Paysite-cash blog: secure payment solution

Worth keeping an “investment property” where you’re ~$500 in the hole every month?

My wife and I just moved out of the country for at least 3 years. We kept our townhome as an “investment property.”

Problem is, no one has rented it yet, (it’s only been a few weeks since we left), BUT it’s now looking like once we do get a renter we’ll probably be in the hole ~$500/month with our mortgage. We currently have a 4% rate on our mortgage, so refinancing doesn’t look like an option right now.

Is it even worth keeping at that point? I just can’t help but think that money could go toward other investments, but I do understand a renter will be paying ~$2,000 for us. So much of that goes toward interest, though.

I also am still on the job hunt, which is why this is more painful as well.

Is this the type of thing that’s worth keeping in the long run still, we just eat the cost and wait until we can refinance (if ever), or would our money be better spent going toward something else?

Thank you!

Can I open a business CC at the same time as a personal one?

I had recently been reading into the best way to utilize credit card points with Chase and have realized that getting the Chase Freedom Unlimited card for myself along with the Chase Ink Freedom card for the small business that I own is the best way to go. A few weeks ago, I applied for the CFU card and my application was accepted. Today I was looking into applying for other business CC but I got into some reading that said not to apply for 2 Chase credit cards within 6 months of each other because chances of getting your application accepted are slim to none.

So my question is does that rule only apply when applying for 2 individual cards or is it different when applying for a business CC?

I am the sole owner of my company and figured they will do a hard pull on my personal account to determine eligibility. Is it worth the risk applying or better to hold off for 6 months?

Can I buy Series I Bonds as a non-resident alien?

The TreasuryDirect website says that an individual has to be a US resident (e.g., pass the substantial presence test) to buy Series I Bonds. I moved to the USA in Q3 of 2022 on a work visa and haven’t been here for over 183 days yet, which means I don’t pass the substantial presence test and am not a US resident for tax purposes yet.

However, I will become a US resident in Q3 of 2023. This means I will be considered a US resident for tax purposes for all of 2023 including today. With the “first-year choice”, I could even be considered a US resident for tax purposes from the date I arrived in Q3 of 2022.

Does that mean I’m eligible for buying Series I Bonds now, given that I will be a US resident for 2023? Or should I wait until Q3 of 2023 and miss out on the interest rate?

Investing for my young son. Right now just have money in VTSAX in a personal brokerage account for him. Should I switch to a different account type for tax advantages, etc?

Saving for when he’s 18. Also considering a Child Roth IRA in addition to what I have now/whatever is recommended to me here. I do not want a 529 or any type of college savings type account.

Edit: Apparently my 4 year old needs earned income to be eligible for a custodial Roth IRA. This seems ridiculous to me but ok.

Self-employed “employer” contributions to 401k

Can the “employer” contribution to a solo401k be in 2023 for income earned in 2022 or does it have to be made the same year? The account is already open.

Also, to confirm, it’s a max of 25% of gross earned after half of SE taxes are subtracted from gross earned, correct?

Thanks!

18 year old renting, is it possible?

I have a somewhat complicated situation with regards to work but I’ve been looking at apartments near my work.

There’s a lot available, but the problem is that 1: I don’t have very many references because I finished school doing cyber & am introverted, 2: I don’t have any credit history, and 3: I’m currently just a relief position. I currently make at least 3x than I would spend on rent, because my relief position pays very, very well, but I just started it in October.

This will be a long-term job and I will get full time as soon as it’s available, but I cannot get full time yet since I live so far away.

Would any landlords understand this? I can pay for 4 months rent + security deposit, but I’m not sure if they would take me still. Is there any advice for getting an apartment without having much history? I am not looking at corporate stuff. I live in Ohio, if that’s any help. Thanks!

How much to put in a 529 plan.

With the next morning being the start of a new year I will be putting some money aside for my 2 kids (5yrs and 3 yrs). I have opted for the Utah 529 plan wanted to know if this is a good choice and how much money should I put aside each month.
I tried to get this answered from the internet but got even more confused.

Advise and response appreciated.

Urgent FSA question!

1 hour and 26 min til it’s too late…

TL;DR At the bottom.

I am employed by Costco if it matters for this scenario. I enrolled in an FSA account for 2022. I will have about $500 carryover into 2023. I forgot to re-enroll for the FSA account for 2023.

What will happen to that $500 since I did not re-enroll?

I understand that by not re-enrolling I will not be able to continue contributing to my FSA account for 2023. But will the carried-over money be forfeited bc I didn’t re-enroll? Does it sit there, inaccessible until the next time I enroll? Will it be paid out to me minus applicable taxes? Will it continue to be available to me just as it was throughout 2022 with the only difference being that I am no longer able contribute more money in 2023?

On Costco’s benefits website, page 95 of the “2022 Summary Plan Description” states,

“According to IRS rules, you forfeit any balance over $550 remaining in your account at the end of the calendar year. The last day you can file a claim for reimbursement of the prior year’s expenses is April 30 of the following year….

You are allowed to carryover up to $550 in unused funds to pay for eligible expenses incurred in the following year. Any amount over the $550 carryover limit remaining in your account after the claim filing deadline of April 33 will be forfeited.”

(Yes, the official doc says April 33 lol.)

Unfortunately this info isn’t enough to answer if use of the carried-over money is affected by not being re-enrolled in FSA the following year.

Page 96 goes on to state,

“Annual Enrollment is the only time you may enroll in the [FSA].… To continue participating from one year to the next, you must re-enroll during each Annual Enrollment period.”

The last sentence is what makes me nervous that I may no longer have access to the carried-over money. However, it’s not specific about what “participating” means. Does that mean contributing new funds but not necessarily spending carried-over funds? Or both? Or is this not technically considered participating the next year bc the money was contributed the previous year, even though the money is being spent the next year?

Any help would be appreciated as the thought of the rollover money potentially being forfeited just hit me and I am realizing that I may need to suddenly spend $500 on FSA purchases…like right now!!

Thank you!

TL;DR What will happen to the money in my 2022 FSA account that is eligible to rollover into 2023 if I did not re-enroll in an FSA account for 2023? Costco is my employer if it matters.

Do I need to spend the money RIGHT NOW?? Thanks!