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Potrzebie posted:Are there financial advisors who are not parasites? How would that even work? Fee based financial consultants who act as fiduciaries for topics of actual management and asset allocation?
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Nov 19, 2019 16:14
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EAT FASTER!!!!!! posted:Fee based financial consultants who act as fiduciaries for topics of actual management and asset allocation? I mean, we do tax loss harvesting and rebalancing and stuff but that is like the most minor of things a real advisor does. If you're looking for a good advisor, ACP and NAPFA are the places to look imo.
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Nov 19, 2019 20:41
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I just refreshed my accounts in Quicken, and found that the day I'd been anticipating for about a year has finally come. I now have a net worth of over $1M.   Early 40's, single, no dependents. Never made 6 figures yet, though I have come close. No debt except for $15k on a year-old car worth ~$30k. A little over half is in my IRA & 401k.
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Dec 17, 2019 01:55
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IntensivePorpoises posted:I just refreshed my accounts in Quicken, and found that the day I'd been anticipating for about a year has finally come. I now have a net worth of over $1M. Helllls yeah. Congratulations! Don't go celebrate and buy the new iPhone or a fancy TV, you'll dip below your mark!
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Dec 17, 2019 02:27
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dos comas. Congratulations 
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Dec 17, 2019 02:28
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TraderStav posted:Helllls yeah. Congratulations! You can buy a great TV for $932.54
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Dec 17, 2019 03:10
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IntensivePorpoises posted:I just refreshed my accounts in Quicken, and found that the day I'd been anticipating for about a year has finally come. I now have a net worth of over $1M. drat dude that's rad
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Dec 17, 2019 13:21
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IntensivePorpoises posted:I just refreshed my accounts in Quicken, and found that the day I'd been anticipating for about a year has finally come. I now have a net worth of over $1M.
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Dec 17, 2019 15:17
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taqueso posted:You can buy a great TV for $932.54 That millionaire deserves an OLED.
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Dec 17, 2019 16:07
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Hell yeah two commas!
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Dec 17, 2019 17:04
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That's a lot of figgies!
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Dec 17, 2019 18:09
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SIGNIFICANT FIGURES!
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Dec 17, 2019 19:11
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You can lease a small senator with that kind of money!
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Dec 17, 2019 22:41
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Hoping this is the right place to ask this question, let me know if someone else could be more helpful. I have the opportunity to make some money in 2020 but need to start an LLC to do so and I'm interested in any advice. I'm in Washington state if it matters. I have a client willing to pay me around $60k (possibly more if things go well and we want to make things longer-term, but only around that for sure) for consulting work in 2020. They won't hire me as a part time employee or write me a personal check, they'll only pay a corporation of some kind, so I need to do something. As far as I can tell, I should start an LLC. I am willing to spend a little money to keep things simple for me on my end but I don't want to spend too much since revenue won't be massive and it might only be short term, depending on how things go. I don't expect to have major expenses and I don't ever expect to have anyone involved but me. As I see it, I have three choices - do it myself, do it through a service like Legal Zoom, and hire a lawyer and/or accountant. I consider myself an educated and intelligent person but I don't want to do anything wrong so I'm nervous about doing it all myself. Legal Zoom is relatively cheap but I'm not sure it's that much easier than doing it myself and I'd still have to handle taxes and maybe some etc things. Hiring legal/accounting help would ensure I get everything right but it seems super expensive for a relatively small endeavor where I don't expect to be handling major expenses or write-offs or whatever complications. I just want to be able to have an entity that can cash checks, pay the money to me, and follow the law and pay its/our taxes. What's the best way to balance ease, safety, etc in all this? Any advice is welcome, thanks! gohuskies fucked around with this message at 02:10 on Dec 20, 2019 |
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Dec 20, 2019 02:07
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Register a DBA and call it gohuskies Corp.
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Dec 20, 2019 02:22
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gohuskies posted:Hoping this is the right place to ask this question, let me know if someone else could be more helpful. I have the opportunity to make some money in 2020 but need to start an LLC to do so and I'm interested in any advice. I'm in Washington state if it matters. Find a local, small law firm and ask if they have someone that can set you up with a sole proprietor/llc package or could suggest someone. Ask on facebook, or if you've done estate planning ask them for a rec. It's probably a few grand to get it done from a template but it will be better than Legal Zoom and give you someone to call with questions. Just go chat with them about what you are going to be doing, what you need, and let them tell you. They can likely also give you the most basic of accounting and tax advice but will quickly defer to an accountant. They will be able to ask you smart questions like if you need all of the consulting money out immediately or if there is a way to do it in a more tax advantaged method. Get your Solo 401k going too!
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Dec 20, 2019 02:53
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I helped land a big contract for my company, and I'm getting a $10k bonus in return. I'm trying to decide what to do with it; I'm in a very fortunate financial position. Here's where things stand: Situation: - 28, employed full-time in a salaried role at $80,000 in a stable position, good health, single - My monthly mortgage (with interest/insurance/etc) is $820; I've been paying an extra $700 toward the principal every month since I bought the house in August 2017 Outstanding debt: - $65,000 remaining principal on home mortgage - No medical, student, or vehicle debt Current assets: - $13,600 in entirely liquid assets (cash, savings, checking) - $17,000 in mostly liquid assets (mutual fund investments) - $48,000 in home equity (although based on how houses are selling currently, it would be more like $78,000) - $54,000 in Roth IRA retirement savings Here's what seems like the options to me: Option 1: Just throw it at the principal of the house. This is my first thought. I don't like having debt, and doing this would put me on track to have the house paid off by April 2023 instead of October 2023. I kind of feel like having your house paid off makes you financially invincible as long as you don't develop like a heroin addiction or have an enormous medical crisis. I don't plan to stay in this house forever, but I could easily see myself in it well into my late '30s. Option 2: Replace my car. I think this is what most people would do. I like my car fine (it's a 2005 Kia Spectra with 105,000 miles on it and a decent track record), but it is obviously getting old and it's starting to get a little rust on the frame. I don't drive much or love driving; I've only added 45,000 miles over the past six years. I do drive almost every day, but I live in a city and it's very brief distances. My longest drives tend to be in the four-hour range to visit my family in another state or for nearby work meetings. With my current car as a trade-in, I could kick in a few thousand from my savings or my investments and buy a nice used 2016-2018 compact car with ~30k miles, which I'm sure I would have for the next 10+ years. Option 3: Finish home renovations. My house is nearly done from my perspective; I front-loaded the renovation projects in the first six months. But there are a few remaining projects that I'm sure I could knock out with this: replacing the laminate kitchen and bathroom countertops with something nicer, replacing the appliances (all of which are between 10 and 15 years old), getting the garage drywalled and painted. The roof is only about 10 years old and still in good shape, fortunately. Option 4: A fun thing? idk. I would say that I've been profligate over the past two years anyway (I bought a new TV, couch, desktop computer) and I've traveled for pleasure a few times (including an overseas trip). There's not really a thing where I've thought to myself, "Oh, if I only had the money, I would do THIS!" and didn't end up finding a way to do it. Option 5: Mixture of the above. I think I might start by getting both my car and my vehicle reinspected to see if there's actually a pressing need in either of those realms before I decide. I'm going to donate a portion of it as well, incidentally; these options are what will happen with the amount I don't donate.
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Jan 7, 2020 16:04
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You're not going to go wrong saving it in either your brokerage or house equity. I assume you have maxed your 401k and ira for the year, or are on track to do so? Don't let limit go away forever. If you have available limit you aren't budgeted to max this is the only option. I wouldn't replace a car you don't care about. Let it go back into the earth and replace it when it's unsafe to drive. A few grand in repairs is cheaper than a new used prius.
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Jan 7, 2020 16:16
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H110Hawk posted:You're not going to go wrong saving it in either your brokerage or house equity. I assume you have maxed your 401k and ira for the year, or are on track to do so? Don't let limit go away forever. If you have available limit you aren't budgeted to max this is the only option. Roth IRA: Yes; I've got a Target Date Retirement account with Vanguard and max it every year. 401k: I don't have one. My company doesn't offer matching, and the expense ratios were really bad the last time I checked (a couple of years ago). I'd heard that if I just max my Roth every year, I should be in good shape. Is that not right?
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Jan 7, 2020 16:24
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Bear in mind that while bonuses are actually taxed like any other regular income when tax day rolls around, in practice they initially withhold bonuses at the highest federal income tax bracket, so you won't see as much of it go into your account come payday.
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Jan 7, 2020 16:40
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surf rock posted:Roth IRA: Yes; I've got a Target Date Retirement account with Vanguard and max it every year. Maxing your Roth at 6k/year 2020 dollars is not enough to put you in good shape for retirement by itself, unless you've got something else like a pension to help out, or your definition of "good shape" is exceptionally frugal. The rule of thumb for a comfortable retirement is saving 15-20% of your gross salary for retirement from your mid-late-20s until you're done working in your mid-60s. No, that's not realistic for a lot of people. Welcome to one of the many mechanisms for persistent wealth inequality. Tying retirement savings to employer-provided accounts is a terrible policy, but it's what we have. If you can, look for a job with a better 401k. If you can't do that, figure out whether it makes more sense to eat the terrible expense ratios, or to save for retirement in a taxable account.
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Jan 7, 2020 16:41
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surf rock posted:Roth IRA: Yes; I've got a Target Date Retirement account with Vanguard and max it every year. Can you quantify those expenses? It might be still worth it to cram money in there.
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Jan 7, 2020 16:43
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SpelledBackwards posted:Bear in mind that while bonuses are actually taxed like any other regular income when tax day rolls around, in practice they initially withhold bonuses at the highest federal income tax bracket, so you won't see as much of it go into your account come payday. That's not how I've seen any payroll software do this. It's just a dumb calculation. If you are paid 24 times per year and one of those checks has a bonus in it the payroll software withholds from that check as if you have been and will continue to get checks of that size for the other 23 pay periods.
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Jan 7, 2020 16:48
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Motronic posted:That's not how I've seen any payroll software do this.
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Jan 7, 2020 17:02
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Motronic posted:That's not how I've seen any payroll software do this. I teach college and this is what happens when I get a summer class check. It’s taxed as if I’m always making $6000 a month.
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Jan 7, 2020 17:21
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Hoodwinker posted:This is what I've seen as well, but the end result is still the same: "My bonus is taxed higher!" says everybody, always, forever, and I die a little inside.
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Jan 7, 2020 17:29
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DJCobol posted:I get my bonus in a separate check for just the bonus, and a quick math check shows that it is taxed at a higher rate. It does happen. Here's a TurboTax article on exactly this: quote:Federal and state taxes Hoodwinker fucked around with this message at 17:42 on Jan 7, 2020 |
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Jan 7, 2020 17:31
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Hoodwinker posted:I'd bet $10 it's withheld at a higher rate, but will be appropriately taxed when you look at your tax return at the end of the year. Which is exactly the problem I'm describing with people's understanding of this. You're 100% right that I've gotten more back on my refunds, so the difference is what you said: withheld from that check vs. overall tax obligation for the year.
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Jan 7, 2020 18:04
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This all ties into a sort of general financial concept which I've been putting into a more firm space conceptually in my brain: the vast majority of people never get to a point where their financial planning takes place on an annual timeframe instead of a monthly timeframe. It makes sense why this happens - early in your career, you have fewer obligations and your earnings might not be consistent month to month; there isn't a reason to plan out on such a long time frame. But then eventually you maybe move to salary and your general life responsibilities firm up a bit, and you don't adjust your planning and expectations out to match the longer timeframe you're now capable of (and would benefit from) planning for. It certainly seems like most people don't. To be sure, some people never feel like they can make it to that point because their income never becomes consistent, but I'd hazard that for most adults their responsibilities do tend to firm up as they get older. People have kids. People get cars and houses. Life happens. Short of being a pampered man-child, there aren't a lot of people who don't benefit from more long-term planning. It also tends to highlight one's deficits vis a vis "income <= spending".
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Jan 7, 2020 18:41
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Anyone ever look at your finances and just go "mother of God...." and think you're failing? Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount?
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Jan 8, 2020 02:43
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Omne posted:Anyone ever look at your finances and just go "mother of God...." and think you're failing? Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount? I sometimes think "This isn't happening fast enough" but I'm currently throwing $300-$400 a month at unsecured debt reduction. Now that I've got no girlfriend that frees up another $100/mo, and I think that'll put me right on track to have it all gone by the end of the year. I read things like surf rock's post, get sad/mad at how I wasted so much opportunity and made poor financial decisions. I then remind myself I hit 100k net worth last year, bought a home, and I'm still just 31. I remind myself that while it may not be happening fast enough for my own taste, with planning, discipline, some work, and patience, I'll get there eventually, and at the end I'll get to make all that debt money get to work for ME. Beach Bum fucked around with this message at 03:12 on Jan 8, 2020 |
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Jan 8, 2020 03:08
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Omne posted:Anyone ever look at your finances and just go "mother of God...." and think you're failing? Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount? I haven’t had work in six months so... yes. Every day.
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Jan 8, 2020 03:26
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Omne posted:Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount? Every day. 10 years ago I couldn’t save a dollar, so I feel like it’s not enough to catch up. Like everyone else said though, got to have a plan, take it slow, and stay consistent.
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Jan 8, 2020 03:30
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Omne posted:Anyone ever look at your finances and just go "mother of God...." and think you're failing? Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount? Yes. So very yes. Also the wierd guilt associated with buying "unnessesary" and "expensive" things. Like, why would I not treat myself to whatever I can afford after bills paid and investment/savings transfers are done? But it does not feel good, so I guess the ghost of working two part-time jobs and barly surviving still is haunting me.
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Jan 9, 2020 11:16
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yeah i find myself having to force myself to spend money on things i want, have budgeted for and can afford. it's a kind of ridiculous but i guess fundamentally good problem to have?
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Jan 10, 2020 00:29
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Omne posted:Anyone ever look at your finances and just go "mother of God...." and think you're failing? Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount? All the time for the past year. Finally paid off some loans that have been hanging over our heads and I'm hoping that maybe it'll get better?
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Jan 10, 2020 00:33
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Sorry about the delayed reply; the past few days have been nuts. Space Gopher posted:Maxing your Roth at 6k/year 2020 dollars is not enough to put you in good shape for retirement by itself, unless you've got something else like a pension to help out, or your definition of "good shape" is exceptionally frugal. The rule of thumb for a comfortable retirement is saving 15-20% of your gross salary for retirement from your mid-late-20s until you're done working in your mid-60s. No, that's not realistic for a lot of people. Welcome to one of the many mechanisms for persistent wealth inequality. H110Hawk posted:Can you quantify those expenses? It might be still worth it to cram money in there. So, apparently we switched 401(k) administrators or whatever in the past year? I looked it up and initially it seemed like it was just a $60/year flat recordkeeping fee and Vanguard's actual expense ratio (they seem to only use Vanguard funds), but then I found this page about custodial fees:  It sounds like an additional 5.5 basis points? So if I invested in my 401k in a Vanguard mutual fund with an expense ratio of 0.10, I would actually be paying 0.155 with this factored in. Is that right? The previous 401k provider had expense ratios of like 1.5 or something; this seems a lot better. What's the 401k annual contribution cap? To be at 15% gross salary in retirement savings, that would be $12k. Subtracting my Roth IRA contributions, that would mean targeting $5,500 in 401k contributions each year.
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Jan 10, 2020 02:51
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The cap in 2020 is $19,500.
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Jan 10, 2020 02:56
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WithoutTheFezOn posted:The cap in 2020 is $19,500. Thanks, I'd forgotten to bump mine up.
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Jan 10, 2020 14:03
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Omne posted:Anyone ever look at your finances and just go "mother of God...." and think you're failing? Or look at your budget and see the amount you could save and think it's just not enough, even though ten years ago you'd kill to save that amount? Yes, pretty much every day.
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Jan 10, 2020 14:42
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