12 votes
Accepted

Scared of money being "locked away" in retirement accounts

You can use a Roth IRA for retirement and you can still withdraw all of your contributions at any time. You can also withdraw $10,000 worth of the earnings in your Roth IRA for a first-time home ...
NL - Apologize to Monica's user avatar
12 votes

Savings Accounts for Future Child Expenses

If you have the option of a high deductible health plan you might consider using a High deductible plan with a Health Savings Account (HSA) in the years before the first child is born. You can ...
mhoran_psprep's user avatar
11 votes
Accepted

Savings Accounts for Future Child Expenses

There aren't any. Of these significant, relatively predictable expenses I would not necessarily classify child birth cost as either significant or predictable. Depending on your health ...
Pete B.'s user avatar
  • 76.5k
6 votes

Scared of money being "locked away" in retirement accounts

The alternative isn't too bad. Invest in a regular account. The dividends and cap gains will see favorable tax treatment. In my opinion, much of the magic of the retirement account is with 401(k) ...
JTP - Apologise to Monica's user avatar
4 votes
Accepted

In a Canadian TFSA, does interest earned within the account count toward the contribution limit?

Just the principal contribution counts towards the limit. In your example, if you contribute 30,000 and you earn 20,000, only the 30,000 counts. To find out exactly how much room you have, you can ...
John Cruz's user avatar
4 votes
Accepted

Is there a trick with ISAs in the UK

No, that's not what it's saying. It's saying you can put £100 into a 3% account in, say, May and earn 3% taxable* for most of the year and then put it into an ISA at the start of the following year ...
Nigel Harper's user avatar
  • 2,912
3 votes
Accepted

How do I organize my investments to generate the maximum tax free income - in the UK?

There are other things which might be useful... Private residence relief. All the gains on your personal residence are CGT exempt. So someone thinking long term might buy a bigger house than they ...
timday's user avatar
  • 3,992
3 votes

Transfer of UK Savings to USA

It's difficult (impossible?) to properly answer this question without knowing more about what kind of account it is. Based on "tax free" I'd have guessed a JISA (Junior ISA) or a Child Trust Fund but ...
timday's user avatar
  • 3,992
3 votes

Scared of money being "locked away" in retirement accounts

Yes, there are some real dangers in having your money locked into an investment. Those dangers are well worth thinking about and planning for. Where you are going off the rails is acting like those ...
Charles E. Grant's user avatar
2 votes
Accepted

Move cash reserves to 529?

There are several things you have to be concerned about. The details regarding the 529 vary by state. Some of the states give a state tax break to people who are tax residents of their state. If you ...
mhoran_psprep's user avatar
2 votes

Best way to invest around 50k Indian rupees and save Tax

Fundamental rule of investing money : High Risk High Return Low Risk Low return Now come to the point, best money investment Public Provident Fund : It is the safest and secure long-term investment ...
dheerajraaj's user avatar
2 votes
Accepted

Taxes on foreign and local dividends held in a TFSA

As far as I read in many articles, all earnings (capital gains and dividends) from Canadian stocks will be always tax-free. Right? There's no withholding tax, ie. a $100 dividend means you get $...
brian's user avatar
  • 1,737
2 votes

Scared of money being "locked away" in retirement accounts

Those advantages you've described (tax treatment and employee match) are what you receive in exchange for "locking up" the money. Ultimately it's a personal choice of whether that tradeoff makes sense ...
Andrew Savikas's user avatar
1 vote

Interests in USA for NRE account profits

You heard correctly that interest paid on NRE accounts in India is not taxable income in India. In particular, there is no Tax Deducted at Source (TDS) by your bank and sent to the Indian Income Tax ...
Dilip Sarwate's user avatar
1 vote

Investing in grandfathers name to save tax in India

so easily 20 lakh could be deposited, if it was tax free. You have to pay taxes and then gift. Any income generated will be taxed in the hands of grandparents. So if you get a salary of 20 lacs, you ...
Dheer's user avatar
  • 57.1k
1 vote

Scared of money being "locked away" in retirement accounts

While it’s your personal choice on HOW you save for later its essential that you save. My sister works in a bank and recommended me not to put any money into retirement plans since the tax-advances ...
Swizzler's user avatar
  • 1,283
1 vote

Best way to invest around 50k Indian rupees and save Tax

Best way to invest around 50k Indian rupees and save Tax There is nothing "Best". There are multiple options that are available under 80C and you need to select one that suites you best. There are ...
Dheer's user avatar
  • 57.1k
1 vote

Confused about 'tax free income'

Why your partner's employer has decided to wait until he has crossed the threshold then tax him I have no idea. This makes no sense to me since it could leave you very short for the months he didn't ...
Stephen's user avatar
  • 131

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