat risky (many reasons like: losing your job, expensive repairs, the housing market dropping) and is less important than saving for future you.

Also, you absolutely need to wipe out that CC debt first. Use some of your savings and make sure you're following the steps in the "How to handle $" article from the sidebar/wiki. Buying a home comes after saving an emergency fund, paying off the CC debt, and saving 15% for retirement.

Coming into a bit of money soon, how should I spread my money around to best protect against law suits and other legal liabilities, without incurring unnecessary future tax penalties? by KhaosFrost in personalfinance

[–]dequeued 1 point2 points  (0 children)

Beyond talking to an attorney, CFP, or CPA (ideally a CPA with FPS) as others have suggested, two really basic ways to protect your assets:

  1. Max out your 401(k) and IRA. Employer-sponsored 401(k) plans in particular are pretty well-protected. Individual 401(k) plans and IRAs are somewhat less protected (and it depends somewhat on the state). HSAs are pretty well protected too if you have a HDHP and can contribute to one.

  2. Get umbrella insurance on top of your homeowners/renters and auto insurance.

More reading:

Is there a "title_shorter_than"? by CWinthrop in AutoModerator

[–]dequeued 7 points8 points  (0 children)

You can use a regex:


type: submission
~title (regex, includes): ['.{40}']
action: filter
action_reason: "title is too short"

Same result here:


type: submission
title (regex, includes): ['^.{1,39}$']
action: filter
action_reason: "title is too short"

If you only want to stop one-word titles:


# filter if not a 2+ word title
type: submission
~title (regex, includes): ['\w+\W+\w+']
action: filter
action_reason: "title is too short"

I'm 31, have no retirement savings, but vested stock options will be unlocking soon by JPJPJP0 in personalfinance

[–]dequeued 0 points1 point  (0 children)

In addition to the great advice from /u/jdoe74, I'd push you pretty hard to ramp up your retirement savings. As you sell these options, you can use that money to accelerate your retirement savings (this is discussed further in the Windfalls wiki page which you should study in detail).

Specifically:

  1. Max out your 401(k) this year (Traditional contributions).
  2. Contribute the maximum to an IRA before April 15th for 2017 using the backdoor Roth IRA method (links below).
  3. Contribute the maximum to an IRA for 2018 between now and April 15th, 2019.
  4. Find out if your 401(k) allows for "after-tax" contributions and in-service rollovers. If yes, then do the mega backdoor Roth.
  5. If you have an HDHP, open an HSA.
  6. After 1-3 and 4-5 (if possible), open a taxable account and start moving company stock into US Total Stock Market and/or Total International at a low-cost index fund provider such as Vanguard or Fidelity. (Read the Investing wiki page, the Bogleheads page on asset allocation in multiple accounts, and study the links in the Windfalls page first.

Here are some links about doing a Backdoor Roth IRA:

Answering your questions:

  1. Start selling. You will probably want to spread this out over 2-3 years, but I wouldn't spread it out much more than that. Your goal is a 5% allocation in company stock or less. 10% at most.
  2. See above.
  3. Yes. See "How to handle $" in the sidebar (it's also linked near at the top of the Windfalls page).
  4. Maybe refinance to a lower rate then just pay minimums. Even at ~4%, you could go either way (pay minimums vs. paying it down early), but I'd put tax-advantaged accounts like your 401(k) and IRA at a much higher priority.

Intellectually disabled employee has people (mother, vendors) stealing his paycheck. Want to set up a system for his money to be invested and pay bills with a small allowance weekly. Ideas? by 2018username in personalfinance

[–]dequeued[M] 0 points1 point  (0 children)

Your submission has been removed because it is primarily a legal question or discussion. Other subreddits are better equipped to address these topics:

  • /r/legaladvice can help you determine if you need to contact a lawyer and you may get some basic advice.

  • /r/asklaw may be able to further help you with legal questions.

While those subreddits can sometimes offer basic advice, talking to a local lawyer is the best way to answer any legal questions.

Weekday Help Thread for the week of January 15, 2018 by AutoModerator in personalfinance

[–]dequeued 0 points1 point  (0 children)

It might depend on the country. You might want to ask on the relevant country subreddit (see the sidebar here too) or maybe on /r/tax.

Roth or Traditional 401K? by JustCallMeTomHanks in personalfinance

[–]dequeued 0 points1 point  (0 children)

The logic hasn't changed much because it's not about comparing marginal tax rates now vs. in retirement. It's about comparing your marginal tax rate now to your effective tax rate in retirement.

Read https://gocurrycracker.com/roth-sucks.

If you're in the 12% tax bracket then I would do Roth, though.

[18FAus] Moving out of home at 18, help achieving my New Years Resolution by Moving0ut in personalfinance

[–]dequeued 5 points6 points  (0 children)

If you have to consider sex work to afford moving out, I think you need a better plan. I'd suggest revising your resolution to be about finding better employment and some goals around working towards your nursing degree. Those are much more important things.

You can host Christmas when you're 25 or 30.

Weekend Discussion and Victory Thread for the week of January 12, 2018 by AutoModerator in personalfinance

[–]dequeued 0 points1 point  (0 children)

Congratulations!

A few questions:

  • Your SIMPLE IRA lets you transfer money monthly?

  • There's no load on the 1.4% fund, right?

What are the best jobs or businesses that I can do from home? by Leoqueen10 in personalfinance

[–]dequeued[M] [score hidden] stickied comment (0 children)

Hello. This is a very common question. Please check out our side income wiki page for ideas and information.

roast my portfolio: 34 y/o (USA). by throwway_matt in portfolios

[–]dequeued 0 points1 point  (0 children)

2. That's one disagreement I have with the Bogleheads wiki. https://www.bogleheads.org/forum/viewtopic.php?t=197035 talks about this more (and references multiple articles on the topic).

5. I really wish you had posted that before.

As you sell the RSUs, I think you'll probably want to transition from primarily using target date funds to a three-fund portfolio approach to allow you to maintain your desired overall asset allocation across taxable, tax-deferred, and tax-free accounts.

You won't need to hold all three funds in each account, of course. Hold the minimum needed for efficiency, expenses, allocation, etc.

I'd rather see you use VTSAX in the IRA, but waiting until you've sold most of the AMZN is fine.

What is your annual gross income? I'm assuming it's relatively high? You should probably be doing a backdoor Roth IRA (or a regular Roth IRA if you're under the Roth IRA income limits, but above the income limits for a full deduction with a Traditional IRA).

Grandparents have lost $30k to lottery scams. They took out a $150k loan to pay for another. How can I help? by Chuckberrydiedtoday in personalfinance

[–]dequeued[M] 1 point2 points  (0 children)

Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing (rule 6).

Is Amazon eavesdropping on us now? by [deleted] in amazon

[–]dequeued[M] 0 points1 point  (0 children)

Yes. The subreddit rules are here.

College student concerned about their student loans by [deleted] in personalfinance

[–]dequeued[M] 0 points1 point  (0 children)

I suppose that will do. Approved. Thanks.

Buddy needs advice by [deleted] in personalfinance

[–]dequeued[M] 0 points1 point  (0 children)

Your submission has been removed because it is primarily a legal question or discussion. Other subreddits are better equipped to address these topics:

  • /r/legaladvice can help you determine if you need to contact a lawyer and you may get some basic advice.

  • /r/asklaw may be able to further help you with legal questions.

While those subreddits can sometimes offer basic advice, talking to a local lawyer is the best way to answer any legal questions.

Family/Business Ownership Tax Implications? by [deleted] in personalfinance

[–]dequeued[M] 0 points1 point  (0 children)

Your submission has been removed because it is primarily a business question or discussion. Other subreddits are better equipped to address these topics:

  • /r/smallbusiness is good for questions about starting, owning, and growing a small business

  • /r/entrepreneur is excellent for business questions, especially about startups offering an innovative product, process, or service.

  • /r/business is appropriate for general business questions and tips (also see their sidebar for a list of business-related subreddits).

  • /r/legaladvice can help you determine if you need to contact a lawyer and you may get some basic advice.

Did I spend to much on Honeymoon? by [deleted] in personalfinance

[–]dequeued[M] 1 point2 points  (0 children)

Your post has been removed because the sincerity of this post is questionable. If this post is legitimate, we hope you've gotten the answers and advice you need.