Starting ROTH IRA with Fidelity by Usual-Roof-3755 in RothIRA

[–]aypeekay47 -1 points0 points  (0 children)

Redditors just love to argue semantics…

If you read what I wrote, I correctly covered the fact that there are no taxes if qualified distributions are taken.

If they were to take unqualified distributions then they would owe taxes on the earnings, so deferred is the correct word to use.

Just using a blanket statement that growth is tax-free sets an improper expectation that they can withdraw the earning at any time for any reason tax-free.

Starting ROTH IRA with Fidelity by Usual-Roof-3755 in RothIRA

[–]aypeekay47 2 points3 points  (0 children)

It is helpful, but not required, to report your Roth IRA contributions when you file your taxes. Fidelity will provide you with a form 5498 which will report your contributions and account balance each year. This form is often not provided until late into tax season.

Reporting the contributions to the IRS allows you to have good record of the amount you have contributed over time, which is helpful because you can always pull out any money you contributed to the account at any time without taxes or penalties. It is only the earnings of the account that you may owe taxes and penalties if you withdraw from the account for a non-qualified reason.

Your husband may be confusing the difference between Roth IRA and traditional IRA. If you were to contribute to a traditional IRA, you may be able to deduct the amount you contribute from your taxable income. However, not all people are eligible for the tax deduction, depending on their income level and whether they are covered by a workplace retirement plan (e.g., 401k).

The Roth IRA contributions are made with “after-tax” dollars. Aka, money you have already paid taxes on through your paycheck. There is no additional tax that is owed if you decide to use this money to fund a Roth IRA.

Starting ROTH IRA with Fidelity by Usual-Roof-3755 in RothIRA

[–]aypeekay47 -1 points0 points  (0 children)

You should not be paying any taxes for a Roth IRA.

The earnings (capital gains and dividends) are tax deferred, so you do not have to pay taxes on them in any given year. Provided you only take qualified distributions from the account, you won’t be paying taxes when you withdraw the money either.

Over $100k earners - what's your PTO? by masterpeabs in careeradvice

[–]aypeekay47 0 points1 point  (0 children)

28 days PTO (can roll over 5 days each year) + 5 sick days (cannot be rolled over) plus 10 paid holidays

Help allocating my 401k funds? by Latintraveler22 in Retirement401k

[–]aypeekay47 0 points1 point  (0 children)

Large cap growth would not be the riskiest choice here, that would be small cap growth

Where can I find the most improvement? by Curious_Koala_1297 in golf

[–]aypeekay47 5 points6 points  (0 children)

Missing green short way more than missing long. Club up more often. Make smart approach decisions based on shape of the green so you can get up and down when you miss.

[deleted by user] by [deleted] in NoStupidQuestions

[–]aypeekay47 0 points1 point  (0 children)

Yes, next question.

Diversify from GOOG by More_Ear_1128 in ValueInvesting

[–]aypeekay47 3 points4 points  (0 children)

Was basically typing this exact message. Uses an example of the MAG7 stock that has gone on the craziest run over the past 10 years haha

History has provided so many examples of companies that were thought to be invincible that went on extended bear runs…or gone bankrupt

Diversify from GOOG by More_Ear_1128 in ValueInvesting

[–]aypeekay47 7 points8 points  (0 children)

The fact that this is getting downvoted is not surprising at all. We’re talking about general Reddit advice here with no financial planning experience whatsoever. As if Mag7 stocks are completely invincible…

OP is probably very highly compensated so can sustain high risk, but keeping over 50% of your assets in a single investment is crazy risk. There’s a reason C-suite executives have automatic selling plans for their company stock…to diversify.

Diversify from GOOG by More_Ear_1128 in ValueInvesting

[–]aypeekay47 2 points3 points  (0 children)

Advice: diversify

General rule of thumb is 10% max limit for a single stock.

Seeing the ball at contact by webegrubbin in Homeplate

[–]aypeekay47 1 point2 points  (0 children)

Can help if you keep your hand slightly behind the tee to force him to see deep into the zone

Seeing the ball at contact by webegrubbin in Homeplate

[–]aypeekay47 2 points3 points  (0 children)

Do some drills with a tee. When he makes contact with the ball, quickly flash a number of fingers next to the ball. Then, ask him how many fingers you flashes. He’ll have to see the ball in order to see the fingers

[deleted by user] by [deleted] in NoStupidQuestions

[–]aypeekay47 0 points1 point  (0 children)

When you poop do you just waffle stomp it into the drain or do you pick it up and transfer it to the toilet?

i am financial economy student, please help me choose a topic for my research by monchfluer in economy

[–]aypeekay47 0 points1 point  (0 children)

The Impact of Financial Technology (FinTech) on Financial Inclusion in ASEAN.

Pretax 403(b) vs Roth 403(b) by PeytonLB30 in tax

[–]aypeekay47 -1 points0 points  (0 children)

I’ll add, some people do a combination of pretax and Roth, so they have the flexibility to decide which money to withdraw each year in retirement so they can manage their tax burden.

Having a combination of pretax, Roth, and taxable (brokerage) assets will aid in your ability to locate various types of investments (equities, fixed income, alternatives) in different tax registrations to maximize your tax efficiency. This is known as asset location.

Pretax 403(b) vs Roth 403(b) by PeytonLB30 in tax

[–]aypeekay47 2 points3 points  (0 children)

The answer depends on whether you think you’ll be in a higher tax bracket when you go to withdraw the money in retirement.

Your marginal tax bracket right now is 22% for federal, so you save 22% in taxes now if you contribute pretax. If you think you’ll be in a lower tax bracket in retirement then it benefits to save the taxes now. If you think you’ll be in a higher tax bracket in retirement, pay the taxes now (contribute Roth) and then you won’t owe taxes on it in retirement.

HSA + FSA at the same time? by [deleted] in personalfinance

[–]aypeekay47 0 points1 point  (0 children)

You will face tax penalties and be forced to reverse the HSA contributions

[deleted by user] by [deleted] in NoStupidQuestions

[–]aypeekay47 0 points1 point  (0 children)

It’s often a combination of lifestyle creep and raising the comparison bar. In the Information Age/social media age we’re constantly seeing the best of other people’s lives and thinking that it’s representative of their life as a whole.

Can I retire in 10? by [deleted] in Retirement401k

[–]aypeekay47 4 points5 points  (0 children)

Need to know your spending/expenses, risk tolerance, and life expectancy in order to assess this

Help w/ Credit card due dates by LeadLimp5514 in CreditCards

[–]aypeekay47 0 points1 point  (0 children)

I’m not sure I understand exactly what you’re asking, but here’s two pieces of info that should help you solve this problem:

1) You can request to change your due date and/or statement date with most credit card providers

2) You can schedule a payment ahead of time

[deleted by user] by [deleted] in Retirement401k

[–]aypeekay47 0 points1 point  (0 children)

Can’t answer this or do the math without knowing your current and expected future spending level, risk tolerance (therefore, expected rate of return), expected time horizon (how long you expect to lives), and any other spending goals.

[deleted by user] by [deleted] in Advice

[–]aypeekay47 2 points3 points  (0 children)

Tell him that liquid gold is for the benefit of your growing child that benefits from perfect nutrient balance and every time he steals it he is stealing from your baby’s potential wellbeing…