Miss Tequila
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Post by Miss Tequila on Dec 17, 2020 16:20:47 GMT -5
80% chances of snow tomorrow... we will see how much DC does get The city of Albany just got about 3 feet of snow. I think you just gave Carl his answer on where to live!lol
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Miss Tequila
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Post by Miss Tequila on Dec 17, 2020 16:23:12 GMT -5
We are supposed to get between 2-3 FEET.....we haven’t had a storm like this in 3 years. I’m praying they are wrong. Ugh We did not even get an inch ... maybe half an inch We got lucky. The really bad hit was closer to the NY border. We only got about 14 inches or so.
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pulmonarymd
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Post by pulmonarymd on Dec 17, 2020 16:42:20 GMT -5
We did not even get an inch ... maybe half an inch We got lucky. The really bad hit was closer to the NY border. We only got about 14 inches or so. About 12 inches here. I heard Binghamton got 40. Yikes!
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buystoys
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Post by buystoys on Dec 17, 2020 16:59:07 GMT -5
We had frost on the ground this morning.
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Lizard Queen
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Post by Lizard Queen on Dec 17, 2020 17:07:15 GMT -5
We only got a few flakes today that amounted to nothing. Our yard looks like a little sprinkle of powdered sugar on half of it from earlier this week. Move to Michigan, Carl! There's less snow here. 😉🤣
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TheHaitian
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Post by TheHaitian on Dec 17, 2020 17:08:39 GMT -5
Since I am already on here instead of starting another thread... repaying the money. Some have mentioned how they feel to heavily invested in one account va another...
Would this be a good chance for me to when repaying myself instead of putting it back in 401k put it in a ROTH and/or taxable account. So spread it around ...
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justme
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Post by justme on Dec 17, 2020 17:35:08 GMT -5
Possibly. Are you now all traditional or is it spread around in lower amounts?
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TheHaitian
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Post by TheHaitian on Dec 17, 2020 17:36:32 GMT -5
Possibly. Are you now all traditional or is it spread around in lower amounts? All traditional
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justme
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Post by justme on Dec 17, 2020 17:45:53 GMT -5
Then yea I'd prob start diversifying.
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giramomma
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Post by giramomma on Dec 17, 2020 18:48:54 GMT -5
I would split between Roth and taxable. It's not clear to me from a quick google search, though..if you get the Chick-fil-a opportunity....how long the training is, and whether or not they provide a salary for you. If there's going to be a loss of income during the training period, I'd start socking away money for that now.
I know you can take money out of a Roth, but I'm not a fan of thinking that retirement money can be dual purpose. (That's the risk adverse part in me.)
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Post by The Walk of the Penguin Mich on Dec 17, 2020 20:23:11 GMT -5
Since I am already on here instead of starting another thread... repaying the money. Some have mentioned how they feel to heavily invested in one account va another... Would this be a good chance for me to when repaying myself instead of putting it back in 401k put it in a ROTH and/or taxable account. So spread it around ... Is it possible when you return untaxed money to your 401k, to return it to a fund that is different from what you borrowed it from? I don’t know.....but it seems to me that you can’t mingle money this way. If you borrow it from a 401k, you return it to a 401k. If you borrow it from a Roth 401k, it gets returned to same.
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justme
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Post by justme on Dec 17, 2020 20:29:17 GMT -5
Since I am already on here instead of starting another thread... repaying the money. Some have mentioned how they feel to heavily invested in one account va another... Would this be a good chance for me to when repaying myself instead of putting it back in 401k put it in a ROTH and/or taxable account. So spread it around ... Is it possible when you return untaxed money to your 401k, to return it to a fund that is different from what you borrowed it from? I don’t know.....but it seems to me that you can’t mingle money this way. If you borrow it from a 401k, you return it to a 401k. If you borrow it from a Roth 401k, it gets returned to same. I believe the paying back he's talking about is "paying himself back" mentally not that he's taking a 401k loan or doing the plan where you have to return the money you took out with CARES in 3 years. I'm pretty sure you're correct if it was an official payback. But if he just decides to up his savings until that money gets unofficially replaced he can put it wherever he wants.
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tallguy
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Post by tallguy on Dec 17, 2020 20:59:58 GMT -5
Is it possible when you return untaxed money to your 401k, to return it to a fund that is different from what you borrowed it from? I don’t know.....but it seems to me that you can’t mingle money this way. If you borrow it from a 401k, you return it to a 401k. If you borrow it from a Roth 401k, it gets returned to same. I believe the paying back he's talking about is "paying himself back" mentally not that he's taking a 401k loan or doing the plan where you have to return the money you took out with CARES in 3 years. I'm pretty sure you're correct if it was an official payback. But if he just decides to up his savings until that money gets unofficially replaced he can put it wherever he wants. That would still leave him paying taxes on the entire withdrawal though if he is talking about the three-year deal.
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justme
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Post by justme on Dec 17, 2020 21:05:09 GMT -5
I believe the paying back he's talking about is "paying himself back" mentally not that he's taking a 401k loan or doing the plan where you have to return the money you took out with CARES in 3 years. I'm pretty sure you're correct if it was an official payback. But if he just decides to up his savings until that money gets unofficially replaced he can put it wherever he wants. That would still leave him paying taxes on the entire withdrawal though if he is talking about the three-year deal. Well, that is what option C was and that's what he said he was doing. Someone did mention the three-year deal but it sounded like he had accepted paying taxes on what he takes out and is just looking at how to unofficially replace it - all back in pre-tax, or some in Roth and taxable too.
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TheHaitian
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Post by TheHaitian on Dec 18, 2020 14:44:40 GMT -5
That would still leave him paying taxes on the entire withdrawal though if he is talking about the three-year deal. Well, that is what option C was and that's what he said he was doing. Someone did mention the three-year deal but it sounded like he had accepted paying taxes on what he takes out and is just looking at how to unofficially replace it - all back in pre-tax, or some in Roth and taxable too. Basically this... with paying off everything I free up about ~$1,500/month at a minimum. Now if I am diligent and consistent I can put that money away every month into Roth’s, taxable accounts vs repaying the money back in 3 years. And if I can, continue that long after the 3 years are up to maintain diversification.
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TheHaitian
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Post by TheHaitian on Dec 18, 2020 14:59:50 GMT -5
Thanks to everyone that help me come to C and I moved forward with that.
We moved forward with a decision we are mutually unhappy about and can live with.
As of today : - her 403b -> 145k - my 401k -> 136k
Both allowed the Covid withdrawal. And $100,000 invested at 8% over 30 years without adding another penny to it grow to 1Million in 30 years. Off course in 30 years 1M will be nothing but security blanket and of course we will keep adding to it.
So we withdrew 45k from her account and after state taxes (we did not withhold fed) comes to about ~40k and 36k from my account it comes down to about ~34k. Both will be sold at the end of the market closing today and wired to our account middle of next week.
Instead of 1 account taking the hit, both accounts take a hit and we continue moving forward as a team. By beginning of New Year all debt should be paid off including the legal bills we are carrying on my brother. —> he will pay it back once he start working.
I was so nervous and anxious doing this; I wanted to puke and almost said forget it and continue with the slow down paying off plan. I am going to have a major problem when it is time to retire and take money out:..
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TheHaitian
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Post by TheHaitian on Dec 18, 2020 15:04:31 GMT -5
I would split between Roth and taxable. It's not clear to me from a quick google search, though..if you get the Chick-fil-a opportunity....how long the training is, and whether or not they provide a salary for you. If there's going to be a loss of income during the training period, I'd start socking away money for that now.
I know you can take money out of a Roth, but I'm not a fan of thinking that retirement money can be dual purpose. (That's the risk adverse part in me.)
I did not think about that, that is a good point. This is why I love this place, bring things up I did not foresee. Yes there is training, don’t remember the duration and yes salary doing that time or income is a good point. Will sock up money, but first need to get selected. They only accept 70-80 applicants out of 60,000 yearly: that is only a 0.13% chance of success. 🤞🏾🤞🏾🤞🏾🤞🏾🤞🏾
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giramomma
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Post by giramomma on Dec 18, 2020 15:44:19 GMT -5
I would split between Roth and taxable. It's not clear to me from a quick google search, though..if you get the Chick-fil-a opportunity....how long the training is, and whether or not they provide a salary for you. If there's going to be a loss of income during the training period, I'd start socking away money for that now.
I know you can take money out of a Roth, but I'm not a fan of thinking that retirement money can be dual purpose. (That's the risk adverse part in me.)
I did not think about that, that is a good point. This is why I love this place, bring things up I did not foresee. Yes there is training, don’t remember the duration and yes salary doing that time or income is a good point. Will sock up money, but first need to get selected. They only accept 70-80 applicants out of 60,000 yearly: that is only a 0.13% chance of success. 🤞🏾🤞🏾🤞🏾🤞🏾🤞🏾 Carl, you are absolutely, the luckiest, most fortunate person I know. If there's anyone that I honestly believe, that could/would get accepted, it's you.
And, I'd hate for you to be like "Yo, can't do this because I didn't set aside money to live off beforehand."
I won't touch our taxable account, because if we go into one of those super nice retirement homes where you start with housekeeping and end up in memory care...you give them the deposit check (I've heard it's quite sizable) like the day after you get the call that a spot is open for you. If one dicks around and says "Well, sorry, I am unable to quickly access 50K by the end of the week." or " Oh, shit, i have to sell my house to get my down payment to you..." one is out of luck. "You snooze, you lose." is a favorite in our household. I think it could apply to you...and I wouldn't want you to not take advantage because of it.
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Lizard Queen
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Post by Lizard Queen on Dec 18, 2020 15:47:48 GMT -5
Forget luck-- I think he's got really good experience for it. Not sure about restaurant experience, though?
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bookkeeper
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Post by bookkeeper on Dec 18, 2020 20:40:25 GMT -5
Our older son worked for Jimmy Johns for a long time and was considering the franchise lifestyle of work for his future. We explained to him how having the money for the initial buy in was only the beginning. You really needed 2 years of living expenses for yourself to begin a business like this from scratch.
C is much farther along in life than our son was. He knows what it takes to get through the month at his house. The restaurant business is brutal, however anything with a drive up window seems to be crushing it during the pandemic.
DH and I were talking about this while watching the national news about Covid aid for restaurant owners. If you choose to operate a business that has a failure rate of 50% in normal times, is the government supposed to bail you out because people have to stay home to eat? Restaurants are wonderful, but they are not necessary. This is the ebb and flow of the retail economy. JC Penney, Blockbuster, K-Mart, Country Kitchen, Bennigans, all these businesses were solid performers until they weren't. Times change and people change how and where they spend their money.
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justme
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Post by justme on Dec 18, 2020 21:13:18 GMT -5
Chick fil a is about the only one I wouldn't discourage someone for going for. They are VERY meticulous - not just with who they pick but also WHERE. And corporate is very hands on from what I hear and it's not a traditional franchise operation. It's more of a we've chosen you to run this store and you're a bit fancier than just a general manager. And of all the fast food places they have some of the highest revenue per location.
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mamasita99
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Post by mamasita99 on Dec 18, 2020 21:37:56 GMT -5
As far as restaurants go, Chick Fil A seems a pretty safe bet for a successful franchise. When you need to hire an off duty cop to manage your parking lot traffic, you have a lot of money coming in.
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wvugurl26
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Post by wvugurl26 on Dec 18, 2020 22:10:32 GMT -5
I swear Chick Fil A is a license to print money. The drive through line at the local one is always packed.
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justme
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Post by justme on Dec 18, 2020 22:21:12 GMT -5
As far as restaurants go, Chick Fil A seems a pretty safe bet for a successful franchise. When you need to hire an off duty cop to manage your parking lot traffic, you have a lot of money coming in. Or when you tear down a store just to rebuild it so you can have a two lane drive thru.
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jelloshots4all
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Post by jelloshots4all on Dec 23, 2020 20:45:41 GMT -5
Thanks to everyone that help me come to C and I moved forward with that. We moved forward with a decision we are mutually unhappy about and can live with. As of today : - her 403b -> 145k - my 401k -> 136k Both allowed the Covid withdrawal. And $100,000 invested at 8% over 30 years without adding another penny to it grow to 1Million in 30 years. Off course in 30 years 1M will be nothing but security blanket and of course we will keep adding to it. So we withdrew 45k from her account and after state taxes (we did not withhold fed) comes to about ~40k and 36k from my account it comes down to about ~34k. Both will be sold at the end of the market closing today and wired to our account middle of next week. Instead of 1 account taking the hit, both accounts take a hit and we continue moving forward as a team. By beginning of New Year all debt should be paid off including the legal bills we are carrying on my brother. —> he will pay it back once he start working. I was so nervous and anxious doing this; I wanted to puke and almost said forget it and continue with the slow down paying off plan. I am going to have a major problem when it is time to retire and take money out:.. Why didn't you withhold Fed taxes? If you took out the roughly $80k, and your tax rate is 24% total, or let's say 20% Fed, you will owe $16,000 Fed taxes pre-filing deductions. My financial advisor said he recommended having 20% Fed w/h
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Deleted
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Post by Deleted on Dec 23, 2020 21:52:38 GMT -5
Thanks to everyone that help me come to C and I moved forward with that. We moved forward with a decision we are mutually unhappy about and can live with. As of today : - her 403b -> 145k - my 401k -> 136k Both allowed the Covid withdrawal. And $100,000 invested at 8% over 30 years without adding another penny to it grow to 1Million in 30 years. Off course in 30 years 1M will be nothing but security blanket and of course we will keep adding to it. So we withdrew 45k from her account and after state taxes (we did not withhold fed) comes to about ~40k and 36k from my account it comes down to about ~34k. Both will be sold at the end of the market closing today and wired to our account middle of next week. Instead of 1 account taking the hit, both accounts take a hit and we continue moving forward as a team. By beginning of New Year all debt should be paid off including the legal bills we are carrying on my brother. —> he will pay it back once he start working. I was so nervous and anxious doing this; I wanted to puke and almost said forget it and continue with the slow down paying off plan. I am going to have a major problem when it is time to retire and take money out:.. Why didn't you withhold Fed taxes? If you took out the roughly $80k, and your tax rate is 24% total, or let's say 20% Fed, you will owe $16,000 Fed taxes pre-filing deductions. My financial advisor said he recommended having 20% Fed w/h I think they can spread the federal over 3 years but maybe not the state. However, I didn't know you can withhold state taxes from withdrawals. When I did a small IRA withdrawal to paint the house in January, Vanguard didn't mention state taxes.
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jelloshots4all
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Post by jelloshots4all on Dec 26, 2020 11:38:10 GMT -5
Why didn't you withhold Fed taxes? If you took out the roughly $80k, and your tax rate is 24% total, or let's say 20% Fed, you will owe $16,000 Fed taxes pre-filing deductions. My financial advisor said he recommended having 20% Fed w/h I think they can spread the federal over 3 years but maybe not the state. However, I didn't know you can withhold state taxes from withdrawals. When I did a small IRA withdrawal to paint the house in January, Vanguard didn't mention state taxes. I did a withdrawal through my financial advisor and had them w/h state at5% and Fed at 20%. Maybe a state by state thing?
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jerseygirl
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Post by jerseygirl on Dec 26, 2020 11:44:47 GMT -5
I had both federal and NJ taxes withheld
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Post by minnesotapaintlady on Dec 28, 2020 0:15:38 GMT -5
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WannabeWealthy
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Post by WannabeWealthy on Dec 28, 2020 10:00:02 GMT -5
I was not going to post this because I know how YM gets (been there, done that, got the picture)... and still debating posting it but why not. Cannot hurt to get different opinions in there. I have to make a decision by the end of the year... what should it be? I had it all typed out to ask a friendlier/less judge crowd but since YM was my first money group and I think I can handle it : give me your best shot! ————— I need your help ... I will make a decision within the next 2 weeks; just need a nudge in deciding which way to go. The reason I am contemplating that is because a few things may or may not change in the future and want to position myself in a way I can adapt... -> we may be 2 households by the end next year. -> considering this one in a million shot at this opportunity where they consider your overall finances and debt. A) I can do nothing and continue paying $1,750-$2,000/month towards my debt till I pay it off. I can do that now but may be a stretch when I just have my income but not if I downsize or go with another plan : take on roommates. B) take out a 50k loan at 4.5% from my 401k. That will pay most of the debt off and cost me ~$900/month vs ~$1,700/month . So that offers me some flexibility finance wise, paid back max 5 years but goal would be much sooner. If one chance in a million pans off, paying the penalty + income taxes on the 50k would be worth it. C) just take the money out before the end of the year and avoid the 10% penalty under the care act. Accept I am reducing my 401k by that amount and pay myself back by being diligent and putting 1k/month into a taxable account for the next 5 years ... and continue long afterwards if feasible. ——> if one chance in a million pans out even better and continue on with above and maybe putting way more than 1k/month into taxable account and keep moving. At this current time how I feel: A) possible but don’t feel it is my best choice. I also can kiss goodbye at the chance of taking a shot at this opportunity (yes one in a million, harder than getting into Harvard but hey why not). The only silver lining to this is if we sale I can argue that the debt is “ours” and use the equity from the sale of the house to pay off the debt (or even if I just use my share of the equity that is a nice chunk). Or if we keep the house and I continue living there take on roommates that would cover a good portion of the mortgage and less for me to cover with income. ——> so to me this is the less desirable one. B) being honest with myself I know I like this option because if requires that I pay back the loan so re-instating it back to its current shape. I know I still feel bad about taking the 20k out of my HSA at the beginning of this year; I know I have 20k in an account now during nothing that I could be throwing at the debt. I have this fear that the moment I touch savings/money something will happen and I regret touching it. Will be a serious issue when I retire and no income is coming in and I have to spend down savings, I hate doing it. But if I am looking at the tree vs the branches, that 20k went to pay Medical debt I would have needed to pay anyway so really looking at the balance I was still in neutral, took 20k in savings and put it towards debt. I need to stop focusing on savings / investing and debt separately and looking at whole picture. ——> only like this idea because like I stated there is a repayment plan and the money is put back. But now if 1 chance in a million pans out, I will need to quit my current job anyway so will have to pay taxes and penalty on that money... C) I feel this is like ripping the band aid off and being done with it. I take the money out, pay the taxes on it and move forward. I free up ~$1,750-$2,000/month going towards debt and I focus on investing 1k/month (maybe more) in a taxable account and continue that God willing. —-> take on opportunity and see if it pays off and if it does, sweet. If it doesn’t I am still “liquid” enough that I can continue investing 1k/month into a taxable account (first 5 years will be as repayment for the money taken out) and hopefully continue past that as habit. Which would you pick? Sorry - I'm very late to the game.
Good luck with your decision man. It's tough juggling finances in a marriage.
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