Retirement Account Withdrawals and How to Pay the Tax Man Less

Recessions, financial savings and retirement

If you're on reddit you're probably a millennial or gen z and you're likely gen 1 or gen 2. Most hmong parents arnt the most financially savvy people out there so I thought I'd post this in hopes that it helps some of yall out.
The current situation should be reality check that highlights 1 thing for our generation:
Have enough cash and investments to support yourself
If you're a millennial this is probably the 2nd major recession in your working career, all within the span of less than 15 years. If you're just entering the job market then prepare for losses, wage cuts, uncertainty and wage stagnation for perhaps years to come. Recovery will happen, but unlike the stock market the economy usually lags.
  1. Save enough cash to support yourself - 3 months minimum
Savings: At a minimum you should have enough cash to cover 3 months of costs in case of job loss. However, this is really the minimum you should strive for before thinking about investments. I'm personally more comfortable with 5-6 months of expenses and even more if you own a house.
  1. 401k, HSA There are probably more plans out there but these are the two most common. You should be maximizing your contributions up to whatever the company match is. If you're young and healthy, you may want to think about actively managing both and changing the funds to support higher growth.
401k: Contribute up to the company match. 401k is funded by pretax money and the company match is all free money. If you dont think you can or have the time to beat the match, then leverage 401ks to the maximum. Don't have enough to contribute? Each raise you earn increase your 401k contribution to whatever your raise is. Should you contribute the yearly maximum? It depends on the match and if it's worthwhile. 401ks are a money jail so it's not worth-while to simply invest more if it does not earn you additional match money. There are better ways to invest your money.
Which fund should you choose? Again if you're on the younger side, you should probably be in 90% or more in stocks.
HSA: If you're young and/or healthy then you will want to maximize you're HSA contributions. This money is yours forever and often comes with a company match. After meeting the minimum account balance you can invest any additional contributions, just like your 401k.
You'll always have both accounts and the government has made it clear that they will waive penalties for withdrawals in cases of crisis like covid.
  1. Roth IRA and Brokage accounts
Fully vested in 401k and HSA? Roth IRA and brokage accounts may be what you're looking for. Both Roth IRA and brokage accounts allows you to invest in individual stocks. What's the difference? Roth IRA gains are tax free but you arnt allowed to withdraw gains without paying a penalty and taxes until you reach retirement age. You can still pull out what you contribute at any time. A brokage account allows you to pull your gains and contributions out at any time, but any gain on any sale is subject to tax, regardless if you withdraw from your account or not.
The general advice is if you're investing for retirement, go with a roth ira and contribute the maximum you can each year, then fund your brokage account with any extra. If you're investing to gamble or to try and earn extra cash, a brokage account gives you more flexibility on managing your earnings.
I use my Roth IRA as a second savings accounts and invest when I see good entry points. Roth gives me liquidity while also being able to invest, compared to a 401k.
The market will only grow, maybe not in the short term with the whole covid recession, but better believe it will in the long term.
  1. FIRE: Financial Independence, Retire Early.
You may have heard of FIRE, but the essence is to become Financially independent and retire early. I'm not a big fan of the following it exactly but I am a fan of being Financially independent enough to not worry about what I choose for work. But if you live FIRE, more power to you.
The single biggest costs for most people are their homes. If you can pay off your home early then a large financial burden has been taken care and while you may not be financial independent you will have an extremely large amount of flexibility. If you want to work at Costco, you can! That's what being financially flexible affords you.
  1. Real estate and Land
Yes, some people make bank flipping and renting. But profiting from a flip is estimated to be harder and harder with home prices where they are today. I dont have any expertise here beside just beginning to dive into the indusrty but from what I hear from my builder, realtor and flipping people is that we are expecting a down turn in home prices in the 2nd half of the year if covid continues to decimate the economy. Low interest rates however may offset some of this in the short term. Right now it's still a sellers market but high end houses are sitting.
  1. Credit cards
Points, points, points..seriously there's no other way to buy than with a credit card, not even mentioning security benefits. Cash, debit cards, PayPal, bitcoin, all worthless when compared to credit cards. Use credit cards to pay for everything you can.
If you're not disciplined enough, don't open cards to every department store either, you're get a credit hit if your credit is accessed too often and it becomes difficult to manage after too many cards.
Look at cards that provide the most points for your dollar. Cards that allow you to transfer points to partners often yield even more savings, especiallyon things like travel. Chase cards are great and Freedom is a great first card to have.
The key to credit cards is not to spend what you dont have and to pay off the STATEMENT BALANCE every month. To avoid interests, you need only pay off the STATEMENT BALANCE and not the full balance every month. Never take credit card loans or get into credit card debt, it's going to be a bad time.
  1. Pay off debt
There's always a fine line between investing and paying off debt. The debt we're talking about here is debt with relatively low interest rates like student loans, car loans and homes. Anything debt with high rates, like credit card debt, should be paid off immediately.
The general rule of thumb is if you can make more investing than the interest rates of the loans, invest, else pay off debt. But, investing involves risk while paying off debt is a sure thing. There's also the emotional factor. Some people don't care about debt because they want to be working their entire lives and are willing to pay it off over the long term, and that's perfectly fine. In that case, invest invest invest. Personally i think there is a balance, I rather be debt free and financially flexible than be straddled with debt.
To pay off debt, one of the most popular methods is the snow ball method. The essence of the theory is to pay off the highest interest debt off first. Once paid off, while keeping the payments the same, tackle the next highest interest debt and so on so forth. Eventually you are paying off more and more with the same payments, hence the snow ball effect. Google it for more precise definitions.
  1. Travel, hobbies and enjoying life
Seriously, enjoy your youth, health and life while it's good. Nobody wants to work and save until 65 before you start traveling and enjoying life. Traveling is one of the best things you can do. Having hobbies makes work worthwhile. Good health is worth more than all the cash in the world.
  1. Gambling and options
I dont recommend either, but if you're a gambling man, play options over penny stocks and always double down on 9 or 11...maybe. Just don't bet what you're not willing to lose, and for the love of all that is holy, dont gamble on margin. Disable that shit.
You already know all this stuff? Awesome! Help out and contribute.
Questions? Post.
Wrong Facts? Always looking to learn.
Tldr: Save, invest and pay off debt. Also enjoy life, health and youth while you have them.
submitted by Dick_sporting_good to Hmong [link] [comments]

Victim of online scam

Hello guys! I am more or less new to Reddit, so I want to apologize on advance for any mistakes that I make on this post.
The reason for this post is to look for help and also help other people to not to fall on my same mistakes.
At the beginning of this year I did one of the biggest mistakes of my life, and of course I learned from it, I did invested on Profitcoins, a well known scam.
As many Americans, I have lots of debt that I am eager to pay to become debt free and achieve economic freedom. So I have been looking for investments that I can use to pay for the credit cards and also help me to save money to pay for my one year old daughter's college. I though that the best way to do so was to invest on Bitcoin and invest them to get just enough to pay for the debt and college. I am not looking to get rich, but I guess in a way I become greedy.
I changed jobs, and rather than roll back my retirement savings from that job, I bought BTC and invested all of them on Profitcoins. I was using Profitcoins for a while already and I thought that was a good way to see my money grow. They allowed me to withdraw my BTCs and I thought that was a good platform. I was so wrong..
As soon as I invested more BTCs they stopped processing my withdrawal requests, and ignoring my emails. I try everything I can think to retrieve them but it was too late for me.
Then a thought hit me in the face like a boxing glove. I realized that I pay the penalty for my 401k but I may still have more taxes to pay on that, and I don't have enough savings to pay them, so I try to ask them to retrieve some of the BTCs just enough to pay for the taxes or fees. Of course I got no answer from them.
As a middle class worker I feel very ashamed to lose my savings and to fall for this stupid thing.
I am not a person that lose money very easily, and I don't spend money on things that are not purely necessary. I work my 9 to 5 work everyday, 40 to 60 hours week, spend time with my beloved wife and my precious daughter, and then I work fixing a couple of things on my house and study a couple hours before going to bed. I am not a drinker or even smoker. What I mean is that this is something that happened to me, but it can also happens to anybody.
Beside the shame of knowing that I was fooled by this website, I was also ashamed to tell my wife and family, and to know that I could have done something different and save the money for my daughter or pay part of my debt instead of losing everything.
I am asking to the community if there is any well known found or organization that help people like me to recover from the losses or to help mitigate the side effects of falling for a scam.
I hope this text will help somebody to do smart decisions, and avoid the personal pain and shame of the loss.
Best regards!
submitted by firstlivinggod to Bitcoin [link] [comments]

[Alabama] If I want to buy a new home, should I aggressively pay down current mortgage, or save liquid cash/invest instead?

So the title is the gist of my question but also wanted to provide some background information.
Right now my fiancee and I are 26 and 25 years old with no kids, and no plans for kids until early 30s. Our income before taxes is roughly 130k, which I expect to slightly rise to the ~140k range over the next 5 years. We bought a house two years ago for 125k, we put 20% down so had a 100k mortgage at 4.8% that is now down to around ~95k. We live in an incredibly booming market such that our next door neighbor with the same house and lotsize, but with updated flooring just sold for 155k. So we expect our house to be valued today at around 150k which redfin and zillow agree with.
Our only other debts are student loans at ~30k and ~6% and my car lease which has 24 months left at $325 / mo.
We are currently trying to save 30k for our wedding + honeymoon next year so with that we are just min-paying all of our debt (I know this isn't the smartest choice in the world, but we both are dreaming of a very nice wedding and are willing to make the sacrifice). Right now we have roughly ~11k in liquid cash, 11k in bitcoin which was an original investment of 4k (which is also a gamble I know, but plan on holding this until the halving in spring 2020 then selling for wedding money), and ~15k across our 401ks. After the wedding we plan on trying to aggressively pay off our student loans in the next 1-2 years.
So back to my question. After the wedding and paying off our student debt we are looking to buy a dream home in the 300k-400k range that we plan on settling down in and then having children. Once we are debt free other than the mortgage what is the best way to accomplish this. Should we aggressively pay down our mortgage and use a home equity loan to pay the down payment for our new home (we plan on selling the current one once buying a new one so that loan would be paid off as soon as our house sold). Is that even possible to get a loan like that for the purpose of a down payment on another home? Or should I just try and save cash and put them in low-risk investments or high-interest savings for the down payment? We're going to want to put 20% down again to avoid PMI.
Thanks for any help!
submitted by HouseBuyingThrow21 to personalfinance [link] [comments]

Early partial retirement on $1.2M…lots of questions:

Not a humble-brag. We’ve been extraordinarily lucky, especially in the recession. Have many questions at the end. Would appreciate guidance. Cross-posting to /leanfire and /personalfinance
Bio
Age 36. My girlfriend of 15 years is few years older than me. We consider ourselves married socially, but haven’t formalized things with the government. Might do so soon, mostly to simplify/optimize estate management in case one of us dies.
Last year we sold our house and I quit my job. I hope never to work again except for something I’m passionate about. Might take occasional contract work to buy toys, fund trips, or pad our bottom line. Might someday start a business if I become infatuated with a business plan. GF still works, for now. Moved to Florida this year from a higher tax and higher CoL area.
Income
I started making ~$60k at age 19 and got steady raises until ultimately making $150k my last year of employment (software). Wife currently makes ~$75k/year working fully virtually in a low-stress job. She had previously been able to reliably bring in ~$120k+ in more stressful on-site work. That makes current income $75k/yr for the next few years, entirely in GF's name.
Savings Rate
We have been in hyper-savings mode for the last 12 years, saving as much as 75% of our take-home income. Incomes grew during those 12 years, so our assets aren’t quite as high as one might assume given our peak incomes. We always maxed out all retirement accounts available to us: 401k, IRA, and HSA’s. I even put after-tax money into my 401k to bring it up to $53k for several years, and still have that after-tax (non-Roth) money in my 401k that I’ve yet to mega-backdoor to a Roth. Money also went into brokerage accounts and a few modest stabs at moon-shot investments.
Expenses
We’ve never spent more than $60k in a year (not including money spent on income taxes). Most years we spend around $45k. On track for a $38k year.
Assets
~$1.2M in assets:
$500k in 401k's (Traditional) - All in S&P 500 index fund
$135k across two Roth IRA’s (Mostly dividend stocks)
$51k Traditional IRA, (Mostly dividend stocks, REIT)
$62k brokerage account, in a playground of 10 individual blue chip stocks
$33k across multiple HSA accounts (70% index funds, 30% cash)
$78k current value of Pension lump sum buy-out offer
$150k in cash (mostly house sale proceeds)
~$180k in Bitcoin (legally purchased ages ago)
RV we live in is worth about $80k, but don’t count it as an asset since I doubt we’ll sell it before it's worthless.
Liabilities / Obligations
No debt. Currently paying for daughter's college. (Starting year #2 this fall). We have a LOT of pre-tax money and unrealized gains, though, which almost feel like accrued liabilities.
Goals
1) Enjoy life. No more working 60-70 hour weeks in jobs we dislike.
2) Maintain safety net so we never have to worry about putting food on the table
3) Put our daughter through college (1 year done)
4) Allow GF to retire once the kiddo wraps up college
5) Maximize tax advantaged accounts and weigh potential legal marriage.
6) Use our cash-on-hand efficiently
7) Fit in an occasional overseas trip. Didn’t take destination vacations for a whole decade, and regret it.
Current Plan
We are trying to lean up our expenses to 35k/yr or less so that GF can stop working once our daughter is finished with college. Don’t want to push SWR above 3%. Would like to optimize our tax situation wrt retirement funds. Here’s the current to-do list, which I would like feedback on:
While I have no earned income but the GF is still working:
1) GF's income is paying for all our expenses and paying our daughter’s college
2) I will start a Roth ladder this year with my 401k’s (I have no trad. IRA, those are hers), using cash on hand to pay the taxes on those conversions, filling up the 25% tax bracket
3) I need to complete the mega-backdoor of the ~$50k of after-tax value in my 401k
4) Find a low-cost-of-living town that we enjoy, and build or buy a small ~$100k home. Probably will rent in an area for a year or so before buying.
5) Cash-out pensions and convert to Roth status, probably with a stop in a Traditional IRA for a year first, depending on tax bracket that year.
In 3-5 years:
6) Daughter will be done with college
7) I will start being able to draw contributions from Roth ladder
8) GF will stop working and start her Roth ladder
9) If GF stops working before my ladder is complete, we have previously converted parts of her Traditional IRA to Roth IRA’s on years she wasn’t working, so we can withdraw those penalty free.
At any time:
10) Sell 30% of our Bitcoin each time they become more than 30% of our net worth. I know I’m overweight on Bitcoin, but I’m in it for the long haul and have long since recuperated my initial investment (yes, that’s entirely psychological)
Questions
1a) Any suggestions for improvement?
1b) Talk me out of holding Bitcoin. I’m too bullish on it.
1c) Holding too much cash? Not enough? We will need it for housing
1d) What’s your opinion on paying for professional guidance at this point? Does it pay for itself?
On Roth Conversions and Rollovers:
2a) How concerned should I be about the new legal limit on one rollover per 12 mo period, with regard to the Roth ladder?
2b) If we arrange to never hold the rollover check ourselves, and do a 401k rollover plus Roth conversion completely bank-to-bank, does that count against the one-rollover per year?
2c) Will a pension lump-sum payout to an IRA count against the once-per-year roll-over limit?
2d) Will rolling over large amounts of money trigger AMT (Alternate Minimum Tax?)
2e) How do I get started filing quarterly taxes: Do I have to file quarterly if I do all my taxable events (Roth Conversion) in the last quarter of the year?
2f) I’ve seen conflicting advice on this before: When I do a Roth conversion, does the entire amount converted count as a contribution for tax-free withdraw in 5+ years, or do I have to track the original cost basis back to the original tax vehicle’s initial contribution (e.g.: the contribution to the 401k before it grew)? 2g) If the case on cost-basis is the latter, how would I track cost basis for a pension cash-out that I convert?
2f) How should I prioritize the various rollovers at my disposal. I don’t know which to do first:
On HSA’s:
3a) What’s the best way to avoid fees in HSA accounts? They’re atrocious. GF has switched employers and each has demanded to use their own HSA. She now have 3 accounts each charging annual or monthly fees.
3b) Can we combine her existing HSA's, and/or force her employer to switch accounts they deposit to one we setup?
On Marriage:
4a) Currently avoiding a legal marriage, in part because remaining single offers many financial advantages for as long as our income is fairly equal. e.g. I don’t have to account for her traditional IRA money when converting my 401k funds into a Roth IRA. Now that only one of us is working, does it make more sense (tax-wise) to get married? Our gross income will remain about equal due to the large Roth conversions I will be doing for the next few years, but I’m afraid I might get stung my something like AMT if we don’t file jointly.
4b) Any other financial reasons to get married or stay single that I might not be seeing? Health insurance costs are a wash.
On Cash Management:
5a) I have a lot of cash on hand. We have competing interests for it: mostly paying taxes on Roth conversions, buying a modest home in a couple years, and perhaps bridging a few years of retirement before year 6 of my Roth ladder. Any recommendations on better optimizing the plan for this cash?
submitted by mouse_with_many_nons to financialindependence [link] [comments]

Early partial retirement on $1.2M…lots of questions:

Not a humble-brag. We’ve been extraordinarily lucky, especially in the recession. Have many questions at the end. Would appreciate guidance. Cross-posting to /personalfinance and /financialindependence
Bio
Age 36. My girlfriend of 15 years is few years older than me. We consider ourselves married socially, but haven’t formalized things with the government. Might do so soon, mostly to simplify/optimize estate management in case one of us dies.
Last year we sold our house and I quit my job. I hope never to work again except for something I’m passionate about. Might take occasional contract work to buy toys, fund trips, or pad our bottom line. Might someday start a business if I become infatuated with a business plan. GF still works, for now. Moved to Florida this year from a higher tax and higher CoL area.
Income
I started making ~$60k at age 19 and got steady raises until ultimately making $150k my last year of employment (software). Wife currently makes ~$75k/year working fully virtually in a low-stress job. She had previously been able to reliably bring in ~$120k+ in more stressful on-site work. That makes current income $75k/yr for the next few years, entirely in GF's name.
Savings Rate
We have been in hyper-savings mode for the last 12 years, saving as much as 75% of our take-home income. Incomes grew during those 12 years, so our assets aren’t quite as high as one might assume given our peak incomes. We always maxed out all retirement accounts available to us: 401k, IRA, and HSA’s. I even put after-tax money into my 401k to bring it up to $53k for several years, and still have that after-tax (non-Roth) money in my 401k that I’ve yet to mega-backdoor to a Roth. Money also went into brokerage accounts and a few modest stabs at moon-shot investments.
Expenses
We’ve never spent more than $60k in a year (not including money spent on income taxes). Most years we spend around $45k. On track for a $38k year.
Assets
~$1.2M in assets:
$500k in 401k's (Traditional) - All in S&P 500 index fund
$135k across two Roth IRA’s (Mostly dividend stocks)
$51k Traditional IRA, (Mostly dividend stocks, REIT)
$62k brokerage account, in a playground of 10 individual blue chip stocks
$33k across multiple HSA accounts (70% index funds, 30% cash)
$78k current value of Pension lump sum buy-out offer
$150k in cash (mostly house sale proceeds)
~$180k in Bitcoin (legally purchased ages ago)
RV we live in is worth about $80k, but don’t count it as an asset since I doubt we’ll sell it before it's worthless.
Liabilities / Obligations
No debt. Currently paying for daughter's college. (Starting year #2 this fall). We have a LOT of pre-tax money and unrealized gains, though, which almost feel like accrued liabilities.
Goals
1) Enjoy life. No more working 60-70 hour weeks in jobs we dislike.
2) Maintain safety net so we never have to worry about putting food on the table
3) Put our daughter through college (1 year done)
4) Allow GF to retire once the kiddo wraps up college
5) Maximize tax advantaged accounts and weigh potential legal marriage.
6) Use our cash-on-hand efficiently
7) Fit in an occasional overseas trip. Didn’t take destination vacations for a whole decade, and regret it.
Current Plan
We are trying to lean up our expenses to 35k/yr or less so that GF can stop working once our daughter is finished with college. Don’t want to push SWR above 3%. Would like to optimize our tax situation wrt retirement funds. Here’s the current to-do list, which I would like feedback on:
While I have no earned income but the GF is still working:
1) GF's income is paying for all our expenses and paying our daughter’s college
2) I will start a Roth ladder this year with my 401k’s (I have no trad. IRA, those are hers), using cash on hand to pay the taxes on those conversions, filling up the 25% tax bracket
3) I need to complete the mega-backdoor of the ~$50k of after-tax value in my 401k
4) Find a low-cost-of-living town that we enjoy, and build or buy a small ~$100k home. Probably will rent in an area for a year or so before buying.
5) Cash-out pensions and convert to Roth status, probably with a stop in a Traditional IRA for a year first, depending on tax bracket that year.
In 3-5 years:
6) Daughter will be done with college
7) I will start being able to draw contributions from Roth ladder
8) GF will stop working and start her Roth ladder
9) If GF stops working before my ladder is complete, we have previously converted parts of her Traditional IRA to Roth IRA’s on years she wasn’t working, so we can withdraw those penalty free.
At any time:
10) Sell 30% of our Bitcoin each time they become more than 30% of our net worth. I know I’m overweight on Bitcoin, but I’m in it for the long haul and have long since recuperated my initial investment (yes, that’s entirely psychological)
Questions
1a) Any suggestions for improvement?
1b) Talk me out of holding Bitcoin. I’m too bullish on it.
1c) Holding too much cash? Not enough? We will need it for housing
1d) What’s your opinion on paying for professional guidance at this point? Does it pay for itself?
On Roth Conversions and Rollovers:
2a) How concerned should I be about the new legal limit on one rollover per 12 mo period, with regard to the Roth ladder?
2b) If we arrange to never hold the rollover check ourselves, and do a 401k rollover plus Roth conversion completely bank-to-bank, does that count against the one-rollover per year?
2c) Will a pension lump-sum payout to an IRA count against the once-per-year roll-over limit?
2d) Will rolling over large amounts of money trigger AMT (Alternate Minimum Tax?)
2e) How do I get started filing quarterly taxes: Do I have to file quarterly if I do all my taxable events (Roth Conversion) in the last quarter of the year?
2f) I’ve seen conflicting advice on this before: When I do a Roth conversion, does the entire amount converted count as a contribution for tax-free withdraw in 5+ years, or do I have to track the original cost basis back to the original tax vehicle’s initial contribution (e.g.: the contribution to the 401k before it grew)? 2g) If the case on cost-basis is the latter, how would I track cost basis for a pension cash-out that I convert?
2f) How should I prioritize the various rollovers at my disposal. I don’t know which to do first:
On HSA’s:
3a) What’s the best way to avoid fees in HSA accounts? They’re atrocious. GF has switched employers and each has demanded to use their own HSA. She now have 3 accounts each charging annual or monthly fees.
3b) Can we combine her existing HSA's, and/or force her employer to switch accounts they deposit to one we setup?
On Marriage:
4a) Currently avoiding a legal marriage, in part because remaining single offers many financial advantages for as long as our income is fairly equal. e.g. I don’t have to account for her traditional IRA money when converting my 401k funds into a Roth IRA. Now that only one of us is working, does it make more sense (tax-wise) to get married? Our gross income will remain about equal due to the large Roth conversions I will be doing for the next few years, but I’m afraid I might get stung my something like AMT if we don’t file jointly.
4b) Any other financial reasons to get married or stay single that I might not be seeing? Health insurance costs are a wash.
On Cash Management:
5a) I have a lot of cash on hand. We have competing interests for it: mostly paying taxes on Roth conversions, buying a modest home in a couple years, and perhaps bridging a few years of retirement before year 6 of my Roth ladder. Any recommendations on better optimizing the plan for this cash?
submitted by mouse_with_many_nons to leanfire [link] [comments]

My biggest regret, a saved email from 2013.

12/20/13 K: Hey man, it's K. Is your name D? Anyway...getting money onto BTC-e can be tricky if you are trying to deposit USD. I kind of just had to learn by trial an error because I didn't know anyone that could teach me, because i am the only one that invests in crypto currency that I know.
Anyway, coinbase is probably the best bitcoin wallet service in the United States. It is definitely the largest and most reputable. Use this referral link: Once you sign up using this link, it will give us both some free money after you have purchased some bitcoins. The process takes a little while to get all started up, but it is worth it because it is so easy to use after. You can instantly buy bitcoins, and then use those bitcoins to send to BTC-E to purchase whatever other coins you want. I invest pretty heavily in LTC. The only way I have been able to do that is by buying bitcoins on coinbase, and then sending them to btc-e. Let me know if this works for you..
K: Let me know if the email reached you
D: Yep. I got it. Two to three days for the deposit verification into my bank account. Thanks for the advice. I take it you work in finance?
K: Yeah I do :). Coinbase takes a bit for the verification process but it is super easy to use after that. When you sell bitcoins, they just deposit the money right back into your bank account. It's the easiest service that I have found that is reputable.
D: Have you ever tried trading for small margins? I made about 0.60 USD since I started last night. I got my initial funding by mining FTC. I'm trading BTC.
D: Actually up to 10.81 after my last trade. Got in at 625 and sold at 639.
K: I mainly buy and hold for long term. I bought some NMC to flip, but it dropped in value steeply so im still holding it. I buy more every time it dips. Sent via wireless, please excuse any typos...
D: Cool. No worry about typos. I type all day at work so don't mind as well. I give up on accuracy at 5. My friends also aren't very much into crytpo currencies. I like the technical aspect but I'm more interested in trading on BTC-E. I must have watched about 12 hours of bitcoinwisdom since yesterday. It was my first time analyzing real time data. I can't believe how much info you can obtain just from identifying patterns. I have a quick question about a 401k if you don't mind. So far my year to date is 26%, is that good?
K: Yes, very good. You must have had it set up aggressively with the investing choices (which is better to do when you are young). Good stock market returns are around 12% so you are more than double, but don't be surprised if there is a correction to lower on the returns there too.
D: Yes. I'm over 50% in small cap and am young. Is there anyway to avoid that correction by reallocating?
K: Nah, just leave it. At least you have a 401k, most people are paycheck to paycheck
D: Defiantly. I can't imagine how some of my co-workers get by paying overdraft fees each month. Have a good night. I'll let you know when I buy some coins on that site.
K: Cool, let me know. Let's make some money! :)
12/22/13 D: Howdy K, I'm still waiting on the deposits in my bank account by Coinbase. Thanks for the referral link, I'm looking forward to that free $5 of BTC. Up to $12.30 USD on BTCE, looking to break $13 tonight. Can't wait to get some more trading funds.
K: It takes a bit for the initial deposit. I think it took my bank almost a week :(. Once you are done though everything is quick. If you add a credit card too, you can buy up to 10 btc instantly per week
D: Awesome. Have any suggestions? (pic) attaches picture of small gains trade history
K: What do you mean by sugggestions? Like on your trading?
K: Can you deposit more money? It looks like you aren't fully able to enjoy the full gains of your trades because the amounts that you are trading are a little small. If possible I would suggest buying 1 btc when the price is the lowest of the day, and then trade from there..
K: Also i would stay away from ftc for time being
12/24/13 K: Hey bud, i just got some free money from coinbase :) did you get it too? Pretty cool huh?
D: Yes sir. 4 days for my order to fill, can't wait.
12/25/13 D: Merry Christmas!
K: Merry xmas! If you add a credit card you can instant buy up to 10btc. What other coins are you buying right now? I mainly just have BTC and LTC
D: Does the credit card have to be a Visa? I'm mining about 8 FTC per day and trading for BTC at market. Then I trade BTC/USD for 0.10 - 0.40 profits. Working on a spreadsheet right now which you can see if you are interested.
D: spreadsheet sends corny orange and grey spreadsheet
K: Think it can be mastercard or amex too...
K: Nice LTC rally today :). I just picked up more LTC yesterday too
D: I tried adding a mastercard and discover but it wouldn't work. I've been watching the rally. Waiting to buy in to BTC at $656.
K: Shit that sucks, email support and ask if they accept mastercard? I find that odd that they would only accept visa
D: No worries. Deposit should clear 12/31
12/29/2013 K: Hows it going? Did you get your btc?
D: Hey K. Not yet, they will be deposited 12/31. Bought at $651
K: Nice so you are already up :)
K: How much did you buy? You should buy some and hold long term if possible too
1/2/2014 D: Happy New Year, K. I only bought 0.2 BTC for about $131. I'm at a total balance of $179.07. Started mining FTC again for the few extra dollars per day.
I think I read somewhere that there is a cap of 21 million BTC that will ever be in existence. 21 million on the internet is subtle considering how many views cat videos get on youtube. 21 million out 7 billion people is even smaller. Sometimes I find it hard to imagine millions and billions but I always think about this one thing: 1 million seconds is about 11 days, 1 billion seconds around 31 years. I'm very optimistic about the long term. Probably going to set aside at least 1 BTC in the near future.
Have you ever seen BTC listed on ebay? I created an auction yesterday for 0.1 BTC, $120.00. It sold within 3 hours but the buyer flaked out after I told them they would be receiving the BTC-E redeemable code in the mail. They created a dispute stating that the ebay/pal accounts were accessed by an unauthorized third party which is currently in process. I didn't lose anything and actually sold back the 0.1 at $775 after buying at $740 last night. I'm considering re-listing some BTC on Ebay but don't want to deal with reversed payments. Have any insight?
K: I heard ebay can be a nightmare with sellers getting scammed by buyers with chargebacks. If you are going to do it, I would recommend selling maybe paper wallets only, that you actually have to mail to them. That way you can have a tracking number for your shipping. If you want to sell through paypal, be careful, I think any mention of crypto currency can get your account frozen. Not positive about that though. Try selling to people on the forums, I think that would be easy. Honestly, I think just buying what you can and holding long is the best option to make the best returns. Look how the market has gone today D
K: 21 million BTC is not even enough btc for each person in my state to have 1, let alone the United States, or the entire world. As long as the demand stays high, the price could become astronomical if some major players like wall street enter the game. Just think, if Wall Street threw like 100 mill at Bitcoins (which is not that far-fetched), the price would probably jump to like 3-4k per BTC after that 1 day alone…
D: I don't think I'm going to sell anything else on Ebay until I come up with a better way of protecting against charge backs. The market has been awesome today.
D: That's very true. I think my next purchase will be 0.5 BTC to keep in my wallet.
K: Have you seen the stuff on zerocoin? Looks interesting, should be out this year...there has been a lotta hype around it..
D: Haven't heard anything about it until just reading an article now. Looks interesting and they make a good argument about anonymity. I only read over it briefly, but it appears what they're proposing would add an additional transaction fee the the process. Cool concept. Are you good with candlestick charts and patterns?
K: Somewhat. I learned them in college but stopped using them until now, so I am pretty rusty…I get the concepts and all, but I am not a professional at them by any means. I saw my buddies wallet the other day…he is pretty stacked. Over 250btc and over 1000 LTC!
D: That is pretty stacked. About 500k stacked, right? Are you familiar with the creator(s) of bitcoin "Satoshi Nakamoto"? Is it actually one person? There are quite a few claims as to who or whom Satoshi may be.
K: Im not familiar, i heard it was a team of people under that one name
D: I wonder if it was created by a goverment. Like some NSA type agency. Kinda like how the darknet started off as a Navy project.
K: Nah I doubt it. Government wouldn't create something that could possibly pose a threat to its own currency.
D: That's a good point. The future of BTC is exciting.
1/6/2014 D: Started trading NMC recently. Check ou the spreadsheet attaches another shitsheet Still just testing the water before I start making bigger trades. Buy any more BTC/LTC lately?
K: Cool man.. Year i got some LTC at $16 right before it went back up :)
1/7/2014 D: Nice buy. Catch the market today? China's equivalent of Ebay banned the sell of btc, ltc, mining gear, etc.
My understanding on of China: China’s central bank regulated the virtual currency for the first time on Dec. 5 by banning financial institutions and payment providers from conducting transactions in the virtual currency
Chinese central bank officials told third-party payment service providers to stop offering clearing services to online Bitcoin exchanges
China's Ebay bans sell of BTC in accordance to the central bank's ban effective Jan. 31. Acting as a clearing house of BTC.
I'm now $180 long NMC. I might invest 1k soon on BTC, any thoughts on an upcoming entry point?
K: Hmmm not quite sure on entry point. I am in the red as of today on NMC. Im trying to get it back to 0.01 btc to convert my nmc back to btc, i missed it on the last push. If you are investing 1k and holding long, then any of the daily ups and downs dont matter because in the long run we hope it will be way up. If i were you, i would just wait for a big red candle and then try to by at the bottom. Maybe $800/btc is good?
K: The part that sucks is that it seems like BTC value works so hard to creep up and up slowly, and right when it seems like it is going to pick up some momentum, BAM! More bad news comes out and slams the market. This cycle seems to keep repeating over and over right now…
1/9/14 K: I got 2 more btc :)
1/27/14 D: Sorry, haven't check this email account for a few weeks. Been working a lot of OT. What price did you buy in at on 1/9? I just sold a majority of my coins for cash. I picked up 3 LTC at 19.50 though. What's gonna happen 2/1/14?
Also, do you know how long it would take for a tax return check if you have your taxes in prior to the 31st? I finished those 2 weeks ago if it matters.
The other day the dow finished pretty low. Do you have any thoughts about the US economy over the next 6-12 months?
K: What’s up man…huge dump off of BTC right now on almost all exchanges (except gox which is bs anyway). I bought some more LTC at around $19 too.
I am holding all for long haul, although it would have been profitable to sell this morning, and re-buy after this dump off. I have no idea what is going to happen on 2/1. Last time when senate met, everyone thought the party was over, and then there was a huge rally in prices instead.
I am trying to figure out the right price to buy more btc right now… what do you think?
D: Sorry. Copied and pasted instead of attaching the pic. I think we'll have to see if it breaks that support. What about the arrest of that guy at bitinstant? *attaches picture of BTC 4h chart with a random line pointing downward
K: I don’t think that one arrest will tank the market like that. I am wondering if the confiscated silk road funds are being trickled through the exchanges by the feds. It seems weird the sell off right now. It almost seems systematic. Like there is a huge sell off that clears all the buy orders. Then it is calm for a few minutes, then repeat. Really strange…
D: But I wonder how they brought charges on him? Could they hold anyone accountable who sold BTC to a person using it to buy drugs on silk road? If the Feds are selling that would explain it. They seized 144,000 and they're saying the owner of silkroad may have 600,000 stashed in a wallet.
K: I think the number is more like 30,000 btc
D: The spokesperson says the approximately 26,000 Bitcoins seized are just the ones that were held in Silk Road accounts. In other words, it’s Silk Road users’ Bitcoin. The FBI has not been able to get to Ulbricht’s personal Bitcoin yet. “That’s like another $80 million worth,” she said, explaining that it was held separately and is encrypted. If that is indeed what he’s holding, that’s close to 600,000 Bitcoin all together or about 5% of all Bitcoin currently in existence. (Update 10-25: The FBI says it’s seized 144,000 Bitcoins, or about $28 million, that it believes belong to Ross Ulbricht.)
K: I don’t understand how they were able to confiscate them, when bitcoins are not yet considered money, so they shouldn’t fall under forfeiture rules…
1/17/18 - D: Wish you the best K and hope you held those coins longer than I did.
TLDR: Meet a friend in December 2013 that gave me advice to buy and hold BTC long term. This is one of our email threads from around that time, edited to remove personally identifying information. I used all my bitcoin for pizza following the fall of Mt. Gox and the subsequent bubble burst.
submitted by hampering to CryptoCurrency [link] [comments]

Early partial retirement on $1.2M…lots of questions:

Not a humble-brag. We’ve been extraordinarily lucky, especially in the recession. Have many questions at the end. Would appreciate guidance. Cross-posting to /leanfire and /financialindependence
Bio
Age 36. My girlfriend of 15 years is few years older than me. We consider ourselves married socially, but haven’t formalized things with the government. Might do so soon, mostly to simplify/optimize estate management in case one of us dies.
Last year we sold our house and I quit my job. I hope never to work again except for something I’m passionate about. Might take occasional contract work to buy toys, fund trips, or pad our bottom line. Might someday start a business if I become infatuated with a business plan. GF still works, for now. Moved to Florida this year from a higher tax and higher CoL area.
Income
I started making ~$60k at age 19 and got steady raises until ultimately making $150k my last year of employment (software). Wife currently makes ~$75k/year working fully virtually in a low-stress job. She had previously been able to reliably bring in ~$120k+ in more stressful on-site work. That makes current income $75k/yr for the next few years, entirely in GF's name.
Savings Rate
We have been in hyper-savings mode for the last 12 years, saving as much as 75% of our take-home income. Incomes grew during those 12 years, so our assets aren’t quite as high as one might assume given our peak incomes. We always maxed out all retirement accounts available to us: 401k, IRA, and HSA’s. I even put after-tax money into my 401k to bring it up to $53k for several years, and still have that after-tax (non-Roth) money in my 401k that I’ve yet to mega-backdoor to a Roth. Money also went into brokerage accounts and a few modest stabs at moon-shot investments.
Expenses
We’ve never spent more than $60k in a year (not including money spent on income taxes). Most years we spend around $45k. On track for a $38k year.
Assets
~$1.2M in assets:
$500k in 401k's (Traditional) - All in S&P 500 index fund
$135k across two Roth IRA’s (Mostly dividend stocks)
$51k Traditional IRA, (Mostly dividend stocks, REIT)
$62k brokerage account, in a playground of 10 individual blue chip stocks
$33k across multiple HSA accounts (70% index funds, 30% cash)
$78k current value of Pension lump sum buy-out offer
$150k in cash (mostly house sale proceeds)
~$180k in Bitcoin (legally purchased ages ago)
RV we live in is worth about $80k, but don’t count it as an asset since I doubt we’ll sell it before it's worthless.
Liabilities / Obligations
No debt. Currently paying for daughter's college. (Starting year #2 this fall). We have a LOT of pre-tax money and unrealized gains, though, which almost feel like accrued liabilities.
Goals
1) Enjoy life. No more working 60-70 hour weeks in jobs we dislike.
2) Maintain safety net so we never have to worry about putting food on the table
3) Put our daughter through college (1 year done)
4) Allow GF to retire once the kiddo wraps up college
5) Maximize tax advantaged accounts and weigh potential legal marriage.
6) Use our cash-on-hand efficiently
7) Fit in an occasional overseas trip. Didn’t take destination vacations for a whole decade, and regret it.
Current Plan
We are trying to lean up our expenses to 35k/yr or less so that GF can stop working once our daughter is finished with college. Don’t want to push SWR above 3%. Would like to optimize our tax situation wrt retirement funds. Here’s the current to-do list, which I would like feedback on:
While I have no earned income but the GF is still working:
1) GF's income is paying for all our expenses and paying our daughter’s college
2) I will start a Roth ladder this year with my 401k’s (I have no trad. IRA, those are hers), using cash on hand to pay the taxes on those conversions, filling up the 25% tax bracket
3) I need to complete the mega-backdoor of the ~$50k of after-tax value in my 401k
4) Find a low-cost-of-living town that we enjoy, and build or buy a small ~$100k home. Probably will rent in an area for a year or so before buying.
5) Cash-out pensions and convert to Roth status, probably with a stop in a Traditional IRA for a year first, depending on tax bracket that year.
In 3-5 years:
6) Daughter will be done with college
7) I will start being able to draw contributions from Roth ladder
8) GF will stop working and start her Roth ladder
9) If GF stops working before my ladder is complete, we have previously converted parts of her Traditional IRA to Roth IRA’s on years she wasn’t working, so we can withdraw those penalty free.
At any time:
10) Sell 30% of our Bitcoin each time they become more than 30% of our net worth. I know I’m overweight on Bitcoin, but I’m in it for the long haul and have long since recuperated my initial investment (yes, that’s entirely psychological)
Questions
1a) Any suggestions for improvement?
1b) Talk me out of holding Bitcoin. I’m too bullish on it.
1c) Holding too much cash? Not enough? We will need it for housing
1d) What’s your opinion on paying for professional guidance at this point? Does it pay for itself?
On Roth Conversions and Rollovers:
2a) How concerned should I be about the new legal limit on one rollover per 12 mo period, with regard to the Roth ladder?
2b) If we arrange to never hold the rollover check ourselves, and do a 401k rollover plus Roth conversion completely bank-to-bank, does that count against the one-rollover per year?
2c) Will a pension lump-sum payout to an IRA count against the once-per-year roll-over limit?
2d) Will rolling over large amounts of money trigger AMT (Alternate Minimum Tax?)
2e) How do I get started filing quarterly taxes: Do I have to file quarterly if I do all my taxable events (Roth Conversion) in the last quarter of the year?
2f) I’ve seen conflicting advice on this before: When I do a Roth conversion, does the entire amount converted count as a contribution for tax-free withdraw in 5+ years, or do I have to track the original cost basis back to the original tax vehicle’s initial contribution (e.g.: the contribution to the 401k before it grew)? 2g) If the case on cost-basis is the latter, how would I track cost basis for a pension cash-out that I convert?
2f) How should I prioritize the various rollovers at my disposal. I don’t know which to do first:
On HSA’s:
3a) What’s the best way to avoid fees in HSA accounts? They’re atrocious. GF has switched employers and each has demanded to use their own HSA. She now have 3 accounts each charging annual or monthly fees.
3b) Can we combine her existing HSA's, and/or force her employer to switch accounts they deposit to one we setup?
On Marriage:
4a) Currently avoiding a legal marriage, in part because remaining single offers many financial advantages for as long as our income is fairly equal. e.g. I don’t have to account for her traditional IRA money when converting my 401k funds into a Roth IRA. Now that only one of us is working, does it make more sense (tax-wise) to get married? Our gross income will remain about equal due to the large Roth conversions I will be doing for the next few years, but I’m afraid I might get stung my something like AMT if we don’t file jointly.
4b) Any other financial reasons to get married or stay single that I might not be seeing? Health insurance costs are a wash.
On Cash Management:
5a) I have a lot of cash on hand. We have competing interests for it: mostly paying taxes on Roth conversions, buying a modest home in a couple years, and perhaps bridging a few years of retirement before year 6 of my Roth ladder. Any recommendations on better optimizing the plan for this cash?
submitted by mouse_with_many_nons to personalfinance [link] [comments]

401k and my 50k dollar question?

I talked to my wife in July about pulling out our 401k and putting it all into BTC. At the time, I was willing to risk it all and she was hesitate and so we passed. I'll never make a big financial decision without her. We are in our mid 30s and I had amassed about 100k over 8 years of solo employment (she's a stay-at-home-mom). It would have been a huge roll of the dice, but I had studied bitcoins non-stop since the all time high in April and correction. I was and still am convinced that bitcoin will change the world. Had I been able to get the money into BTC in July, (you know the story) I would be sitting on a cool $874,000. That's in the past.
Today, she said she trusts me and has given me the green light to take a "loan" out of the 401k in the amount of 50k to put into BTC. This loan to ourselves, managed by the 401k provider, allows us to avoid paying early withdrawl fees and taxes.
To afford this loan, we have to stop our 9% contribution annual contribution to the 401k and begin monthly payments of $480 to pay back the loan to ourselves. We would lose out on the 6% company match to the tune of $320 a month.
Assume I can buy all BTC while they are <$900, I can acquire 55.55 BTC. Is there a place to acquire that many safely at once?
If bitcoins appreciate in value to 1BTC/$3000 sometime next year, and I can sell them and gross ~$166,700 . Paying back the 50k loan, I'm left with 116k.
Assuming, capital gains tax on that money to the tune of ~45% if I pulled out before DEC2014, I come out on top 64166.66 Assuming, capital gains tax on that money to the tune of ~20% if I hold for a year and BTC are $3000 at DEC2014, I come out on top ~133,320.
I've heard BTC could be 10k sometime late next year. I'm not convinced of that, but if that were the case:
Assuming 10k/BTC and capital gains tax on that money to the tune of ~45% if I pulled out before DEC2014, I come out on top $275,000 Assuming 10k/BTC and capital gains tax on that money to the tune of ~20% if I hold for a year and BTC are $3000 at DEC2014, I come out on top ~400k.
Am I crazy to even be considering this? It's money I was comfortable losing back in July and even now. I still think BTC will grow in value and usefulness as more merchants, investors, businesses, and nations pile in.
Please give me sound advice backed with reason and logic for either choice. OMG BRONIES and I've only got X BTC isn't constructive to my request for a serious debate. Thanks!
EDIT:
After reading all you comments, I have decided not to go forward with any plan that involves going into debt, even if it is to myself, to pursue gains. Even though my wife green-lit the venture, I could sense hesitation and we reviewed some of the talking points below. I want to thank the community for their answers ( I'm especially looking at you eeeeeo and BobAlison.) For the minority of redditors that were extremely bullish, I won't regret making this decision. I have other assets not listed in the original post that have monetary value. While not valued at 50k, they are significant and I will convert those assets to BTC holdings. I will reduce my 401k contributions to the minimum necessary to still receive a full match from my company. I will DCA each month with the extra money from paring back my 401k contributions. I'll make a conscientious effort to cut back on unnecessary expenditures for the next six months in an effort to increase my DCA plan. I'm also exploring starting a side-business that receives payment strictly in bitcoins for my work. Any funds not needed for inventory will be invested in BTC.
Thanks again, guys, you remind me why I keep coming back here!
submitted by 401k2BTC to Bitcoin [link] [comments]

Removed comments from Economics subreddits - 06/27/18

No kidding.
Comment removed from /Economics on 06/27/18 00:41:00 UTC - in4real - permalink
Move
Comment removed from /Economics on 06/27/18 03:23:08 UTC - Mynameisfatsoshady - permalink
that's just a terrible article. 2/3 is "most"? and is it 2/3 of the $ amount or 2/3 of people with debt? it's not even an article really, just a bunch of random numbers thrown together to seem like they're relevant to each other.
Comment removed from /Economics on 06/27/18 03:43:03 UTC - SgtSilverLining - permalink
Not a joke. The comment was completely serious. Reinstate please.
Comment removed from /Economics on 06/27/18 03:45:42 UTC - Mynameisfatsoshady - permalink
The takeaway from this as I said is that relationships in capitalism are getting very costly so make sure you are financially sound or go monk mode.
Comment removed from /Economics on 06/27/18 03:51:00 UTC - dialecticwizard - permalink
Wow fucking really?! Thank God for academics
Comment removed from /Economics on 06/27/18 04:45:04 UTC - octaviancincinnatus - permalink
Yeah. It is a combination of the high profile as consumers as well as the economic and biology that conspire to place them at a disadvantage. Some this timing takes place during college years but cumulatively, the net effect is that they carry an unduly disproportionate debt burden.
Comment removed from /Economics on 06/27/18 04:46:22 UTC - dialecticwizard - permalink
Yes, two thirds can indeed be called "most". Why is this controvesial?
Comment removed from /Economics on 06/27/18 04:46:54 UTC - EricArtBlair - permalink
Woah!
Comment removed from /Economics on 06/27/18 04:50:20 UTC - babysfirstmillcard - permalink
Wtf! Isn't this basic math skills ...
Comment removed from /Economics on 06/27/18 07:56:44 UTC - UberPirate18E - permalink
SHOCKING
Comment removed from /Economics on 06/27/18 11:36:27 UTC - NonrestrictiveBroom - permalink
And this why we have a mental midget as President!
I have a bs in economics from UW Madison. You'd think that'd buy me some slack?
Comment removed from /Economics on 06/27/18 11:40:03 UTC - UberPirate18E - permalink
You don’t say?
Comment removed from /Economics on 06/27/18 12:12:37 UTC - PoliSciNerd24 - permalink
No shit?
Comment removed from /Economics on 06/27/18 12:57:18 UTC - Dman42997 - permalink
OP posts in Sugardatingforum and The_donald.
Interesting combination.
Comment removed from /Economics on 06/27/18 13:31:34 UTC - europeanconsumer - permalink
Incoming complaints of "student loans are sexist!"
Comment removed from /Economics on 06/27/18 13:38:37 UTC - Rolla87 - permalink
I should show this to my property owners in Dallas who jacked me up 7% and said they can't do anything as its supply and demand.
Comment removed from /Economics on 06/27/18 15:16:40 UTC - iabmob - permalink
Not the case in Utah.
Comment removed from /Economics on 06/27/18 15:25:22 UTC - superterrorizer - permalink
Look into moving?
Comment removed from /Economics on 06/27/18 15:25:58 UTC - FloatyFish - permalink
I love when economic terminology is used as a slippery cop out.
Comment removed from /Economics on 06/27/18 15:27:04 UTC - Setzer83 - permalink
Another 6 months on my contract but I'll definitely look. I DESPISE moving though.
Another interesting tactic is the referral system. They give you a couple hundred bucks to get someone to rent at your place. Nice way to get around lowering prices in order to fill a few units.
Comment removed from /Economics on 06/27/18 15:37:43 UTC - iabmob - permalink
20% for me this year. Hopefully it’s my last year renting for a long while.
Comment removed from /Economics on 06/27/18 15:42:11 UTC - scthoma4 - permalink
SF checking in...can we get some rent 'flattening' up in here plz?
Comment removed from /Economics on 06/27/18 15:43:37 UTC - -500- - permalink
It’s too far gone at this point
Comment removed from /Economics on 06/27/18 15:46:26 UTC - Magicdonvito - permalink
weird, i thought some people in government hated the national debt.
Comment removed from /Economics on 06/27/18 15:46:46 UTC - sintos-compa - permalink
Basically we just need to avoid voodoo supply side economics absolute stupidity because except in war, US government revenue has outpaced spending.
Comment removed from /Economics on 06/27/18 15:50:12 UTC - larrymoencurly - permalink
Only when the other party is in charge.
Comment removed from /Economics on 06/27/18 15:51:15 UTC - TheWhitestOrca - permalink
Fiscal conservatives my ass.
Comment removed from /Economics on 06/27/18 15:53:27 UTC - printupr - permalink
There's very little left to cut that isn't social security, medicare, or the military. I mean, there are things, but cutting them isn't going to make a meaningful difference unless you cut services.
Comment removed from /Economics on 06/27/18 15:55:00 UTC - bunkoRtist - permalink
Minority Party: GOD DAMN THIS NATIONAL DEBT.
Majority Party: This is fine.
Cycle as needed.
Public: My 401k tho...
Comment removed from /Economics on 06/27/18 15:55:53 UTC - sintos-compa - permalink
Maybe we can cut taxes for the 1%, that should do it?
Comment removed from /Economics on 06/27/18 15:56:28 UTC - sintos-compa - permalink
You can't cut government spending when your GDP is reliant on deficits.
Comment removed from /Economics on 06/27/18 15:57:44 UTC - Straitshot47 - permalink
We don't need to cut anything, we need to raise taxes to bring revenue into line with what we're spending.
Comment removed from /Economics on 06/27/18 16:02:24 UTC - MagicWishMonkey - permalink
Apparently it is still possible to cut taxes. /s
Comment removed from /Economics on 06/27/18 16:03:52 UTC - rmachenw - permalink
Well now the Republicans are in power Deficits and Debt no longer matter.
Comment removed from /Economics on 06/27/18 16:05:00 UTC - taokiller - permalink
Will they blame Obama?
Comment removed from /Economics on 06/27/18 16:09:07 UTC - Sardonic_Samurai - permalink
It’s a scam.
They pay reduced taxes on capital gains income running up the national debt and then they loan the money back to the government to cover the debt incurred because of the lowered tax rate on the rich. These governmental loans earn interest backed by the full faith and credit of the US, this time 100% tax free.
They get it coming and going.
All you need is the foresight to be born into the correct family and have the proper work ethic, brains and risk taking temperament... to inherit wealth.
Comment removed from /Economics on 06/27/18 16:09:59 UTC - printupr - permalink
We don't need to cut anything
We can probably ease up on military spending.
Comment removed from /Economics on 06/27/18 16:11:33 UTC - RichieW13 - permalink
I guarantee they will.
Comment removed from /Economics on 06/27/18 16:14:12 UTC - wearethat - permalink
Seems logical. Then the savings will just trickle down, and everything is fixed!
Comment removed from /Economics on 06/27/18 16:16:26 UTC - jimtow28 - permalink
Still astonishes me that one party in particular will scream about the defect when the other party is in power, but then when the pendulum swings and they're in power they proceed to do nothing about it.
Its not even just the current regime. It's been this way for as long as I can remember. It's almost like they don't actually care and are just using it to rile up idiots to get votes.
Comment removed from /Economics on 06/27/18 16:19:06 UTC - jimtow28 - permalink
The Republican leadership is looking at this figure and thinking "good." The higher the debt is, the less politically palatable Keynesian fiscal surplus during recession is. This means that during the next recession, they'll try to privatize/savage the social safety net instead of actually engaging in fiscal surplus, or they'll try to use a political majority to tie fiscal stimulus to such measures.
These people are misguided and evil. I know that isn't an academic statement, but seriously - my god, this level of cynicism is unreal.
Comment removed from /Economics on 06/27/18 16:19:38 UTC - SnowGN - permalink
When did they stop?
Comment removed from /Economics on 06/27/18 16:19:41 UTC - LeChuckly - permalink
DEMOCRATS!!!
Comment removed from /Economics on 06/27/18 16:23:22 UTC - Sardonic_Samurai - permalink
[removed]
Comment removed from /Economics on 06/27/18 16:33:55 UTC - SnakeyRake - permalink
The mods are wrong. Government revenue has tended to outpace spending in peacetime, except when taxes have been cut too much -- by my political party. A graph of histical debt/GDP will show that -- since the end of WWII it kept decreasing until 1980, when policy changed greatly, and it kept rising until that policy was reversed in the 1990s, leading to not only budget surpluses but predictions that the national debt would be paid off by the 2030s (later revised to about 2015). Then normal economic policy was subverted again, and debt/GDP rose again, with tax cuts contributing more to that than even 2 wars.
Comment removed from /Economics on 06/27/18 16:40:24 UTC - larrymoencurly - permalink
Loss
Comment removed from /Economics on 06/27/18 17:40:57 UTC - bm246 - permalink
Nice; now that an approved victim is suffering from this debt I bet someone uses this narrative to get student loan relief established. I'd happily take some of that.
Comment removed from /Economics on 06/27/18 17:56:05 UTC - ForetellFaux - permalink
Moral hazard is bad.
Comment removed from /Economics on 06/27/18 18:45:02 UTC - TracyMorganFreeman - permalink
#BuyBitcoin
Comment removed from /Economics on 06/27/18 20:41:41 UTC - foutight - permalink
submitted by throwittomebro to reconomics_mod_audit [link] [comments]

Bitcoin and the Tax Changes in the US

So Uncle Sam has not been kind to us crypto junkies. With the change of the tax code, each transaction now is effectively taxed as income (not capital gains) meaning you can pay up to of 39.6% in federal taxes alone depending on which tax bracket you're in, and if you do not live in a state that does not have an income tax then the state is going to also want its fair share as well.
I first must say I'm not a tax advisor and any information I divulge is food for thought. With that in mind, there are many ways to minimize your tax liability if you have a significant holding in bitcoin or any other crypto currency.
Imagine many of the concepts and recommendations given by financial planners and tax experts to an individual that has won a large lottery jackpot still applies in this scenario.
Lets say for example you have 5000 BTC and a big smile on your face, it would be ridiculously stupid to cash out any large amounts above $470,700 as Uncle Sam would be using the largest condom he has to rape you. If you cash out lets say 10 million in BTC, you're going to be paying nearly a little over 4 million in tax if you're in an taxable income state. If you're in NY or Cali then you should just move unless you don't mind giving boat loads of money to politicians that spend it on everything under the sun.
Lets say you take that same 10 million dollars and you were to cash out as an S Corp, lets say for example; Nakamoto's Cafe, Inc.
Because this is a pass through tax structure in which case any money that you invest into the business is a tax write off (for the most part). At which case you and your spouse become employees of Nakamoto's Cafe and each take a nice salary of $200,000 per year in which case the first 120k is taxed with Social Security. Your company will provide you and your spouse with 100% benfitits paid health insurance, life insurance, dental, vision and a very nice 401k with 100% match up to the maximum federal limit at currently $18,500 for a total of 37k yearly contributions tax deferred.
Your company is so great that they even provide you with a residence to pay rent free and covers all property taxes and utilities. Also very nice luxury company vehicles are provided to the executives with insurance covered and fleet gas card.
Your company provides you with lavish first class airfare when you travel for your business purposes ;) such as managing your bitcoin portfolio while sipping some coke and rum on the beach of Fiji.
The company of course provides very nice computers and mobile devices so you can run maintain your business anytime anywhere.
Ultimately there will be a time where you have to pay money on taxes for pass through distributions, in which case if you manage your money correctly you will not have any distributions and will be able to maintain your lifestyle the way you like. Also keep in mind giving to charity is much better investment than giving to Uncle Sam to invest. Seriously we bomb a country only to pay to rebuild them... lol
Any who these are just thoughts based on recommendations I've had from tax professionals and business lawyers. I'm sure this is easier said than done but from my understanding, this type of stuff is done quite often by the super rich obviously.
Please note that I'm not encoring you to avoid taxes, that would be stupid. I am however encouraging you to be smart with your money as the system is obviously rigged in favor of those who understand it and know how to take advantage of it.
Keep in mind you're doing nothing legally wrong by paying the least amount of tax legally required of you ;)
Now that Crypto Currency is evolving and the SEC is becoming interested in Tokens and ICO's as they represent Securities, there is clearly a legal argument that crypto is not a property and is a security in which case would be taxed as capital gains and not income :) but hey we'll have to see how this one plays out.
submitted by mku_72 to Bitcoin [link] [comments]

Help getting my investments in order

First off, I just want to say thank you to everyone in this subreddit. I spent the past two days reading through wikis, learning about backdoor Roth contributions, etc. and am exponentially more informed than I was last week.
That said, I'm hoping for some advice getting my investments in order. Here is a rough breakdown of my accounts:
1. What should I do with my converted 401k?
My new employer does not do 401k matching, so yesterday I took my previous employer's 401k with John Hancock and submitted a request to convert it to a rollover IRA with Schwab (to avoid JH's maintenance fees). Now, should I keep this as a traditional IRA, or try to convert it to a Roth and pay the tax burden? The answer may hinge on question two, which is:
2. What's my best shot at contributing to my Roth this year?
I got a new job last year and I will now be just over the income limit for Roth contribution, even if I remove my annual $3k HSA contribution. If I convert my rollover IRA to a Roth I will need to pay income tax on that 401k, and if I make a $5500 IRA contribution I think I will have to pay taxes when I try to backdoor that to a Roth (due to my rollover IRA). Do I understand this correctly, and if so which direction would you recommend?
3. How should I move forward with my tanking / risky positions?
I want to remain long on 55% of my brokerage positions, but I'm not sure what to do with the remainder, as well as with my bitcoin (where I'm down $11k): ~30% of my brokerage positions have done very well over the past few years but are volatile / high-risk and another 15% of my holdings are down 25% in the year I've held them (though I still believe in the company's model, long-term).
submitted by deltaqueue to personalfinance [link] [comments]

Newbie trying to figure things out. Saving, Retirement, Interest Only Mortgage. Advice Please!

First ever Reddit Post (long time lurker), go easy on me!
Alright so Ive always lived my life moment to moment. Thats sounds nice, but what it means is Im lazy as shit and dont worry about the future. Im trying to change that. Im: -in my early 30s -single -Gross roughly $60k/year, though more is achievable through OT (but lazy) -home owner, latest 30 year commitment came 12 months ago ($1400+ total mortgage payment) -no other major debts (just paid off car loan)
So where to begin. New year, new me. I started late last year, losing weight and feeling better about myself(ill save that for /loseit). But this new sense of self has me realizing Im terrible with finances and dont have a solid plan for retirement, and saving in general. I want to change that. After seeing the retirement post that reached the front page the other day, Ive increased my employee 401k contribution to 6% to get full advantage of their wonderful 10% on 6% match /s, but free money is free money. Im in the process of setting up a roth ira with a target retirement fund which I plan to max out yearly. Im getting it rolling with a $1000 investment to 2016 and making direct deposit weekly contributions. Good? I hope so.
Ok, so Im trying to to have something for the future, but what about the now? I currently have $2k in cash, with another $2500 cash coming shortly. Tax returns coming up, but I usually only get back around $2k. So lets say I'll have around $6k to play with. I feel I have 3 options: 1) Put most of the money in the ira, I can still put another $4500 into the roth under 2016 2) Keep/Invest that money into an emergency fund and try to build said emergency fund (cause I dont have one an official one, more on that later) 3) Put money towards principle of my interest only mortgage loan...sooo....
...what is an interest only mortgage loan? Youd think Id know since I have one, but no. I just wanted this house and they said this would be the best way to keep the monthly payment down (and avoid PMI) so my total mortgage cost would be closer to my previous mortgage cost. A year ago I said fuck it, lived in the moment and have been making my (basically) minimum payments (maybe up to $10 per month to principle). Stats on the loan: -"Interest only home equity" -$21k -20 year -4.99%
So my basic understanding is Im only required to pay the interest on the loan (roughly just under $100), and what Ive managed to figure out tonight is that I will technically do this for 20 years and than I will owe the $21k lump sum. Is that correct? Obviously that doesnt sound appealing anymore, so should I start aggressively trying to pay it down? Or is it possible to use money that would go towards the principle and invest it in a way that works out better for me in the long run? And should I worry more about the interest only loan or an emergency fund, in general? I did forget to mention my current "emergency fund" are 6+ bitcoins, a motorcycle, and multiple firearms and ammunition I could liquidate if I needed cash. Though I have awesome, financially responsible, parents if I really ran into trouble. So im leaning towards worrying about an emergency fund last.
Ok thats all I got for now. All advise is welcome. I cant change the past, but I can change the future.
TL;DR: How should I tackle a 20 year $21k interest only loan, while still planning for the future
submitted by EvrythingElseIsTaken to personalfinance [link] [comments]

VAT and fee's

I am a bitcoin believer, but I have one question for those who say that bitcoin helps free us from government control. As soon as bitcoin starts to become even remotely popular, there is nothing to stop the feds from making up a special fee/tax on every bitcoin transaction. We pay fees at ATM's, tax's on gas, cigarettes etc etc.. . The government will get their money, one way or another. You may be free from fiat currency and the "inflation" that comes from printing, but how do you figure that a global digital currency isn't every central bankers/bureaucrats wet dream? The IRS is a huge hassle, the government would prefer not to have to wrangle with INCOME taxes, but if they didn't and instituted a tax only on transactions, right now people would just switch to cash and a lot things would go untaxed. The income tax, property tax, and inheritance tax are the best ways around that. Amazon would have ZERO technical problems adding a 5% tax on every bitcoin purchase.
So, my question is, in a world where most people feel they have very little control over their governments and the taxes they impose, where people are shopping at fewer and fewer large scale vendors like Amazon/Apple/Netflix/etc.. and huge conglomerates that control everything, so that your ability to avoid control becomes harder, and where hacking/large scale disruptions are going to become more commonplace, especially large scale attacks from foreign nations (China/Russia/Middle East), and the fear that will come with it that will surpass any you have of having your home broken into (at least monetarily, most people fear of being raped/beaten in a home attack, not having their 401k's stolen), how do you suppose we can fully utilize the strengths of both Bitcoin and a physical currency to keep the power of our money as much in our hands as possible?
submitted by weneedaction to Bitcoin [link] [comments]

How do I Legally Avoid Taxes on Bitcoin and Crypto?? HODL and Charitable Donations How Can I Avoid Paying Taxes On Bitcoin And Crypto [100% ... Bitcoin TAX Myths! How to Avoid the Headache with ... Avoid Tax on IRAs and 401Ks Moving to Annuities - YouTube 4 tips to avoid penalties and taxes on your 401k. - YouTube

However, there is a step further that you can take: trading in a tax advantaged account like an IRA or 401k will remove the tax liability from those individual trades. If you don’t want to do any reporting, or pay any taxes on individual trades, then you need to trade BTC and altcoins in an IRA or ROTH IRA if you live in the US. Buying Bitcoin with 401K . This may be an option for you and it may not. In order to invest in Bitcoin with your 401K you will need a Self-Directed 401K. A self-directed 401K allows you greater flexibility with your company’s 401K plan to invest the funds in any way you see fit. The con here is that not all companies allow for a self-directed ... Jarod: Only you can decide what is best for you. If you are certain that there will be a reset within the next five years that will devalue the cash in your 401k plan by 40% or more (based upon the numbers you gave me), then the 401k withdrawal penalty and taxes you pay now would be worth it. Reduce Taxes on 401(k) and IRA Distributions. Here’s how to minimize 401(k) and IRA withdrawal taxes in retirement: Avoid the early withdrawal penalty. Roll over your 401(k) without tax withholding. Remember required minimum distributions. Avoid two distributions in the same year. Start withdrawals before you have to. Taxes, in and of themselves, can be complex, and throwing your crypto gains on top of it makes things even more challenging. However, that doesn’t mean that there aren’t ways around paying taxes on your Bitcoin gains. Here are some practical tips we’ve discovered that allows you to pay no taxes on your cryptocurrency gains.

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How do I Legally Avoid Taxes on Bitcoin and Crypto?? HODL and Charitable Donations

IRA Financial Group’s Adam Bergman discusses using your Self-Directed IRA or Solo 401(k) Plan to buy cryptocurrencies, such as Bitcoin. For more information on using your self-directed ... Legal ways to avoid taxes with Bitcoin and crypto investing and trading. Applicable for most countries in the world including United States. In the video I e... Today's video is about How to Avoid Paying Taxes on Cryptocurrency and Bitcoin, for which I'll give a few examples of for entertainment purposes only. In rea... Bitcoin Tax Myths: There are a lot of questions and misinformation circulating in our community about crypto & taxes. This is my attempt to clarify some impo... Let's discuss Taxes and Crypto again ... it's that time of year, tax returns are due in April in U.S. and Canada for most of us. So what can we do to legally...

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