How do you decrease your taxable income to stay on certain bracket? 401k, What’s else?
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Seems somewhat fitting to ask in this bowl. Has anybody experienced Chapter 13 Bankruptcy? I’m exploring the option to get a fresh restart on bills that got the better of me but am scared to actually do it. I know I’m in too deep and want to do this before I actually do get behind on bills. Any real advice from someone that had to do it? I’m fully recognizing this is my own fault and I’m already embarrassed about it, so keep judgment to a minimum even though I’m judging myself.
Since my last post, NW has gone up around $600k due to the market. My partner and I are 30 years old and want to retire ASAP, but the high TC in SF tech are like golden handcuffs. We estimate we’ll save $300k-$500k a year post-tax and all expenses, and more if tech stock goes up. BUT, AI wealth is highly concentrated in our area and we’re worried if we quit we will fall behind compared to the 20 somethings AI techies at OpenAI/Anthropic. How are people here retiring early given AI uncertainty?
Question for Finance Professionals What’s one financial metric that you believe investors and business owners should pay more attention to? I’m collecting insights from professionals across the industry and would be interested in continuing the discussion through a short Zoom or Google Meet call with those who are open to networking and sharing perspectives. Feel free to comment or DM.
New to the U.S. and want to be sure I am doing everything correctly - 30y, married, planning on buying a house in 8 month-ish, credit score +720, salary 160k + bonus Cash savings that will go towards the house ca $200k Maximizing my IRA with Vanguard 401k - 10% Brokerage accounts with Vanguard (VTI and QQQM - $3k every month) Emergency fund $27k in a high yield account Is my 401k contribution low? I am working on increasing my credit score in parallel (any tips are welcomed)
HSA and IRA are options.
IRA traditional or Roth?
Traditional, if you want to reduce taxable income. Roth IRA and 401k don’t reduce income now but are tax free later
529, but only on state level and selected states. funnel some money to your business, even a small one and tag as biz expense. charitable contributions.
HSA, Limited FSA
Capital losses can deduct up to $3k from income I believe
@QT1 does RH send those capital loss information?
Im afraid i dont use RH!
Besides all the pre-tax accounts, everything on a Schedule A will reduce taxable income. But why do you care what bracket you're in? Tax brackets are marginal, so you pay the higher tax rate only on income within that bracket.