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Taxes / Re: Claim 100% of Mortgage interest for co-owned duplex?
« Last post by jgordon1 on Today at 09:45:07 AM »
Well maybe this year you can pay the bill and your brother could "lend" you some money
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FIRE / Re: What is my FIRE number
« Last post by jgordon1 on Today at 09:43:05 AM »
Hi Gordon,
It sounds like you just need 2-3 years of living expenses for ages 60-62, minus the 10,000 in side gig money.  After that the pensions will kick in and cover all but $300 a year, assuming they are inflation adjusted.  Then as your side gig winds down, you'll be able to file for SS to replace it.  Here's how I would break it down in non-inflation adjusted numbers:

Age        Expenses   Income   Shortfall
60-61     35,000          10,000    25,000
62-67     35,000          34,700    300
67+        35,000          40,300    -5300 (this is an overage)

So for the first 2 years you just need $25k a year.  At a 4% withdrawal you would need $625,000, but that would allow you to withdraw that extra $25k every year in retirement.  Do you want to increase your lifestyle that much at at 62, or would you be ok with spending the principle to fund the first 2 years of retirement and starting with a lower retirement account balance? The other option would be to leave it as an inheritance, or some combination of the above.

Thanks..I basically came up w the same #'s but I don't think I will need 625,000 as I only need to cover those few years...Unless something crastic happens I should be able to downsize at some point and use that money for retirement
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FIRE / Re: What is my FIRE number
« Last post by jgordon1 on Today at 09:40:58 AM »
And depending on whether or not you buy medicare gap insurance (for what Medicare does not cover) at 65, your expenses definitely will go down at 65 when Medicare kicks in. There is a cost table online, but in your situation let's say Medicare is $200 per month, or $2400 per year. Expenses then go down by (8000 - 2400 =) $5600.

Thanks..I didn't think of gap insurance...
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Taxes / Re: Startup expenses
« Last post by Tim on April 22, 2017, 08:13:32 AM »
No, the business does not yet have to exist. The key date is when you open for business. If a rental business, the first day you offer the property for rent. If you are offering services or merchandise, the first day you accept orders, etc. All expenses directly related to getting the business up and running before that date are start up expenses. Be careful though. You can only claim expenses that actually went towards the business (e.g., thinking you might sell Amway you travel to an Amway convention, but end up opening a eBay reseller business instead. The Amway travel would not be deductible as a startup expense). I'm not an accountant, so you will need to check before you file taxes, but as I recall only the first $5000 in expenses can be deducted in the first year. Any more than that must be treated as a capital expense and deducted in equal amounts over the next 15 years.
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FIRE / Re: What is my FIRE number
« Last post by Tim on April 22, 2017, 07:38:07 AM »
And depending on whether or not you buy medicare gap insurance (for what Medicare does not cover) at 65, your expenses definitely will go down at 65 when Medicare kicks in. There is a cost table online, but in your situation let's say Medicare is $200 per month, or $2400 per year. Expenses then go down by (8000 - 2400 =) $5600.
6
Real Estate / Forming an LLC to Manage Real Estate
« Last post by Tim on April 21, 2017, 01:24:55 PM »
My wife and I own two rental properties. We have a positive cash flow so I would like to shelter that revenue. Since my wife actually manages the properties, can she form a sole proprietorship or LLC that we pay to manage the properties?

If so, I would then have all that revenue go to a SEP IRA that I would set up for the company. If not, any other suggestions on sheltering the positive cash flow that don't involve me spending money to incur additional expenses?
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FIRE / Re: What is my FIRE number
« Last post by jmr2323 on April 19, 2017, 01:41:06 PM »
Hi Gordon,
It sounds like you just need 2-3 years of living expenses for ages 60-62, minus the 10,000 in side gig money.  After that the pensions will kick in and cover all but $300 a year, assuming they are inflation adjusted.  Then as your side gig winds down, you'll be able to file for SS to replace it.  Here's how I would break it down in non-inflation adjusted numbers:

Age        Expenses   Income   Shortfall
60-61     35,000          10,000    25,000
62-67     35,000          34,700    300
67+        35,000          40,300    -5300 (this is an overage)

So for the first 2 years you just need $25k a year.  At a 4% withdrawal you would need $625,000, but that would allow you to withdraw that extra $25k every year in retirement.  Do you want to increase your lifestyle that much at at 62, or would you be ok with spending the principle to fund the first 2 years of retirement and starting with a lower retirement account balance? The other option would be to leave it as an inheritance, or some combination of the above.
8
Bloggers Helping Bloggers / Re: Favorite tools for blogging and site management
« Last post by clackapedia on April 02, 2017, 12:15:53 PM »
Next set of Tools!

Backups:

If you're using Wordpress, there are 2 backup plugins I'd recommend, both of which you can grab in the Wordpress Plugin Repository:

  • Updraft Plus - Super powerful backup plugin that zips up your website and database, lets you automatically have the copy on Dropbox and other services.  Free version has the capacities most people would need.  If you do want to pay, you get to pick more than one cloud backup service, set the exact time of backups and a few more power user options
  • WP Time Capsule - this plugin takes incremental backups and backs up to S3, Google Drive, or Dropbox.  Incremential can be useful, as it consumes much less resources backing up only what changed.  If you're using shared hosting in particular, this may work better as you use a lot less resources this way.  Free version takes daily backups and lets you revert to the last 15 days of changes.  Paid version gives you on-demand backups, staging, and auto updates with backups.
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Investing / Re: Solo 401k recommendations
« Last post by fabdog on April 01, 2017, 07:38:57 PM »
I opened mine with Schwab.  Service is good, and all the low cost funds in their index fund lineup are available, low minimums to start, $1 for additional contribution minimum

Mike
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FIRE / What is my FIRE number
« Last post by jgordon1 on April 01, 2017, 02:13:34 PM »
I need some help figuring out my FIRE #.  I would like to use a 4% withdraw rate.  I am 57 and will not include my wife's income.  I would like to work until I am 60.  My wife is already retired and keeps her own expenses.(don't ask, its WAY cheaper than divorce )  I figure I will need $35000/year until I can claim MediCare then obviously it would decrease some.  I am including $$8,000/year in health insurance.  I can not find it cheaper and do not trust the ACA. I have zero debt and my house is paid off. I am a thrifty school teacher and will have 2 smaller pensions.
Pension #1  Retire at 62 get 8200/yr   retire at 65 get 9300/year
Pension #2 Retire at 62 get 16500/yr  retire at 65 get 20,500/year
SS retire at 67 15600

Side gigs.  I got a couple of side gigs..lets use 10,000/yr from 60 to 67
Thanks Guys
Jerry
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