Just write $6500 on line 4b of your W4. You now have not withheld taxes on your $6500 IRA contribution.

Because IRA contributions are out of pocket (even if you set up direct deposit through payroll), payroll cannot treat them as pretax deductions. As far as they're concerned, it's just another bank account to deposit your paychecks**. However, this doesn't mean you can't enjoy the tax deduction now. To enjoy the tax deduction now, put the amount you plan to deduct annually on Form W-4 step 4b. This way, payroll will know to withhold less tax because your taxable income is lowered by the amount specified on step 4b.

**Strongly suggest that you do not set up direct deposit into an IRA, because any errors will cause more problems (e.g. excess contribution, reversed mistaken deposit being treated as early withdrawal).

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If you want less taxes withheld from pay to offset the deduction for your traditional IRA contribution, you do that by adjusting your W-4 to have less withholding.

Not necessarily wrong. More of an opinion. A lot of people will make the down payment the amount of the loan time depreciation of the vehicle plus interest. But overall, financially, investing the money is a better turn out.

With 2%, it was absolutely the right move to fully finance, as long as you can comfortably make payments and are living within your means. Depreciation is irrelevant, as long as you plan to keep the car for at least a few years.

As for the gap insurance, probably not the best move, but if it makes you feel secure, it's a small price to pay.

I would have paid cash and I wouldn't have bought a new car.

Also gap insurance is one of those, it can be helpful but most people think it's a scam. Even my step dad who is a car dealer thinks it's a scam.

Well when I was in my 20s I was upside down in a car (by a lot) and then then my wife (at the time) totalled it. Without gap insurance I would have been screwed instead we just walked away because we had gap insurance.

Married without checking the “spouse works” box.

2 jobs without doing the same.

Claiming “1” on the new form would do about $2,000 of underwithholding. It wasn’t right on the old form either, but a lot of folks had it drilled into their heads to put either “0” or “1”.

Keep in savings. We could pay off our mortgage but instead hold money in stocks/cash.

You will need 10-12% of the home value at a minimum to buy a house, pay closing costs, move and fund insurance and taxes. Second, mortgage companies will, at best, approve you for 36% of debt to income, so if your making $50k, that is $18k in payments/ 12 months to cover principal, interest, insurance and taxes, or $1500/ month. A mortgage that includes insurance and tax will allow you to buy a $185,000 house at today's rates. So you would need $20k saved for closing. Can you even find a house for $185k?

THAT is good financial planning. Use other people's money when it doesn't cost you if you can. I still think having an oh-sh*t stash will pay off for you in the future. :)

Why is the time horizon 5 years?

If they need this money in 5 years, 100% bonds is the safe option. Generally, in the short term, if not having enough money for something is a concern, that money should be in a savings account, treasuries, or something else that might earn less but won’t lose value.

Based on the interest rates right now you are probably looking at a budge of 185K which I do not know where you live so I guess you can compare houses in that range with what you are paying in rent.

Nope, actually would not even be putting money in principle, allocate that money to a retirement account or if you are maxing that out an investment account. The hard money you put in your house does not earn you money.

Given the move, I think you should keep the current job and get settled. Then you can more freely explore roles in NC or ideally, remote jobs that have more growth potential.

Your basically working tword saving your self 10 seconds of work per month when you knock out that mortgage. That 10 seconds will not compound like the money could have. You'll still have to pay property taxes twice a year, so that 2 minuites you get back every year will actually be more like 1:40.....I personally would rather have the cash on hand, even if it was hard cash under the matress. You never know when that dream car you've always wanted pops up from a guy in your neighborhood on a Sunday morning. By the time you refi, get out the money, go back and make an offer, the car has long been sold. (I lost my dream car on a Saturday night to a guy who bought it on Sunday afternoon with cash). I still loose sleep over that one.

No one can tell you which portfolio will do better over the next 5 years.

Portfolio A is riskier so if the markets are kind, it'll do better than B. But the tradeoff is a higher likelihood that they could make nothing or even lose a little bit.

If they aren't sure what to do, they can split the difference and go with a 50/50 portfolio which would almost certainly not lose money in a 5-year time frame.

What percentage is "some" of their savings? If this is 10% mad money then is doesn't matter. If they're investing 90% of their nest egg, 70% stocks is too aggressive.

Do they want to accumulate assets or protect assets?

Good point. I'm a single father so just one income. I want to have no debt asap so if I did lose my job I wouldnt be scurrying to get income.

Once the mortgage is paid off the only expenses would be the normal life expenses (water, food, electricity, etc).

Depends on how much they have, where their retirement comes from, what a steep drop in this investment would do to their retirement, and how much risk your parents can tolerate.

50/50 is a more appropriate asset allocation five years out from retirement

Rent money does not go "down the drain." What house are you going to buy with less than $10k down payment?

Sounds like you're seeing it pretty clearly. (Except, drop this "rent is going down the drain" idea, that's nonsense, renting is fine.) In your case there are good arguments either way and I think you've got a good sense of what they are. You'll know in 5 or 10 years whether you made the right decision, haha

$1,500 in rent is too much for your income, there's no way you can afford that as a mortgage + the monetary responsibilities that come along with owning a home.