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Travel hacking / Re: Hacking approach to Chase 5/24
« Last post by amyrinco on January 15, 2018, 10:27:12 AM »
My husband and I have run into the 5/24 issue ourselves in the past. Our current strategy has me be the "Chase person" and he does everything else.

Of course, this only works as a couple but thought I'd throw it out there.
Travel hacking / Hacking approach to Chase 5/24
« Last post by MrWheat on January 15, 2018, 10:14:49 AM »
The Chase 5/24 rule means that once you have 5 applications within a 24 month period Chase won't approve new cards (as always, with some caveats). But some business cards (Including Bank of America/Amex/Citi) don't count towards 5/24. So by getting business cards you can extend 5/24. To me the best strategy is using up the great Chase cards, then going to business till you get under 5/24. I wait a minimum 91 days between applications. Here is the order I would go in, if I was starting travel hacking today (Y or N means counts towards 5/24):

1) Chase Sapphire Preferred, 50k UR (Y)
2) Chase Business SWA 50k SWA (N*)
3) Chase Plus SWA 50k SWA (Y) to get the SWA companion pass
4) Chase Hyatt (Y)
5) Citi Thank You Premier (Y)

now switch gears to Chase Business at 4/24

6) Chase Ink Business, 80k UR (N*)

now go 5/24

7) Amex Delta Gold (Y)

Now go Business

8. Amex Gold Business, 50k Amex (N)
9) BoA Alaska Business, 30k Alaska (N)
10) Amex Delta Gold Business (N)

(* = will not count if under, YMMV)

By now with 90 day applications you are under 5/24 and can get more Chase cards. Have a better strategy?
Taxes / Re: tIRA Fund Inefficiency
« Last post by nothing_twisted on January 15, 2018, 10:06:36 AM »
Thanks so much for the speedy reply!

- the taxable portion is pro-rated over ALL of your Traditional IRAs. If total pre-tax IRA value is large (perhaps because you transferred an old employer's 401k to a TIRA), then almost all of conversion would be taxable. The way around this is to first transfer the other IRA assets to your employer's 401k (if allowed) or to your side hustle solo 401k.

Could you explain this further for me? If my total tIRA balance is relatively low is there a chance some of it won't be taxable? I'm not completely clear what you mean by the taxable portion being pro-rated.
General Discussion / Re: Welcome
« Last post by gocurrycracker on January 15, 2018, 07:54:46 AM »
Taxes / Re: tIRA Fund Inefficiency
« Last post by gocurrycracker on January 15, 2018, 07:54:07 AM »
Thanks NT, much appreciated.

You can't withdraw the funds tax efficiently, but you can recharacterize a Traditional IRA contribution in whole or part into a Roth IRA.

Let's say you contribute $5,500, but only $3k is tax deductible. You then recharacterize the remaining $2,500 to Roth (basically, a partial backdoor Roth.) You have until your tax filing deadline to do this, up to Oct 15th with extension.

edit: See the boglehead forum post on this for examples and details
General Discussion / Re: Welcome
« Last post by Dark on January 15, 2018, 07:07:03 AM »
Taxes / tIRA Fund Inefficiency
« Last post by nothing_twisted on January 15, 2018, 06:27:12 AM »
Hey, Jeremy!

First off, thanks for all the amazing content.

This year my wife and my income was in the phase-out range for contributing to our Traditional IRA's. As I expected this, I have been waiting till tax time to figure out exactly how much will be tax deductible, which means we missed out on the stellar gains we saw in 2017.

Is there a more efficient way to do this for 2018? Is it possible to contribute to the tIRA for the full amount and then convert the non-tax deductible portion to a Roth without negative tax consequences? I felt that contributing the funds to a taxable account and then selling them when I found out how much I could contribute would be tax deductible would be counterproductive, as that would increase our income in either 2017 or 2018, reducing the amount that would be deductible in addition to triggering Short-Term Capital Gains.

Likelihood is that we may be in the same situation this year, although I don't want to rule out the possibility that we might make even more money. ;)

Taxes / Re: S-Corp or Sole Proprietorship?
« Last post by gocurrycracker on January 09, 2018, 12:35:16 AM »
As with most things, it depends. There is a point where cost of S-corp exceeds the benefits.

One of the main reasons people use S-corps is to minimize Self-Employment taxes. If you make $100k biz income, as sole proprietor you pay SE taxes on all of it, about $15k. As S-Corp, you only pay SE taxes on the reasonable salary, say $40k (so 6k SE tax.) The remaining $60k is a distribution that is SE tax free (but of course subject to fed and state taxes.) Since you already pay the max employee payroll taxes on your day job, your burden is half as much.

S-corps have to file a corporate tax return each year, which has a cost. Maybe you pay your CPA to prepare this. If cost is greater than SE tax savings, then better to be sole-proprietor. And vice versa.

One thing to consider: with sole proprietor you can hire your kids, and since it is a family business they don't have to pay payroll taxes at all. With S-corp they would. They can earn up to standard deduction each year completely Fed tax free (that's $12k in 2018, thanks to TCJA.) This can then be contributed to their Roth IRA and/or the companies solo 401k. See this post for more:
Taxes / S-Corp or Sole Proprietorship?
« Last post by JeredA on January 08, 2018, 10:35:19 PM »

Saw your latest blog post on the TCJA - awesome. Your chart was the clearest visualization I?ve seen of the changes yet and the links at the end were especially helpful.

So, I?m planning to start a side business selling one of my apps and need to decide between a sole proprietorship vs. S-Corp.

Is there a clear winner given my high income from the day job?

Thanks and Happy New Year!!!
Traveling with kids / Re: polyglot nomadic children
« Last post by gocurrycracker on January 08, 2018, 06:48:03 PM »
I only speak English and Winnie only speaks Chinese with Jr.

Jr primarily speaks Chinese (the mother tongue...) but speaks English perfectly when he wants to. He speaks a little Japanese with the Japanese girl in our building, sings a couple Korean songs, and says good-bye in a ton of different languages (Au revoir, ciao, adios, sayōnara... he'll use the appropriate word based on who he is speaking with.)

This is as natural as walking for him. If he sees Western people he will start speaking English. When in Japan he would try speaking Chinese with people, and when they looked confused he would switch to English.
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