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Messages - Veiled

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FIRE / Re: What is my FIRE number
« on: November 25, 2017, 10:07:11 PM »
And depending on whether or not you buy medicare gap insurance (for what Medicare does not cover) at 65
Thanks..I didn't think of gap insurance...
Sad that we have to think of it, sad that almost no one does. In healthcare when someone doesn't have gap and they can't pay for what they need, we say they're in medicare D's "donut hole."

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Taxes / Re: 401K to hold a trust?
« on: November 25, 2017, 10:01:19 PM »
PTF.

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Taxes / Re: Pre-paying property taxes - huge risk-free rate of return?
« on: November 25, 2017, 10:00:03 PM »
Hi Dallas! Welcome to the forum. I'm not an accountant but I'll give this a shot as a fellow investor:
1. Yes, this line of thinking is accurate.

2. People typically pay 2 years worth (pay year 1 in early January of year 1 and year 2 in late December of year 1) and take the standard deduction in year 2 because of the lack of flexibility in the entities collecting property taxes. Every place is a little different, but if you are indeed from Dallas then this page/phone number might be useful to you. You may note that this CTA accepts past years' balances but there are no permissions for future years extended on this page. A phone call might clear this up for you, but in general municipalities don't want to be in your debt, and you don't want them to forget you pre-paid for 10 years in all their red tape.

3. Just like there is non-unique market risk to every portfolio (i.e. the risk of total stock indices), there are non-unique political risks to every portfolio (i.e. laws about RMDs, contributions, and taxes). At any point, congress can change the rules. Just like JL Collins says, modify your unique risk and accept the rest.  Accept the fact that we may all lose (or gain?) the ability to avoid future tax with various legislative events. It doesn't make sense to put 10 years of money into the city of Dallas' hands and possibly get into a big headache in 8 years, just to save some taxes this year.

Edited for spelling.

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Investing / 403(b) affecting side hustle tax sheltering
« on: November 19, 2017, 08:11:40 PM »
I am employed by a hospital and have a 403(b), no 457. I also have an unrelated side hustle that  eventually may produce enough profit so that I can use a solo 401(k) to shelter more of my income from taxes.

But as I read more about 403(b)s, I understand that they are "controlled entirely by the employee." I'm confused by how this affects my plan to sequester not only the maximum (employee pre-tax, employer, and employee after-tax) into a 403(b) but also into an unrelated 401(k). How much can I put into a solo 401(k) if I'm maxing out a 403(b)?

Better question: where do I go to learn about tax code to answer these questions myself?

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Investing / Re: Solo 401k recommendations
« on: November 19, 2017, 08:06:21 PM »
Fidelity seems to win out whenever I hear this discussed. Ironically, I've heard they give better access even to Vanguard funds (or admiral shares with lower ERs).

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Entrepreneurship / Re: Multiple Side Gigs- accounting and tax help
« on: November 19, 2017, 08:00:33 PM »
I would advise to continue to file as a sole proprietor and claim the income as business income.... On top of that you are intending on making a profit in future years. To try and take the position that teaching piano lessons is a hobby and not a business venture is pretty thin.
I had the same reaction to that post. I thought "d'oh! I could have saved myself so much SE tax last year!" But I realized that I'm intending to make money for years on my side hustle and I agree with Maccountant. I think WA's idea makes most sense if you plan not to continue the activity more than 2-3 years.

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Entrepreneurship / Re: Franchise vs Solo
« on: November 19, 2017, 07:53:29 PM »
My initial, and recurring, thought is that I am not looking for a full time job, and the franchise sounds like that plus more. 

My heart is definitely not into running a business day to day, and both my husband and I are very interested in real estate...
Looks to me like you answered your own question. Running just one franchise, let alone two, is a TON of work and has to be at least in part a passion project. But it's been a while, wondered what you ended up deciding?

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