Search found 1524 matches

by humblecoder
Sat Mar 16, 2024 8:45 am
Forum: Personal Finance (Not Investing)
Topic: “Bellys” on sewer scope for new house
Replies: 41
Views: 2350

Re: HVAC 30 years old on house under contract

The answer to this question should not be based upon "fairness", but on "leverage".

If you ask for a concession, what would you do if they say "no"? Are you prepared to walk away? Do you think that the sellers would walk away if you threatened to do so?

I am zero familiarity with the Scottsdale real estate market. If it were a buyer's market, I would try to negotiate a credit. If it were a seller's market, I would let it go.
by humblecoder
Sat Mar 16, 2024 8:23 am
Forum: Personal Finance (Not Investing)
Topic: State income tax , working in TX, living in NM
Replies: 6
Views: 373

Re: State income tax , working in TX, living in NM

I am not an accountant or tax professional. In your case, you would most likely still be considered a New Mexico resident and subject to NM income tax on all your income. From https://www.tax.newmexico.gov/individuals/personal-income-tax-information-overview/ For purposes of the Income Tax Act, you are a New Mexico resident if either of the following are true: • Your domicile was in New Mexico for the entire year or; • You were physically present in New Mexico for a total of 185 days or more during the tax year, regardless of your domicile. Domicile is further defined as: Your domicile is the place you intend as your permanent home. It is the state where your permanent home is located and where you intend to return whenever you are away (as...
by humblecoder
Fri Mar 15, 2024 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal social security
Replies: 16
Views: 1556

Re: Spousal social security

For what it's worth, my calculation of your spousal benefit matches yours... ~$1364/month. I would ask Social Security if you can speak to a technical expert who can explain how they came up with $1100/month.

The only reason that I can think of as to why there is a discrepancy is maybe the PIA that you are using is wrong.
by humblecoder
Thu Mar 14, 2024 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of roofing and siding as a percent of house value
Replies: 25
Views: 1916

Re: Cost of roofing and siding as a percent of house value

I agree with most of the others in that I would NOT use "% of house value" as a metric. House value is based upon both the value of the structure and the land. The land value will skew the metric, especially in places like the Bay Area.

A better metric would be based upon the size of the structure itself. That more directly correlates with the actual product you are getting.
by humblecoder
Sun Mar 10, 2024 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: NY Part Resident Form IT 203 question
Replies: 1
Views: 217

Re: NY Part Resident Form IT 203 question

How does the IRS expect you to calculate the income earned in NYS as a part year resident? I relocated from Florida to New York on August 1, 2023. I received an annual bonus in July 2023. Can I add up the August-December paychecks and use that number, or does the IRS calculate total income divided by 12 months (i,e. including a portion of the bonus)? I am not a lawyer or tax professional. First, it isn't the IRS who regulates your New York State tax liability. It is the New York State Department of Taxation of Finance. The IRS taxes everything :-) In terms of how to calculate your NY taxable income, here is what it says on the NYS tax website (https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_nonresident.htm): If you ...
by humblecoder
Sun Mar 03, 2024 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion during retirement question
Replies: 51
Views: 5715

Re: Roth conversion during retirement question

I wouldn't consider staying under the first IRMAA tier to be an absolute must. For 2024, the first IRMAA tier imposes a $69.90/month surcharge for Part B and $12.90/month for Part D. For a married couple that's around an additional $2K/year. You might find that the tax benefit of converting into the first tier outweighs the additional surcharge. Additionally, a "rip the bandage off" approach might also be beneficial. This is where you do one larger Roth conversion in a particular year, and take a one-time surcharge . Note that I said "might". It all depends on your specific situation. I am just pointing out that you shouldn't let the IRMAA tail wag the Roth conversion dog, so to speak. Generally, the surcharge applies f...
by humblecoder
Sun Mar 03, 2024 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion during retirement question
Replies: 51
Views: 5715

Re: Roth conversion during retirement question

I wouldn't consider staying under the first IRMAA tier to be an absolute must. For 2024, the first IRMAA tier imposes a $69.90/month surcharge for Part B and $12.90/month for Part D. For a married couple that's around an additional $2K/year. You might find that the tax benefit of converting into the first tier outweighs the additional surcharge.

Additionally, a "rip the bandage off" approach might also be beneficial. This is where you do one larger Roth conversion in a particular year, and take a one-time surcharge.

Note that I said "might". It all depends on your specific situation. I am just pointing out that you shouldn't let the IRMAA tail wag the Roth conversion dog, so to speak.
by humblecoder
Sat Mar 02, 2024 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Assets to put in Trust or Trust as beneficiary
Replies: 93
Views: 6428

Re: Assets to put in Trust or Trust as beneficiary

But I would humbly suggest that MacktheKnife and company take your "spirited debate" into a separate thread. Good grief. The OP asked about "assets to put in trust or trust as beneficiary." This is exactly what the expanded discussion has been debating. I offered a unique perspective and apparently that is not acceptable. Nobody has identified a single problem with it other than "we don't like it." You already posted 19 times on this subject. I think you made your point :beer Here we go again! Apparently not.... BTW: as a point of clarification, I posted once in response to legit question by OP and 18 times in response to stone throwers who can't really come up with rational for their "not in my town"...
by humblecoder
Sat Mar 02, 2024 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Assets to put in Trust or Trust as beneficiary
Replies: 93
Views: 6428

Re: Assets to put in Trust or Trust as beneficiary

But I would humbly suggest that MacktheKnife and company take your "spirited debate" into a separate thread. Good grief. The OP asked about "assets to put in trust or trust as beneficiary." This is exactly what the expanded discussion has been debating. I offered a unique perspective and apparently that is not acceptable. Nobody has identified a single problem with it other than "we don't like it." You already posted 19 times on this subject. I think you made your point :beer For the record, I am with the majority in that I don't think your arrangement makes sense, especially the point where the trust (where the spendthrift son is the trustee) is the beneficiary of the brokerage. That seems absolutely backward...
by humblecoder
Sat Mar 02, 2024 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Assets to put in Trust or Trust as beneficiary
Replies: 93
Views: 6428

Re: Assets to put in Trust or Trust as beneficiary

This whole Joe/James/Julie/{insert more J-names here} has completely derailed this entire thread, IMHO. I am not going to report it to the admin since I think that the OP asked a valuable question that should be answered. But I would humbly suggest that MacktheKnife and company take your "spirited debate" into a separate thread.
by humblecoder
Sat Mar 02, 2024 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Mortality etc...
Replies: 16
Views: 1987

Re: Mortality etc...

Caliscotsman wrote: Fri Mar 01, 2024 1:17 pm When we retire, if we ever do, we'll have @ $5M in investments, and a lovely house in a desirable area.
No children/family.

Is it inevitable, when if we're infirm/senile, we'll end up in a nursing home, and give everything to them?

Just curious about alternatives if any.
I took the liberty of editing your question. It is NOT inevitable that you will be infirm/senile. My maternal grandfather went from healthy to dead in two weeks (screw cancer). My paternal grandfather died in an accident. Nobody knows when or in what form their demise will come.
by humblecoder
Sat Mar 02, 2024 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Complain About Bad Boss?
Replies: 56
Views: 5823

Re: Complain About Bad Boss?

Glad you decided not to go above your manager's head. That is the right decision. I would guess that M already knows that there is an issue with the work product coming out of your area. I would guess that M already knows that your manager is the source of the issue. "Strategic review" could be corporate-speak for, "we know there's an issue, but we have to gather up some ammo to take the necessary actions". In the meantime, I would keep my head down, work as directed, and most importantly, document everything. If your manager has a change in direction, or has a last minute request, or whatever, have her put it in an email to you. You can say something like "I just want it in an email to make sure I am clear on the d...
by humblecoder
Fri Mar 01, 2024 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Feels impossible to take the foot off the pedal of saving, but saving at the boglehead pace is stressful.
Replies: 88
Views: 13594

Re: Feels impossible to take the foot off the pedal of saving, but saving at the boglehead pace is stressful.

I could be misreading, but it sounds like you have this general notion that spending more would increase your happiness. I would not completely agree with that. Yes, spending opens up more possibilities for happiness. However, you can be plenty happy without spending a lot of money. Your kids can still have great memories of their youth. Looking back on my childhood, we lived what most would consider a very modest life. We lived in a 3BR, 1.5BA ranch house on a small lot (50' x 100'). For a long time, we only had one car for the household. We didn't really vacation much. When we did, it was usually something within driving distance. However, looking back, we had a very happy childhood and did not feel like we were deprived. One of my best m...
by humblecoder
Sun Feb 25, 2024 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow
Replies: 148
Views: 22535

Re: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow

I feel like you are making a mistake. You are dealing with a BUSINESS, not a charity. What incentive does your employer have to offer you a severance package? They aren't just going to give you a severance package just because you say "pretty please with sugar on top". The reality is that you need to offer something of value in return. It sounds like the only thing you have to offer is you stepping away, reducing their payroll. However, your employer can obtain the same result by just firing you (assuming you have no contract and are employed "at will") or waiting for you to quit of your own volition. By telling your manager that you want a severance package because you are no longer motivated to work there, you have los...
by humblecoder
Sat Feb 24, 2024 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Federal taxes due > $2,000
Replies: 25
Views: 3324

Re: Federal taxes due > $2,000

Talk to your payroll or HR department. I suspect you did fill out a W4 even if you don't remember it. It isn't part of your tax return, it's something you give to your payroll or HR department, often as part of dozens of forms you fill in your first day of work. But in any case it's a simple form. ccieemeritus, above, gave you the download address and an explanation. Your payroll department will almost certainly have copies of the form, too. The part he is talking about, line 4c, looks like this: https://imgur.com/MWgtxrf.png If you go to your payroll or HR department and explain that you owe $2,000 in taxes and want to adjust the withholding so that you will owe close to zero, they will likely tell you the same things you've read above, t...
by humblecoder
Sat Feb 24, 2024 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Consulting 1099 and social security credits
Replies: 20
Views: 1385

Re: Consulting 1099 and social security credits

I am thinking ahead to early retiring from my W-2 job and take up more consulting (next 24 months). I am trying to figure out how to contribute to social security and continue accruing years. For a variety of reasons, I had a late start to my 35-year clock and I would only have 23 when I ER. What steps can I take as a 1099 to add to that, so my final PIA is better than it is now? Should I always file Schedule C and do contributions on my taxes? I anticipate not a huge income pull, maybe 15-20K a year at most (it is really a convenience thing as I am likely FIRE). Appreciate your input! I am not an accountant or tax professional. My wife has been a 1099 worker for most of the last 20 years. Most likely, you will be required to file Schedule...
by humblecoder
Fri Feb 23, 2024 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Who keeps original will?
Replies: 68
Views: 6539

Re: Who keeps original will?

fsrph wrote: Wed Feb 21, 2024 8:38 pm
humblecoder wrote: Wed Feb 21, 2024 12:26 pm In our state, the original can be put "on file" with the "Register of Wills" office. That's what we did. We were given a receipt that our executors can use to obtain the original when needed.
What happens if you lose the receipt?

Francis
Sorry for the confusion on this point. Once the person passes away, the will becomes public record. The receipt is just to let your executor know where to look, but it's not like they need to "trade it" for the will, if that makes sense.
by humblecoder
Wed Feb 21, 2024 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Purposely deducting as little tax as possible each paycheck
Replies: 17
Views: 1600

Re: Purposely deducting as little tax as possible each paycheck

In theory/for conversation purposes only, in a high rate environment like it is now (5%+ in HYSA), does it make sense to have as little deducted as possible from each check (just deduct enough to avoid any penalties or whatnot) and then put the extra money into a HYSA (to be used to pay all the taxes you'll owe when you file your return)? This could of course be done in a no-rate environment as well, but likely makes sense only if you're earning high interest. I wouldn't do this in practice (I try to be as breakeven as possible), but I was just wondering if, in theory anyway, this makes sense as a risk free way (assuming that rates are high and one doesn't spend/invest the money...) to earn some free interest. Or is there some obvious reas...
by humblecoder
Wed Feb 21, 2024 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Who keeps original will?
Replies: 68
Views: 6539

Re: Who keeps original will?

In our state, the original can be put "on file" with the "Register of Wills" office. That's what we did. We were given a receipt that our executors can use to obtain the original when needed.
by humblecoder
Wed Feb 21, 2024 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Distribution priority - Roth or 401K
Replies: 23
Views: 1450

Re: Distribution priority - Roth or 401K

Thanks for the answers. To put it into a more situational perspective, I don't expect to use the ACA. As I get closer to retirement I'm thinking I will want to save our Roth IRA's (myself and wife) for last. I have two pensions in addition to my retirement savings, so barring any unexpected emergencies, I am hoping to never deplete both and leave some inheritance money. So I am more focused on what accounts are best still being leftover after I die than any tax considerations early in retirement. Would it be better for our children to inherit money from our Roth IRA's, rather than my 401K? Project your RMDs from your 401k. Generally , Roths are much better to inherit than 401k. Both need to be spent in 10 years and Roths won't generate tax...
by humblecoder
Wed Feb 21, 2024 7:30 am
Forum: Personal Finance (Not Investing)
Topic: Distribution priority - Roth or 401K
Replies: 23
Views: 1450

Re: Distribution priority - Roth or 401K

If you don't mind, I am going to reframe your question, as I think this is what you are really asking: "In general, is it better to withdraw contributions from a pre-tax account (i.e. Traditional IRA, Traditional 401k, etc), and save the tax free Roth account (i.e. Roth IRA, Roth 401k) for later in retirement, or the other way around?" It depends. Here are some reasons why someone might withdraw from a Roth account first - Some people will withdraw from their Roth accounts early in retirement in order to keep their income low so that they can qualify for ACA (Affordable Care Act) credits, stay under any IRMAA limits (i.e. the Medicare surcharge that is based upon income), etc. Withdrawals from a Roth account do not count as income...
by humblecoder
Wed Feb 14, 2024 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Financial planning for dementia
Replies: 12
Views: 1801

Re: Financial planning for dementia

My father is currently at a memory care facility. Fortunately, he and my mother had the foresight to purchase a Long Term Care insurance policy, which covers his monthly cost. Without that, they would likely be facing some financial hardships. Based upon my family history, I also purchased a LTC policy for myself at an age where one might not consider purchasing such a policy. My rationale was that I didn't want to take a chance of being un-insurable (this was before my father was diagnosed, but after other family members on his side of the family HAD been diagnosed). The reason I purchased it is for many of the reasons stated. As others have rightly pointed out, the range of outcomes is very wide. I did not want to expose my family to the ...
by humblecoder
Wed Feb 14, 2024 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Familt got text - house in probate - real estate company
Replies: 13
Views: 2127

Re: Familt got text - house in probate - real estate company

When my grandfather passed away many years ago, that triggered a number of similar types of spam to my father (who was the executor as well as the sole beneficiary). This was before texting or even emailing, so the spam was purely of the snail mail variety. My guess is that these companies monitor death notices/obituaries and then use that to piece together other information using public records. Then they use that information to solicit various offers. For instance, they might compare the information in the death notice to land ownership records to see if the decedent owned property. If so, they will attempt to locate a family member and mail them an offer to buy said property. Or they may just be a real estate agent looking to act as your...
by humblecoder
Wed Feb 14, 2024 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Add funds to a testamentary trust later?
Replies: 7
Views: 616

Re: Add funds to a testamentary trust later?

For SS benefits, someone such as a guardian would need to apply to be the representative payee (RP) for a non-emancipated minor child’s SS benefits. The usual process is for a RP bank account to be set up to receive benefits and pay expenses. An annual accounting is due to SSA. https://www.ssa.gov/payee/ Thank you. From the website: "FAQ: What Type of Bank Account Should I Set Up for the Beneficiary? You must title the bank account so it is clear the money in the account belongs to the beneficiary." So it seems some type of custodial account would be used. More specifics on exactly how the RP account should be titled (from https://www.ssa.gov/pubs/EN-05-10076.pdf) How to hold funds The Treasury Department requires all federal ben...
by humblecoder
Mon Feb 12, 2024 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: How have you handled ageism in the workplace?
Replies: 24
Views: 3208

Re: How have you handled ageism in the workplace?

Honestly, the article is borderline click-bait. It is based upon an AARP survey so the statistics are self-reported. It says it is getting "worse" but no evidence is cited to prove this. There are a couple of anecdotal stories, but they are just that... anecdotal. Perhaps the more ironic statement was this: Yet, in virtual work, “there’s more technology involved. And for some older workers, that alone makes them a little more uncomfortable,” said Stewart Schwab, a law professor at Cornell. So an article about age-ism is itself engaging in age-ism! Does age-ism exist? Of course it does. Is it getting "worse"? Who knows? Does it make sense to be prepared for an involuntary retirement, whether due to age-ism, health, or oth...
by humblecoder
Mon Feb 12, 2024 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Ignore collections?
Replies: 72
Views: 5622

Re: Ignore collections?

I am not a lawyer. It appears as if Social Security can only be garnished to collect unpaid taxes, child/spousal support, and federal student loan debt. It also appears that banks also must protect Social Security direct deposits from garnishment from commercial creditors, although this protection might disappear when transferred out of the account where it is direct deposited. Sources: https://www.consumerfinance.gov/ask-cfpb/can-a-debt-collector-take-my-social-security-or-va-benefits-en-1157/ https://faq.ssa.gov/en-US/Topic/article/KA-01873 https://www.investopedia.com/articles/personal-finance/042815/can-my-retirement-social-security-be-garnished.asp https://www.debt.org/retirement/social-security/can-social-security-be-garnished-for-cre...
by humblecoder
Mon Feb 12, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: To IRS, We Are One; To Me, We Are Three - Figuring Taxes
Replies: 18
Views: 2290

Re: To IRS, We Are One; To Me, We Are Three - Figuring Taxes

As an aside, you might be able to reduce your total taxes by keeping your in-laws money in their name. That way, they can fill up their own standard deduction and lower tax brackets. Of course, you didn't share their entire financial picture (nor are you obligated to), so hard to say for sure.

There might be other disadvantages to this arrangement.. specifically losing the step-up in basis.

If there is a non-financial reason for this arrangement (ex: they can't manage their own money), perhaps there is another solution, such as putting the money back in their name and getting power of attorney. Just offering some food for thought there.
by humblecoder
Mon Feb 12, 2024 10:35 am
Forum: Personal Finance (Not Investing)
Topic: To IRS, We Are One; To Me, We Are Three - Figuring Taxes
Replies: 18
Views: 2290

Re: To IRS, We Are One; To Me, We Are Three - Figuring Taxes

At first, I did not like your approach for some of the reasons stated by others. The income source you add first will get the benefit of filling up your standard deduction and lower tax brackets. Whereas the income sources you add last would not. However, the more I think about it, the more your approach makes more sense. Here's why... Presumably, you would have your W2 job regardless of whether your wife has a sole proprietorship and regardless of whether you held your in-laws assets. This is the money that you and your family are living on. You would want your W2 income to get the advantage of the standard deduction and lower tax brackets because those are dollars that go towards paying for your basic needs. What you are trying to do is d...
by humblecoder
Mon Feb 12, 2024 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Some fairly basic questions on taxes for a self-employed individual
Replies: 6
Views: 741

Re: Some fairly basic questions on taxes for a self-employed individual

I am not an accountant or tax professional. So please don't rely upon me as a primary source. Fact check and do your own research. I think you are missing out on the impact that any business expenses will have on your taxes. When you own a business, your business expenses can be subtracted from your business income to determine your net profit. This is what you pay taxes on. So if you make $100K from self-employment, you can offset this by any business expenses that you incur. For example, you say that you'd be a traveling musician. Therefore, presumably, you'd be buying plane tickets, staying at hotels, renting cars, etc. All of those expenses can be "deducted" from your business income. So if you make $100K, but you incur $20K o...
by humblecoder
Mon Feb 12, 2024 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Mechanics of Social Security Bridge?
Replies: 22
Views: 1808

Re: Mechanics of Social Security Bridge?

I’m confused about the mechanics of building a Social Security bridge. Suppose I want to retire at 62 and begin collecting Social Security at 70 - deferring for 96 months. My benefit if I start collecting at 62 would be $2400 per month, and my benefit if I start collecting at 70 would be $4400 per month. Should the amount in my bridge fund be: (a) 96 x $2400 = $230,400; (b) 96 x $4400 = $422,400; or (c) something else? Most of the articles I’ve read suggest that (b) is the correct answer, though a few say that (a) is the correct answer. If the theory is that the bridge is simply substituting for the benefits that I would have received if I claimed at 62 (thus covering the cost of deferring), then it seems like (a) makes sense. But that’s n...
by humblecoder
Sun Feb 11, 2024 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Do tax Payments Count as Trust Distribution
Replies: 10
Views: 925

Re: Do tax Payments Count as Trust Distribution

I have a Complex trust, where income is (optionally) distributed to avoid the high Trust Tax brackets. Suppose $10k is distributed, but $9k goes directly into my checking account, and $1k goes directly from Trust to the IRS for Tax payments. On my K-1, does it show $9k, or $10k? Would it be different if $10k went into my checking account, then I (not the trust) wrote the check for the Trust's $1k tax liability? I am not a lawyer, accountant, or tax professional. I assume that estimated tax payments are for the TRUST'S estimated taxes. You aren't talking about the trust making estimate tax payments on behalf of the beneficiary. The IRS instructions for Form 1041 seem pretty clear on this matter: A trust or decedent's estate figures its gros...
by humblecoder
Sat Feb 10, 2024 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Need some assurance for my resignation countdown
Replies: 53
Views: 4782

Re: Need some assurance for my resignation countdown

Hi, Lately I have some issues with my current IT work environment. My current manager asked me to take responsiblities of a co-worker's workload because that person is incompetent and could not do her job. I plan to submit my resignation next Friday if things do not work out and don’t want the fear of quitting holding me back. I have tracked my numbers closely for the last 7 years and believe my numbers are solid. I actually submitted my resignation two years ago and was asked to stay by upper management. I have talked to my current manager about my unhappiness and it seems he thinks I need do whatever I was told to do or it could be a HR level offense. This conversation made me really unhappy. Also, we are in the middle of a very critical...
by humblecoder
Fri Feb 09, 2024 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Who In Their Right Mind Files Gift Tax Returns? And Why?
Replies: 114
Views: 16157

Re: Who In Their Right Mind Files Gift Tax Returns? And Why?

fourwheelcycle wrote: Fri Feb 09, 2024 4:24 pm If you are confident your total estate, including the net excess value above the IRS' annual exemption for annual gifts not reported over your lifetime, will never grow to within 10% (or so?) of any future Federal lifetime estate tax exemption, you could probably safely defer filing 709s for the years you gift more than the IRS' annual exemption.

...
Not sure how anyone could feel confident, given that it has changed several times in my lifetime and will likely change several times more.
by humblecoder
Fri Feb 09, 2024 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Who In Their Right Mind Files Gift Tax Returns? And Why?
Replies: 114
Views: 16157

Re: Who In Their Right Mind Files Gift Tax Returns? And Why?

A few years ago we gifted our daughter around $38,000. I filed a gift tax return. My tax preparer prepared it, and I had to mail it in - no online filing. My tax preparer told me that there was some humongous number of these things sitting around waiting to be processed. This year (2023) we gifted out daughter $32,000. But, we also took her on an expensive vacation. And gave her various in-kind gifts. We certainly are over $32,000. I'm wondering whether it makes any sense to file a gift tax return for 2023. I can't imagine that many people do this. Apparently, around $250,000 of these are filed annually. That small number suggests to me that most people don't bother. What if she gets married and we pay for the wedding? Do we have to file a...
by humblecoder
Fri Feb 09, 2024 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Does Social Security keep up with inflation?
Replies: 38
Views: 4010

Re: Does Social Security keep up with inflation?

To me, this is common sense. Social Security COLA adjustments are based upon CPI-W, which is the cost of living for a "urban wage earner and clerical workers". It is based upon the typical basket of goods that people in the group would purchase. However, the CPI-W generally does not align to retirees. There is a separate CPI measure.. CPI-E... which represents the cost of living for people 62 and up. The reason I say that this is common sense is that, of course, the typical expenses of a retiree are going to be different from an urban wage earner. In particular, health care expenses probably represent a larger share of a retiree's budget than the average American. If you look at how different expense categories are weighted, CPI-...
by humblecoder
Fri Feb 09, 2024 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Does Social Security keep up with inflation?
Replies: 38
Views: 4010

Re: Does Social Security keep up with inflation?

Raspberry-503 wrote: Fri Feb 09, 2024 12:07 pm Thanks humblecoder, that's a exactly what I was looking for
That said, there does seem to be some debate over whether CPI-E is an accurate measure of retiree inflation, based upon some the articles on the Internet, which I think goes to your original question.

At the end of the day, I think 22twain hit the nail on the head. What matters to YOU should be what your personal inflation rate is. So look at your own expense trends, both past and projected into the future. Yes, it isn't as simple as using an average measure, but it will give you a more accurate answer for yourself.
by humblecoder
Fri Feb 09, 2024 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Does Social Security keep up with inflation?
Replies: 38
Views: 4010

Re: Does Social Security keep up with inflation?

To me, this is common sense. Social Security COLA adjustments are based upon CPI-W, which is the cost of living for a "urban wage earner and clerical workers". It is based upon the typical basket of goods that people in the group would purchase. However, the CPI-W generally does not align to retirees. There is a separate CPI measure.. CPI-E... which represents the cost of living for people 62 and up. The reason I say that this is common sense is that, of course, the typical expenses of a retiree are going to be different from an urban wage earner. In particular, health care expenses probably represent a larger share of a retiree's budget than the average American. If you look at how different expense categories are weighted, CPI-E...
by humblecoder
Fri Feb 09, 2024 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Can my DW defer her SS survivor until her FRA?
Replies: 3
Views: 371

Re: Can my DW defer her SS survivor until her FRA?

I assume in your scenario your wife is getting benefit based upon her own record, and not a spousal benefit. If so, the answer appears to be yes. https://www.ssa.gov/benefits/retirement/planner/claiming.html Exceptions to Deemed Filing Deemed filing applies to retirement benefits, not survivor’s benefits. If you are a widow or widower, you may start your survivor benefit independently of your retirement benefit. https://www.ssa.gov/pubs/EN-05-10084.pdf If you’re already getting Social Security benefits If you’re getting benefits as a spouse based on your spouse’s work, we’ll change your payments to survivors benefits when you report the death to us. If we need more information, we’ll contact you. If you’re getting benefits based on your own...
by humblecoder
Wed Feb 07, 2024 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Getting rid of emergency fund, budgeting for yearly expenses, and handling larger "surprise" expenses?
Replies: 18
Views: 1802

Re: Getting rid of emergency fund, budgeting for yearly expenses, and handling larger "surprise" expenses?

Here's how we think about it. Hopefully it will help. Not saying that this is the "right" way, so feel free to salt to taste. Our cash is generally placed into four buckets: 1. Cash flow for our monthly bills. Direct deposit to checking account -> bill pay from checking account. I think this is pretty typical for most people 2. Cash set aside for KNOWN lumpy expenses. This would include things like insurance, taxes, etc that is billed quarterly/semi-annually/annually. I think of this as a DIY escrow account. 3. Cash set aside for anticipated large expenses that are somewhat unknown. An example might be home repair items. We might not know what the SPECIFIC item is that is going to require replacing. We might not know WHEN it will ...
by humblecoder
Tue Feb 06, 2024 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Second-to-die insurance
Replies: 4
Views: 740

Re: Second-to-die insurance

I am not an insurance agent or expert. I've never heard of second-to-die term insurance. Neither has Google. The typical use cases for second-to-die insurance require that the policy remains in force for life. My guess is that there isn't much of a market for a term insurance version of this product. But I would be welcomed to be proven wrong. For your use case, why don't you just buy two term policies, one for each parent, and name the trust as a contingent beneficiary? So if both parents die together, the trust will get the proceeds of both policies. With regards to setting up a trust, you should talk to an attorney who deals with such things. You might want to consider not distributing the proceeds to the child at 18. Even at that age, t...
by humblecoder
Sun Feb 04, 2024 9:12 am
Forum: Personal Finance (Not Investing)
Topic: When to Start Soc Sec
Replies: 61
Views: 6812

Re: When to Start Soc Sec

I think too many people (Dave Ramsey included, in this case) think of the Social Security claiming decision in terms of expected value maximization. In other words, "I am going to claim at the exact age where [insert tool/spreadsheet here] tells me that I am going to maximize the present value of my benefit. However, that fails to take into account the longevity insurance value of Social Security. It fails to take into account one's health. It fails to take into account the survivor benefit value of Social Security (with a younger female spouse, this should be an important consideration for the OP). It fails to take into account how your Social Security payments will interact with Roth conversions, ACA credits, IRMAA, RMD's and the tax...
by humblecoder
Sun Feb 04, 2024 8:43 am
Forum: Personal Finance (Not Investing)
Topic: DW Laid Off, I'm Panicking
Replies: 166
Views: 20738

Re: DW Laid Off, I'm Panicking

Looks like you had a feeling that your wife's job was not stable last year: https://www.bogleheads.org/forum/viewtopic.php?t=407375 You got some good advice in your previous post on this topic. Have you re-read that thread. At the time, one of the replies was "you should be just fine, actually a lot better than just fine." With an additional $500K in stocks over and above what you had last summer, you are in an even better position! Don't let worry consume you. That is not good for your health and your family's health (children in particular feed off of the worry of their parents). Look at what you have going for you. - You still have your job - Even if you lost your job, you have a HUGE cash cushion, not to mention $4M in stocks ...
by humblecoder
Sat Feb 03, 2024 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Moving states. How do coversions work?
Replies: 5
Views: 872

Re: Moving states. How do coversions work?

I am not an accountant, lawyer, or tax professional. You probably already know that if MA considers you to be a RESIDENT, then all of your income is taxable at the state level. Residency, for MA state tax purposes, appears to be defined as follows: - You can DOMICILED in MA, or - You have a "permanent place of abode" and you spend more than 183 days in the state "Domicile" is an individual's "true, fixed and permanent home". There is no specific criteria for this, as it is determined by the totality of circumstances. However, if, after moving to NH, you still maintain a house in MA, you still keep your MA driver's license, you still keep your MA voter registration, etc, then MA might still consider you to be do...
by humblecoder
Thu Feb 01, 2024 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Max Amounts For Married Couple
Replies: 16
Views: 2643

Re: Social Security Max Amounts For Married Couple

First time post, and I'm new to all this. My wife and I are debating on when we should retire, and I need to clarify a Social Security benefit question. I am 62 and she is 60. Looking at our Social Security statements, if each of us waits until age 70, I will receive a monthly benefit of $4476 and she will receive $4277 monthly for a total of monthly total of $8753 if we file separately. Is there a cap on married couple benefits or would we receive the full $8753? I'm not finding a definitive answer on the SS website, just references to spousal benefits which are less. The only reference I have found is on AARP, which states we receive the full $8753 benefit filing separately. Thanks in advance for your replies. You don't file for Social S...
by humblecoder
Thu Feb 01, 2024 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Love my job, told re-lo for RTO or no advancement [Return To Office]
Replies: 128
Views: 9761

Re: Love my job, told re-lo for RTO or no advancement

The current trend is for Return to Office policies to get STRICTER, not more lenient. Obviously, you know the company culture better than me. Do you think that "three days a week or you don't get promoted" will turn into "three days a week or you aren't employed here"?

If you think this is a possibility, then I would start looking ASAP before the next shoe drops.

Otherwise, the answer comes down to personal preference. $191K for a remote job isn't a bad deal. However, if you have aspirations of advancement in your career, the tradeoff is that you'd be stuck at your current level.
by humblecoder
Wed Jan 31, 2024 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: How much emergency cash is too much?
Replies: 32
Views: 3726

Re: How much emergency cash is too much?

So if I am understanding correctly, here is your situation. $900K in retirement savings / tax advantaged (401K + Roth) $336K in emergency funds (CD's) <---- this is based upon your statement that you have 4x annual expenses in EF $84K in annual expenses To me, 36 months in CD's seems excessive. You are giving up quite a lot of potential growth by not investing it in a "3 fund" portfolio. Even if you were to invest all of it in a Total Stock Market Index Fund and the stock market dropped by 50%, you'd still have 18 months of emergency funds. And that's the worst case scenario. A more likely scenario is that you won't need most of your emergency fund, most of.the $336K in a 3 fund portfolio will grow at a higher rate of return than ...
by humblecoder
Wed Jan 31, 2024 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: When is a business no longer a business? [IRS Schedule C]
Replies: 34
Views: 3438

Re: Does receiving royalty checks force me to be a business?

catnamedspot wrote: Wed Jan 31, 2024 1:44 pm [Thread merged into here --admin LadyGeek]

I used to have a full time business where I sold designs for royalties. I stopped running that business 5 years ago, but still receive dribbles of royalty checks (about $2000 a year). Do I have to file a schedule C for the rest of my life every time I receive a royalty check? At what point can this just be considered extra income and not a business?
I am not an accountant or tax professional.

Why can't you use Schedule E? According to the IRS, this is where you report royalty income that is not connected to a businesss.

https://www.irs.gov/instructions/i1040se
by humblecoder
Wed Jan 31, 2024 11:37 am
Forum: Personal Consumer Issues
Topic: Suggestions on where to move?
Replies: 135
Views: 10692

Re: Suggestions on where to move?

I would suggest a college town. Whether consciously or not, many of the cities you listed are college towns, which makes sense, since they check many of the boxes that you listed. Many are located in small towns so plenty of outdoor opportunities. However, because of the college they attract more cultural offerings than your typical rural town. Plus, because of the need to cater to the student and faculty population, the shopping and dining options are going to be more varied and diverse. Personally, we have lived in Ithaca NY, home of both Cornell and Ithaca College. Although it is outside your geographic band, it would otherwise meet your criteria. I am not as familiar with, say, Athens or Durham or Charlottesville, I would imagine they w...
by humblecoder
Wed Jan 31, 2024 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Another "Can I afford this house" thread
Replies: 55
Views: 5198

Re: Another "Can I afford this house" thread

If it were me, I would not move forward with this. I would be too risk averse. First, you would essentially be putting all of your non-retirement savings into this house. I think that is an obvious point. But in addition, you would basically giving up job flexibility. In order to maintain your new lifestyle and reach your retirement goals, you are dependent upon this job. Even if you don't suffer to ill fortune of a layoff/downsiding, what happens if the position isn't to your liking? I would imagine that a job that grosses $1M isn't a 40 hour/week job. You may reach a point where you want to spend time with your growing children. As a parent of a 20 year old and a soon to be 18 year old, years with your children as children are precious an...
by humblecoder
Tue Jan 30, 2024 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Social Security: "You Have Earnings Not Covered By Social Security"
Replies: 39
Views: 4757

Re: Social Security: "You Have Earnings Not Covered By Social Security"

Work study during college? Nearly any student employment on campus falls into a no-FICA withheld loophole. I worked a bunch of jobs on campus, earning enough to support myself, and none paid into FICA. None were officially work study, either. Math tutor, intake testing during orientation, desk monitor in the dorms, published a newsletter for a writing project, and software design for the testing/tutoring department. At least 4 different budget lines. Yes, this could be it. Very small pay. However SS says that if you have 30 years of "substantial earnings" (no definition) under social security, then there would be no windfall elimination provision. Thanks. More info on WEP and what "substantial earnings" means. If it was...