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146 votes

Making $100,000 USD per month, no idea what to do with it

If you are making that much, don't waste your time here. Pay a few hundred bucks for a consultation with a fee-only certified financial planner. (Not one of the "free" services, which make their money ...
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  • 31.8k
140 votes

Parent asking for money after I moved out

Your father was giving your mother money intended to be spent on your food, clothing, textbooks, and so forth. Your mother no longer has these expenses. The only expense that remains for her is rent (...
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125 votes
Accepted

How to share income after marriage and kids?

My suggestion would be that you're looking at this the wrong way, though for good reasons. Once you are a family, you should - and, in most cases I've seen, will - think of things differently than ...
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  • 35k
115 votes
Accepted

How can I get a job without pushing my family's income into a higher tax bracket?

The tax return of a dependent does not flow to the parents return. Earned income is taxed at your own rate, up to $12,000 tax free. for your own standard deduction, but unearned income is taxed at ...
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103 votes

How much money should I save in order to generate $1000/month for the rest of my life?

Endowment manager here. An endowment is a large lump of money that is invested to create "forever income". They are held by universities and the like, and there are countless billions of dollars in ...
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88 votes

How can I get a job without pushing my family's income into a higher tax bracket?

To be clear, this has nothing to do with tax brackets. (There's a longstanding belief that getting into a higher income bracket will increase taxes on all your income, when that bracket just applies ...
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  • 4,293
80 votes

How to share income after marriage and kids?

You remind me a lot of myself as I was thinking about marriage. Luckily for me, my wife was much smarter about all this than I was. Hopefully, I can pass along some of her wisdom. Both of us feel ...
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  • 1,669
77 votes

Are there any financial disadvantages to living significantly "below your means"?

It's important to differentiate between "living below your means" and being smart about money. Buying a used car with low mileage is generally a smart financial decision considering every car becomes ...
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  • 2,232
75 votes

Case against home ownership? High income, no home, don't necessarily want one

The answer is really simple: if you don't want to own a house, don't buy one. (Especially if you're the sort of person who thinks 1800 sq ft (167 m²) is too much for one person.) Unless you have a ...
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  • 11.1k
74 votes

Parent asking for money after I moved out

I have no problem with you helping your mother but only under the following circumstances: You have enough room in your budget to help out. You should not go into debt or sacrifice your necessities ...
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  • 116k
71 votes

How to share income after marriage and kids?

I started out thinking like you but I quickly realised this was a bad approach. You are a team, aren't you? Are you equals or is one of you an inferior of lower value? I think you'll generate more ...
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65 votes
Accepted

What can I do to passively generate income?

There isn't any place you can put $300 and turn it into significant passive income. What you need to do instead is manage the active (work) income that you have so that your money goes farther, ...
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59 votes
Accepted

Making $100,000 USD per month, no idea what to do with it

I know your "pain". But don't worry about investing the money right now -- leave it uninvested in the short term. You have other stuff you need to school up on. Investment will come, and it's not ...
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58 votes

How much money should I save in order to generate $1000/month for the rest of my life?

What you are describing is a lifetime annuity. You pay a lump sum now and then get a fixed amount until you die. Included in this calculation are estimates of (1) how long you will live (2) how much ...
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  • 14.9k
57 votes

Parent asking for money after I moved out

"Mom, that sort of thing is court-ordered." Tell her that she will need to go back to court to have the divorce settlement modified. You will be happy to comply with any court order, of course. ...
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51 votes
Accepted

Do I have to explain the source of *all* income on my taxes?

As a gift, the responsibility lays with the giver to file a 709 with their taxes for gifting to a single entity (barring certain exclusions) an amount over $14,000 within the (2017) tax year. https://...
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  • 894
50 votes

What does it mean for Bill Gates to have an income of $0 dollars? What word would have been more appropriate than "income" is?

Yes, the '180k income' figure reflects reported taxable income for those individuals in the US. For various reasons it is beneficial to have some amount of reported taxable income, but outside of that ...
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46 votes
Accepted

What exactly is a "bad," "standard," or "good" annual raise? If I am told a hard percentage and don't get it, should I look elsewhere?

TLDR: You will probably need to move to a different employer to get the raise you want/need/deserve. Some employers, in the US, punish longevity through a number of practices. My wife worked as a ...
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  • 75k
46 votes

Excess income after fully funding all retirement accounts. Now what?

Well, one sensible thing to do with it is paying down the mortgage to finish it asap - that will give you even more leftover money. First, you do save (and thus get) 2.8% as per your own information. ...
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  • 11.4k
42 votes
Accepted

Is there any financial benefit to being paid bi-weekly over monthly?

Especially for people just starting out, without much reserve, the biggest concern is the rhythm of their expenses and income. If you're paid every two weeks, but your rent, car loan, and other "big ...
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  • 12.2k
42 votes

Is there a price point beyond which it no longer makes sense to buy an apartment or house?

There are two ways to view this question. The simplest is the rough and ready approximation that you should be willing to buy a house for about 20 times the annual rent for a comparable house. With ...
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  • 1,913
37 votes

Are there any financial disadvantages to living significantly "below your means"?

Other answers do a good job explaining direct financial disadvantages, so here's another point of view: Living frugally might negatively affect your social life. For example, if your friends like ...
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36 votes
Accepted

Is income from a check taxed according to the date written or the date deposited?

If your business operates on a cash basis (and it probably does), then income is governed by a doctrine known as constructive receipt. From IRS Pub 538: Constructive receipt. Income is constructively ...
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34 votes

Do I have to explain the source of *all* income on my taxes?

Do I have to explain the source of all income on my taxes? "Yes, you do", say the ghosts of Ermenegildo and Mary Cesarini. https://turbotax.intuit.com/tax-tips/general/what-to-know-about-...
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  • 49k
34 votes

How much money should I save in order to generate $1000/month for the rest of my life?

There’s a general “rule of 4%” for investing. It means that a given sum invested in a total market Index fund can usually generate 4% a year indefinitely. Using that rule, $300,000 would generate $...
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  • 23.8k
34 votes
Accepted

Is money from the sale of an asset considered income?

Yes. What you describe is similar to those who buy a rental property, take depreciation, and then sell it. (With no replacement 1030 exchange, etc). As a consumer, I buy a car, and sell it for a lower ...
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34 votes

Can I see how a company is using its debt?

Money is 'fungible'. That means that any single dollar in circulation is identical to every other. If I pick up a lucky quarter on the street, and put it into my right pocket, then when I buy a candy ...
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33 votes

What, if any, are the downsides of direct deposit?

The only problem, besides having to update your information if you change banks, has been an unintended issue. I have noticed that people don't look at their pay stub when getting direct deposit. ...
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31 votes
Accepted

Paying Off Student Loans Early

As you noticed, there are diminishing returns on the interest savings as you get closer to paying off the loan. Certainly, the quicker you pay off the loan, the more interest you save. However, the ...
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