Tax D​eduction VS Tax Credit

Most of us are confused about these two terms.  I was.....Here is a link to visual illustration to explain the differences. Tax deduction vs tax credit In the above example, I calculated tax based on "Married filing jointly status"      Most common tax credits Earned Income Tax Credit American Opportunity Tax Credit Child and Dependent… Continue reading Tax D​eduction VS Tax Credit


IRA Limits and Eligibility 2018

IRA Limit  for  55 and younger  5,500 IRA limit for 55 and older     6,500 Three kinds of IRA to choose from, based on your eligibility. 1  ROTH IRA    [No immediate tax benafit] Contribution faces out after AGI 189,000 for married filing jointly and can't contribute if AGI is more than 199,000. Contribution… Continue reading IRA Limits and Eligibility 2018


Should I​​ Pay 2018 Property Tax Now

If your 2018 property taxes are assessed, then paying those before 12/31 will let you deduct that amount when filing taxes in 2017. If you wait until next year, then you may not be able to deduct it as your standard deduction is going to be way higher by then. For example, if you owe 5,000… Continue reading Should I​​ Pay 2018 Property Tax Now


Number one reason to keep your money in TSP

Tsp charges you very lower fees compared to any other investment firm. Higher expenses are a massive drag on your investment return. Here is an example Let's assume that you have 250000 invested, adding 18000 yearly and expecting an 8% gain. Tsp charges you 0.038 % of your account balance/year while the other firm charges you… Continue reading Number one reason to keep your money in TSP


Why I like vanguard balanced fund VWIAX

It handled the 2001 and 2007 crash very well Even though it has increased % of bonds. It performed better than other funds with a much lower bond ratio. It is ideal if you are beginning to invest when the market is very high. Lower fees for an actively managed fund. Steady returns. Survived two major… Continue reading Why I like vanguard balanced fund VWIAX


Tool to calculate total ER of a portfolio

You may have multiple mutual funds with various ER in your portfolio. For example,  you may have VTSAX at 0.05 ER that holds 68% and VGTSX at 0.18 ER that holds 32% of the portfolio. Calculating total ER for your portfolio is made easy with this online tool. Here is the link to the online… Continue reading Tool to calculate total ER of a portfolio


Backtesting​ Portfolio

I found a great tool to understand investment performance This will give you a clear picture of past performance. This tool will give you an idea what a 4% rule can do for your portfolio. It gives you a clear visual understanding and helps you make right decisions based on your situations. Here is the… Continue reading Backtesting​ Portfolio

Investing, Tax

Finance calculators

Finance Calculators 1  Expense ratio effect calculator.  Don't forget this is Huge. 2 Investment Calculator. Find out what your money can earn 3 Global Rich List. Find out where you stand financially 4 RMD Calculator. 5 Quick tax estimate 6 AGI calculator.  You need this number to determine your eligibility… Continue reading Finance calculators