Category Archives: Random Thoughts

A Great Toy for Kids

Just bought a microscope for my 7 year old daughter. It’s surprisingly overwelcomed by all the kids from 5 years old to 9 years old. It seems they all grow out of all the baby toys. This toy is adding the fun of learning scrience to their play time. Here is the link. The amazon has the better price than ebay on this item.

Long Island Port Washington/Oyster Bay line Emergency going home plan (from Manhattan)

It is already the second time LIRR failed since we moved to long island.
Here are the back up plans going home:
1) Subway alternative… Take #7 train to flushing. Then take Q12 (final stop Little Neck) N20/N21 (some ends at Great Neck, but some goes to Manhassett, Roslyn, Glen Cove, Greenvale, Old Westbury Hicksville).
2) If LIRR partially functioning… Port Washington line and Oyster Bay line can be backup of eachother, N20/N21 connections Great Neck of Port Washington line with Roslyn, Old Westbury etc of Oyster Bay line.
If LIRR Montauk line is functioning, take Montauk line to Lynbrook, then N25 to Great Neck, then other buses from Great Neck, if needed.
3) Express bus… Take QM3 from middle town to Little Neck.
34 St & 3 Av
34 St & Park Av
34 St & Madison Av
35 St & 6 Av
6 Av & 41 St
6 Av & 44 St
6 Av & 48 St
6 Av & 55 St
57 St & Madison Av
57 St & 3 Av
There are only three afternoon shuttles. click for schedule :
4) China town van… Go to Chinatown, enjoy a dinner and take a van Chinatown-Flushing. ticket is $3. Then take Q12 or N20/21.

#7 train is the best backup. Other alternatives are more vulnerable to traffic chaos after the storm.
If LIRR is not functioning, show your LIRR monthly pass and you should be get free ride on #7 train, M12, N20/21 and QM3 bus. (tried everything except QM3)

5) Just stay… Find a place to have a drink, stay with a friend in Manhattan, enjoy your night.

Are you preparing for your children’s college?

有孩子的家庭,孩子们上大学的费用,开始准备了吗?
每家的情况都不同,我把自己Research过的option跟大家share一下。 一下提到的几个option, 钱至少在plan里面的时候都可以grow tax free, 比直接投资更有优势。

Home Equity:最初的时候,我计划用home equity来付孩子的学费。等孩子上大学时,贷home equity line of credit, 或者cash out refinance. 但是经过3年的housing downturn, 这个option 至少对现在正面临孩子上大学的家庭,不再象三年以前一样practical. 但是再过10年,没准又可行了。
优点:primary house capital gain(除非数目太大) 不用交capital gain tax. Primary residence mortgage interest 是 income tax deductible的。 更好的消息是,即使在Alternative Minimu Tax的算法里面,mortgage interest 也是deductible的。property tax 也是tax deductible的,但是可能会hit AMT.
缺点:想cash out的时候利率没法控制。

tax deferred traditional IRA: 如果是为自己,配偶,或孩子付大学费用,可以在59.5岁之前取出,不用交10% penalty. 但是要为全额交当年的income tax. Treatment跟59.5以后取出一样。唯一缺点可能当年marginal tax rate增高,尤其如果有两个孩子同一年tap into 你的IRA付学费的话。

Roth IRA:Pincipal 可以随时取出, 不用交income tax. Earnings 需要交income tax. 而且在59.5岁之前不是qualified withdrawal 要交10% penalty. 大学费用是qualified withdrawal.
如果marginal tax rate是concern的话,取出principal部分付大学费用是一个好的option. Earning还是尽量等到退休以后吧,那时就不用交income tax了。

401 K:大多数employer都允许员工从401K借贷,用于first time home purchase或者自己,配偶,或孩子的大学费用。 只要按时还就行了。 缺点是如果你要换工作的话,马上要全部还清。You new job better pay you well!

529 plan: After tax money 存进去,Grow like Roth IRA. 如果钱用于上大学,distribution tax free. 如果不是,要交10% penalty, earnings 还要付income tax. 每年可以换一次beneficiary. 所以还是有一些flexibility的。缺点是如果帐号在父母孩子名下会影响申请financial aid. 可以以其他亲戚名义开帐号就没问题。很多州都有state tax deduction for 529 plan. 纽约州的residence 有$5000 for single, $10000 for married couple. 考虑到纽约州税率很高,尤其是,我们中绝大多数人都hit AMT, 州税不能fully deduct federal tax, 建议纽约州尤其在纽约时工作的一定要开, 但是开到 state tax deductible 的数额就可以了。

Coverdell Education Savings Accounts 很象529plan,在2010年以前有更好的term,但是congress至今没有extend. 如果不extend, 每年每个孩子只能contribute $500, 家庭年收入在$190,000左右phase out. Contributor不可以付penalty and take back. 只能用于post secondary education. 孩子30岁之前必须全部distribute给孩子。

custodian account:可以给孩子开一个custodian account. 孩子每年可有$950 investment income tax free. Another $950 只交 $95. 小小的省一点税。 转给孩子的钱不能直接拿回来给你自己, 但是可以用在孩子身上 (给他买东西,交summer camp, 什么都行)。 可以通过这个过程教他一点理财的知识。 至少我6岁的女儿,终于知道4个Quarter就是1块钱了! 缺点是,到了21岁或18岁(depends on which state you live in),这个帐号里的钱就是孩子说了算了。你要是怕他花在你不想花的地方,就赶紧在他take over之前帮他花了!

在孩子的529 plan 和 custodian account 加的钱,算是给孩子的Gift, 每年往里加钱per donor, per recipient不能超过$13000. 不然就要交gift tax. 但是在申请financial aid的时候,529 plan的asset按家长的asset计算,cusodian account 按孩子的asset 计算。所以如果想申请financial aid,custodian account的钱在申请financial aid钱要尽量花光。家长的primary home, retirement accounts, 都不会影响申请financial aid. 但是78%的financial aid是贷款,大家到时候再决定吧!

开山第一博

我至今持有大学时的班级日志。因为我是最积极的班级日志作者。我还记得某人批道:“通篇都是废话。清华园无文学。”

多年后的今天,笔换成了键盘,我在网络上写自己的第一篇博客。不断的告诉自己,千万别废话。那么谈什么呢。还是谈钱吧。我的话题是financial planning. 希望对大家有所帮助。

disclaimer: 我会尽量做好research. 但是不能保证没有错误。尤其法律每年都在变,所以请大家double check before take action. 如有疑问和correction, 请email: info@littlefir.org attn: wangmumu