Search found 1297 matches

by Eagle33
Sat Apr 10, 2021 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 28
Views: 2169

Re: HSA advice Jane Quinn How to Make Your Money Last

If you are in your 80's, as Jane Bryant Quinn is, and have not started spending down HSA, you are leaving your non-spouse heir(s) a big tax bomb - 100% taxable ordinary income upon inheritance. It is only beneficial for your spouse. Per Mike Piper - Inherited HSA Rules after you die: * If your spous...
by Eagle33
Sat Apr 10, 2021 6:12 pm
Forum: Personal Investments
Topic: Superfund 529 with <$70k year 1, contribute the difference years 2-5?
Replies: 4
Views: 656

Re: Superfund 529 with <$70k year 1, contribute the difference years 2-5?

What is your wife's $60k invested in over those 4 years?
by Eagle33
Sat Apr 10, 2021 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Avoiding Income Tax Penalties
Replies: 2
Views: 337

Re: Question on Avoiding Income Tax Penalties

As long as you have less than $150,000 Adjusted Gross Income for married filing jointly status, you avoid a tax penalty if you paid as much tax as you owed last year. My question is where do you find the number for what you owed last year? On the 1040 form, is it the number on line 12a, 12b, 16, or...
by Eagle33
Sat Apr 10, 2021 1:10 pm
Forum: Personal Investments
Topic: Roth conversion ideas needed
Replies: 35
Views: 3158

Re: Roth conversion ideas needed

You should each have a Roth IRA so you each can complete the 5-year clock on each account.
by Eagle33
Sat Apr 10, 2021 11:21 am
Forum: Investing - Theory, News & General
Topic: Vanguard Website
Replies: 71
Views: 5488

Re: Vanguard Website

I just logged on today. Haven't done in quite a while. Upper right corner has "Last logon: Thursday, April 08, 2021 02:24 AM ET". No way Jose. I was dead asleep at that time and no-one else has my login credentials. Should we all be concerned about a data breach????? Change your password ...
by Eagle33
Thu Apr 08, 2021 9:31 am
Forum: Personal Investments
Topic: Reinvesting dividends in Roth IRA account
Replies: 9
Views: 836

Re: Reinvesting dividends in Roth IRA account

The settlement account is part of your Roth IRA. It is just another mutual fund inside your Roth IRA. It is one of VG money market mutual funds. Just as you can sell and buy between other funds inside your Roth IRA, you can also sell/buy between the settlement account (MM mutual fund) and other fund...
by Eagle33
Wed Apr 07, 2021 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare PartB - reduce paid amount each month?
Replies: 7
Views: 1386

Re: Medicare PartB - reduce paid amount each month?

I sent in my SSA-44 and am waiting on a result. I also sent one in for my wife since we file married filing jointly. For my wife - even tho she paid in 2020 $148 or so for medicare part B and she had an approved SSA-44 on file - they hit her with $1,478 of not paid medicare plan B expense at the en...
by Eagle33
Mon Apr 05, 2021 6:47 pm
Forum: Investing - Theory, News & General
Topic: Parent contribute to child IRA
Replies: 10
Views: 1358

Re: Parent contribute to child IRA

Not sure if VG will allow you to link your bank account to grandchild's Roth IRA unless grandchild's name is on your bank account. I’ve linked my bank account to both my daughter’s and my son in law’s Vanguard account to make contributions and neither of them are on my bank account. Are both your d...
by Eagle33
Mon Apr 05, 2021 6:45 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 28
Views: 1714

Re: Roth conversion

You can divide your Roth conversion into multiple conversion done throughout the year. One of the conversions will be the lowest market for the timing of all the conversion transactions. If this is for your heirs, it won't matter much unless $20k is the maximum growth you expect from your IRA this y...
by Eagle33
Sun Apr 04, 2021 4:53 pm
Forum: Investing - Theory, News & General
Topic: Parent contribute to child IRA
Replies: 10
Views: 1358

Re: Parent contribute to child IRA

Not sure if VG will allow you to link your bank account to grandchild's Roth IRA unless grandchild's name is on your bank account.
by Eagle33
Sat Apr 03, 2021 4:45 pm
Forum: Personal Consumer Issues
Topic: how to determine the cost of medical procedure
Replies: 18
Views: 2053

Re: how to determine the cost of medical procedure

Didn't you get an explanation of benefits statement for your first visit where it showed what doctor billed, what insurance company agreed to and what insurer paid? Why not use that amount?
by Eagle33
Sat Apr 03, 2021 3:46 pm
Forum: Personal Investments
Topic: Required Minimum Distribution???
Replies: 20
Views: 2898

Re: Required Minimum Distribution???

The IRS is implementing the new RMD tables effective in 2022. There will be no change to the 2021 RMD divisors. 2022 RMDs will therefore be a little lower (~ 6%) which will slightly reduce the cost of deferring all or part of the 2021 RMD to 2022. So if one defers a 2021 RMD to 2022 then one uses t...
by Eagle33
Fri Apr 02, 2021 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: deductible health insurance premiums for self-employment?
Replies: 57
Views: 3591

Re: deductible health insurance premiums for self-employment?

After long deliberation, I've decided to claim the deduction described here: self-employment health insurance deduction for a COBRA policy in my wife's name that covers the whole family. I believe this meets the spirit of the tax law, where the letter of the law doesn't answer the question directly...
by Eagle33
Fri Apr 02, 2021 8:27 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads blog: a new rebalancing study
Replies: 147
Views: 13323

Re: Bogleheads blog: a new rebalancing study

Dunno - rebalancing helped me - when I had to do *something*. During the Covid crisis, I rebalanced when my 77/23 drifted down to 72/28. And rebalanced when it hit ~82/XX - but this time to 80/20. It's went back to 84/16 - and haven't rebalanced since. Maybe it's a psychological thing - that rebala...
by Eagle33
Fri Apr 02, 2021 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Stay on wife's employer health insurance, or Medicare?
Replies: 14
Views: 863

Re: Stay on wife's employer health insurance, or Medicare?

Since you don't like your wife's insurance, I recommend you switch to Medicare Parts B & D plus a Medigap plan now. The Medicare system/rules are setup for claiming Medicare when you turn 65. The system does allow exceptions, but there are hoops to jump thru and landmines to avoid - especially i...
by Eagle33
Thu Apr 01, 2021 12:47 am
Forum: Personal Investments
Topic: Vanguard site issues
Replies: 54
Views: 4548

Re: Vanguard site issues

Since I follow appropriate asset allocation for liability matching, my house down payment money is in my savings account, not my brokerage. You know that a brokerage account can have cash in it, right? Of course. I'm just not a fan of adding needless complication to my strategy. Cash goes in the sa...
by Eagle33
Thu Apr 01, 2021 12:25 am
Forum: Personal Investments
Topic: Understanding the 5 year rule for Roth Conversions - a hypo and clarification request
Replies: 13
Views: 1534

Re: Understanding the 5 year rule for Roth Conversions - a hypo and clarification request

This might be an easier way to look at things. 1. Once you reach age 59.5, all penalties go away. At that point, the only money that might be subject to tax is the earnings that have occurred inside Roth IRA (and Roth 401k in your example). 2. If it has been 5 years since the first contribution to ...
by Eagle33
Wed Mar 31, 2021 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Enough to retire?
Replies: 55
Views: 6036

Re: Enough to retire?

No one has mentioned long term care expenses. Do you and spouse have LTC insurance policies? Or are you planning to self fund your LTC?

A book I found illuminating about everything to consider at this phase in your life is "How to Make Your Money Last" by Jane Bryant Quinn.
by Eagle33
Tue Mar 30, 2021 6:26 pm
Forum: Investing - Theory, News & General
Topic: Maintaining AA during retirement
Replies: 6
Views: 1023

Re: Maintaining AA during retirement

does one just rebalance in the tax advantaged account? This is the plan, though it's going to be a challenge for anyone with a large taxable account and relatively small tax deferred space because at some point the entire tax deferred space will be filled with bonds. There is no way that I would pa...
by Eagle33
Tue Mar 30, 2021 2:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 1099-DIV** - you will get TWO for 2019 if you upgraded to BROKERAGE
Replies: 8
Views: 1455

Re: Vanguard 1099-DIV** - you will get TWO for 2019 if you upgraded to BROKERAGE

If the Payer ID on the two 1099-DIV forms are different, then need to enter them separately.
by Eagle33
Mon Mar 29, 2021 6:25 pm
Forum: Personal Investments
Topic: Fund allocation for $1.5M in 401k Retiring in 5 years?
Replies: 18
Views: 2098

Re: Fund allocation for $1.5M in 401k Retiring in 5 years?

Your current portfolio AA is is about 84%/16%. What is your target AA for your total portfolio?
by Eagle33
Mon Mar 29, 2021 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating my future taxes in retirement
Replies: 12
Views: 1194

Re: Estimating my future taxes in retirement

Does this sound plausible? * $6.5MM taxable account might generate ~$70K in dividends and ~$15K in capital gains per year I mind another person's account with about 1/2 your holdings, in a 30/70 AA and the income generated is what you are estimating above. So your estimate is almost certainly low. ...
by Eagle33
Mon Mar 29, 2021 5:37 pm
Forum: Personal Investments
Topic: 403b plan allows 10% penalty free withdrawals at age 55 & upon termination of employment. Does penalty apply for Roth Co
Replies: 10
Views: 879

Re: 403b plan allows 10% penalty free withdrawals at age 55 & upon termination of employment. Does penalty apply for Rot

Thank you for taking the the time to share your knowledge. This is very helpful and I learned from your replies. I plan to call Vanguard, the custodian, for my 403b plan and ask them if I can do Roth conversion a little by little with an eye on my tax bracket. The SPD does not state. Thanks again. ...
by Eagle33
Sun Mar 28, 2021 5:00 pm
Forum: Personal Investments
Topic: Head start on retirement home
Replies: 10
Views: 1468

Re: Head start on retirement home

If the stock market takes a 50% dive, that would leave you with an allocation of 33.3 stock / 50 Bond / 16.7 retirement home.
by Eagle33
Sat Mar 27, 2021 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Short term saving strategy taking into account taxes
Replies: 20
Views: 1180

Re: Short term saving strategy taking into account taxes

Have you confirmed there was no wash sales during all of our trading? No capital gain losses are allowed for the wash sales, resulting in higher capital gains that require more taxes to be paid.
by Eagle33
Sat Mar 27, 2021 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: The wash sale rules can't possibly be THIS antagonistic
Replies: 140
Views: 10443

Re: The wash sale rules can't possibly be THIS antagonistic

Understanding wash sale rules are important especially if you are a frequent trader.
https://twitter.com/courtranstrom/status/1375234012361396230
by Eagle33
Fri Mar 26, 2021 10:05 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 806
Views: 124213

Re: Year 2000 retirees using the '4% rule' - Where are they now?

Given the recent threads discussing forward SWRs, I think that it might be appropriate to remind some how well retirees from the year 2000 who strictly implemented the '4% rule' have fared. As of the end of February, 2021, after 21 years of withdrawals, those who had all-U.S. 60/40 portfolios still...
by Eagle33
Fri Mar 26, 2021 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Retro Unemployment Payments & Tax Question
Replies: 5
Views: 396

Re: Retro Unemployment Payments & Tax Question

If your spouse received a 2020 1099-G for this unemployment compensation, then I would consider it as a late 2020 unemployment payment from your state, not unemployment compensation for 2021. This is assuming this compensation is based on weeks in 2020 you were to receive UI and it reduces the weeks...
by Eagle33
Fri Mar 26, 2021 6:54 pm
Forum: Personal Investments
Topic: Roth Pro-Rata Question
Replies: 57
Views: 2623

Re: Roth Pro-Rata Question

Question on this. If I convert to a Roth, and my intent is to move the money to another broker like Vanguard (for simplicity of having my accounts together) Should I transfer it first (would go to my tIRA on vanguard? then convert there to my Roth?) or should I convert to Roth on TDA and then trans...
by Eagle33
Fri Mar 26, 2021 3:35 pm
Forum: Personal Investments
Topic: New to Bogleheads Forum - Tax Gain Harvesting?
Replies: 9
Views: 768

Re: New to Bogleheads Forum - Tax Gain Harvesting?

There is a wiki topic about this you should read. state taxes prevented me from doing it. Also be aware the cap gains rate only applies on amount over the 40k threshold, it's not a switch where at 40k you owe nothing and if you go 1 dollar over you owe tax on all of it...you would owe tax on 1 doll...
by Eagle33
Fri Mar 26, 2021 2:14 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 806
Views: 124213

Re: Year 2000 retirees using the '4% rule' - Where are they now?

Given the recent threads discussing forward SWRs, I think that it might be appropriate to remind some how well retirees from the year 2000 who strictly implemented the '4% rule' have fared. As of the end of February, 2021, after 21 years of withdrawals, those who had all-U.S. 60/40 portfolios still...
by Eagle33
Fri Mar 26, 2021 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Financing vs Spending Cash
Replies: 6
Views: 672

Re: Financing vs Spending Cash

To max out the rebates on a new car, we borrowed the minimum $6k to get an additional $3500 finance rebate. Paid off non-prepayment penalty loan the first month. Cost $30 interest, so net car price reduced $3470.
by Eagle33
Wed Mar 24, 2021 10:14 pm
Forum: Personal Investments
Topic: Seeking Portfolio advice (first post) a bit nervous
Replies: 23
Views: 1821

Re: Seeking Portfolio advice (first post) a bit nervous

I'll let others answer your questions, while I give you another item to consider - Backdoor Roth . Your spouse can take advantage of this now. In fact can still can contribute for 2020 if done soon. For you, does your 401k accept IRA rollovers? If yes, then consider rolling your total IRA (assuming ...
by Eagle33
Wed Mar 24, 2021 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: IRS not using unemployment income to count toward 150k
Replies: 5
Views: 698

Re: IRS not using unemployment income to count toward 150k

They have asked taxpayers not to file an amendment and wait for further guidance. The IRS has come out this week and clarified that they (IRS) will recalculated already filed returns with unemployment income to account for the 10,200 tax-free UI per individual. So no need to file an amended return ...
by Eagle33
Wed Mar 24, 2021 9:11 pm
Forum: Personal Investments
Topic: Talk me out of changing AA to 50% stocks
Replies: 43
Views: 4596

Re: Talk me out of changing AA to 50% stocks

I am not going to try to talk you out of it. If you did not suffer emotional distress in March of 2020, that is a good indication that you can move your AA a bit higher. AA between 75/25 and 25/75 is primarily a behavioral question. Correct, no panic in March 2020. Thanks! Not a good test case beca...
by Eagle33
Wed Mar 24, 2021 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: $150k AGI cliff for 2021
Replies: 16
Views: 2225

Re: $150k AGI cliff for 2021

Have you wife convince small employer for a month long unpaid sabbatical in 2021.
by Eagle33
Wed Mar 24, 2021 1:09 pm
Forum: Personal Investments
Topic: Inherited IRA
Replies: 9
Views: 933

Re: Inherited IRA

For an IRA I inherited from my Mother, who died at the age of 77 in January 2020, Fidelity began calculating an annual RMD for my account beginning in 2021. Based upon this I am expecting to withdraw a small percentage (based upon IRS tables) until the account is fully liquidated in 2030 or prior y...
by Eagle33
Tue Mar 23, 2021 11:20 am
Forum: Personal Investments
Topic: Should I rollover some of my 401A into an IRA?
Replies: 4
Views: 529

Re: Should I rollover some of my 401A into an IRA?

I recommend you open a new IRA for this rollover money so don't mix it with your direct contribution money.
by Eagle33
Mon Mar 22, 2021 10:35 pm
Forum: Personal Investments
Topic: Opportunities due to inheritance during retirement: ROTH conversions?
Replies: 3
Views: 506

Re: Opportunities due to inheritance during retirement: ROTH conversions?

Since you are over 59.5, then any conversions you do will be immediately available to you tax-free - no 5-year clock on the conversions. If your Roth IRA has been open for 5-years already, then all your existing & future earnings inside your Roth IRA are available to you tax-free.
by Eagle33
Mon Mar 22, 2021 10:00 pm
Forum: Investing - Theory, News & General
Topic: Tax Planning Principles (ERN)
Replies: 2
Views: 511

Re: Tax Planning Principles (ERN)

Just finished reading his article. Thought it was a good overview of all the various tax planning issues in retirement. Bogleheads, did he miss any or incorrectly state any tax planning issues? A bonus is a link to his comparison tool spreadsheet of which account type is better based on your particu...
by Eagle33
Sun Mar 21, 2021 6:06 pm
Forum: Personal Investments
Topic: New investor looking for advice
Replies: 7
Views: 596

Re: New investor looking for advice

Pay off the the auto loan.
I have opened a Roth IRA with Vanguard and would like to start investing as soon as possible.
You and your wife each needs a Roth IRA. Don't put bonds in your Roth IRAs. Read Tax-efficient fund placement to become more tax educated.
by Eagle33
Sun Mar 21, 2021 5:17 pm
Forum: Personal Investments
Topic: traditional IRA vs Roth - how to figure out
Replies: 81
Views: 5670

Re: traditional IRA vs Roth - how to figure out

If you do not have a Roth IRA and had 2020 earned income, while you figure out contributions/conversions to a Roth IRA, I recommend you make a 2020 Roth IRA contribution before 4/15/21 so you can start your Roth account 5-year clock. This will start the clock make on 1/1/2020 and you will be able to...
by Eagle33
Sat Mar 20, 2021 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Inheriting a Roth IRA
Replies: 19
Views: 1766

Re: Inheriting a Roth IRA

The consensus is that under the SECURE Act, if a beneficiary doesn't need the money, it should be invested in the Roth just like any other Roth money, and taken out in the tenth year after death at the last possible moment, right? Another option is to take out earlier if using inherited Roth money ...
by Eagle33
Sat Mar 20, 2021 3:44 pm
Forum: Personal Investments
Topic: traditional IRA vs Roth - how to figure out
Replies: 81
Views: 5670

Re: traditional IRA vs Roth - how to figure out

Read the wiki topic Traditional versus Roth for further understanding.
by Eagle33
Fri Mar 19, 2021 7:41 pm
Forum: Personal Investments
Topic: Portfolio Rebalancing For Retirement in 10 Years
Replies: 5
Views: 908

Re: Portfolio Rebalancing For Retirement in 10 Years

Isn't what you are proposing to do actually re-allocating, not rebalancing?