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Taxes / Re: Dependent care credit vs dependent flex
« Last post by gocurrycracker on June 14, 2021, 08:05:45 AM »I haven't looked at the flex account changes at all, sorry
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Early Retirement / Re: Seeking Guidance
« Last post by gocurrycracker on June 14, 2021, 08:04:38 AM »Hi - your question is a bit broad so difficult to provide guidance.
I would start by reading a simple path to wealth
https://www.gocurrycracker.com/book-review-the-simple-path-to-wealth/
Fidelity or Vanguard, either is fine. Just pick one
I would start by reading a simple path to wealth
https://www.gocurrycracker.com/book-review-the-simple-path-to-wealth/
Fidelity or Vanguard, either is fine. Just pick one
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Taxes / Re: Retiring with Pension, how to manage taxes
« Last post by gocurrycracker on June 14, 2021, 08:01:29 AM »There is no 15% tax bracket for ordinary income (e.g. a pension.) There is a 12% bracket.
https://www.gocurrycracker.com/tax-reform-early-retiree/
The answer to Roth conversions or capital gain harvesting could be neither.
If you get health insurance via the ACA, that is probably the case unless you have a really big TSP.
For Roth conversions, if you can pay a lower tax rate now than you will at age 72+ with RMDs, then do them. If not, don't.
If you also have the opportunity to harvest capital gains and pay 0 tax and 0 increase in health insurance premiums, then also do those. If not, don't.
https://www.gocurrycracker.com/tax-reform-early-retiree/
The answer to Roth conversions or capital gain harvesting could be neither.
If you get health insurance via the ACA, that is probably the case unless you have a really big TSP.
For Roth conversions, if you can pay a lower tax rate now than you will at age 72+ with RMDs, then do them. If not, don't.
If you also have the opportunity to harvest capital gains and pay 0 tax and 0 increase in health insurance premiums, then also do those. If not, don't.
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Taxes / Retiring with Pension, how to manage taxes
« Last post by francisco on June 13, 2021, 03:48:39 PM »Hello. I am retiring with military pension, which means I will be paying taxes on the 15% bracket. My quaetion is if I should concentrate on capital gain harvest or still go with the roth conversion ladder technique. Thanks
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Early Retirement / Seeking Guidance
« Last post by jwaynecurry on June 09, 2021, 09:26:34 AM »GM! I am seeking guidance on potential early retirement. To be honest, I had not put much thought into this and most certainly behind the curve. The following applies to me:
1. 35 years of age
2. 7 years invested in a Teaching retirement system
3. 2 years so far invested in a State retirement system (I can combine if I choose)
----If I complete a total of 15 years with state employment, I get free healthcare for life
----Based on my current salary, retirement at 58 - $3200, 62 - $4500, and 65 - $5400 , just from ERS. This does not include the annuity from the
teaching retirement system and Social Security but I do not want to work past 55 (52 if possible).
4. Have an Traditional IRA with Fidelity but have not been really contributing. Recently started putting in the max every year.
5. Am now financially able to contribute a minimum of 40% of my income every month to investments/savings.
Questions:
1. Should I set a brokerage account with Fidelity or Vanguard for ETFs?
2. What is the best asset allocation to achieve the goal or retiring by 55 (if it is possible)? US Stocks, International stocks, bonds, cash, etc.
3. What other accounts should I consider for tax advantages, investments, etc beyond IRA and brokerage accounts?
4. What other things should I take into consideration? What might I want to look into/research?
1. 35 years of age
2. 7 years invested in a Teaching retirement system
3. 2 years so far invested in a State retirement system (I can combine if I choose)
----If I complete a total of 15 years with state employment, I get free healthcare for life
----Based on my current salary, retirement at 58 - $3200, 62 - $4500, and 65 - $5400 , just from ERS. This does not include the annuity from the
teaching retirement system and Social Security but I do not want to work past 55 (52 if possible).
4. Have an Traditional IRA with Fidelity but have not been really contributing. Recently started putting in the max every year.
5. Am now financially able to contribute a minimum of 40% of my income every month to investments/savings.
Questions:
1. Should I set a brokerage account with Fidelity or Vanguard for ETFs?
2. What is the best asset allocation to achieve the goal or retiring by 55 (if it is possible)? US Stocks, International stocks, bonds, cash, etc.
3. What other accounts should I consider for tax advantages, investments, etc beyond IRA and brokerage accounts?
4. What other things should I take into consideration? What might I want to look into/research?
6
Taxes / Re: Dependent care credit vs dependent flex
« Last post by mountaintown on May 25, 2021, 02:25:12 PM »Thanks! I am also wondering if anyone has dug in enough to understand the flex account changes. I guess I'm assuming that we can still use both? For example....am I able to max out the $10,000 amount and then also get the $8000 credit?
I suppose for this to work the total daycare expenses would have to be roughly $26,000. We are considering switching to a full time nanny so I'm curious if there would be significant tax benefits and I have a small window to change/up my FSA benefits.
I suppose for this to work the total daycare expenses would have to be roughly $26,000. We are considering switching to a full time nanny so I'm curious if there would be significant tax benefits and I have a small window to change/up my FSA benefits.
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General Discussion / Re: trust and estate planning
« Last post by gocurrycracker on May 20, 2021, 07:44:57 PM »just move somewhere and do life things - get a driver's license, rent/buy a place to live, register to vote, etc...
We will probably end up in California
https://www.gocurrycracker.com/going-back-to-cali/
We will probably end up in California
https://www.gocurrycracker.com/going-back-to-cali/
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General Discussion / Re: trust and estate planning
« Last post by soy_latte on May 20, 2021, 10:59:08 AM »Where are you hoping to establish residency and do you happen to know the detailed steps required to make that happen?
We’re looking to go down a similar path and really appreciate your knowledge sharing in this area.
We’re looking to go down a similar path and really appreciate your knowledge sharing in this area.
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General Discussion / Re: trust and estate planning
« Last post by gocurrycracker on May 19, 2021, 08:16:04 PM »How do you plan to avoid the WA estate tax which kicks in at 2.1M?
The simple answer is for at least one of us to avoid death until we establish residency elsewhere
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General Discussion / Re: trust and estate planning
« Last post by soy_latte on May 19, 2021, 11:16:44 AM »Thanks for your reply!
How do you plan to avoid the WA estate tax which kicks in at 2.1M?
My understanding as WA residents ourselves is this tax would apply before any assets would be transferred over to your kids.
How do you plan to avoid the WA estate tax which kicks in at 2.1M?
My understanding as WA residents ourselves is this tax would apply before any assets would be transferred over to your kids.