The Everyday Investor

Buy House or Payoff Student Loan

My goal is to save about $60k for a down payment on a condo in FLL. I also have about the same amount, $60k, left to pay on my student loan. I’ve been going back and forth with which goal I should attack first. On one hand, I want to make the purchase in Florida before home prices rise too much higher, and before interest rates rise too much higher as well. Moving to Florida will also save me a large chunk of cash monthly […]
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Withdrawing Money from an IRA

Question: I have a roll-over IRA which holds >$100K and would like to withdraw some of it to buy a new home. I am also collecting Soc. Sec. and wish to understand the possible tax consequences of such a withdrawal. Answer: Over the age of 59 1/2, withdrawals from IRAs are taxed at your standard income rate. If your only income is social security, your taxable rate could be low, as your SS is probably not taxed. If you have other sources of income then you […]
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Giving to Your Children

Can a husband and wife give their daughter and son-in-law separate cash gifts?. Suchas; 14K from the wife and another 14K from the husband to each of the newlyweds, totaling 28K to each for a total of 56K as a couple? Yes. You are allowed to give $14,000 to any individual per year without having to worry about the gift tax. Married couples can combine this annual exclusion to jointly give $28,000, tax-free. For example, a couple with an adult child who is married and […]
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Foreign Currency Tax Question

I’ve been into a foreign currency investment for less than one year and I’m trying to prepare for exchanging currency at the bank. I’m trying to find out about tax obligations, legal forms, and the best way to deposit the initial funds (into different banks or different accounts). In addition to tax prep advice, I would also be interested in investment advice assuming this investment pays off. Thank you Money made on currency exchange is taxable at capital gains rates above $200. Maybe 15% depending on […]
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Tax Deductiable Tuition?

I would like to pay for my 5 year old granddaughter’s tuition to go to a private school is that tax deductible? Private schools K – 12 are not tax deductible.
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Tax on Capital Gains and 1st Home Purchase

I sold shares of a mutual fund & other stocks in order to pay a down payment on a first time home purchase. Do I still have to pay capital gains tax on those investments even though the $$$ was invested straight into a home?
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Contributing to an IRA

Hello Casey, a couple of quick questions for you.  If I contribute to our work 401k can I still contribute to an IRA?  I have 2 other IRAs, one with Schwab and Vanguard.  Ok now for my 2nd question, does the 5000$ limit for IRAs apply as a group limit or can you contribute 5000$ say to two IRAs for a total of 10000$ in two different IRAs? Thanks and have a good day, I enjoyed the seminar!
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The Burden of Debt

If interest rates are too high such as to make your minimum payments too onerous to allow much wiggle room, do not be shy about calling the debt provider to ask for a reduction in the rate. They don’t have to honor your request, but it doesn’t hurt to ask.
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401k Loan Question

Hi Casey – I didnt want to take up your time but im having a question im trying to answer. Home refinancing now is looking like a great option. I have an FHA, but im over the 80% ltv and pay pmi. Thinking about our career in the near future and that jobs may be available to move on, I might start searching. BUT.. my house payment is high to start somewhere new at newhire pay and im trying to get that down through refinanancing. but […]
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How to Diversify Away From the Falling Dollar

Hey Casey-I’ve attended your last 2 retirement [Atlantic Southeast Airlines Pilot] seminars – thanks for holding them – I’ve learned a lot. Anyway, curious with the new brokerage account option, wondering if there’s a way to get out of dollars and in to a foreign currency? Thanks!    Lisa. Hi Lisa, Yes. You can purchase a foreign currency ETF inside the Atlantic Southeast Airlines brokerage link. The issue I have with this is that you do not actually hold foreign currency, but futures contracts. There are some […]
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