Liquidating ira

Does Everyone Need an Traditional Savings Account?

2020.11.23 20:26 GeeKay123 Does Everyone Need an Traditional Savings Account?

First-time posting, so thank you all in advance for reading and posting any responses.
I am a 23-year-old working in the bay area, making enough money to support my monthly living and personal expenses. I work in finance (small investment bank), but have only really become familiar with personal finance matters over the past year, from understanding the differences between the variety of tax-deferred savings accounts, how to think about long-term budgeting / saving, etc.
I guess my question here is: what are the advantages for continually contributing to a less liquid Roth IRA account vs. something more liquid, but with a similar low-risk, passive investment profile? I currently make monthly contributions to both my Roth IRA and Wealthfront accounts, and wonder why I do not just only contribute to Wealthfront + maybe an additional passive portfolio like this.
It just seems as though the entire structure of Roth IRA / 401k savings accounts are to try and limit withdrawals and ensure the average individual, who may or may not be very financially savvy, will be able to retire comfortably and not risk losing money that they cannot easily access. That being said, if I believe I can be very financially disciplined moving forward, I find it hard to rationalize why I would just lock my money up in traditional savings accounts vs. something that offers much more flexibility. Also, my employer does NOT match, so makes me question it even more.
Again, I do not know everything, and very much welcome any responses that can help me think about this more. Thank you!
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2020.11.22 15:10 macabre_trout I am 38 years old, make $57,000, live in New Orleans, LA, and work as an assistant professor.

(Warning: this is boooooooooring. You'll see a lot more of my boring quarantine routine than any money I spend.)
Section One: Assets and Debt
Retirement Balance (and how you got there) - $230,000. I’ve been saving for retirement since I got my first post-college job at 21, so I have several 401(k)s, 403(b)s, and a Roth IRA.
Savings account balance - $26,000
Checking account balance - $2500
Credit card debt (and how you accumulated it) – $0. I have never carried any credit card debt, and I know I’m lucky that I never had to.
Student loan debt (for what degree) - $0. I had $61,000 total in student loan debt from undergrad and grad school, but I used the snowball method to pay off my undergrad loans when I was 28, and (I kid you not) won enough money on a game show to pay off my grad school loans a few years later.
Section Two: Income
Income Progression: I've been working in higher education for 13 years, and my starting salary was $38,000. When I switched jobs two years ago, it got bumped up to $45,000. I started out after college working as a microbiology laboratory technician making around $34,000 a year, but started teaching at the college level after I got my master’s degree because I was tired of laboratory work.
Main Job Monthly Take Home:
$2274. I make a little extra each month on top of my base salary because I teach one overload class every semester.
Deductions:
Health Insurance - $158
Dental Insurance - $4
403(b) contribution - $519 (this is 15% of my pre-tax income; my job matches 6%)
Federal w/h - $262
OASDI - $214
Medicare - $50
Louisiana w/h - $96
Side Gig Monthly Take Home
I have a side gig teaching online ESL classes with a Chinese company. My pre-tax take-home income from that job varies between $600-1100 per month, depending on how many slots I open on my schedule and how many parents book my classes. I usually average around $850 per month pre-tax. I haven’t had to file taxes yet on this income because I’ve only been doing it since the beginning of the year, but the company advises that you reserve 30% of your pre-tax income for taxes. That would leave me with around $600 post-tax per month.
Section Three: Expenses
Housing expenses - I have no housing costs, because my boyfriend paid cash for a Katrina-flooded house in 2006 and had fixed it up by the time I moved in with him in 2018. He pays the property taxes and homeowners insurance, and I don’t know how much they are.
Retirement contribution – I’ve already contributed the full amount for my Roth IRA this year, but it averages $500 a month.
Savings contribution – I have an online high-yield savings account and since the pandemic started, I’ve been contributing $2000 per month because I’m not spending a lot of money right now.
Investment contribution – I don’t have a separate investment account, only my retirement accounts.
Debt payments – None.
Donations – this makes me feel terrible, but I’m not donating any of my money right now. My whole industry is on shaky ground right now and I teach at a college with a small enrollment, so I’m trying to save as much as I can in case I get laid off next year, due to lower enrollment because of the pandemic. I do contribute a few cans of food and some toiletries every month to our neighborhood Little Free Pantry.
Electric – my boyfriend pays this, and I don’t know how much it usually is.
Wi-Fi/Cable/Landline - $65 for Internet. We don’t have cable or a landline.
Cellphone - $43
Subscriptions – None.
Gym membership – None. I take walks around my neighborhood instead.
Pet expenses – My boyfriend and I split pet expenses for our three cats. I usually spend around $60 per month on food, medication for our cat who has skin allergies, and flea treatments.
Car payment / insurance – I paid cash for my car last year so I don’t have a car payment, and my car insurance is around $80 per month.
Paid hobbies – I love to make handicrafts, and I spend around $20 per month on cross-stitch/knitting/macramé/beading supplies.
Gas - $10 a month. I barely leave the house these days due to the pandemic, so I’m spending a lot less on gas right now.
Long-term disability insurance - $61. I had a health scare in my early 30s where I developed vestibular neuritis, a mild form of vertigo, for almost two years after a nasty upper respiratory infection. I was lucky that I was never sick enough to have to stop working, but I’ve paid for disability insurance ever since I recovered, because I know how quickly sickness and accidents can happen. I have short-term disability insurance, life insurance, and hospitalization insurance free through my work, so I don’t pay for separate policies for those.
Food - $600/month. I paid $90 for a yearly Shipt subscription when the pandemic started, because my boyfriend is diabetic and I’d never forgive myself if I spread the virus to him. I really appreciate our delivery guy doing this for us and I tip him well! I cook most of our meals and pay for take-out once or twice a month.
WateTrash - $100/month. Our local water utility is a hot mess and our usage is rarely calculated correctly, but this is the average.
Wednesday
5:30 – I wake up to feed my cats and prepare for my four ESL classes this morning.
6:00 – I teach a class to one of my favorite students, a thirteen-year-old girl who loves telling me about her pet birds and the fun things she and her friends do at school.
6:30 – I teach a class to a twelve-year-old boy who is a VERY good student and laughs at all my stupid jokes. He’s one of my favorites too.
7:00 – I teach a class to an eight-year-old girl who used to be one of my favorites, but she’s been really bored with the material lately and has been misbehaving a bit on camera. Luckily today she’s fairly well-behaved today and participates for the most part.
7:30 – I teach a class to my absolute favorite student, a twelve-year old who speaks great English and thinks I hung the moon for some reason. My face hurts every time I end class because I smile so much when I teach her!
8:00 – I eat breakfast: cereal with almond milk, cottage cheese, a clementine, a can of V8, and coffee.
9:00 – It’s raining pretty hard today so I stay inside and snuggle my most affectionate cat while I waste time on my phone. I tidy up the house and make the beds after my cat has had enough of me.
11:00 – I make lunch. I eat leftover homemade guacamole with Costco tortilla chips, leftover Korean-style ground beef over rice with some sriracha on top, and a bottle of Costco kombucha to drink.
12:00 – I teach my first college class of the day via Zoom. The enrollment is officially 17 students, but I don’t require that they attend the Zoom class because everything is basically on fire right now, and a lot of students are working and/or helping their kids with online school. I usually have a handful of students show up, and I record the class and post it online for anyone who can’t make it to class. Today I only have two students, but they’re great and class goes quickly. I remind them about their chapter assignments that are due on Monday evening.
1:30 – I teach my second college class via Zoom. This class is a smaller 400-level class and the students ALWAYS attend unless there’s an emergency. They’re a terrific group of students, and this class is on the subject that I specialized in for my master’s degree, so I always have good stories and terrible jokes to tell about the material. It’s a lot of fun for me to talk about! My students have an online exam next Monday, so I prep them for that as well and answer their questions.
3:00 – I wait for the Zoom classes to convert to .mp4 files and post them on our classes’ Canvas websites (this is the online learning management system that my school uses).
3:30 – Our municipal recycling company doesn’t accept glass in their bins, so I drive our empty glass bottles to a local nonprofit’s weekly glass collection (they crush it and make sand for coastal restoration – pretty cool). I also take a book back to the neighborhood library. Last month I got two traffic tickets in school zones while I was making this same run and had to pay $220, so I drive veeeerrryyyy slowly today and really watch for the school zone signs.
5:00 – I eat dinner: leftover meatloaf and mashed potatoes from last night. My boyfriend usually doesn’t like to eat leftovers so it’s ALL FOR ME, yum!
6:00 – My boyfriend comes home from work and just grabs a snack because he ate a big lunch at work.
7:00 – We cuddle on the couch and watch a movie together.
9:00 – I read the news on my phone before I zonk out around 9:30 pm.
Daily expenses: $0
Thursday
5:30 – I wake up to feed my cats and teach one ESL class to an absolutely adorable five-year-old girl.
6:30 – I wake up my boyfriend for work - he’s an essential worker in the shipping industry and has had to go to work through the whole pandemic. I eat the same breakfast as yesterday: cereal with almond milk, cottage cheese, a clementine, a can of V8, and coffee.
8:00 – I take a long walk around our neighborhood and nerd out at the beautiful architecture of the houses on a ritzy street near my not-so-ritzy street. I have a deep love of architecture and design, and am lucky to live in one of the most beautiful and unique cities in the US (and, I think, the world). Living in New Orleans is a treat for all of the senses.
10:00 – I tidy up the house, make the beds, and do my laundry. I’m fussy about the detergent and washing requirements for my clothes, so I always do my laundry and my boyfriend’s laundry separately.
11:30 – I eat lunch: a ham and turkey sandwich, a piece of cheese from Costco, and a bottle of kombucha.
12:00 – I have online office hours via Zoom for three hours. No one ever shows up, so I use the time to grade assignments and answer e-mails. I got a few new advisees this semester, so I’m helping them pick their classes for the upcoming spring and summer semesters.
3:30 – I char corn tortillas and cook turkey taco meat for dinner.
4:00 – The mail comes and I get a package – a shirt I ordered from Poshmark last week. I discovered Poshmark last year and I absolutely love it! I don’t buy clothes from there very often, but if I do it’s usually not too much, maybe $25 at a time. This particular shirt cost $21 but retails at $60, so I got a great deal for a barely-used piece of clothing.
4:30 – My boyfriend hasn’t come home from work yet and I’m hungry, so I make myself dinner: four turkey tacos.
5:30 – My boyfriend comes home from work and makes himself nachos with the taco meat, and we sit at the dinner table and talk about our day.
6:00 – I took part in a COVID vaccine study two months ago and I have to log my symptoms twice a week in a study app, so the researchers can monitor if there’s a difference in COVID rates between people who got the experimental vaccine and people who received a placebo. I’ve been just fine for the past few days, so I log that in the app.
6:30 – I read a book I picked up from our neighborhood Little Free Library until bedtime.
9:00 – Bedtime! One of our cats comes in to get nighttime scritches, and my boyfriend crawls in a bit later when he finishes the movie he was watching.
Daily expenses: $0
Friday
5:30 – My alarm goes off, I feed my cats, and I check my phone and see that my first ESL student of the day cancelled today’s class, but I still get paid because they cancelled less than 24 hours before class. He’s a really nice little boy and I enjoy teaching him, but I’ll take it!
6:00 – I wake up my boyfriend and make the same breakfast as yesterday: cereal with almond milk, cottage cheese, a clementine, a can of V8, and coffee. I also eat a few pieces of turkey sausage because I’m a little hungrier than usual this morning and need the protein.
6:30- I teach my second ESL class to a twelve-year-old kid who is always tired and kind of lazy, but speaks good English and usually does a pretty good job in class.
9:00 – I do my boyfriend’s laundry, make the beds, and tidy up and sweep the house. How do we have so much HAIR on the floor? Oh, right, three cats and a long-haired human.
11:30 – I fix a snack plate for lunch that has almonds, cheese, hummus, crackers, and a clementine on it, and I have kombucha to drink.
12:00 – I attend a college department meeting via Zoom. It’s pretty boring, but it’s nice to see everyone’s faces again.
12:30 – During my meeting, I sneak online and buy a 2021 refill for my Day-Timer planner. I’m old school and still use a paper planner, and I’ve used the same kind since 2000, when I was in college! If it ain’t broke, don’t fix it… Cost = $25.93
1:00 – I attend a meeting for professors who have dual enrollees (high school students who are taking classes with us for college credit) via Zoom. The students are doing very well in spite of COVID, which really cheers me up to hear.
3:30 – I eat a homemade peach yogurt popsicle for a snack. Homemade popsicles have been a new obsession during quarantine, and this is one of my favorites – it’s just peach preserves mixed with Greek yogurt and a little water.
5:30 – I make leftover turkey tacos for dinner and eat a piece of leftover Halloween candy for dessert.
8:00 – I teach another ESL class (I teach in the evenings on Fridays and Saturdays). The little girl is… something else, but she kisses the camera when I tell her good-bye, which is adorable.
8:30 – I read some of my book and conk out around 9:30.
Daily expenses: $25.93
Saturday
5:30 – I wake up to feed my cats and prepare for an ESL class.
6:00 – I teach a class to a really fun and smart eight-year-old boy. His mom has booked me for more classes in the coming weeks, yay!
6:30 – I eat pretty much the same breakfast as before: cereal with almond milk, cottage cheese, a clementine, and coffee. I’m so predictable.
10:00 – My boyfriend and I go to a socially-distanced used book sale that we sometimes visit on Saturdays. I pick out three books to send to my parents, who are trying to stay sane in virus-infested Michigan right now. My boyfriend pays for them and buys a few DVDs for himself too.
11:00 – We get take-out lunch from a local cheese shop. My boyfriend pays for this as well – he gets a turkey sandwich and I get a salad and a cheese plate.
1:00 – I’m running low on hydrocolloid patches for pimples, so I go to the Walgreens website and order three packs of them (there’s a buy-two-get-one-free sale), along with tampons, pads, rosehip oil for my rosacea, and a honey shampoo to try out on my dry, wavy hair. Cost = $42.60
1:30 – About once a month I upload a bunch of pictures of me, my boyfriend, and our cats to my Snapfish account and send my parents the prints. They don’t use social media or smartphones, so this is an easy way to show them what’s going on in our lives. (Admittedly, not much these days.) Cost = $3.39
2:30 – I’ve been wanting a linen duvet cover for the longest time, and Ikea FINALLY has the one I want in stock. I buy one along with the lightest king-sized down comforter they offer, and some cooking tools for our upcoming Thanksgiving dinner as well. This will be the first Thanksgiving dinner I’ve ever cooked, and I want it to turn out well for the two of us! Cost = $256.53
2:45 – I got paid yesterday, so I transfer $1000 into my online high-yield savings account. It hasn’t been yielding a whole lot this year since interest rates were cut, but I’ll take what I can get at this point.
3:30 – My other shirt from Poshmark arrived that I ordered last week! Now I’m set for fall and don’t have to buy any more clothes for a while.
4:00 – I do a little college schoolwork online – grading and doing prep work for a new course I’m developing and will be teaching in the spring. First off I have to figure out what assessments to give the students, and then I’ll start writing the PowerPoints and quizzes/exams. I’m co-teaching it with a colleague, so I send her an e-mail as well about it.
5:30 – I’m still pretty full from lunch so I just eat some crackers and hummus and a clementine for dinner, plus kombucha to drink.
6:30 – I teach three ESL classes back-to-back to three regular students who always book classes on Saturday night. My butt is sore by the end of it!
8:00 – Bedtime, yay! I have to get up really early tomorrow for more ESL classes.
Daily expenses: $302.52
Sunday
4:30 – This is waaaay too early to be up. I only have to get up so early because of the time change, and I have three regular ESL students who have been booking the same timeslots every Sunday for months. At least they’re all good kids.
5:00 – I teach my most faithful regular student, a nine-year-old girl who’s been taking my classes the whole year.
6:00 – One of my students canceled and I get paid anyway! This is the second time this week it’s happened, which is pretty rare. I go back to bed and read for a half hour instead.
6:30 – I teach a seven-year-old girl who is more interested in playing with toys at her desk than participating, but hey, I get paid either way!
7:00 – Same breakfast: cereal with almond milk, cottage cheese, a clementine, and coffee. Boooooring.
10:00 – I grade assignments for my online college courses – my students turn them in on Saturday, so I usually take a big chunk of time on Sunday morning/afternoon to grade them all at once.
12:00 – I eat the rest of the cheese plate from yesterday for lunch with some crackers and kombucha.
12:30 – I review my notes for tomorrow’s college class. Luckily I’m only teaching one class tomorrow because of the online exam in my second class.
2:30 – I haven’t started a craft project in the past few weeks, so I start a HUGE Frank Lloyd Wright cross-stitch that I’d like to frame and put up in our entryway if it turns out nicely. I have all the supplies already, but later on I may have to buy some more embroidery floss. I watch Lucy Worsley English history documentaries on YouTube as I stitch, because, well, I’m a nerd.
5:00 – I eat the rest of the leftover turkey tacos and have a can of La Croix with them.
6:00 – I tuck in early and read the news on my phone for a couple hours before conking out around 8:30. Good night!
Daily expenses: $0
Monday
5:30 – I wake up to feed the cats and teach two ESL classes.
6:00 – My first ESL class has some technical problems but we manage to get everything completed. I’ve been noticing a few problems crop up here and there with the desktop app I use and wonder if the company should update its software.
6:30 – My second ESL class is with a total spaz of a five-year-old boy who keeps getting up and running around the room because he’s so excited. Luckily his mom is there to rein him in and help him repeat the new vocabulary.
7:00 – I have to clean up cat barf because one of my cats yacked in the hallway. I think I know which one it is because he hangs out at the other end of the hallway watching me clean up the whole time! Gross.
7:30 – I eat breakfast: same as yesterday, but with turkey bacon added. This is what passes for excitement in my life these days.
8:00 – I order a Shipt grocery delivery. Since quarantine started in March, I have this down to a science and place two big orders a month, one during the first week of the month and the other during the third week of the month. I usually get the same shopper every time and he knows my substitutions by now, and all in all it’s been a good experience. I order a little more food than usual this time because I’m stocking up for Thanksgiving next week, and I order a big box of canned cat food as well. Cost = $198.15
10:30 – My Shipt order arrives and I hurry to put everything away.
11:30 – Lunchtime! I make a snack plate with salami, cheese, a clementine, and a bag of Zapp’s, and have kombucha to drink.
12:00 – I teach my college class via Zoom. I last about an hour before my voice gives out and I end class a little early.
2:30 – While I wait for the students in my second class of the day to finish taking their online exam, I go on 1800PetMeds to buy allergy medication for my cat since we’re down to one last vial. Cost = $52.38
4:00 – I make dinner – ground beef stew with the groceries I got today. We had a cold front come through yesterday and it’s FINALLY cool enough to justify eating this!
6:00 – My boyfriend comes home and has a bowl of beef stew while we bitch about people not respecting public health guidelines during COVID.
7:00 – I read in bed while my boyfriend watches a movie. He comes to bed around 9:00 because he needs to get up early tomorrow too.
Daily expenses: $250.53
Tuesday
5:00 – I wake up, again.
5:30 - I teach three English classes back-to-back. Two of the kids are great and one is a total spaz the whole time and won’t sit still.
7:00 – Breakfast! You know how this goes.
7:30 – I’ve had a scratchy throat and runny nose all day so I take it easy all morning, reading in bed and drinking tea.
11:30 – Lunchtime! I eat a can of vegetable soup, some salami, cheese, and a clementine.
12:00 – I have office hours and spend my time grading papers.
2:30 – I review my notes for my college class tomorrow.
6:00 – I eat dinner: leftover beef stew from yesterday.
7:00 – I read the new issue of Harper’s Monthly in bed until I conk out around 9:30.
Daily expenses: $0
Weekly Tally:
Food + Drink: $198.15
Fun / Entertainment: $0
Home + Health: $256.53
Clothes + Beauty: $42.60
Transport: $0
Other: $81.70
This was a normal week for me in quarantine, other than the big Ikea order, but I felt like I had to jump on that because they’ve had shortages in their stock all year. I’m doing well in balancing savings and spending on little things that make quarantine easier. Also, this has definitely made it easier to start cooking more with what I have around the house rather than getting takeout.
I’m working on socking away as much money as I can right now so in case I lose my job next year, or if my boyfriend broke up with me for some reason, I’d have enough money in liquid savings that I’d be all right for a while. If neither of those things happen, I am taking an EPIC SUMMER VACATION next year as long as the COVID vaccine is being distributed by then and infection rates are plummeting.
Thanks for reading, everyone!
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2020.11.22 07:39 scoutfinch333 Move Funds or Liquidate?

Trying to make sure that I'm doing this the best possible way.
I created a general investing pie on M1. I want cash from my M1 IRA and my betterment general investing account (all) to go to this general investing M1 pie.
What is the best way to do this? Liquidate everything?
Thank you. : )
submitted by scoutfinch333 to M1Finance [link] [comments]


2020.11.22 01:43 rowyourboat0903 Lurker who wants an evaluation

Hi all,
Long time lurker here and I’m intrigued about what others think of my financial situation. My parents say I’m doing well but they may be biased haha.
I’m 22, just graduated college with no debt. I inherited a UTMA with approx 36k in it that is in a brokerage fund at Fidelity. I also have a trust from my grandparents that I cannot touch until I’m 25 with about 70k in it.
I make 60k pre bonuses in a mid/low cost of living city in the Midwest.
I’m currently building up my liquid emergency fund at NFCU. My goal is 10k and I’m at about 6k. 10% of my pay goes directly to savings. 7% 401k contribution. I also have an IRA at Fidelity that I opened my senior year of college that has about 2k.
Once my emergency fund is at 10k I plan on switching that money to my brokerage account at fidelity and sending more to my IRA.
My only debt is my car payment which is $250.
Any suggestions or thoughts?
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2020.11.21 20:59 HughEhhoule Plae Place-Part 3

It's surprisingly easy to liquidate your life when your job has been from home for the last 6 years, and on top of that you've spent the last 8 months attempting as best as you can to not leave your home.
I guess from the outside this may look like evidence for me just having a breakdown, but really, should I find myself financially screwed over half way across the country, well the world runs on technology, and that's my gig.
I'll get to the details of my road trip soon, but having nothing to do but talk about my possibly paranormal past for a solid day has dredged up a few more memories on my part. The same kind of infuriating, question easing reveals I've gotten used to but, new stuff none the less.
The first, is how and when I stopped going. Aging out, if you will. My new friend , Steven , in case you were wondering, seemed keen on my answer to this question.
The more I think about it, the less it makes sense. My memories in general of the Plae Place are as clear as the mirror in a gas station bathroom, but the more I try to pin down when I stopped going, the more I find that my memories get less clear as I get older.
Toward the end I couldn't have been more than 10 or 12, and the memories just devolve into almost clips, and still frames. The most I can remember is a vague age after which I don't remember going, and starting to notice, and mention, some of the more glaringly obvious strange events to the staff.
Steve told me that was pretty common. While he didn't share his own story, he said each kid seems to have a limit as to how much weird they can accept. After this the Plae Place seemed to have no more use for them. When I asked why, he had no idea. A pattern that frequently repeated itself in our conversations.
The second memory Steve helped me pry lose was some more information about the food. They fed us, and in decent enough quantity but I remember there being certain items that we would avoid eating at all costs. Nothing outwardly horrible or intimidating, just certain items we knew to bury in the trash or hide in our pockets till we went home.
There, of course were plenty of little bits and pieces of information I confirmed with Steve on the first day of our road trip, but I'm sure you guys don't want to read a grocery list of random paranormal errata, and besides in all honesty the most interesting stuff is what is brewing up in the present day.
"So, you a jew?" Steve says after a long stretch of silence.
"Ex-fucking-scuse me ?" I say shocked out of my highway trance.
"Easy kid, I didn't say 'Don't tell me you ain't a jew' , I'm not some redneck, just figured with a name like yours I was in old testament company. Just trying to make conversation that isn't horrifying." Steve says casually.
"Well, way to almost succeed. And I'm Jewish , heavy on the ish. Not really a religious guy." I respond.
"See, we have something else in common, never really came to a conclusion on how God and crap like what we went through could fit in one world." Steve says.
"So where are we going?" I ask trying to keep the conversation going.
"Well, first we need to get some information, the kind you can't just find in the yellow pages. Then we need to get ourselves set up with some hardware. I don't know how dangerous things are going to get how quickly, but better to be prepared, you ever shot a gun?" Steve asks in a tone that says he knows the answer.
"I don't think anyone has been finding anything in the yellow pages for the last decade. But no, never even been in the same room with one." I reply.
"Well, it's easy enough to teach you, I'm not expecting to turn you into a sharpshooter.
But you need to know a couple things about the guy we are going to see first. " Steve lights up a cigarette and makes a point of not rolling down the window.
"Like what?" I say, trying not to sound as aprehensive as I feel.
"First off, he's a serial killer. And not some gray hat antihero, he's a sick bastard. Not anyone I'd talk to normally, but he's the only person I've even heard of that has any kind of connections to the…spookiest side of life.
He's who we used last time, and it's a long story, but he owes me and my guys a permanent debt. Now you, on the other hand, watch out. Not to be cold, but if he tries something I can't step in. Beyond the fact the guy scares me more than the Plae Place, honestly I can let one guy's life screw over this project.
He calls himself 'Stranger' and don't laugh, don't be snarky, treat the guy like a pipe bomb you found in your car, because trust me, he can go off for any reason. He is the perfect example of one of my favorite pieces of advice, the dumber a guy's nickname the scarier he is." Steve says this last part in a dead serious tone.
We spend the rest of the ride out swapping small talk. Turns out Steve is legitimate ex military. Unfortunately, he was in communications, the special forces vibe he gave off was just a combination of bravado and cynicism. But still, I'm happy he knows his way around a gun better than I do.
We drive out to a disused quarry, littered with old refrigerators, televisions, and whatever other big junk people were too cheap to take to a legitimate dump. We drive through a thinning maze of rock and garbage that I begin to realize has been carefully arranged. By the time we reach the rusted black astro van I realize we have no quick means of escape. If we want to get out its going to be a slow careful reverse maze.
I'm nervous, and the looming piles of trash combined with barely enough space to get out of the car does nothing to help that. It's imposing, it's claustrophobic, and pervaded by a dull rank organic reek.
The vans back doors face us, dozens , if not hundreds of peeling bumper stickers cover every available surface. We carefully step over metal spars and detritus, making our way to the van. Steve makes to knock, but the doors fly open, knocking me to the ground.
Before I can get my bearings I see the barrel of a pistol inches from my face, and feel the weight of a slightly underweight adult on top of me.
I thought the garbage smell was bad, but the unwashed fungal reek coming from this guy makes it smell like lavender in springtime.
His hair is shoulder length, clumped together in twisted ropes, with various pieces of God knows what stuck to it. His teeth are stained a deep purple, and his breath smells of a forgotten garbage can with a heavy note of spoiled medication. His wild, bloodshot eyes seem to dart everywhere as he addresses me, pressing the greasy Gunbarrel against my face occasionally. The man's body temperature seems to about twice what it should be, and I can feel his sweat dampening my shirt.
" Who the hell is this spud coming to my home? You a spy , little spud? You here to take my shit? You a cop spud?" The man says with clouds of noxious vapour.
"Stranger, we talked about this, he's clearly a friend of mine. Let him up." Steve calmly states.
"How do I know he doesn't have something on you? Or you didn't vet him? Nah, probably just best to cook this spud now then we can talk." Stranger cocks the hammer of the pistol, it squeeze and sounds like it has sand in its mechanisms. I wonder if it'll misfire, but do nothing else to remove myself from the situation.
"Come on buddy, I don't have much time, you know I wouldn't bring him if I didn't vet him. " Steve's tone remains calm but he is shifting a bit, nervously.
"Okay, maybe it's just been a while and I want to see some brains on cement? I don't have to justify myself. He told you you were not safe here right spud?" Stranger smacks the gun barrel against my forehead punctuating his sentence.
"He did. But he also kinda made it seem like I had to fuck up to get killed." I blurt out and immediately regret it.
There is silence, stranger puts his face a few inches from mine. His breathing gets quick and ragged, I can feel his steel cable muscles vibrating. His mouth is half open, bubbles of purple tinted spit bursting.
He puts one hand on my neck, and while still keeping his face inches from mine, grinds the gun into my temple, black spots starting to creep into my vision.
Just as I make peace with the fact I'm going to spend my last moments smelling the dumpster stench of this guy, he springs backward, drawing a crusty flannel sleeve across his mouth and letting out a tittering laugh.
"Good one spud, you're all right." Stranger offers me a hand, I take it and get to my feet. The van is filled with a lone stained mattress, what looks to be years of garbage, and every other space is devoted to monitors, laptops and keyboards.
"You make things so difficult man." Steve says with a head shake.
"If I didn't like difficult, you wouldn't have any use for me though." Stranger says hopping into his van and taking a seat on his filthy mattress. "Take a seat." He finishes, motioning to no place in particular.
I follow Steve's lead and sit on what I thought was a fairly clean milk crate. I try and not think about what the liquid soaking through the seat of my pants is.
"What did you need? "Stranger asks Steve, bringing a yellowing laptop out from a pile of fast food cups.
"Well same as last time, pretty much. Going to need you to find me a way in, talk to some of your Halloween themed friends to make sure the door is open, and hook me up with enough IRA toys to get the job done. Got 2 out of 3 of the old crew and a handful of bully boys for manpower." Steve lists.
"Not a problem, never is. I'll save you a little money on the toys though Jimmy is actually doing business out of an old farm a town over. I'll give him the heads up your coming, save you my finders fee on that least.
Speaking of, what were you planning on paying for all of this?" Stranger rifles through a few boxes and begins eating a half finished burger, gesturing toward Steve with it as he speaks.
"Got 10k I can get you, rest is going to have to be a favor, I didn't have much time to plan for this." Steve says, somewhat nervous.
"That is a pretty big favor man,I have a counter offer though. You keep your ten large, but this time you bring me back a little something. Preferably something alive, but I'll settle for less. A few of my 'Halloween ' themed friends would pay top dollar for that." Stranger grins, his teeth so riddled with cavities they look like purple dice.
Steve looks reluctant, "Fine, just promise me it gets to someone who wants to put it up on a mantle or something. I don't want to be doing this again when I'm 50."
"Sure, sure. I'll get on it, probably going to be a couple of days, so you and your little friend go find something to do. And take a shower or something, you fucking reek. Now get out of my house before I never get the smell out." Stranger says impatiently motioning for us to leave.
It takes an hour and a half to back out of the quarry. Even then, the car came out with a handful of foot long scratches.
Night falls as we drive to an out of the way motel.
"So he was… a character, how the hell did you meet him?" I say a couple hours in.
"Spent a lot of money and did a few things I regret. But he's the only person I've met that has been even half telling the truth when they say they can talk to the things that go bump in the night. And unfortunately our door can't be opened by any locksmith we are going to find.
He's a piece of human garbage and I'd put a bullet in his skull if I had any other option. But we are going to be doing a lot of shit outside our wheelhouse. I hope you are okay with that." Steve's tone suggests he doesn't much care if I'm not.
"Okay is pretty relative in this situation, but…yeah I guess." I say.
An hour later we are checking into a hotel, as we get comfortable Steve puts together an old reel to reel projector, pulling an old film reel out of his steel case.
"Feel like more confusion kid? Got more home movies." He says as he finishes, he opens the mini bar and pours two water glasses full of whiskey from a small mountain of tiny bottles.
"Sorry man, I gave up getting messed up a while ago. You go nuts though." I say eying the booze with just a little longing.
"This isn't recreational kid. This is part of the job." Steve says cryptically.
He takes a thumbtack from the plywood desk and sets up two chairs facing one wall, seeming to fuss over their angles for a while. He sits in the left one, motioning for me to sit in the right. He hands me the full glass of booze and begins to speak.
"So first thing you are going to do is pick your finger, tell me when it stops bleeding and we can start the film.
You keep sipping on that booze the entire time. It runs out, you fill it, it starts to taste sour and wrong, like earwax and pen ink, you get the hell out of the room for a couple hours.
I don't care about your 12 steps, if you can't do what needs to be done, go back to fixing laptops.
And if you notice where you stuck yourself start bleeding again, stay calm and tell me. I'd tell you the remedy but, trust me, it's better if we cross that bridge when we come to it."
I notice my natural instinct to laugh at the absurdity has went away. Probably right about the time pig pen stuck a gun in my face.
I nod and stab a finger, waiting till the blood stops forming a deep red bead before telling Steve to begin.
The projector fires up, projecting a grainy artifact filled image onto the wall. It's old footage, 40s or 50s by my guess and soundless, but it feels…close , too real.
I remember the stinging yet comforting taste of booze as I take my first sip, the image on the wall panning around a fairly standard children's activity room. My mind starts to work and I realize that I've seen this room before. Only when I saw it, it was a coat check in the short lived Bowling alley at Plae Place.
There is a half dozen tables and about 40 kids sitting at them. There are an assortment of games and toys in front of them, they all seem happy to be there.
Watching over them are 2 people I recognize instantly. One, a woman in her 30s with a blond Bob haircut, and another younger dark skinned man with dark slicked back hair. 2 of the adults running Plae Place during my time there. But now they look…friendlier, less harsh, engaged with the children, genuinely nice.
For a second the image rips and we see a room full of children in beds, various hoses and wires hooked to them. They are sleeping, and there is something walking down the rows of beds. I have no time to get a good look before the image shifts back, but I feel a chill run through my body.
I notice my glass is a quarter empty, though I cannot remember drinking anywhere near that much, nor am I feeling as wasted as that much liquor in 3 minutes should have made me.
I notice a third person in the room when I see it again. At least I assume it is a person, I can never quite see its features, just a grey suit, and two black pits for eyes. The other people in the film don't seem to notice it at all, but I nearly drop my glass as it starts to walk toward the camera, waving and beckoning Steve and I into the image.
Something behind us rattles slightly.
"Don't worry about him, he can't hurt us, just rattle our cages a bit. Probably why he's so pissed off. " Steve says before taking a long drink.
The thing on the screen walks out of the shot as I hear more noises around the room. It takes everything in me not to turn around as I feel hot breath moving my hair.
"Here is the important part." Steve says, ignoring the sounds.
The camera pans to a door, and 4 men in lab coats enter with 2 large boxes. They have air slots and a heavy lock, one of each pair unlocks the top of the box as the other pulls out something and places a few on each table.
At first I can't make exactly what the small, hand sized objects are. The burn marks and film grain masking their exact shape and details.
The camera goes out of focus as it zooms in on one of the objects. At first I assume it's just an action figure, but as the image clears I notice whatever it is… is breathing. I can't tell much, as the distortions start to get more intense but the thing is small, vaguely humanoid, and as the shot abruptly switches to show all the children and adults, moving about.
The children seem overjoyed, talking, laughing and playing with the little creatures. I keep trying to get a better look at the things, but they always seem to be obscured by some level of static and distortion.
The adults, both lab coats and the ones I remember are taking notes and looking impressed. This goes on for what feels like 15 minutes after which I nearly fall out of the chair when the reel runs out with a harsh snapping noise.
I look to my glass which is completely empty, and then to the clock, 5 am, over 8 hours later than when we started. My mind reels, as I am sure it could only have been an hour or so.
"What the hell were those things?" I ask Steve.
"That's the question isn't it? I don't know for sure, but I do know that was footage of day 1 of Plae Place being open. We can go over some theories tomorrow, but I wanted to show this to you to underline a point.
No matter how much we think we know what's going on with this place, we know little. We are not here to understand this thing, all we need to do is figure enough out to find where it keeps it's head and put a bullet in it." Steve says with a determined smirk.
https://www.reddit.com/nosleep/comments/jwjtj2/plae_place_part_2/?utm_medium=android_app&utm_source=share
submitted by HughEhhoule to nosleep [link] [comments]


2020.11.21 18:25 Kid_Charlema9ne Lawyer gave completely wrong legal advice resulting in my paying high fees and incurring financial loss. What to do please?

Note: I'm in New Jersey (unfortunately)
Hi all,
On the advice of a financial advisor, I went to an eldeestate law attorney about 3 years ago to transfer assets into another family member’s name to make my parents eligible for medicaid. The lawyer said since there is a disabled family member, we can transfer the assets to his name and will avoid the 5 year look-back for assets transfers.
Given my father’s advanced age, the only reason I agreed to her exorbitant fee for an estate package (plus a house title transfer) ($7000) was because he could become eligible within 5 years and, because when I asked why her price was so high relative to others, she said it was because her extra knowledge, training in this area of the law (ie, the disability workaround).
I’ve since found out from another attorney that the money had to be put into a special trust in order to be eligible from being excluded from the look-back. My research confirms this. Is is abundantly clear via emails and via the recorded call I’m about to make, that she didn’t know this. She said the money could be passed between siblings as long as it was transferred to the disabled child first.
Had I known the structure of that trust, I’d have never agreed to any of this stuff because it would have been simple and i’d have just used boilerplate stuff off the internet since my family gets along and life is simple. And even if I did use a lawyer, I wouldn’t have paid her fee for alleged special expertise.
I went ahead and liquidated IRA’s to make this happen, giving up tax free returns for the next however many years (my mother is still relatively young) on her incorrect advice. I don’t know if I can prove financial loss “injury” because who can say what securities I’d have invested in.
I have a sense she is obstinate and combative, so I want to know before I attempt a soft approach what leverage I can use against her to get some/all of my fee back and what you all think is fair to ask for.
Thanks for listening and any time spent answering.
submitted by Kid_Charlema9ne to legaladvice [link] [comments]


2020.11.21 09:13 mdreezy1 Only REITS in Roth IRA?

I'm personally not a fan of Roth IRAs (dont like the idea of having to keep my money until retirement, rather have it liquid), but for someone interested in starting to invest in REITS rather than actual real estate, would it be a good idea to just open a ROTH IRA solely for the purpose of buying REITS?
submitted by mdreezy1 to personalfinance [link] [comments]


2020.11.21 02:35 HughEhhoule Plae Place- Part 3

It's surprisingly easy to liquidate your life when your job has been from home for the last 6 years, and on top of that you've spent the last 8 months attempting as best as you can to not leave your home.
I guess from the outside this may look like evidence for me just having a breakdown, but really, should I find myself financially screwed over half way across the country, well the world runs on technology, and that's my gig.
I'll get to the details of my road trip soon, but having nothing to do but talk about my possibly paranormal past for a solid day has dredged up a few more memories on my part. The same kind of infuriating, question easing reveals I've gotten used to but, new stuff none the less.
The first, is how and when I stopped going. Aging out, if you will. My new friend , Steven , in case you were wondering, seemed keen on my answer to this question.
The more I think about it, the less it makes sense. My memories in general of the Plae Place are as clear as the mirror in a gas station bathroom, but the more I try to pin down when I stopped going, the more I find that my memories get less clear as I get older.
Toward the end I couldn't have been more than 10 or 12, and the memories just devolve into almost clips, and still frames. The most I can remember is a vague age after which I don't remember going, and starting to notice, and mention, some of the more glaringly obvious strange events to the staff.
Steve told me that was pretty common. While he didn't share his own story, he said each kid seems to have a limit as to how much weird they can accept. After this the Plae Place seemed to have no more use for them. When I asked why, he had no idea. A pattern that frequently repeated itself in our conversations.
The second memory Steve helped me pry lose was some more information about the food. They fed us, and in decent enough quantity but I remember there being certain items that we would avoid eating at all costs. Nothing outwardly horrible or intimidating, just certain items we knew to bury in the trash or hide in our pockets till we went home.
There, of course were plenty of little bits and pieces of information I confirmed with Steve on the first day of our road trip, but I'm sure you guys don't want to read a grocery list of random paranormal errata, and besides in all honesty the most interesting stuff is what is brewing up in the present day.
"So, you a jew?" Steve says after a long stretch of silence.
"Ex-fucking-scuse me ?" I say shocked out of my highway trance.
"Easy kid, I didn't say 'Don't tell me you ain't a jew' , I'm not some redneck, just figured with a name like yours I was in old testament company. Just trying to make conversation that isn't horrifying." Steve says casually.
"Well, way to almost succeed. And I'm Jewish , heavy on the ish. Not really a religious guy." I respond.
"See, we have something else in common, never really came to a conclusion on how God and crap like what we went through could fit in one world." Steve says.
"So where are we going?" I ask trying to keep the conversation going.
"Well, first we need to get some information, the kind you can't just find in the yellow pages. Then we need to get ourselves set up with some hardware. I don't know how dangerous things are going to get how quickly, but better to be prepared, you ever shot a gun?" Steve asks in a tone that says he knows the answer.
"I don't think anyone has been finding anything in the yellow pages for the last decade. But no, never even been in the same room with one." I reply.
"Well, it's easy enough to teach you, I'm not expecting to turn you into a sharpshooter.
But you need to know a couple things about the guy we are going to see first. " Steve lights up a cigarette and makes a point of not rolling down the window.
"Like what?" I say, trying not to sound as aprehensive as I feel.
"First off, he's a serial killer. And not some gray hat antihero, he's a sick bastard. Not anyone I'd talk to normally, but he's the only person I've even heard of that has any kind of connections to the…spookiest side of life.
He's who we used last time, and it's a long story, but he owes me and my guys a permanent debt. Now you, on the other hand, watch out. Not to be cold, but if he tries something I can't step in. Beyond the fact the guy scares me more than the Plae Place, honestly I can let one guy's life screw over this project.
He calls himself 'Stranger' and don't laugh, don't be snarky, treat the guy like a pipe bomb you found in your car, because trust me, he can go off for any reason. He is the perfect example of one of my favorite pieces of advice, the dumber a guy's nickname the scarier he is." Steve says this last part in a dead serious tone.
We spend the rest of the ride out swapping small talk. Turns out Steve is legitimate ex military. Unfortunately, he was in communications, the special forces vibe he gave off was just a combination of bravado and cynicism. But still, I'm happy he knows his way around a gun better than I do.
We drive out to a disused quarry, littered with old refrigerators, televisions, and whatever other big junk people were too cheap to take to a legitimate dump. We drive through a thinning maze of rock and garbage that I begin to realize has been carefully arranged. By the time we reach the rusted black astro van I realize we have no quick means of escape. If we want to get out its going to be a slow careful reverse maze.
I'm nervous, and the looming piles of trash combined with barely enough space to get out of the car does nothing to help that. It's imposing, it's claustrophobic, and pervaded by a dull rank organic reek.
The vans back doors face us, dozens , if not hundreds of peeling bumper stickers cover every available surface. We carefully step over metal spars and detritus, making our way to the van. Steve makes to knock, but the doors fly open, knocking me to the ground.
Before I can get my bearings I see the barrel of a pistol inches from my face, and feel the weight of a slightly underweight adult on top of me.
I thought the garbage smell was bad, but the unwashed fungal reek coming from this guy makes it smell like lavender in springtime.
His hair is shoulder length, clumped together in twisted ropes, with various pieces of God knows what stuck to it. His teeth are stained a deep purple, and his breath smells of a forgotten garbage can with a heavy note of spoiled medication. His wild, bloodshot eyes seem to dart everywhere as he addresses me, pressing the greasy Gunbarrel against my face occasionally. The man's body temperature seems to about twice what it should be, and I can feel his sweat dampening my shirt.
" Who the hell is this spud coming to my home? You a spy , little spud? You here to take my shit? You a cop spud?" The man says with clouds of noxious vapour.
"Stranger, we talked about this, he's clearly a friend of mine. Let him up." Steve calmly states.
"How do I know he doesn't have something on you? Or you didn't vet him? Nah, probably just best to cook this spud now then we can talk." Stranger cocks the hammer of the pistol, it squeeze and sounds like it has sand in its mechanisms. I wonder if it'll misfire, but do nothing else to remove myself from the situation.
"Come on buddy, I don't have much time, you know I wouldn't bring him if I didn't vet him. " Steve's tone remains calm but he is shifting a bit, nervously.
"Okay, maybe it's just been a while and I want to see some brains on cement? I don't have to justify myself. He told you you were not safe here right spud?" Stranger smacks the gun barrel against my forehead punctuating his sentence.
"He did. But he also kinda made it seem like I had to fuck up to get killed." I blurt out and immediately regret it.
There is silence, stranger puts his face a few inches from mine. His breathing gets quick and ragged, I can feel his steel cable muscles vibrating. His mouth is half open, bubbles of purple tinted spit bursting.
He puts one hand on my neck, and while still keeping his face inches from mine, grinds the gun into my temple, black spots starting to creep into my vision.
Just as I make peace with the fact I'm going to spend my last moments smelling the dumpster stench of this guy, he springs backward, drawing a crusty flannel sleeve across his mouth and letting out a tittering laugh.
"Good one spud, you're all right." Stranger offers me a hand, I take it and get to my feet. The van is filled with a lone stained mattress, what looks to be years of garbage, and every other space is devoted to monitors, laptops and keyboards.
"You make things so difficult man." Steve says with a head shake.
"If I didn't like difficult, you wouldn't have any use for me though." Stranger says hopping into his van and taking a seat on his filthy mattress. "Take a seat." He finishes, motioning to no place in particular.
I follow Steve's lead and sit on what I thought was a fairly clean milk crate. I try and not think about what the liquid soaking through the seat of my pants is.
"What did you need? "Stranger asks Steve, bringing a yellowing laptop out from a pile of fast food cups.
"Well same as last time, pretty much. Going to need you to find me a way in, talk to some of your Halloween themed friends to make sure the door is open, and hook me up with enough IRA toys to get the job done. Got 2 out of 3 of the old crew and a handful of bully boys for manpower." Steve lists.
"Not a problem, never is. I'll save you a little money on the toys though Jimmy is actually doing business out of an old farm a town over. I'll give him the heads up your coming, save you my finders fee on that least.
Speaking of, what were you planning on paying for all of this?" Stranger rifles through a few boxes and begins eating a half finished burger, gesturing toward Steve with it as he speaks.
"Got 10k I can get you, rest is going to have to be a favor, I didn't have much time to plan for this." Steve says, somewhat nervous.
"That is a pretty big favor man,I have a counter offer though. You keep your ten large, but this time you bring me back a little something. Preferably something alive, but I'll settle for less. A few of my 'Halloween ' themed friends would pay top dollar for that." Stranger grins, his teeth so riddled with cavities they look like purple dice.
Steve looks reluctant, "Fine, just promise me it gets to someone who wants to put it up on a mantle or something. I don't want to be doing this again when I'm 50."
"Sure, sure. I'll get on it, probably going to be a couple of days, so you and your little friend go find something to do. And take a shower or something, you fucking reek. Now get out of my house before I never get the smell out." Stranger says impatiently motioning for us to leave.
It takes an hour and a half to back out of the quarry. Even then, the car came out with a handful of foot long scratches.
Night falls as we drive to an out of the way motel.
"So he was… a character, how the hell did you meet him?" I say a couple hours in.
"Spent a lot of money and did a few things I regret. But he's the only person I've met that has been even half telling the truth when they say they can talk to the things that go bump in the night. And unfortunately our door can't be opened by any locksmith we are going to find.
He's a piece of human garbage and I'd put a bullet in his skull if I had any other option. But we are going to be doing a lot of shit outside our wheelhouse. I hope you are okay with that." Steve's tone suggests he doesn't much care if I'm not.
"Okay is pretty relative in this situation, but…yeah I guess." I say.
An hour later we are checking into a hotel, as we get comfortable Steve puts together an old reel to reel projector, pulling an old film reel out of his steel case.
"Feel like more confusion kid? Got more home movies." He says as he finishes, he opens the mini bar and pours two water glasses full of whiskey from a small mountain of tiny bottles.
"Sorry man, I gave up getting messed up a while ago. You go nuts though." I say eying the booze with just a little longing.
"This isn't recreational kid. This is part of the job." Steve says cryptically.
He takes a thumbtack from the plywood desk and sets up two chairs facing one wall, seeming to fuss over their angles for a while. He sits in the left one, motioning for me to sit in the right. He hands me the full glass of booze and begins to speak.
"So first thing you are going to do is pick your finger, tell me when it stops bleeding and we can start the film.
You keep sipping on that booze the entire time. It runs out, you fill it, it starts to taste sour and wrong, like earwax and pen ink, you get the hell out of the room for a couple hours.
I don't care about your 12 steps, if you can't do what needs to be done, go back to fixing laptops.
And if you notice where you stuck yourself start bleeding again, stay calm and tell me. I'd tell you the remedy but, trust me, it's better if we cross that bridge when we come to it."
I notice my natural instinct to laugh at the absurdity has went away. Probably right about the time pig pen stuck a gun in my face.
I nod and stab a finger, waiting till the blood stops forming a deep red bead before telling Steve to begin.
The projector fires up, projecting a grainy artifact filled image onto the wall. It's old footage, 40s or 50s by my guess and soundless, but it feels…close , too real.
I remember the stinging yet comforting taste of booze as I take my first sip, the image on the wall panning around a fairly standard children's activity room. My mind starts to work and I realize that I've seen this room before. Only when I saw it, it was a coat check in the short lived Bowling alley at Plae Place.
There is a half dozen tables and about 40 kids sitting at them. There are an assortment of games and toys in front of them, they all seem happy to be there.
Watching over them are 2 people I recognize instantly. One, a woman in her 30s with a blond Bob haircut, and another younger dark skinned man with dark slicked back hair. 2 of the adults running Plae Place during my time there. But now they look…friendlier, less harsh, engaged with the children, genuinely nice.
For a second the image rips and we see a room full of children in beds, various hoses and wires hooked to them. They are sleeping, and there is something walking down the rows of beds. I have no time to get a good look before the image shifts back, but I feel a chill run through my body.
I notice my glass is a quarter empty, though I cannot remember drinking anywhere near that much, nor am I feeling as wasted as that much liquor in 3 minutes should have made me.
I notice a third person in the room when I see it again. At least I assume it is a person, I can never quite see its features, just a grey suit, and two black pits for eyes. The other people in the film don't seem to notice it at all, but I nearly drop my glass as it starts to walk toward the camera, waving and beckoning Steve and I into the image.
Something behind us rattles slightly.
"Don't worry about him, he can't hurt us, just rattle our cages a bit. Probably why he's so pissed off. " Steve says before taking a long drink.
The thing on the screen walks out of the shot as I hear more noises around the room. It takes everything in me not to turn around as I feel hot breath moving my hair.
"Here is the important part." Steve says, ignoring the sounds.
The camera pans to a door, and 4 men in lab coats enter with 2 large boxes. They have air slots and a heavy lock, one of each pair unlocks the top of the box as the other pulls out something and places a few on each table.
At first I can't make exactly what the small, hand sized objects are. The burn marks and film grain masking their exact shape and details.
The camera goes out of focus as it zooms in on one of the objects. At first I assume it's just an action figure, but as the image clears I notice whatever it is… is breathing. I can't tell much, as the distortions start to get more intense but the thing is small, vaguely humanoid, and as the shot abruptly switches to show all the children and adults, moving about.
The children seem overjoyed, talking, laughing and playing with the little creatures. I keep trying to get a better look at the things, but they always seem to be obscured by some level of static and distortion.
The adults, both lab coats and the ones I remember are taking notes and looking impressed. This goes on for what feels like 15 minutes after which I nearly fall out of the chair when the reel runs out with a harsh snapping noise.
I look to my glass which is completely empty, and then to the clock, 5 am, over 8 hours later than when we started. My mind reels, as I am sure it could only have been an hour or so.
"What the hell were those things?" I ask Steve.
"That's the question isn't it? I don't know for sure, but I do know that was footage of day 1 of Plae Place being open. We can go over some theories tomorrow, but I wanted to show this to you to underline a point.
No matter how much we think we know what's going on with this place, we know little. We are not here to understand this thing, all we need to do is figure enough out to find where it keeps it's head and put a bullet in it." Steve says with a determined smirk.
submitted by HughEhhoule to DrCreepensVault [link] [comments]


2020.11.20 19:22 westwayCO Pay tax twice?

I have an inherited annuity from deceased G-ma... liquidating some each year (b/c of high fees) and reinvesting in ETFs etc. but balancing that with not going in too high of a tax bracket. That part I’ve got worked out! But if I put any of the “annuity money” in a Traditional IRA would I have to pay taxes on it again when I’m older and start withdrawing it from the IRA?
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2020.11.20 06:42 qpwoeirutyalskdkfh Thoughts on liquidating an inherited Roth and buying a home in cash?

My grandmother passed, leaving me about 260k cash and a Roth IRA for 64000. This is a lot for me, as I typically only have 10k in the bank and make 35k a year. Been in the process of getting the Roth in my name. Wanted to put the Roth in my local credit union, but they’re only offering .2% and they say that’s pretty average for now. Is it completely out of line to just not keep it as a Roth? I tried to do some quick math. I’m 29 now, if I made max contributions to it for 30 years, I think I’d only profit 58k. While that is still a huge amount to me, if I breaks that down into 30 year increments it’s essentially less than 2k a year.
So the stress of not know what I’m doing and having Wells Fargo not giving me any means and being super shady to me and the other inheritors of my grandmothers accounts is just really making me want to say screw it and just withdraw. I’d like to buy a decent but not extravagant house for my husband and I, but really not dip into the money beyond that. We’re not into traveling or having the latest gadgets. My grandmother passed without ever really getting to enjoy her money for herself, so the thought of not wanting to waste anything is heavy on my mind as well.
Any thoughts? If it’s relevant, household income 70k a year, no dependents or intentions to make any, no medical problems. Husband has 50k in student debt and I have a 10k auto loan. Beyond that, we’re pretty stable. I have 800+ credit and I think his just crested 750.
Also, thoughts on buying a home in cash? Was in the process of being preapproved when this hit, but it seems like in the course of a 30 year home loan for 130k, We would end up paying an extra 110k in interest (took the expected monthly payments and multiplied it by 360, might be missing something.
I just don’t know. All of this is just a lot, and with our lifestyle, liquidating the Roth and buying a home cash don’t seem like terrible uses of this money.
(Do I have to pay taxes if I liquidate? Indiana if it matters.)
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2020.11.19 23:09 CAPropertyThrowaway [California] What is the best/easiest way to buy out a family member from an inherited property?

Current income is ~$75,000. About $5,000 in checking, $10,000 in savings, and I have roughly $200,000 in inherited IRA and personal investment accounts. I have absolutely no loans, no mortgages, no debts as well as a near 800 credit score. Currently splitting $1950 in rent with my fiancée in a metropolitan area on the East Coast.
In the last year I have inherited 2/3 of a condominium that is in California valued at approximately $500,000. A family member that also lives outside of California inherited the other 1/3. The probate and estate matters have finally been settled. My family member offered the option to buy out their 1/3 portion for a flat $167,000, which is what I strive to do. In the end, I aim to have the property rented out to cover nearly the entire cost of the mortgage payment, and then some, which I think is doable since similar condominiums are rented for an average of $2,200-$2,500/month.
The thing is, I do not have $167,000 in cash to straight up buy my family member out. Ideally what I would like to do is get a home equity loan of $167,000 against the property in order to buy them out. My intent is to take out a home equity loan on a property - that I do not live in. From what I have read, I can't just change my residency to California and claim that I reside there. It is my understanding that you had to have legally resided in a home for nearly a year before you can take a home equity loan on a home you plan to rent out (if that is correct?).
I have thought of two options:
  1. I have gotten quotes from my bank for fixed rate home equity loans. Initially I wanted to be quoted on taking out $167,000 to just outright buyout my family member. However they mentioned closing costs and other costs associated with this sort of transaction and suggested I take out around $178,000-180,000 in order to cover those expenses. Ultimately this leads to me paying around $1,200 a month for a 30 year fixed-rate home equity loan. I see this entirely doable for me as I can have the rental income cover the mortgage payment and then more towards the principle. As soon as my fiancée (they have a $100k+ salary & debt free) and I get married, we will have both of our incomes tackling the mortgage even quicker. On the contrary this seems incredibly high to me in the long run. Taking out $178-180,000 to ultimately pay back approx. $432,000 - that is eye-opening to me. That's more than double the amount drawn for the loan. I know my fiancée and I will be able to pay the mortgage down substantially quicker with rent income and both of our incomes but the end amount if everything was done at a flat $1,200 for 360 months is astounding to me.
  2. I have my family member 'gift' the 1/3 of the property to me so that I am the sole name on the property deed. Then I would apply for a home equity loan for $167,000 without needing to directly including my family member in the transaction. After receiving the funds I would just wire the money to my family member. In this scenario I am not aware of the tax implications for myself or my family member.
Is there any other option on how to buy out my family member I should potentially look into? I should be frank and say that liquidating nearly the entirety of my investment portfolios is not an option and a scenario I aim to avoid.
Any suggestions or recommendations would be greatly appreciated!
Thanks in advance!
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2020.11.19 20:28 FreedomStaff What is the tax downside to rolling over my 401k to a rollover IRA? What tax things do I need to do?

I have a very old 401k, it's so old, I don't even know if I have the paperwork from when it started, or the early statements. I can log onto the 401k website and get current statements, though.
I want to roll it over to a rollover IRA so I can choose my investments.
What is the tax downside to doing this, if any?
In the future when I decide to liquidate my new rollover IRA (I will likely do it before retiring, if that changes things), what documents will I need to retain for tax purposes? E.g. will I need to have every statement from the 401k going back years, then the ones from the IRA, showing that this was originally a 401k back in the past, and how much I originally put into it?
Also, is it true I can basically day trade in this new rollover IRA and not have to track cost basis anymore?
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2020.11.19 18:31 misteratoz Some Contrary Financial Thoughts

So I've read the whitecoat investor and followed some big blogs on financial literacy. I feel like a lot of the advice given is ironically most useful for people with little financial savvy who want a "hassle free and solid" financial advice that ignores all the pros you can get by being a bit smart with your money and not being too conservative.
My takeaway has been:
-Live below your means. The FIRE crowd annoys me but having a general sense of what kinds of purchases give you most happiness/least investment is where I'd focus. Being able to consistently save is obviously huge, if you can afford to. But never buying a take out meal strikes me as equally silly.
-Invest heavily in HSA's if you can afford a high-deductible plan and are gifted with good health. This is a no-brainer for basically everyone.
-Roth's IRA's are great.... if you don't need the money. Paying the taxes now basically saves you a lot of money when you retire. But...again if things go poorly for you having that money now is more useful. And if you're doing super well, like most doctors do anyway, the cost of putting away 16,500-30k now for retirement, when it becomes say 200k-400k tax free during retirement...that's nice! But if you had placed that ETF's in a private stock portfolio, you'd make most of that with the added option to touch it for things you actually want to do during your younger, more impactful, and healthier years.
-Houses are generally a no go...I think this definitely applies for people on the US coasts but in the mid-west I think this advice misses a lot of the huge positives you get from physician loans with minimal/no upfront cost, real-estate appreciation, and having a place of your own ...finally. As long as you don't by a lemon with a roof/plumbing/water issue you're probably not going to get huge surprises and cleaning your place is something you should be doing anyway. My mortgage payment + insurance + utilities, which is getting me a bigger place than my colleagues, is less than they pay and I'm getting equity.
-There's basically no point in investing in 403/b/457 retirement plans unless they're matching, which no residency program in the country is.
I feel like some of these thoughts are controversial.
1.) We make little money as is, so free cash is more useful for financial insulation. As in...REALLY useful. Need to buy a car? You need cash. Want to buy a nice coffee machine because you want that gourmet without going to starbucks or whatever? Need cash. And having that kind of stuff early on is HUGE.
2.) You're essentially gauranteed a high income in the future and combined with savings during residency, you can do a whole lot more with accrued money you make in investments now. For example, I'd argue 30k investeed in 403b for 50 years down the road when you're (hopefully) rich anyway is less useful than 20k in stocks you can have access to now if you need it while you're broke.
I think Covid has shown that people underestimate the value of having liquid assets that they can use whenever. Theoretically, over the course of your life, retirement accounts will earn you a lot of money tax free but that's with the huge caveat that you can't touch those huge sums of money until later AND, and this is key, you wouldn't have found a good use for that money early on in your life. And having liquid assets is also key to getting good loans in the future.
Bottom line: -Except for the HSA, I think most resident retirement plans are dubiously useful
-I think there are good arguments to be made for not investing in a 403b/457 for most and even a ROTH IRA for some.
-While you will make more long-term with ROTH/403b/407's, long-term growth is less important for physicians who are going to do well financially anyway, and having that money available now is super useful at a time when everyone is financially fragile anyway.
-Houses are probably still not useful for everyone, but IF you qualify for physician loans and IF you have access to a decent home that's <200k as a resident, I'd argue the equity/lifestyle benefits outweight the purported downsides of taking out your own trash and paying someone to mow your lawn.
Edit: I was wrong about the Roth IRA's. I agree that they're probably good for most.
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2020.11.18 17:14 suiteddx2 Roth IRA vs. standard brokerage rationale

Would like to get feedback on my understanding (or misunderstanding) of investing on the Roth IRA vs. a regular brokerage account. I have read the flowsheet (403b set-up, rainy day buffer, etc.). Hypothetically, if I have $5K and have the option of putting it in a Roth or brokerage account, there are the points to keep in mind:
Basically I want to have some flexibility of being able to withdraw the money I put in say in 2-5 years if there are any life-changing events (i.e., buy a house, family) if needed. I do have other funds so I do not mind some risk.
I've been leaning towards a regular brokerage due to flexibility but maybe Roth makes more sense (and minimize taxes later on) if I can pull out the money I put in?
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2020.11.18 05:57 kharin123 Getting out of high-fees mutual funds.

So when I was uneducated on personal finance, I gave money to a financial advisor every month to put in a IRA for me. No idea what funds I held or how much it cost. I was young and naive but knew to save for retirement. Now I can see that I hold various mutual funds with a 2.5-3% expense ratio (insanely high!) and also back-sales load charge of 3-4% if I sell my positions now (0% after holding it for 6 years and it'll be 2022 to hit 6 years).
Based on my napkin numbers... I would have made more with an index fund like VTI instead. For any math junkies—2012-2016 I invested $48,000 (cost basis) through various monthly payments... On Mar 2016, I was down to $40,000 value. Then I stop contributions (moved out of country) and from 2016 to now its market value is $53,000 which seems like a APY of about 7% after fees (from the 2016 40K value)... 7% isn't bad but compared to it to VTI 11% in the last 5 years. (The last 4-5 years have been a strong bull market I think)
Anyhow, my plan is to liquidate all my positions after a rollover into a self-managed IRA asap... Just buy low-fee index funds (eg. VTI)... but not sure if I just take the hit with the backload fee 3-4% today or hold until 2022 (roll out monthly as it matures pass 6 year mark) but it means holding the high 3% ER.
Thoughts!?
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2020.11.18 01:09 Lane_Kawaoka NEW TAX IMPLICATIONS FROM THE 2020 ELECTION W/ TOBY MATHIS [PART 1 OF 2]

https://youtu.be/aqPWoki-MP8
Hey, simple passive cashflow listeners. Today. We have Toby Mathis here, a partner at Anderson advisors, the guys who got me to pay no taxes. Thanks again, Toby for that. although I was the one putting in a whole bunch of money into deals, par in economy through the pandemic. So I can say I earned it.
We didn’t do anything. We just point you to where they incentivize you to invest in real estate. Exactly. So today we are coming to you post election and things are pretty early still, but we’re going to be looking into the crystal ball here and make some speculations on where some of the tax laws are going.
And maybe what strategies you guys can be looking towards to maybe even we’ve got to pull the trigger before the end of the year, right? Possibly. the presidential election is looking like it’s going to be Biden. but tell us what really matters here. Is it the president or is it the Senate or the house? Yeah, Congress writes the laws, but the Senate, but the president can always, veto. So you have to be able to get over you basically, you have to have a certain alignment. Otherwise it’s going to keep you from being able to pass certain laws.
The house right now is going to stay Democrat. The Senate is a little bit up, we’re going to be at a deadlock. I think you’re putting it up right now. There’s two more runoffs. I believe in Georgia that might impact things, but it’s either going to be a standstill. if you end up with 50 50, then the vice-president decide.
So if the Biden inheritance are in the white house, then, Harris could pass a deciding vote and you could have changes if there’s not that scenario, it’s really difficult to pass anything without you’re gonna have to get the Senate on board, which means it’s gonna be hard to. Move really dramatically in any one direction.
What we know is what Biden has said he’d like to accomplish. So PRI prior to 2020, this a little bit of a history lesson for folks. so bill gets passed or tax law gets changed. it is. Birthed here in the house, primarily Democrats. So this is where, like the stimulus bill comes out, what is it like 10 million?
And then it goes to the Senate, they chop it down. prior to this, the Republicans had the edge, but it looks like it’s going to be more of a gridlock more than yeah. They both put out their own bills and then they decide that kind of goes through a committee and they decide which pieces they’re going to.
Are going to get an app. That’s where they all negotiated. So that’s why you never really know what’s going to be done until they actually pass it. Holy moly. What did you guys do? What’s the old famous one, you’ll know what’s in it when, after we pass it. So it’s kinda, or sometimes like they’ll write a bill, a Republican bill, and then all the Democrats will veto it, but then they write the same exact bill.
And then they’ll pass it. But it’d be originated from the Democrat side. Yeah. Always they call it the pork, this is what I want in order to allow you to get what you want, man. It’s usually not so good for the taxpayer. Yeah. so let’s just kinda, from what we know of the Biden, what Byron was saying prior to the election and campaigning, where are things heading in terms of taxes?
What do people need to be aware of? So the first thing to know is that the tax cut and jobs act, which they called the Trump tax cuts. A lot of it phases out in 2025 and there’s portions of it that start to phase out even now. there’s a little bits and pieces of things that are set to slowly go away like accelerated depreciation.
After next year will start to drip down. You have other things like your solar credits that are already going down, you have things like. the estate tax exclusion, that’s sitting over $11 million right now. And that’ll revert back to the pre tax cut and jobs act, level, which should somewhere in the five, five to $6 million range, depending on inflation.
So there’s things that no matter what, they’re still going to move, then you have the, Hey, these are the things I want to change. comments from the Biden team and the big one was anybody making over $400,000. They want you to be in the highest tax bracket and they want to move that highest tax bracket to 39.6.
Then they also say, Hey, if you make over a million dollars in capital gains or dividends or the combination of those two, then we want you to pay 39.6 on your capital gains, which would be almost a doubling of the capital gains rates. They also say, Hey, we don’t like this 21% tax rate on C corporations.
We want to make it a flat 28%. And if you remember prior to the tax cut and jobs act, it was graduated. it would be as low as 15. And then it would go up to 39 and back down to 35. It was this bizarre, and they’d just put flat 21%. So for a really small C Corp, it was a little bit worse, but for big companies, it was better.
That was the sort of pre page tries the big guys, right to come back. that was the push for it. There was that what they want to be is more competitive on the international, attracting companies, but their headquarters in the United States, as opposed to incentivizing them to go elsewhere.
We were not competitive as a taxi. They also had the, Hey, we’re going to cut the repatriation of your profits down significantly. I think it was 15%. I don’t know the number off the top of my head, but I know that. They reduced it, so that companies like Apple or Amazon, or some of these companies that have a lot of earnings off shore would bring them back in the United States and perhaps do local investment.
So let’s go back through these and I’m going to ask it from my own selfish perspective, which I hope that listeners are in that same situation too. But like the 2018. Jobs tax and jobs ag, I don’t know what that’s called, but it allowed for a bonus depreciation and whole bunch of passive losses that you could extract from deals that do cost segregations.
Right? That’s the one, whatever that one is. actually you don’t have to worry about the, real estate professional that was actually changed back in. I think it was 90. it’s four 69 seats. Seven, if I’m not mistaken, but that’s carved into the code already. That’s you don’t have to worry about that.
The bonus depreciation was, Hey, if you have five, seven, 15 year property, anything less than 20 years, you could choose to accelerate the depreciation. assume that you have, let’s say you have a carpeting and you put a hundred thousand dollars of carpeting into an apartment building. Normally you’d get to write off $20,000 a year as a deduction because the whole carpet will last five years.
So you’d take $20,000 each year. What accelerated depreciation allows you to do is just boom, taking them one year in order to know what portion of your property is carpet versus cabinets versus fencing versus driveway, all these different, Lifetime, of those particular assets you have to do.
What’s called a cost segregation. There’s always been cost segregation. You’ve always been able to do that, but now all of a sudden we have this huge incentive because about 30% of most buildings are five, seven, 15 year property. So all of a sudden you can accelerate your depreciation at any particular time.
You can just, you can choose five years after owning a building. Boom, I’m going to take it. And you have this acceleration, where you can really accelerate what you’re able to do. Sometimes it’s 50. Sometimes it’s a hundred percent. It depends on when you put the building into service, but you can do the acceleration and all you’re doing.
there’s nothing crazy about it. You’re just writing it off early. You’re still going to write it off over time, but it’s almost like getting a loan from uncle Sam for no interest saying, Hey, I know I’m going to get the tax benefit. Over the next 20 years. How about you? Just give it to me now, early Christmas present.
So if you guys miss it, the rule of thumb is about a third of the building gets written off in the first year, but to simplify it even more, a lot of these deals, you’re trying to max out the leverage 70, 80% loan to value. So what I’ve seen is, passive investors that put in a hundred grand, they’re getting anywhere from 60 cents to almost a dollar.
Back in that first year bonus appreciation, 60 grand or 80 grand back. depending on the deal and yeah, and it offsets not to interrupt you, but it offsets passive income. Unless you qualify as a real estate professional, there is one other one active real estate, but most people make too much. that’s the one that I’m really worried about, right? Like these, the passive loss gravy chain. Getting these super just mean that ain’t going away, that ain’t going away, what you might see as the accelerated depreciation. I think in 2023. So in three years, two years really, will start to go down to 80% and I’ll drop to 60% and then, go down from there.
I’m not certain, but I may, I haven’t looked at it so long lane. It’s probably. If it goes away completely, I’d be shocked. But sometimes it goes down to 50%, which is still pretty good. not w we do a lot of cost segregations where clients, where we will direct them to have them done. Not always do we accelerate the depreciation, especially not on the five-year property.
Sometimes you just let it spread because unlike you like, w you’re a real estate professional, you had massive amounts of deduction. But it doesn’t help you to get really dizzy zero because the lower tax rates are pretty low. Like I’m okay. Paying 12%. I’m okay. Paying 22%. What? I’m not. Okay.
Is paying 39.6% on rents. I’m not okay. Paying 37%. I’m not okay. Paying 32%. Like it’s getting too high plus by state. So sometimes it’s just about making sure that you’re hitting that number. So I tend to look at 200,000, And say, if I can keep people around $200,000 a year, that tax, it’s not going to be so extreme, you get up into the half, a million, 600,000 range, every dollar.
So much of it is being taken away from you. for every dollar you make, let’s say we had the Biden one. For every dollar you made after a million bucks, if somebody was taking 60% of it and that’s really what it gets up to, if somebody is taking that much away from you, you’re probably don’t have much incentive to make money and it’s hurting.
Cause it’s not always cash that you’re receiving. Sometimes it’s profit, that’s blowing down via K one or your investment. You don’t have the cash. Now you have to liquidate assets to pay the tax bill. And that’s what we want to make sure that you’re never in that situation. Yeah. so sometimes I think just to summarize what Toby saying, you have to be strategic on how you use those passive losses.
You don’t want to burry burn your AGI down to zero. Sometimes it’s good to pay a little bit taxes. you can’t help it because you’re the sponsor and you have, you’re leveraging up. So you’re going to get these massive. Deductions, not everybody gets that. A lot of folks that are just, they’re not going to pay any tax on rents the next 10 years, because they got a huge deduction and they may be making, $50,000 a year with rental that they’re putting in their pocket, but they don’t have to pay any tax on it.
Yeah. so like I talked to my tax guy and he burned up all my passive losses and I asked, he told me, he said, I should pay some taxes. But the conversation that we had that I got on board on was like, he was like, you’re probably better off paying no taxes and investing the money and just kick it forward.
But it depends on your situation, right? if you have a W2 job, you’re going to be okay. and if you need loans on a home or something, you need to have some income. If you don’t need that, like you’re leveraging on the asset, you don’t need the income. So you may as well not pay it, use that money to continue to invest.
Yeah. so the tax cut jobs act tax that’s phasing out the pass of losses, the accelerated bonus depreciation in the year 20, 22 and beyond. So yeah, look at that, I think 20, 22 years safe, I think it’s after 2020, I think you’re right. It, we’ve probably got a couple more years of where the getting’s good.
And that’s plenty of time for me, but what is, what are you thinking it’s coming up in the future is like the Biden clan going to be putting, getting rid of that, or I’m thinking that hopefully they can just focus on that 10 31 exchange and leave me alone and they want to get rid of the 10 31 exchange.
They want to get rid of step up in basis and that’s going to affect all of us. that’s huge. That’s huge for anybody who has substantial amount of real estate, that could be really painful. It’s going to force you to have to get rid of your real estate during your lifetime, because it’s not going to step up, which means if you’ve depreciated it accelerated the depreciation, then, you’re going to have some substantial recapture when somebody, if somebody sells it after you’ve passed.
so I’m not too pleased about that. that one, that all, isn’t the game plan. They’re like, all right, the Democrats have it. Now, if you’re a 40 years old, surely in the next 30 years, some more tax friendly leadership will get in there and swing the state taxes the other way. And that’s what you do.
Yeah. that’s the ideas right now. The law is what it is and I tell people don’t make dramatic switches until the law actually looks inevitably going to be changed. Cause even when you think, somebody gets in as president and they said, this is what I’m going to do. good luck.
Getting that through. Especially if you don’t have the, the, the house and Senate. Good luck. if you have the house and Senate fantastic. They might be able to get some things through, but even then, it’s not used to be, you can filibuster in towns, but the, It’s still not a, it’s not a guaranteed and people oftentimes campaign on things and then do something else as well.
So I tend not to make dramatic switches until I actually see laws being drafted or changed and they have support. and even if we, Biden’s Binance has won now, he’s even in the first hundred days, it’s going to take what another year, 18 months for that law to go into effect for the previous tax year, too.
So there’s. Probably about a couple of years of, turnover time I’m thinking. Yeah, good. If they could get something through in the first year. And again, the way that, the way it works is they can’t go back and change something, but they can say going forward. So if you pass away or if you remember this, but I think it was, the owner of the gang.
He was passed away during a year where there was no estate tax at all. We didn’t even have the $11 million cap Steinbrenner. This is not that long ago. Yeah. So he avoided billions of dollars. Like he, he, the joke we all had was people are going to snuff out their parents, like on December 31st, if they’re on their death, there’ll be like, let me help you along here because the, the taxes can be so extreme the following day.
it’s we’re going to have a new year’s Eve party with a bunch of pillows. It’s horrible. But that we were there was actually concerned about that and Oh boy, if somebody is on life support, they’re going to have a real incentive to pull the plug. It’s morbid, but it actually was discussed in the tax world.
There were many discussions on it. what would you do? And, So it’s not always, we think like these things have been debated for years. I remember when I first became an attorney, the estate tax exclusion was 600,000 wasn’t, was not very high in a lot of people got hit by it. And then it went up to a million and then it would defy a million.
Now it’s over 11 million and then they said, portability, most spouses can use it. It used to be way to have a, we had to use a trust to double it up. But that’s still on the table and Biden is shown all indications that he wants that to go back to the way it was before the tax cut and jobs act.
But he also wants to eliminate that step up in basis. And the step up in basis in English just means if I have a building that I’ve depreciated or a piece of real estate or stock say I’ve owned stock for 20 years. And it’s gone up in value. The day I pass my, the value steps up, or the basis steps up to the fair market value on the date that I pass.
So if I have a building that I’ve depreciated in my basis might be a little bit of land, maybe it’s a hundred thousand it’s million dollar building. Right now, if I pass the base, that steps up to a million dollars, I live in a community property state. So even my spouse could sell it the day after I die and pay zero tax, no recapture.
If that goes away, then assuming that, somebody had to sell an asset after somebody passes or wants to cause they don’t want to manage it and they sell it. no they’re going to pay recapture in capital gains. On that. So they’re going to pay up to 25% on the recapture and up to a underbite and it could be 39.6% on the capital gains.
So it’s a pretty big hit. Now the other side to that is if it’s real estate, not only does the patient have stepped up, but you can read deep, read deep, appreciate it. You know you, so you can go back and write it off again, and you lose that. So that’s flying under the radar. And that’s the one that I focus on saying that’s the one that’s going to have the biggest impact on our clients is people who aren’t investors are going to get punished.
And under that plan, and I don’t like it because before the strategy was just die and pass it off. And then your kids get the step up basis and you go wash the asset strategy was accumulate real estate and stock in capital assets. 10 31 exchange you’re real estate into more real estate leverage. Use those, use the proceeds, if you need to, for other things, and then pass away and you don’t have to worry about any tax that you could either.
depreciate it. So they’re not going to pay any tax on it in the wrench for a long time. so you’re going to have to appreciate it again after they’ve passed at that higher amount. And all of a sudden they’re getting huge tax benefits. or they sell it and they pay no tax. And so there was always that kind of, the silver lining, especially in community property States where the first spouse, everything steps up.
dad passes and mom can sell the stock and not have to worry about getting hit with capital gains. Now mom could be getting hit with as much as 39.6% federal plus the net investment income tax, which is 3.8. Plus their state taxes, which can be as high as 13%. So you could be in a scenario where you’re paying, 50, some odd percent it get, it gets a little ridiculous.
So is the solution either to wait until a different party is in there and changes the login or some kind of dynasty trust or a trust irrevocable trust that owns the assets. So it never. Ever does a step up. Yeah, it’s, that’s a tough one because yeah, because no matter what if I put it into trust, the basis is the basis I’m done.
So when they there’s really not much of a strategy on the step-up you can do, what’s called a deferred sales trust on substantial assets, or you’re spread it out over time and you allow a installment sale essentially. and then step up the basis and you sell it and avoid the tax immediately, but you spread it out over, let’s say 20 or 30 years.
So there’s still some strategies that you can do to lessen it. realistically, under those circumstances, it’s just, you’re sitting down going option a, B, C at the time. I’ve seen people make changes where they were scared to death. So I’ll give you a good example. I had a client, it was siblings.
So there was five siblings and the dad had a office building and this particular office building was in Ohio, but it has substantial value. So they were worried about the estate tax. So he started giving away interest and that building wasn’t eliminated partnership. So this is back in the day when limited partnerships ruled the world and not LLCs.
And he would give his kids these interest. So he transferred the entire building to his children before he passed. he’d own that building for going on 40 years, the basis was tiny. And then when he passed, it was in the year that they had unlimited, the unlimited, the state tax exclusion. So there wouldn’t have been an estate tax at all.
And he would’ve still been underneath the threshold. it was multimillion dollar building, but he’d given it all onto his kids. So his kids said, Hey, we’re going to sell it now. their basis was his basis, which was almost zero. So they got hit with this huge tax bill that would have been avoided, completely had he just done nothing.
And so I tend to look at attorneys that are, pushing people to do huge gifts. make big changes and I’d say, don’t do that. You don’t know what the future is going to be. You could make, you could really hurt yourself. And those kids that hurt them. They were like, there was a little bit of a dispute over whether they wanted to keep it and operate it, but it was like they didn’t have the depreciation.
So they actually had income coming in off this thing. And they were like, Oh my gosh, they had to do some fix up on it. There was some capital call issues. And so they decided they wanted to sell it. And instead of getting a dollar, they were getting, 60 cents. And, because it’s not cheap to sell a building, you’re paying the commission, you’re paying the real estate tax, the closing costs and all these things that eats away.
Plus you’re paying long-term capital gains on that thing. and you have a lot of recapture on the original building and in the improvements that they had done thereafter. it ended up really hurting and it was shocking to look at it. And, and I’m talking to the accountant who advised him the whole time.
And I could tell, he was like, Oh, that was what the dad wanted to do. And they overreacted to. Yes. Long changes, similar. you never know, right? Like a lot of this is the art form. You never know what’s going to happen. You got to play you to stand there and play goalie and you don’t know which way they’re going to kick it.
in this situation, it’s makes sense to procrastinate. And it reminds me of one of my biggest pet peeves is like my clients. They always want to file their taxes in April. what are you doing? Just wait until October. That’s when it’s really due. Sit back and wait, as long as you can.
I had a guy yell at me. He wanted one of us to file the S-corp in March and he goes, I’ve never been late. And I said, you’re not late. You’re entitled to an automatic extension. That’ll take us out to September. And he goes, I’ve never used that. I’ve never been late. And I kept saying, look, your tax payment is due on April 15th.
You had probably some quarterly taxes due, like as long as you pay in that. We’re not worried about penalties or interest, right? Their tax return itself has an initial due date of March 15th that you can automatically extend. You don’t have to ask for permission. You just say, I’m going to use my extension.
he forced us to do it. And then it goes close to September and he had made more than he realized. And he had a 401k and he had taken a really substantial salary. And I said, The sad part is we could make a pretty sizable contribution to your 401k for last year, but we can’t do that. Now. He goes, why can’t we do that now?
Because you’ve forced me, this idiot came in and told us to do this, from that point forward, we didn’t have to have that conversation anymore. Yeah. Fishy the eighth students that then thank you on it. Do that. There’s a few that sometimes you beat your head against the wall. The other one was, they’ll change K ones.
So you know, your syndicator, sometimes things change during the summer. You start finding out are their expenses and you’re going through your books and you’re sitting there and you’re like, you have a couple of choices. Like I can either fix the K one and give everybody a new K one. The problem is if they filed their taxes off the first K one that came out now they’re going to have to amend.
And so I always tell people like, wait till the last minute, so that your investments have a chance to make any changes. th the fun one was, the year that the, option reporting or the basis reporting, in brokerage houses came out and then they all use the same software and it was all incorrect.
So they sent out all these tax forms to their clients who ran out and filed their taxes. And then they corrected them about a month later after the tax deadline. And it’s you can either get audited or you can fix it. And now you’re gonna have to amend your return and you’re gonna pay to basically do your return again.
I always, I, we always try and get it out and March before the April the deadline, but I always feel like at least half the little. Probably less than half, still file it in April anyway, but there’s no reason. There’s no reason to file just, even if your return is done, just don’t file it.
Just file the extension, pay the taxes and you don’t have to worry about anything. And it gives them the opportunity to go back and revisit issues because you do have until the tax deadline. To make contribution, company contributions to retirement plans. So you never want to take that off the table.
You also have, you could be doing a cost segregation election all the way up until October 15th. So you don’t want to, that one, we could actually go back and amend, but why, like, why would you put yourself in a situation where you’re paying twice for something when you could just wait and do it once?
So going back to the whole, simple basis might be going away. And this is a bigger strategy that I’ve always said, it’s like, why would you want to own your own properties? That issue, especially if you’re not a professional operator, be a passive investor, split your net stake up into 50, a hundred thousand dollars increments and just bankroll a big Bon of passive losses and gains, never have to worry about any of these types of things one way or the other.
Yeah. th there’s something that you can do no matter what they do, because you still have exempt entities and exempt entities are like your 401k, your IRA, your Roth, IRA, Roth, 401k, but also five Oh one C3. And, Len you’ve known me enough that this comes up quite often with anybody who has substantial wealth.
That five Oh one C3 is your best friend because it gets it out of your estate when you get a tax deduction. Now. So worst case scenario, let’s just say that by, in the Senate and the house conspired to take away 10 30, one exchanges and the step-up in basis, they, increased capital gains rates.
They, they create a 39.6% top tax bracket that your dividends and capital gains can be taxed at. If you make over a million bucks, itemized deductions already gone, but w they were talking about bringing it in, but having a it’s basically, it’s only for people making less than 400,000, they have a kind of a funky calculation.
If you make over 400,000 where it goes away, I can still give things away. I can still take a charitable deduction for it, even if it’s a capital asset. And I can write a lot of that stuff off at my fair market value. Once it’s in a five Oh one C3, I’m not worried about step up or estate tax or anything again, because it’s not mine and my heirs still have access to it.
So those types of strategies will become even more important. which just means. There’s only so much stuff I need to own personally and have access to personally. Sometimes it’s better to get it into a vehicle where we never have to have these conversations ever again, the vehicle doesn’t pay tax.
And I love those because the only conversation I have with people then is how much do you want your kids to be able to take out of the business? And we know it has to be a reasonable amount, so nobody’s going to be buying Lamborghini’s off of your estate. nobody’s going to be able to go in there and just rape and pillage your estate.
The best scenario is they’re operating something that’s in your, that you created, and they’re able to take a salary for the rest of their lives. And then that can go to the next generation. So what Sylvia is talking about is creating a nonprofit. Creating that estate and being able to, what if the guy wants maybe not elaborate beanie, but he wants to take a $200,000 salary for his kids buy a Camry in the process, does that now you have to pay taxes on that.
Yeah. They pay taxes. It comes out. and I’m not talking about private foundations either here guys. there’s a lot of things that qualify as real estate, excuse me, as a charitable activity in real estate. Veterans housing, low income housing, HUD housing, moderate income, housing, housing for, you fill in the blank.
If it’s a disadvantaged group, single moms, we’ve seen it all residential assisted living. you can own a substantial amount of real estate, or if you’re actually operating a charity, doing something else it’s allowed to own passive real estate. So like the California teachers’ union owns a ton of like lots of buildings.
That’s their problem. Like they have a lot of investments and things, but what is it? Therefore, it is a retirement plan for teachers. It’s an exempt organization. So there’s lots of those. And there’s a misnomer that somehow that money is never for your benefit. Now you can take a salary, you just can’t take the profit out.
there’s a, it’s called private a newer minute. Can’t go to the benefit of any private individual, the profits. So I can’t just take it. What I can do is continue to operate it for what I set it up for. And it can, it’s going to grow and it’s going to grow extensively. And then you pay people, a reasonable salary is very subjective, depending on how much you want to do.
Yeah. Then they pay taxes. They take that out. But if they don’t need the money, which is what I see, I’ll tell you, because we’ve done over 4,000 of these it’s a one-way road. People tend to put money into the charities. They take very little out. and most of the kids that I’ve seen as we transition, because I’ve been doing this, over two decades, you start seeing a situation where the kids actually get behind it, and then they’re using it to lower their tax brackets as well.
I haven’t seen it where people are taking ridiculous amounts of money or trying to get access to money because they’re investing through that vehicle. And I like it because all of these conversations become moot. As I say, how much tax am I going to be paying none. You want to give it a house?
You’re going to write off the value of the house against your gesture, gross income. What? I’ve owned this house for 20 years and I only paid a hundred thousand for it. Now it’s worth half a million. Yeah. You get to write off the half a million. There’s an adjusted gross income limit of 30%. So maybe you’re gonna write it off over three or four years, but you’re still going to get a pretty sizable deduction.
People have a hard time getting their head around that. And then that asset is in there and it never pays tax. You don’t have to worry about who dies or any of that stuff. I just find it for again, for the affluent people that have a lot of money, that is something that they definitely should be looking at.
when you’re in real estate, like the type of real estate you do lane, the tax benefits are so ridiculously good right now. You don’t need to. But after you’ve, after you used a lot of the tax benefits for you, if they take them away, then you still have an alternative without doing anything crazy.
submitted by Lane_Kawaoka to u/Lane_Kawaoka [link] [comments]


2020.11.17 23:22 riwtaw If you were in my situation, would you save or invest your "extra" money each month?

Hi,
I'm in what's probably a common type of situation, and I would like your opinion on what I should do with my "extra" money each month.
Essentially, over the past couple of years, I've worked really hard to get my expenses down and to save up an emergency fund. Now, after all of my expenses are paid, I have about $500 extra each month. I want to invest it in my Roth IRA ($500 x 12 months = $6k = max out). It actually seems beautiful to me because maxing out my Roth IRA was one of the last things on my financial to do list (I already have 6 months of expenses saved, no debt except the house (and car lease if that counts), 401k, 529s, etc.), and with that remaining $500 going toward the Roth, that means every single dollar would be accounted for...
However, the fact remains, that leaves me with a net $0 each month, which might be ok, but next year....
-There may be some medical expenses in the amount of up to $6k.
-My house needs a new roof. $10k.
-When my lease is done next December, I want to purchase a used car (because I think it'll be a better value in the long run...). ~$10-15k
-My wife wants a new patio. ~$5k
Granted, there are a few things to help offset these expenses. I get paid 26 times a year, so since I budget monthly, I look at those two extra paychecks as bonus paychecks that don't otherwise have an assignment + we usually get a decent tax refund + all of these expenses are split evenly between me and my wife (we make around the same amount).
So, do I invest the $500 each month into the Roth IRA and cobble together my half of the money for these upcoming expenses through the various means I mentioned, or should I put it in my savings to stay as liquid as possible (especially with the situation in the world)?
The kinda tl;dr:
The worrier in me wants cold hard cash in these times + I have some upcoming expenses, but the long-term thinker in me is saying pump the money in the Roth IRA sooner than later to let time work its magic.
What would you do?
Thank you!
submitted by riwtaw to personalfinance [link] [comments]


2020.11.17 03:25 Interesting_Head I am 40 years old, I make $198,000 a year, live in Washington, DC, and I work in government affairs

Section One: Assets and Debt
Hello! Like others before me, I have written a small novel about my finances. Enjoy!
Retirement Balance: $655,724.99 (my 401k) + 262,817.64 (spouse 401k) + $52,020.06 (two IRAs, identically invested) = $970,562.69
Brokerage Accounts: $245,752.89
Home Equity: $327,100.23
Misc. Joint Savings Account Balance: $71,816.55
Joint Checking Account Balance: $37,706.45
Health Savings Account: $6,283.17
Credit Card Debt: $0
Student Loan Debt: $0
Car Loan Debt: $0
Section Two: Income
Income Progression: I have been working in my field for 17 years, and my starting salary was $25,000. Currently I make $198,000 + Spouse Salary is $150,000 = $348,000 + bonuses.
Monthly Take Home from Myself and Partner:
No Side Gig or Other Monthly Income: I used to sell things through Poshmark but that wasn't exactly a lot of money.
Section Three: Expenses (monthly averages when needed)
Monday:
Wednesday:
Thursday:
Saturday:
Sunday
Total spending for the Week:
Some Reflections:
submitted by Interesting_Head to MoneyDiariesACTIVE [link] [comments]


2020.11.17 03:18 kpopmomrunner7 Savings, 401K, investments, college kids finances

I need to hear opinions regarding on how to best handle our savings, 401Ks, possible investments while supporting two college kids with a third child in high school and also get some decent returns without being too aggressive.
Background. We have a household gross income of around 99-100K. We own a house and our current mortgage balance is around 45K with 7 years left on a 15 yr mortgage. No car loans. Credit card balances are always paid in full at the end of each cycle. Our earnings go directly to a shared account, mine on checking, spouse on savings. All my earnings pays for all expenses- mortgage, cahome insurance and utility bills. Spouse's earnings is what we set aside for emergency fund. Our finances are spread between savings, checking, term share deposits and money-market savings accounts.
We have no other investments other than our company's 401K. Our company matches up to 3-4% of our salary and the matching depends on the number of years of service (match 75% up to 3% of salary if 10-19 years of service OR match 100% up to 4% of salary if >20 years of service). Due to some family circumstances we were only able to to sign up for the 401K much later. I think mine was 8-9 years ago and my husband 6-7 years ago. We both maximize the matching contribution. We are only contributing around 4.5% of our salary. I want to increase my contribution to at least 10-12% since we are playing catch up (47 yo/50 yo respectively). Is doing this better than maybe opening an IRA or can we have a 401K and IRA as well? My hubby said something about mutual funds. It may be obvious to you that we are not very knowledgeable about investments.
We also have two college kids both sophomore, both in private schools. They have grants and scholarships with small loans (2500 and 4500) currently. We help them with room and board and other expenses. One sophomore is currently working as a RA so that covers the housing expenses.We pay for food and books. The other sophomore we pay for room, board and books. We do not have educational fund for them so everything comes from our savings.
Is there are a way to get a better rate of return for our savings considering what I provided above? Or do we just keep the way we are doing now. I also read somewhere about high yield savings account but this is only offered online. How does this work? Is is safe? Pros and cons? Our combined liquid assets is around 60K.
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2020.11.16 04:09 PunkinSpiceButt Lucky Breaks and Planning - On my way to Lean FIRE at 50-55 (critique/advice?)

41, married no kids. Net worth ~$800k maybe (how do you value a pension?). Moved from a high cost of living to a middle / low COL in the same careers. I will admit I got really lucky. Bought a house at bottom of the market in a high real estate value location ($200k mortgage, from $100k down in 2011 on a fixer-upper), and my wife and I both had 'good' jobs making about $120k annual. We are frugal by nature and planning, and no kids helps a lot in financial stability. We paid off our school loans and credit card debts by 2015. Our parents are aging, and our careers were solid, but no room for 'improvement' in the local market (University professional employees in a High COL), so we decided to sell everything and move to a cheaper locale (in July 2019) near our families (maybe we can even visit them after the pandemic?) and found equivalent types of jobs at the same pay in the new lower COL area. We luckily sold the home we renovated and updated as DIYers with a net profit of $300K (I worked for a finishing carpenter during / between degrees, so had enough skills to DIY). We bought a much more modest home in the new location with no intention of living beyond our needs. Currently we are around $100k gross annual salary, with my wife only working half time by choice in a field we enjoy. But let's face it... Universities are NOT doing well overall, but we hope technical fields like ours are likely to not get down-sized (we survived the current downsizing but many other faculty and staff did not).
We are very happy with a simple life of gardening and walking in the woods, and have a plan to retire a little early at around age 50-55 and enjoy the 'rural' country life we live... on ~30-35k annual expenses in today's $. We think...
Vital stats: we are at $20k annual expenses without being mega-thrifty, so~$25-30,000 annual expenses planned on average (enough to budget for 'new' used car, larger house expenses every 5-10 years without taking loans), and save $25-32k per year not in retirement accounts, plus $12k in IRAs (half Roth), and ~$15k annual in 401k (80% 2045 fund and 20% in low risk guaranteed fund) - $100k annual gross with high likelihood of +$20k salary increase over next 10 years. 0 debt. $280k in retirements (401ks, Roth and Trad IRAs in moderate risk investments). Small Pension eligible at 60 years old ($1000 month, how to value this in total assets? - general calculator I found said ~$200k value?). We also have $100k liquid cash, $20k aggressive stocks (was really lucky with Tesla and Microsoft stocks, so I already cashed out the initial investment amount from 4 years ago. I consider the $20k to be 'free' money that I now have in mostly VTSAX and then some leftover 'high risk' individual stocks) / and $100k in a 2% CD (emergency fund if the house we bought last year turned out to be a dud) from last year before it all went to poop and investments. Other assets are debt free, 2 good used cars from 2016 (~$30k value) and $150k house/property paid off and renovated in the past year, so no major expenses planned on the home.
We have a comfortable low-risk life... and we hope to retire early to just focus on our now 'local' extended family and our little bit of land.
I need to plan for what to do with the $100k when the 2% CDs mature in January. No way will we get 2% again. We want to keep 3-5 years of extended unemployed zero risk funds (maybe keep $150k in Capital One performance savings). Given the nation-wide University turmoil, I want a substantial zero risk safety net, but our skills are transferable outside a University ('hard' biological science, and accounting) if push came to shove.
We MIGHT be able to get to $1mil total assets by 2030 (starting at 480k with at least +~$40k per year invested at ~3-4% returns?), and Lean FIRE to get us into pension/retirement years.
submitted by PunkinSpiceButt to Fire [link] [comments]


2020.11.15 21:40 lastvalentine Benefits of Roth IRA vs a brokerage account in my case?

I have a Roth TSP account (government's version of 401K I think?) I contribute 10% + 5% government matching. I invest 100% in their version of S&P 500 index funds.
Where I bank, they also gave me a brokerage account. You can also open a Roth IRA with them.
Should I start investing with the Roth IRA or is this redundant because I already have a Roth TSP?
I was thinking of investing in index funds using the brokerage account (no trading fees currently). I don't plan on touching it but I was thinking of having something more liquid in case of emergencies or investing in something big like a house. Versus having to wait until I'm 59 on another account.
What are the tax benefits? What are just pros and cons of each? Thanks.
submitted by lastvalentine to leanfire [link] [comments]


2020.11.15 19:28 ThrowRA_723 New job, how to maximize net worth & rent vs. buy?

I'm just about to finish grad school and very excited that I just accepted a new job! Since I have a completely blank slate, I'd love to get advice on some things to maximize my earnings/savings/net worth since I know planning is key. Specifically, I'm interested in your thoughts on whether I should rent or buy when I move out.
Details: 23 years old, no debt Columbia, MD (halfway between DC and Baltimore) $110k salary (+10% employer retirement match) $60k savings/liquid investments $20k 401k/IRA savings Parents more than willing to loan me money if I need to make a big purchase.
I'm not 100% sure where I'll end up living, but I'm looking at areas within about 30 minutes drive of Columbia, which includes a lot of suburbs or some areas closer to DC proper or Baltimore.
I'm looking to move in with my girlfriend, probably a 1-bd. or 2-bd. apartment, and it seems like most of these end up somewhere in the $1,200-2,000/month range. Right now my girlfriend makes significantly less than I do, so I will likely end up covering 60-90% of the rent cost at least for a while.
Aside from general advice on how to manage money in a new city/first job (I expect to continue being a huge saver so I'm not too worried), my main question is whether it might make sense to consider buying a townhouse or house. There seem to be a fair amount of decent listings in the $200-300k range and with interest rates near an all-time low, combined with my 760+ credit, it seems like mortgage payments could end up being the same or even cheaper per month than renting. Plus, my payments would be going towards equity in the house rather than to someone else. (Although I have no idea whether the housing market is at a high/low right now and whether the property value might go up or down in the future).
Is it a bad idea to buy a house right out of college? Or does it potentially make some sense in my situation to take advantage of the low interest rates? I'm expecting to stay in this job for at least 3 years, and in all likelihood probably 5+ years. I'm also open to renting extra rooms if there are any to potentially generate additional income towards the mortgage.
I really appreciate any advice!
submitted by ThrowRA_723 to personalfinance [link] [comments]