Personal Finance Guy

Yet another guy. Dad, lawyer, CC points nerd. Here to share everything I know about personal finance: short term easy hacks + long term financial commitments.

[Personal Finance Guy @PersonalFinGuy]

@TKopelman Love this.

Among options 2-4, I find short term T-bills to be optimal.

1) Unlike other bonds, risk-free when held until maturity.
2) Unlike CD's, robust liquidity prior to maturity.
3) Unlike most investments, state and local tax free.

[Thomas Kopelman 💵 @TKopelman]

Saving for short term goals

Here are your best options:

1. Cash (HYSA)
2. Ibonds
3. Bonds that mature around the time you need them
4. cds at these rates

Not
-60/40 portfolio
-S&P 500
-Crypto
-Etc.

You want to hit your goal, don't risk it with the unknown

[Personal Finance Guy @PersonalFinGuy]

Random thought of the day: you will never have all the documents you need at the DMV.

Life is better once you accept that reality.

[Personal Finance Guy @PersonalFinGuy]

@realEstateTrent Anyone involved with my kids. Housekeeper, day care providers (e.g. holiday gifts etc.)...

[Personal Finance Guy @PersonalFinGuy]

@TKopelman @EngineeringFI_ My guess - same penalty as an over contribution. 6% on the excess contribution per year per account (so up to $390/annually per kid).

See https://t.co/N2x2InOYCX

[Personal Finance Guy @PersonalFinGuy]

@realEstateTrent Would apply this broadly to life in general.

[Personal Finance Guy @PersonalFinGuy]

@TheSuddenWealth @SMB_Attorney 👆👆👆

Another thing:

When you sell shares that were acquired in batches over time: make sure you sell the highest basis shares (so you'd capture the highest losses).

You need to specify this; otherwise your broker will probably default to FIFO (first in, first out).

[Personal Finance Guy @PersonalFinGuy]

@maxpashman Classic. And if they're claiming the SD, they're likely in a low enough bracket rate the mortgage interest deduction isn't worth all that much anyway.

[Personal Finance Guy @PersonalFinGuy]

@Budgetdog_ Very well put

[Personal Finance Guy @PersonalFinGuy]

This will not make them less financially independent. It will make them more.

They will be able to access debt (auto, home, student loans, etc.) at the best rates, instead of borrowing from you.

[Personal Finance Guy @PersonalFinGuy]

Make your kids authorized users on your credit cards as early as you can. You can hide the cards (or cut them up) if you'd like.

If you never miss a cc payment, by the time they're 18 they will have a fantastic credit score.

[Personal Finance Guy @PersonalFinGuy]

@TKopelman Exactly! It's essentially a back up emergency fund (though you should work toward building a separate emergency fund).

[Personal Finance Guy @PersonalFinGuy]

@realEstateTrent People still think Twitter is purely for entertainment and LinkedIn for networking.

LinkedIn looks like last century ever since I switched over.

[Personal Finance Guy @PersonalFinGuy]

How about you @ftmoney @WOLF_Financial?

[Personal Finance Guy @PersonalFinGuy]

Most people heard of the wash sale rule for tax loss harvesting.

But have you ever thought about wash gain harvesting? Is it possible to have decades of stock gains completely tax free (in a taxable account)?

Stay tuned...

[Personal Finance Guy @PersonalFinGuy]

Summary:

Once a year (after 366 days of holding), realize any unappreciated gains eligible for 0% tax treatment, and immediately buy back.

You can potentially pay 0% tax on decades worth of gains.

What say you @CREdeallawyer @realEstateTrent @investing_law @sweatystartup?

[Personal Finance Guy @PersonalFinGuy]

@sweatystartup This is exciting

[Personal Finance Guy @PersonalFinGuy]

@realEstateTrent This is actually brilliant.

Make it a mini-series hosted on Twitter. Would generate a huge cult following. It's pretty industry neutral, and everyone likes a good sales story.

[Personal Finance Guy @PersonalFinGuy]

@realEstateTrent I would watch this.

[Personal Finance Guy @PersonalFinGuy]

@FluentInFinance Best: Amex Platinum.

👆 is my favorite, but I use my trusty old Chase Freedom Unlimited the most.

[Personal Finance Guy @PersonalFinGuy]

@WOLF_Financial Yessss👆👆👆

[Personal Finance Guy @PersonalFinGuy]

@realEstateTrent I know someone who did this and retired at 14.