The IRS considers Bitcoin, and all virtual currency, to be property and will tax the gains in the property whenever you sell or exchange your Bitcoin for another asset (including gold or even other virtual currency). So you will have to pay taxes on the amount the Bitcoin has increased in value since you bought it. Below are additional key tax issues related to virtual currency . . . .
Read MoreYour analysis is actually correct, in that cash flow and growth rates are constantly changing, and generally they are changing for the better. As a result, future cash flow increases at a faster rate than previously expected and the stock price is adjusted up due to these increasing cash flows. Because no one can predict the future, as new facts become apparent they changes the expectations of future cash flows. This, of course, assumes . . . .
Read MoreI generally don't advise clients to aggressively pay down their mortgage unless they have so much money in retirement assets and income that the mortgage money won't make a difference to them. Unlike what many might suggest, your mortgage does not present a risk to you and your wife during retirement. So long as you can afford to pay your monthly payment and . . . .
Read MoreWhile most people argue against the use of an IRA for purchasing a home, I think it can be a good use of the funds if the situation is right. The fact you are currently contributing to a retirement plan is one of the factors I would want to see, although I'd like to be able to calculate what your current course to retirement would look like. If you are on track with your retirement without the $14,000 then using it for a house would likely be . . . .
Read MoreGood news, there is a way to accomplish your goal. Sort of bad news, using rule 72(t) won't help and yes, withdrawals from an IRA will impact ACA tax credit eligibility. Although the strategy you've outlined won't work, you can accomplish the same goal through converting a portion of the traditional IRA to a ROTH IRA. This is done by rolling over . . . .
Read MoreCongratulations on getting your son through college and on moving forward toward your retirement. You definitely need to hit the gas on your retirement savings and it seems like you are well poised to do this. Fortunately, the money which was dedicated toward your son's college can now be focused on your retirement.
At this stage you will want to invest . . . .
Read MoreYou are correct, the rule of thumb advice doesn't really apply to you. If it is better you don't invest in the 401(k), the alternative to look at would be opening your own Individual Retirement Arrangement (IRA) account. To determine whether to invest in your 401(k) or to invest in your own IRA, ask yourself the following questions. . . .
Read MorePeer-to-peer lending would be a good strategy for diversifying a portfolio, but that doesn't necessarily mean it's right for you. The reason P2P Lending is a good diversifier is that a stock market decline won’t necessarily result in a loss in P2P loans. Instead, a P2P loan portfolio will lose value based on whether the individuals pay . . . .
Read MoreDepending on your situation and your desire, there are two broad options each with their own tax implications. The option which allows you to defer taxes on the sale is a 1031 exchange and will require you not to have access to . . . .
Read MoreIt is definitely not too early and I commend you for taking advantage of the incredible returns you can get by starting an account at one year old. I am assuming your child will not need the money for at least 18 years so a stock-heavy portfolio would be appropriate. I would even be comfortable with a 100% stock portfolio assuming . . . .
Read MoreYou seem to be doing well with your overall financial plan. So, while the financial world is confusing, you seem to be doing a good job of conquering it. The next step would be to look at your other goals and begin to prioritize . . . .
Read MoreYou have three choices for the funds in your old 401(k) plan. The two you mentioned (leaving it where it is or rolling it over to your new employer) and rolling it over to an IRA. The best option for you would depend on several . . . .
Read MoreBased on the goal of using the funds to pay off the mortgage at an unknown and flexible future date, you will want to invest the funds in a traditional taxable account. You can set one up at a discount brokerage company, with a financial adviser, . . . .
Read MoreFinding the right adviser is difficult but not impossible. You will want to research advisers and then set up appointments with at least three or four of them. An adviser should be a fiduciary, should not be a commissioned. . . .
Read MoreSomehow missed this when it came out, but happy to be quoted in U.S. News & World Report and be able to help investors understand the uses of cap-weighted and equal-weighted funds.
Read MoreWhile the specifics of your tax situation can't be determined without reviewing your tax returns, most likely you are just a victim of the marriage penalty. When two high-income people get married . . . .
Read MoreI encourage the two of you not to consider this as an either/or situation, but instead use the money to provide for multiple goals. Focus on multiple goals to help you achieve both financial stability and a happier life . . . .
Read MoreHappy to be quoted in U.S. News & World Report and be able to help investors understand the benefits and risks of investing Social Security proceeds.
Read MoreBefore we discuss the investment opportunities for paying back the loans, start by talking with a financial planning specialist to identify additional financial aid opportunities to offset the schooling costs. Although it's great you . . .
Read MoreThere is definitely a chance you filled out the tax form incorrectly. Even when using software, the chances for error are extremely high. While it is possible the foreign income could have caused a swing, it seems unlikely to . . . .
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