Bobbie, here's a question from Starsoccer
And Matt, here's one from Anon
HI Eddie, I vote if you have the money, send it in before something/someone else grabs itf. The way credit cards calcuate interest I'm not sure you'll save any interest expense, but you may and if so, all the better!!!
I may have missed a question, if not im ready for another.
Thanks for the heads up, Rich.
Starscore, I believe you should be able to set up a custodial account for any minor. BUT REMEMBER, when they are 18 the account is their's to do with as they wish.
I dont think me
not having a picture is helping :)
And Jamie, you can take this one from Amanda
Bobbie, here's one for you from RobertB
Anon, I hope you plan to go somewhere tropical! I hear that retired Americans make up a large percentage of Costa Rica. The question you have to ask yourself is, are you going to pay more in tax now or later? Uncle Sam is not going to have a problem with you keeping the account onshore. But, if you keep the account in America, you will need to pay taxes as you take distributions.
Debbie, here's a question from Laura
Dave, when you say that "you save for retirement aggressively" it makes me wonder if your are saving too much for that one life event. Take a look at that category as you don't want to sacrifice today or college for a future tomorrow. That might sound odd for a "planner" to say, but vacations and college savings are important for you and your family. You need around 6 months of "net" monthly expenses in savings for emergencies. That means what you take home monthly. We usually recommend 529 plans for education funding, vanguard and fidelity both offer them. You can start small and add to them when money is available. Finally, it seems as though you already "pinch" monthly expenses for savings. It might not be possible (or pleasant) to cut down more. Look at your savings in all categories and ask yourself this question: "Am I planning for tomorrow while sacrificing today" I wouldn't ask that of many, but you seem to be a very responsible money manager.
It's 3 o'clock. Advisors, are you able to stay on for another 20 minutes or so?
KD, I think that you can spread your Roth across a few funds and make sure you cover all sectors, regions (w the focus on domestic stocks), and company sizes. However, even if you own good proven funds, portfolios will always need some tweaking and re-balancing from time to time. So try and review your funds/account a few times a year and make sure it hasnt gotten out of whack.
If you need to leave, no problem at all!
I have probably 10 more minutes..
Hi Amanda, If you have been following any answers I like cash, so I vote not to repay the student loans. Of course, this means you need to quailify for a mortgage with the student loan debt factored in, but you seem to okay, if that's the only debt you have and it's not too large an amount. Once you pay off debt, you can't get the cash back (Home equity loans are an exception) and student loan debt with reasonable rates shouild be paid from the income from the job you got from the loans!!!! Jamie
Thanks, all! We'll wrap this up in 20 minutes or so. If you need to duck out in the mean time, feel free to do so
I'm still here, I'll let you know if I drop off, as I do have a couple of commitments.
Jamie, here's a question from the notsogreatone
Matt, here's a question DanR
Laura, I agree with you. Another factor to consider is that when you take pre-tax money out of a 401(k) via a loan, you need to pay this back with after-tax money which can be up to a 30% cost to you.
Rich, you might be able to tackle these two question together re: how to start investing/planning for the future
thenotsogreatone, google "back door Roth" and see if you qualify before you start taking money out.
RobertB, I suggest that you roll over your current 401K (if allowed) to a discount brokerage like TD Ameritrade, Vanguard, Schwab or even Fidelity (in the IRA you could buy any fund, stock, or ETF). There is only one big exception to this that I can think of...and it is a bit complicated so don't worry if this part doesn't apply to you. Some of my clients make too much money to be able to contribute to ROTH IRAs. But under current law they can make non-deductible contributions to a traditional IRA and then roll the money over to a ROTH. IF there is no other money in IRAs, this transfer of the non-deductible IRA contribution to the ROTH is not taxable. BUT, if there is already money in an IRA that was deductible, there is a tax on this transfer. In cases where we are using this strategy, we often roll the old retirement plan into the new one just to keep it out of an IRA (and thus any tax calculation for a rollover to a ROTH).
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Anon, I hope you plan to go somewhere tropical! I hear that retired Americans make up a large percentage of Costa Rica. The question you have to ask yourself is, are you going to pay more in tax now or later? Uncle Sam is not going to have a problem with you keeping the account onshore. But, if you keep the account in America, you will need to pay taxes as you take distributions.
Dave, when you say that "you save for retirement aggressively" it makes me wonder if your are saving too much for that one life event. Take a look at that category as you don't want to sacrifice today or college for a future tomorrow. That might sound odd for a "planner" to say, but vacations and college savings are important for you and your family. You need around 6 months of "net" monthly expenses in savings for emergencies. That means what you take home monthly. We usually recommend 529 plans for education funding, vanguard and fidelity both offer them. You can start small and add to them when money is available. Finally, it seems as though you already "pinch" monthly expenses for savings. It might not be possible (or pleasant) to cut down more. Look at your savings in all categories and ask yourself this question: "Am I planning for tomorrow while sacrificing today" I wouldn't ask that of many, but you seem to be a very responsible money manager.
