Looking for some financial investment advice

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You have to be at a million plus. Otherwise the costs of the avoidance is more than saving in taxes. Sorry he needs to make more to avoid taxes.

He he he. I'll let him know

I don't know if the $85k is the exact final number. I just plugged his numbers into one of the online calculators. But really, there's nothing there. Straight salary less 401k, a few thousand in charitable donations., add interest from the savings account and that's about it. I'm guessing it's not that far off. But it would be nice if I was doing something wrong.

What about deductions for state income and property taxes?

Yes you're right. I do need to plug in his state and local taxes. But ummm, property tax on his house.....it's negligible.

Really? We pay almost $10K in taxes on a $700K house in Fairfax county.

[Anonymous]

It's a 2Bd/1Ba house in Wheaton, and he inherited it. The tax assessment is probably next to nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You have to be at a million plus. Otherwise the costs of the avoidance is more than saving in taxes. Sorry he needs to make more to avoid taxes.

He he he. I'll let him know

I don't know if the $85k is the exact final number. I just plugged his numbers into one of the online calculators. But really, there's nothing there. Straight salary less 401k, a few thousand in charitable donations., add interest from the savings account and that's about it. I'm guessing it's not that far off. But it would be nice if I was doing something wrong.

What about deductions for state income and property taxes?

Yes you're right. I do need to plug in his state and local taxes. But ummm, property tax on his house.....it's negligible.

Really? We pay almost $10K in taxes on a $700K house in Fairfax county.

$3600/year. It's a small house...2bed/1bath in what many people on DCUM consider the worst area in Montgomery County to live.

[Anonymous]

OP, most people who are making at least $100k are paying a mortgage, and he is just taking the standard deduction and not deducting any mortgage at all. Our mortage deduction was like $25-35k last year, it was absolutely our biggest tax savings, and we don't have a big house.

I would have him consult with a tax planner or financial planner. go to napfa.org and find a fee-only planner and can get some wealth planning advice. For $300k a year and no mortage I would do this immediately.

Also, how stable is that income? How's his retirement savings? Does he have long term care insurance? Long term disability? Those are things I would be more worried about.