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
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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
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
Your children should meet all the criteria, and your income should be below the income limit threshold. The threshold is: MAGI /based [ For most AGI and MAGI are the same numbers ] $110,000 on a joint return $75,000 for an unmarried individual $55,000 for a married individual filing a separate return So if you… Continue reading Am I eligible for child tax credit.
All these years I thought that I am getting 25% of the mortgage interest back since I am in the 25% tax bracket. Not so true. I am filing jointly and my standard deduction is higher than the mortgage interest. In other words, my itemized deduction is less than the standard deduction. So I… Continue reading Am I getting part of the mortgage interest back when filing tax
Why it is important. Like your AGI, your MAGI can determine whether you qualify for certain tax benefits. One of the most popular is the ability to deduct your IRA contributions on your tax return. However, you may not qualify for that deduction if your MAGI is above a certain level. Your MAGI differs from… Continue reading Modified Adjusted Gross Income (MAGI)
Why it is important. Your AGI is the basis for several tax thresholds. Determining whether you qualify for certain tax credits Determining whether you can deduct medical expense Your state tax is based on this number. The first step is to find out your Taxable income. You can find this number in box#1 on your W2… Continue reading How to calculate Adjusted gross income [AGI]
Gross Pay - nontaxable wages [ HSA, Medical premium, Dental premium, uniform allowance] - Tax deferred wages [ Traditional retirement plan] Example Gross pay 3,000 Non taxable wages 200 [HSA] + 150 [Medical] + 50 [ Dental] + 10 [ Uniform allowance] Tax-deferred wages 500 [… Continue reading How to calculate taxable wages [Box 1 on W-2]
Effect of Modified AGI on Deductible Contributions If You ARE Covered by a Retirement Plan at Work. https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work Effect of Modified AGI on Deductible Contributions if You are NOT Covered by a Retirement Plan at Work https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-retirement-plan-at-work Note The best way to reduce your AGI is making max contributions to employer-based retirement plans and contributing… Continue reading 2018 IRA Contribution and Deduction Limits –
1 Effect of Modified AGI on Deduction if You Are Covered by a Retirement Plan at Work https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work 2 Effect of Modified AGI on Deduction if You Are NOT Covered by a Retirement Plan at Work https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work Best book to read before you start investing. The Simple Path to Wealth: Your roadmap to financial independence… Continue reading 2017 IRA Contribution and Deduction Limits