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147

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 via commissions on sales and are thus motivated to direct you to whatever gets them the largest commission.) In fact, in your bracket you might want to ...


140

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 (or property tax), considering there is probably now an empty, redundant bedroom in her home. The extent to which your mother was also expected to contribute to ...


125

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 you do now. Right now, your post above is written from a selfish perspective. Not to be insulting, and not implying selfish is a bad thing - I don't mean it ...


115

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 higher trust rates. No idea where they are getting this information from. If your parents' insurance is somehow tied to "family income," things change. It's still ...


97

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 them. They are also very tightly regulated, including how they are invested. To the astonishment of most novices, not only are they allowed to be heavily ...


89

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 to your new income.) Instead, this has to do with eligibility to (I believe) Apple Health, which is Washington's low-income health insurance program. This pdf ...


81

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 very strongly about being financially independent and if possible we both don't want to take money from each other. In marriage, there is no more financial ...


74

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 to support your mother. Your dad is not legally obligated to help. If he is, she should pursue that first. She needs the help. Is this money from your dad that ...


72

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 shared happiness by acting as a team of equals. I'd pool your resources and share them as equals. I'd open a joint account and pay both your incomes directly ...


72

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 a used car the second you drive it off the lot. Financially, there are only advantages to living below your means. You will save more money which can be ...


64

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, freeing income up for reducing debt and investing. Investing $300 one time won't add up to much, but investing $100 a month will turn into wealth over time. Making ...


58

"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. The money in question is child support. It reflects that the cost of living with a child is higher than living alone. Obviously, if you move out, that has a big ...


58

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 your money will earn when invested. Both of those are difficult to estimate, so in order to be confident you don't run out of money before dying, you must do ...


57

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 that hard. Taxes and government In the short term, focus on taxes. Do some "mock" run-throughs of your expected end-of-year taxes (use last year's forms if ...


51

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://www.irs.gov/pub/irs-pdf/i709.pdf If this person is a foreign entity from outside the country, you might need to provide in your tax filing a form 3520 https://...


46

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 nurse for about 20 years. During that time she had many employers, leveraging raises with job changes. She quit nursing about 6 years ago and was being paid $...


42

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 rocks" are due once a month, then there are two paycheques a year that no-one has a claim on. Depending on your spending style, these can go into savings (yay!) ...


35

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 going out for expensive dinners, choosing not to join may damage your relationship. Appearing to be rich, for example by driving a nice car, may increase your ...


34

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. The stub is frequently only available on a third party site. The harder it is to see, the less often it is checked. I have run into instances of coworkers who ...


34

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-taxes-on-found-property/L9BfdKz7N The Cesarinis argued to the IRS that the money wasn’t income, and so it should not be taxed as such. The IRS wasn’t swayed by the ...


34

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 received when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize ...


32

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 $1000/mo.


31

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 total interest under the normal 10 year terms is fixed at $9178, and you can't save more interest than that. Therefore, the rate of increase of the interest ...


28

To generate a passive income you need lots of TIME or MONEY, you are short of both. As other people have said, do whatever you can to reduce you spending and start saving. Don’t think “I work very hard, therefore I deserve xxx”, start thinking “x cost y hrs of work, is it truly worth it?” (Remember to consider your take home pay per hr, not you before ...


25

If you already have 500k in a Schwab brokerage account, go see your Schwab financial consultant. They will assign you one, no charge, and in my experience they're sharp people. Sure, you can get a second opinion (or even report back here, maybe in chat?), but they will get you started in the right direction. I'd expect them to recommend a lot of index funds,...


25

How do I achieve my savings goals? This question is the essence of personal finance. Whether the goal is to save for a down-payment on a house, retirement, or just an expensive toy (like a sports or luxury car) the first step is to define what you are trying to achieve and work backward from the big goal to see how much you have to set aside periodically to ...


23

I feel like it's worth talking about the "tax bracket" part of this question, as it's a common misconception. Let's suppose we're dealing with a simple tax system with two brackets: 20% up to $100,000 a year, and 25% above that. Now let's say I make $98,000 a year and I'm taxed at 20%. That means I pay $19,600 a year in taxes. Now suppose that I get a $...


22

Simple math that all (and I mean all) depends on the interest rate. At 1%: (1000 x 12)/0.01 = 1200000 At 2%: (1000 x 12)/0.02 = 600000 At 3%: (1000 x 12)/0.03 = 400000 At 4%: (1000 x 12)/0.04 = 300000 Of course, interest rates change, so you'd have to be conservative with your forecasting, and 1000/month isn't very much at all. The elephant in the room ...


21

No to both. The deposit refund is not taxable, but in states where security must earn interest, that small amount is subject to tax. I just returned a $750 deposit to a tenant, and after a year, it accrued $0.24. A rebate of fees you pay such as ATM fees is just you getting back your own money. As is "cash back" on credit card purchases. Not taxable.


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