| Money Talk|| re: Becoming a Landlord- Seeking Advice - tigerrocket on 10/23/13 at 11:37 am|
I am just providing my thoughts based on what has worked well for me. Liquidity should not be a major conern, unless you are putting every dime into illiquid assets. That is why I suggest a minimum down payment, which keeps other assets liquid for the next opportunity. My goal is to have these pr...
| Money Talk|| re: Becoming a Landlord- Seeking Advice - tigerrocket on 10/23/13 at 10:25 am|
My thoughts on residential rentals may be different than those that are seeking cash flow. I typically look for a property that I believe to be priced right, easy to rent, and some appreicaition potential. I look to put as little down as possible on a 15 year mortgage even if the cash flow isn't g...
| Money Talk|| re: First time home buyers early IRA withdraw - tigerrocket on 9/26/13 at 3:26 pm|
Read the Bankrate.com article. Should answer your question.
| Money Talk|| re: Investing the difference on a 30yr mortgage - tigerrocket on 9/5/13 at 10:07 am|
With rates as low as they are, my mortgage interest isn't enough to put me over the standard deduction, so I don't get to deduct my mortgage interest. I think a lot of people think they are deducting mortgage interest because they enter in turbo tax or give it to their CPA, but in the end they are ...
| Money Talk|| re: What do I do with my money next? - tigerrocket on 8/22/13 at 3:02 pm|
Your income will probably make you ineligible to deduct an IRA contribution if you are participating in a 401k plan. I am assuming that you will make too much money to even contribute to a Roth IRA. If your 401k has a Roth option, you may want to split your contributions (some pretax and some afte...
| Political Talk|| re: The smoking "tax" in obamacare - tigerrocket on 6/30/13 at 8:40 am|
no family history of any disease
no genetic markers
lives in a healthy state
no contact sports
| Political Talk|| re: The smoking "tax" in obamacare - tigerrocket on 6/30/13 at 8:31 am|
I completely agree with free markets, but I think we are pat the point of no return as free markets relate to health care....
| Political Talk|| re: The smoking "tax" in obamacare - tigerrocket on 6/30/13 at 8:23 am|
I would also agree with letting the insurance companies manage their risk by charging higher premiums for risky behavior, but where does it stop when defining risky behavior?
We might can argue that those that take on risky behavior should be charged less, because they dont live to be 90; ther...
| Political Talk|| re: The smoking "tax" in obamacare - tigerrocket on 6/30/13 at 7:55 am|
Obviously cigarettes are not good for your health, but we better be careful letting the government decide what else is not good for us. ...
| Money Talk|| re: Consolidating credit card debt with mortgage - tigerrocket on 6/20/13 at 11:00 am|
Although it's a good rate, I am not a big fan of financing "wants" that were bought with a credit card for 15 or 30 years. I would definitely plan on paying extra on the mortgage....
| Money Talk|| re: 401k Loans - tigerrocket on 6/6/13 at 6:41 am|
a couple of other points:
1. regarding paying the loan back witj after tax payments: all loans are paid back with after tax dollars. The loan amount that you receive from a 401k is not taxed, so you shouldn' get to pay it back with befor tax dollars. Your gains in the 401k are taxed as ordinar...
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 9:06 pm|
The intent of my original question was to facilitate a discussion questioning the conventional thinking that 401k loans are bad and that we shouldn't do it. I beleive that they can be a great financial tool.
To respond to some of the comments:
I have never seen a 401k plan that doesn't allow ...
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 4:54 pm|
I think some of the older plans were like you describe. Even if they pull the funds out of the account, you still earn the interest from the loan rather than the bank. (so technically your 50k loan is an investment that earns interest as you pay the loan back)....
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 4:43 pm|
But, if I borrow money from the bank, I am paying it back with post tax money, and the interest is earned by the bank not the 401k.
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 4:18 pm|
401k loans are not taxable unless you default....
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 4:11 pm|
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 4:11 pm|
I believe the info you got from the website is the conventional thinking that I am questioning.
What else am I missing? These are some of my thoughts:
1. 401k loans are typically cheap to set up $50 or so. (no underwriting and typically done online)
2. Obviously a default would be bad bec...
| Money Talk|| re: 401k Loans - tigerrocket on 6/5/13 at 3:42 pm|
The loan is tax free unless you default....
| Money Talk|| 401k Loans - tigerrocket on 6/5/13 at 3:22 pm|
The conventional advice given in regards to taking 401k loans has mostly been to avoid it unless absolutely no other option is available.
If someone has a 401k with a $200k balance, and the investments are allocated between equity funds and bond funds, would it not be appropriate to think of a ...
| Money Talk|| re: Life Insurance - tigerrocket on 5/8/13 at 4:11 pm|
I'll buy your bait at the fishing rodeo. You should only need one shrimp for the weekend....
| Money Talk|| re: Life Insurance - tigerrocket on 5/8/13 at 4:04 pm|
Next question: Let's assume that the death benefit is not taxable as income to the LLC. The LLC now has the cash in the LLC. Is the distribution from the LLC to the members a taxable event? Does basis come into play with the LLC distribution?...
| Money Talk|| re: Life Insurance - tigerrocket on 5/8/13 at 3:42 pm|
I'm guessing the policy was transferred into the LLC as a capital contribution. It was probably done for estate tax reasons when the unified credit was $600k....
| Money Talk|| re: Life Insurance - tigerrocket on 5/8/13 at 3:29 pm|
When would it be taxable as income? ...
| Money Talk|| re: Life Insurance - tigerrocket on 5/8/13 at 3:19 pm|
I don't know all the details, but I've got an LLC that owns a life insurance policy and is the beneficiary. I'd like to know if this is a taxable event. I don't think it is, because the LLC is a pass through entity to the members, which happen to be the children. Any thoughts?...
| Money Talk|| Life Insurance - tigerrocket on 5/8/13 at 2:26 pm|
When is life insurance taxable to a beneficiary?...
| Political Talk|| re: Internet Tax = Business Opportunity - tigerrocket on 5/8/13 at 12:56 pm|
Will the tax rates be based on the shipping address? ...
| Money Talk|| re: Are any of y'all anti- 401K or IRA - tigerrocket on 5/3/13 at 2:46 pm|
My biggest complaint with retirement accounts is the number of different types and different rules for each one of them. (Simples, SEPS, Single Ks, 401ks, defined benefit, IRAs, Roths, 403bs,etc)
I think that the IRS should have two types of retirement accounts: Roth and Retirement account. We...
| Money Talk|| re: Question for MT: Putting Finances on Cruise Control - tigerrocket on 5/1/13 at 3:25 pm|
One option would be to consider buying a house with rental in mind. If you get married, and the house is not suitable for a growing family, you can rent it. The first property that I bought I still have, and it's been rented since 1996. It last appraised for three times what I paid for it, and I ...
| Money Talk|| re: HSA Savings - tigerrocket on 5/1/13 at 3:06 pm|
You are correct. I had an FSA for out of pocket medical expenses and one for child care. If I didn't have the expenses to submit for reimbursement, I would forfeit the balance....
| Money Talk|| re: HSA Savings - tigerrocket on 5/1/13 at 9:26 am|
I used to have an employer HSA that was a "use it or lose it" plan. I had to estimate what my out of pocket health care costs were each year, so that I didn't contribute more than my actual costs. ...