Dixie, I have a finance degree, but am NOT a financial advisor. With that established, here are a few things. Don't assign that income to you. Keep it off of your ssn. I have no idea where the dollars originate, but get a cpa and make a company to book the cash. Buy your car from yourself, incur start up costs that move your assets off of you and into your company. $100k will sink in pretty fast, but if you are having trouble, grab an undervalued property somewhere for the myriad tax advantages. Get a good cpa. That is the wrong place to go cheap, man. Good luck.
Well, here is the good news. Assuming this is cash inheritance, via life insurance or otherwise, there is no federal inheritance tax and Texas has no state inheritance tax. Also, the federal estate tax exemption is over $5MM and Texas has no state estate tax. Inheritance isn't considered income for tax return purposes, so you wouldn't be paying tax on any of it in that regard. If its some sort of asset, you would have to worry about capital gains tax if it appreciates in value from when you receive it to when you may sell it. Hope that helps.
I'm a financial advisor and former estate planning (among other much more boring topics as well) lawyer. Which, paradoxically, means I'm more limited in what I can say in a forum. But, generally, the first question is actually what is your intended or preferred use for the money? Is it money you want to use immediately for various purposes or sock away for some future thing our things? Second question is where is the money coming from? From there we can start to narrow down options. Feel free to pm for more in depth if you like.
Well, I was planning on spending it all on scratch-off lottery tickets and doubling my money, but your plan sounds pretty solid from a tax standpoint. All levity aside, yeah, it's because of my dad. He's getting pretty bad now. I'd guess he's got another few weeks in him, based on how my mom was when her cancer was progressing. I read about this, but never had any money to shelter. If it can benefit me, I'll try it. I was also worried about how it would affect my tax position. There are definitely a few things that I'd use it for immediately (Ex: tools I need for my job), but for the most part I wouldn't touch the bulk of it.
Can you narrow down how much to use immediately vs. the future? Obviously it's kind of a rough guess, but it'll help. Also, when you say you won't touch the bulk of it, what is the desired goal for that chunk? If you're saving it for the future, what are you saving it for?
I'd guess I'd set aside about $10K to use immediately. I have no clue what I'd use it for in the future; this may surprise you, but I'm pretty bad with money. Do you have any suggestions (and NO, I am not giving you a $90K loan.). Mainly, I'd try to not touch it, and probably put it in some kind of interest bearing account. I'd definitely set aside some of it for Li'l Bandit.
We're running pretty close to the limit of where I can go in a public (or vaguely public) arena before hitting compliance issues vs. having a private conversation. But these are the kinds of questions that you have to give some solid consideration to. In general, there's no truly free lunch when it comes to money strategies. You have liquidity and taxes and risk, etc etc and you usually don't get to have the best of all possible worlds on every axis of consideration. So you have to think about what does and doesn't matter to you. The more focused or less liquid, typically the more you can get away with. So if you know X amount of money is for Y specific thing, you can often avoid ABC problem if you're willing to commit the money to that goal and not have it usable for anything else. Which is vague, I know. As a generic example of the concept (not necessarily applicable to your situation, just about money strategies in general), if you put money into a 401k you are trading liquidity for tax advantage, essentially focusing money towards retirement years and nothing else and thus mitigating the problem of taxation (though not entirely) while accepting that if you use the money early you may suffer penalties. Anyway, all of which is to say that that's why I ask about goals and desires first. Things you'll need for real planning: Financial advisor CPA Probably an attorney (business formation, estate planning, and/or real estate depending on what strategy the other two devise) And the real strategy will require an in depth discussion and fact finding meeting. tldr: Unless 100k is chump change to you, this isn't the place to get a real answer, but can be a place to get questions to ask actual advisors.
It is tax time in the US, and it seems an apporpriate time to urge people to be wise with their pending tax refunds. OK, old guys like me break even or maybe even owe money, but for our members that get a nice lump of cash back from the USG this year, I have two things to offer. 1) Next year, aim for $0! Why give anyone a zero interest loan of your money? Correct that W4. 2) Since you have some funds heading in anyway, do something smart with them. I was given an idea a long time ago that definitely works, and I pass it on to you right here. Use your refund to pay the back taxes on a worthwhile, tax delinquent property in your county. It is easy to do, helps the community. At the end of the redemption period, you will either be paid back your cash plus 18% interest, or you will own a property for very little money. Do a little research, it is not difficult. Get thinking long term, there are tons of tax reasons to add a rental property to your holdings every year.....this could be that add, for pennies on the dollar. However it goes for each of you, best of luck to us all this tax season!
I've got just over 10k in interest on the house this year so I'm pretty stoked about that. Now if my insurance carrier would send me the damn 1095 I could drop off my taxes at the CPA.
Is anyone here familiar with Legg Mason and any of their products and services? They recently became partners with my payroll company and are lobbying hard to get our business.
Can you elaborate on this a little more? I remember reading about that delinquent tax deal back when I was in prison, and it seemed like a good deal. But how long will it take to collect? What if you end up stuck with a property that you don't want, or can't afford to keep, and you can't unload it. I'm VERY curious about this.
Dont waste your time. Lots of people do this, and local and state real estate laws may fuck you out of it. If you have $10K kicking around, put some in an emergency fund, pay off any debt you have, and put the rest of it (if theres a few grand left) into a Roth IRA or an index fund and let it grow over time or something. If you use it for a get-rich-quick scheme, youre going to lose it all. The house flipping and real estate tax lien market is mature and over-saturated.
I owe this year for the first time in awhile, and the reason is fucking annoying. I switched jobs in Mar of 2016 and made a significant jump in salary which actually moved me up a tax bracket. Hooray right? Too bad everything I earned up till that point in the year, including my bonus from 2015 which was paid and taxed in 2016, is thus under taxed based on the new bracket. I get that they take your total annual earnings into consideration for your bracket, but it still feels like im getting fucked for success.
Anyone else been following the thread on /r/wallstreetbets where the guy sank his entire IRA ($120K) into the Rite Aid / Walgreens merger to only have it completely fall apart? Its a complete trainwreck.
Yeah, saw that... he lost about $30k and seems to be brushing it off. No suicide watch, no public freakout... just a positive outlook. Mind you, he could be doing some serious overcompensating and is now in his shower in the fetal position, for all we know.
He's trying to save face. That community is pretty ruthless and he was a little arrogant going into it. The tag line for the sub is pretty apt, "If 4chan found a terminal."
I thought why not? At least I realised sooner rather than later that I was out of my depth, despite getting an "advisor". It's fine. He was likely just scamming me with shit signals until my money ran out. Only did 4 trades, 4th one still active and losing so closing the account on Friday still with 2/3 of what I started with (i.e. not all my money, I'm not that big of an idiot). You live, you fail, that's about it. However, it just confirms for me that life is shit, then you die.
Oh please... give your fucking head a shake. Why would you have any reasonable expectation of being able to successfully trade FOREX? That's like saying, "hmmm... don't know fuck all about biology, but I might as well go and perform open heart surgery, because why not?" And then you get all fucking morose when the patient dies, because you'd rather believe that your lot in life is to be a loser... not because you were just fucking stupid to try it in the first place. Know your strengths, and work with them. If you want to be strong in something, then don't just flail about in the deep end, take the time to train at being strong in it, and work your way up gradually. You're doing nobody a favour by playing at being the world's biggest victim. You're not stupid, so don't act it.