Search found 7388 matches

by Bob's not my name
Sun Jan 10, 2021 1:40 pm
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

Thanks. Yes, 22% is good but the high state tax makes it 31%. I can't think of any states we'd move to with a higher income tax (the west coast is out of the question). As noted, I did follow the Roth course last year, when the tax rate was certain. Also, I'd like to increase cash on hand and I need...
by Bob's not my name
Sun Jan 10, 2021 12:02 pm
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

The island has utilities and water. There are seasonal cabins on the other lots. But it's a stone's throw from protected land so it's a low population area.
by Bob's not my name
Sun Jan 10, 2021 10:41 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

I'm interested in buying the island. I suppose you canoe out to it and camp, right? Is one of the neighboring islands for sale? Yeah, where do I buy an island for $23k? That was obviously included in OPs post to attract a side discussion. "island property" wasn't intended to mean "is...
by Bob's not my name
Sun Jan 10, 2021 10:36 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

Yes. Effectively self-insured on life, as discussed later in the thread. But I have the other two.
by Bob's not my name
Sun Jan 10, 2021 9:31 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

1. 10 years is a very long time in our age bracket (early 60s). I started to do detailed, long term retirement planning at age 58, I was “outa’ there” by 62. Health issues can easily intervene, but so can the flow of time and life. Perfect will probably not last and you need to be prepared to be fl...
by Bob's not my name
Sun Jan 10, 2021 9:21 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

livesoft wrote: Sun Jan 10, 2021 9:19 am I'm interested in buying the island. I suppose you canoe out to it and camp, right? Is one of the neighboring islands for sale?
I polled the neighbors and they were unanimous they don't want you there.
by Bob's not my name
Sun Jan 10, 2021 9:17 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

Your HSA balance is low (~$23k) and your 2021 planned contribution is $6k. Your maximum 2021 HSA contribution for family coverage is $7.2k plus a $1k catch-up each for you and spouse at age 55+. Consider increasing your HSA contribution to $9.2k and using the account in retirement to pay healthcare...
by Bob's not my name
Sun Jan 10, 2021 9:12 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Re: Portfolio review

You could look into a no-cost refi and can definitely shave a bunch off your payment with a refi without having to dip into unattractive options you mention. Have you run calculations in RPM or i-ORP to see the value of doing some Roth conversions along the way to mitigate a likely high RMD pushing...
by Bob's not my name
Sun Jan 10, 2021 8:25 am
Forum: Personal Investments
Topic: Portfolio review
Replies: 19
Views: 957

Portfolio review

Emergency funds: 6 months’ expenses in cash. Roth IRA if necessary, eligible to withdraw penalty-free from old 403b if necessary, $100,000 borrowable from old 401k and current 403b combined (yes, loan from old 401k is allowed; I know it’s a rare feature). Debt: $300k mortgage on $1M home, 3.375% fi...
by Bob's not my name
Sat Jun 01, 2019 6:02 am
Forum: Personal Investments
Topic: Roth v 401k at income levels
Replies: 18
Views: 2082

Re: Roth v 401k at income levels

I read that >50% of people over 50 have an involuntary job loss. "older workers are less likely than younger workers to lose their jobs" The issue is more complicated than that, so both soundbites are misleading. It is indeed prudent to plan for a range of scenarios. If you do suffer a st...
by Bob's not my name
Tue May 28, 2019 5:03 am
Forum: Personal Investments
Topic: Roth 401k vs Trad 401K based on current income / tax
Replies: 11
Views: 1101

Re: Roth vs Trad 401K based on current income / tax

lakpr wrote: Mon May 27, 2019 3:06 pmThe top of the 12% tax bracket is $78.4k taxable income for 2019.
$78,950

It looks like you are safely below it, but note that if your wife is taking the Lifetime Learning Credit, your de facto marginal rate is 32% if your AGI exceeds $116,000.
by Bob's not my name
Sun May 06, 2018 7:33 pm
Forum: Personal Investments
Topic: Quick one re: Liquidating ESPP Purchases to Diversify
Replies: 7
Views: 917

Re: Quick one re: Liquidating ESPP Purchases to Diversify

samsoes wrote: Thu May 03, 2018 6:16 amThe 1 year LTG clock begins on the day of purchase.
The 2-year LTG clock begins on offering date. See "qualifying disposition". In any case, it's not worth waiting for unless you're already close.
by Bob's not my name
Fri Mar 02, 2018 8:39 pm
Forum: Investing - Theory, News & General
Topic: Double tax on IRA accounts to heirs
Replies: 14
Views: 1804

Re: Double tax on IRA accounts to heirs

Person A paid perhaps $135,000 (Federal + State + FICA) in order to invest $100,000. The growth results would be lower for Person A for the same investments due to tax drag. Well not FICA, those taxes are not avoided by using IRA, 401K, etc. But would probably need more that $135K before tax in ord...
by Bob's not my name
Fri Mar 02, 2018 5:16 am
Forum: Personal Investments
Topic: IRA phaseout range
Replies: 4
Views: 742

Re: IRA phaseout range

Kittens wrote: Thu Mar 01, 2018 5:15 pmThe income range is $120-135k
It's a MAGI range. Your MAGI should be about $22,000 under your gross income due to 401k contributions, FSA or HSA contributions, and pre-tax insurance premiums withheld from your pay.
by Bob's not my name
Wed Feb 28, 2018 8:20 pm
Forum: Personal Investments
Topic: Max 401k or contribute to ESPP
Replies: 40
Views: 4067

Re: Max 401k or contribute to ESPP

CppCoder wrote: Wed Feb 28, 2018 7:55 pma six month CD that pays 15% on maturity
3-month CD paying 17.6%
by Bob's not my name
Wed Feb 28, 2018 1:16 pm
Forum: Personal Investments
Topic: Max 401k or contribute to ESPP
Replies: 40
Views: 4067

Re: Max 401k or contribute to ESPP

There is no motivation to hold. The 17.6% certain return is, for a 6-month plan period, over 90% annualized. Holding puts that at risk. The discount portion is taxed as ordinary income. Sometimes people get confused by the LTCG rules and think there's a mathematical reason to hold. There isn't.
by Bob's not my name
Wed Feb 28, 2018 9:26 am
Forum: Personal Investments
Topic: Max 401k or contribute to ESPP
Replies: 40
Views: 4067

Re: Max 401k or contribute to ESPP

Is this merely a test to see which employees are stupid enough to buy the stock at a discount and hold onto it as an investment? More of a winning bet than a test. The max-and-dump people are in the wise minority. Everybody else does the arithmetic wrong. OP, there is no sacrifice in exploiting two...
by Bob's not my name
Tue Feb 27, 2018 8:13 pm
Forum: Personal Investments
Topic: Max 401k or contribute to ESPP
Replies: 40
Views: 4067

Re: Max 401k or contribute to ESPP

90% annualized.
by Bob's not my name
Tue Feb 27, 2018 4:44 pm
Forum: Personal Investments
Topic: Max 401k or contribute to ESPP
Replies: 40
Views: 4067

Re: Max 401k or contribute to ESPP

This is a false choice. An ESPP is merely a cash flow pipe; it delays a small portion of your pay for six months and adds 17.6%. You should be able to do both.

ESPP's usually have modest and flat overhead cost, so be sure to max it out every period so this is a negligible factor.
by Bob's not my name
Tue Feb 27, 2018 8:28 am
Forum: Personal Investments
Topic: Thoughts on an ESPP with 2 year contribution period?
Replies: 29
Views: 2356

Re: Thoughts on an ESPP with 2 year contribution period?

Assuming you're contributing each pay period, some of your money will be tied up for 2 years, some less, with an average of 1 year. If you think of this as a bond fund with an average duration of 1 year and a 17.6% return, it's a pretty good deal. Even if the entire amount went in on day one and sa...
by Bob's not my name
Sun Feb 18, 2018 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: student loan vs investing
Replies: 12
Views: 1127

Re: student loan vs investing

3.9% unless there's a 2% state tax implied

And you pay tax on bond interest, so the relevant rate is 5% unless we're comparing to tax-free bonds.
by Bob's not my name
Sun Feb 18, 2018 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: student loan vs investing
Replies: 12
Views: 1127

Re: student loan vs investing

willthrill81 wrote: Sun Feb 18, 2018 4:48 pmWill you have enough other expenses to pass up the now higher standard deduction ($12k for singles and $24k for married filing jointly)? You'll only have about $1,250 of student loan interest to deduct.
Student loan interest is an above-the-line deduction, not an itemized deduction.
by Bob's not my name
Sun Feb 18, 2018 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: student loan vs investing
Replies: 12
Views: 1127

Re: student loan vs investing

since it's deductible and my bracket is 22% that the rate is more like 3.8% Check your math. Debt should always be compared to bonds, as explained on the wiki. You are considering taxes only on the loan side. Therefore you must be assuming a tax-free investment. The Intermediate Term Tax-Exempt Bon...
by Bob's not my name
Sat Feb 17, 2018 4:18 pm
Forum: Personal Investments
Topic: Investing vs paying off debt
Replies: 28
Views: 2546

Re: Investing vs paying off debt

Tax Rate: 24% Federal, 6.25% State Heath Insurance $439.72 Dental Insurance $197.17 Vision $46.58 Flex Spending $129.00 These numbers all seem wrong to me. Your tax rates are 22% federal 5.1% state. Your dental and vision seem nutty high (9X mine), but in any case you should be paying these with pre...
by Bob's not my name
Tue Feb 13, 2018 8:17 pm
Forum: Personal Investments
Topic: 401k pre-tax, Roth, or a blend?
Replies: 18
Views: 1863

Re: 401k pre-tax, Roth, or a blend?

Yeah but they have to FIT in the 12% bracket, meaning that you have to get your earned income low enough to give yourself the headroom.
by Bob's not my name
Mon Feb 12, 2018 8:30 pm
Forum: Personal Investments
Topic: 401k pre-tax, Roth, or a blend?
Replies: 18
Views: 1863

Re: 401k pre-tax, Roth, or a blend?

$5,000 pre-tax will consume $5,000 gross. $5,000 Roth in the same tax bracket would consume $6,920 gross and throw away $1,920 in taxes. My point was only that you make sure you are making this comparison when you decide how much to save and how much to pay in taxes.
by Bob's not my name
Mon Feb 12, 2018 5:29 pm
Forum: Personal Investments
Topic: Pay bump, time to switch Roth to Traditional?
Replies: 14
Views: 1637

Re: Pay bump, time to switch Roth to Traditional?

Thanks, good to know. I wonder if other states will reconsider the tax-deductible Roth IRA. When I originally looked into this issue, the context was immediate exploitation (via immediate conversion), but in the course of researching it I was surprised by both the number of states that exempt retire...
by Bob's not my name
Mon Feb 12, 2018 4:41 pm
Forum: Personal Investments
Topic: Pay bump, time to switch Roth to Traditional?
Replies: 14
Views: 1637

Re: Pay bump, time to switch Roth to Traditional?

State taxes in Utah (5%) and Michigan (4.25%) are essentially equal. Michigan used to exempt $40,000 of retirement income, which favors traditional 401k, at least up to a point. I did not research Michigan taxes to see if this is still true -- the OP ought to study MI and UT tax treatment of withdr...
by Bob's not my name
Sun Feb 11, 2018 7:51 pm
Forum: Personal Investments
Topic: 401k pre-tax, Roth, or a blend?
Replies: 18
Views: 1863

Re: 401k pre-tax, Roth, or a blend?

You'll get better answers if you tell us what state you're in (since states tax Roth and traditional contributions and withdrawals differently) and how much you would contribute to Roth accounts vs. traditional at the same savings rate.
by Bob's not my name
Wed Feb 07, 2018 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Dad gave me money before filing bankruptcy
Replies: 24
Views: 5073

Re: DAD GAVE ME MONEY BEFORE FILING BANKRUPTCY

novillero wrote: Wed Feb 07, 2018 6:23 pma bona fire bankruptcy attorney
That is genius. May I use this phrase or have you already trademarked it?
by Bob's not my name
Wed Feb 07, 2018 5:35 pm
Forum: Personal Consumer Issues
Topic: Jogging in the cold.
Replies: 50
Views: 4898

Re: Jogging in the cold.

Running at -10 F is fine but you shouldn't cross-country ski unless the temperature is above freezing.
by Bob's not my name
Fri Feb 02, 2018 6:23 pm
Forum: Personal Investments
Topic: ESPP Question [Employee Stock Purchase Plan]
Replies: 13
Views: 2392

Re: ESPP Question [Employee Stock Purchase Plan]

you should never invest if you need the cash An ESPP isn't an investment really, it's more like a 3-month CD that pays 90%. Once you do without the cash for the first plan period, it is cash flow neutral and you're just taking the 90% yield. So you should invert your advice for anyone who needs the...
by Bob's not my name
Fri Feb 02, 2018 11:23 am
Forum: Personal Investments
Topic: ESPP Question [Employee Stock Purchase Plan]
Replies: 13
Views: 2392

Re: ESPP Question [Employee Stock Purchase Plan]

Annualized, it's over a 90% return. And low risk. Pretty good for idiots.
by Bob's not my name
Sun Jan 14, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: A half year at full pay or a full year at half pay?
Replies: 49
Views: 5717

Re: A half year at full pay or a full year at half pay?

You should definitely deny your children the adventure, learning, and broadening experience of a sabbatical so they can stay in the same school their whole lives, as God intended, because all learning happens in school. I'm sure you've done the math right, but do look very carefully at how taxes wi...
by Bob's not my name
Mon Jan 08, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: MA Short Term Capital Gains Rate (12%) and Stock Options
Replies: 8
Views: 1848

Re: MA Short Term Capital Gains Rate (12%) and Stock Options

It is wise to investigate the tax code of a destination state before accepting a job, so good job on that. MA's STCG rate is anomalous. However, you appear to be fixated on, what, a 3% difference in how your current compensation is taxed in your high tax state vs. how it will be taxed in MA? That's ...
by Bob's not my name
Mon Jan 08, 2018 7:42 am
Forum: Forum Issues and Administration
Topic: Misuse of adverse when averse was meant
Replies: 160
Views: 21882

Re: Misuse of adverse when averse was meant

Potential employers want to know about my prior experience and previous experience, which are the best kinds of experience. (They also want to know that I have good communication skills.) They also use the term "demonstrated experience", which reveals that they are bureaucrats stringing to...
by Bob's not my name
Wed Jan 03, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: Americans spend $1 billion annually in unnecessary state tax
Replies: 147
Views: 24233

Re: Americans spend $1 billion annually in unnecessary state tax

Please note that the thread is six years old, so check your state's current tax law to see if it has changed.
by Bob's not my name
Tue Jan 02, 2018 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Embarrassment Preventing Retirement Work: A factor for you?
Replies: 133
Views: 15473

Re: Embarrassment Preventing Retirement Work: A factor for you?

Since you are known to be successful, you would elevate the standing and self-respect of your new work colleagues. Hopefully you would also displace an underperforming employee and make your employer more profitable.
by Bob's not my name
Fri Dec 29, 2017 9:05 pm
Forum: Forum Issues and Administration
Topic: anybody else notice that the timestamp of posts is off by 1 hour?
Replies: 12
Views: 3248

Re: anybody else notice that the timestamp of posts is off by 1 hour?

nisiprius, please have my posts timestamped one year earlier than actual. I want to win that stock market prediction competition thingy.
by Bob's not my name
Fri Dec 29, 2017 8:15 pm
Forum: Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 2516

Re: Will I be taxed again on my 401k?

Strictly speaking, PA doesn't tax your 401k contribution, it taxes your income. The maximum $18,500 401k contribution requires $19,070 of gross income, which PA taxes at 3% = $570, leaving $18,500.
by Bob's not my name
Fri Dec 29, 2017 8:05 pm
Forum: Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 2516

Re: Will I be taxed again on my 401k?

Yes if you make all of your 401k contributions in PA and all of your 401k withdrawals in NC then you will pay 3% on contributions and 5.5% on withdrawals for a total of 8.5%, which is the same as doing both in MD and better than doing both in NYC or Oregon and worse than doing both in Texas or Illin...
by Bob's not my name
Fri Dec 29, 2017 7:46 pm
Forum: Personal Investments
Topic: Tax Bracket going from 15% to 22%. Should I change type of account to invest in for retirement?
Replies: 19
Views: 2203

Re: Tax Bracket going from 15% to 22%. Should I change type of account to invest in for retirement?

I'm unclear on why a $5,500 Roth contribution converts to a $5,500 403b contribution. At a 30% tax rate a $5,500 Roth contribution consumes $7,857 of gross income, so it is equivalent to a $7,857 403b contribution. However, the $7,857 is not accurate because a portion of the gross income falls into ...
by Bob's not my name
Fri Dec 29, 2017 7:24 pm
Forum: Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 2516

Re: Will I be taxed again on my 401k?

I think only Pennsylvania taxes 401k contributions (NJ and MA tax IRA contributions, and NJ taxes 403b contributions). More than half the states have no income tax or have a tax but exempt all or a portion of retirement plan withdrawals. In many states you will want to study these exemptions carefu...
by Bob's not my name
Fri Dec 29, 2017 7:21 pm
Forum: Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 2516

Re: Will I be taxed again on my 401k?

My undestanding is that your contributions to a pretax 401(k) plan reduce your taxable wages for federal income tax purposes only, not social security, Medicare, or state taxes. When you withdraw, you would only have to pay federal income tax and not other taxes. TravelforFun In almost every state ...
by Bob's not my name
Fri Dec 29, 2017 7:13 pm
Forum: Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 2516

Re: Will I be taxed again on my 401k?

I think only Pennsylvania taxes 401k contributions (NJ and MA tax IRA contributions, and NJ taxes 403b contributions). More than half the states have no income tax or have a tax but exempt all or a portion of retirement plan withdrawals. In many states you will want to study these exemptions careful...
by Bob's not my name
Fri Dec 29, 2017 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 1061

Re: How to calculate tax savings of employer health insurance?

Also a question would be are all the medical premiums averse to tax? From what I read its 7.5% of your AGI max. Something else I would look into. Not sure what you mean by "averse" but I think you're referring to itemized deductions that are not relevant here. Moreover, 7.5% of AGI is the...
by Bob's not my name
Fri Dec 29, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 1061

Re: How to calculate tax savings of employer health insurance?

Yeah, I think you're considering it correctly and I'm the one upside down. If you forego the $927 premium your after-tax income increases by $667. But now I'm curious about this high deductible. Does the employer offer a Health Savings Account with that high deductible plan? Yes to the high deducti...
by Bob's not my name
Fri Dec 29, 2017 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 1061

Re: How to calculate tax savings of employer health insurance?

It does look like the 401k and health will help keep taxable below the Roth threshold. The Roth threshold is based on MAGI, not taxable income. Otherwise, your statement is correct. These are important things to be clear on. AGI is at the bottom of page 1 of your 1040. (MAGI is the same or perhaps ...