Reader Case Study
Life Situation: 32F; 33M (not married) SF bay area
Gross Salary/Wages: $100k/year total: Her $80K; Him $15K(full time student; income from grant/scholarships and work study job) Her side hustle $5k year
Pre-tax deductions: no 401K available at her job; Her Traditional IRA and HSA
Taxes: Her 25% federal tax, 6% state; His income is not taxed? (grants, scholarships, work study)
Current expenses: ~$2K/month (~$25K/year)
Rent $880
Utilities $25 (we pay water only)
Health insurance $250
Groceries $400
Transit $75
Internet/home phone $55
Cell phone $12
Restaurants $50
Netflix $8
Pets $50
Dental insurance/co-pays $25
Misc. $150 (school supplies, beer, etc)
Liabilities: None; Her student loans paid off in 2014, he has full scholarship
Assets:
Local credit union $5K
Barclays online savings 1% int. $25K
CD $10K (3% Penfed 5 Year)
HSA $3350 (HSA Admin)
Vanguard: Her Traditional IRA ~$17K (VG Target Retirement 2045 Fund)
Her Taxable (VTSAX) $41K
-Take home pay is about $6K/month, we spend $2K and save/invest $4K
1. Can he open an IRA? Only earned income is work study.
2. Any other tax advantaged account opportunities?
3. I should have tax loss harvested. I guess I missed the opportunity for now...
