Search found 3153 matches

by wrongfunds
Wed Apr 20, 2022 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

The Sethi podcast with Jessica and Javier (an immigrant from Colombia) is very interesting. Lots of unexpected twists in that story. It’s the one titled, “my love language is spending money I don’t have.” I’m appreciating Sethi more. We are all collectively waiting for you to let us know about the follow-up letters :-) I used to have lots of junk email addresses in the past but now I don't have any, so I am very reluctant to give Sethi my email address. By the way, often I get third degree from the better half because I purchased some grocery item for $1.29 from one store instead of purchasing it from another one which sells it for $0.99 I bite my tongue and don't argue about $700 per night hotel instead of $400 per night hotel that she bo...
by wrongfunds
Wed Apr 20, 2022 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Help with debt repayment
Replies: 127
Views: 9228

Re: Help with debt repayment

Have I heard this story already on Ramit Sethi's podcast? If not, OP should try to see if they can get on it.
by wrongfunds
Wed Apr 20, 2022 7:32 am
Forum: Personal Finance (Not Investing)
Topic: 50 Year Retirement - What withdrawal rate would you be comfortable with?
Replies: 165
Views: 17266

Re: 50 Year Retirement - What withdrawal rate would you be comfortable with?

With umpteen millions that a typical BH has, it is reasonable to assume to use all the expensive technological means (aka gene research) to extend one's good life quite afar as compared to mere plebeians.

(do I really need an emoji to show what I really mean by the above statement?)
by wrongfunds
Tue Apr 19, 2022 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: 50 Year Retirement - What withdrawal rate would you be comfortable with?
Replies: 165
Views: 17266

Re: 50 Year Retirement - What withdrawal rate would you be comfortable with?

PWB wrote: Mon Mar 21, 2022 8:00 pm This isn't a post debating variable and/or alternative withdrawal rate strategies. With that said, if you were planning for a 50-year retirement and HAD TO use a fixed withdrawal rate per year, what percentage would you be comfortable with?

Some considerations:

-2% is 50x expenses and your investments would only need to beat inflation to last 50 years
-3% has never failed in backtesting
-4% has been the rule of thumb for a 30-year retirement, but is being questioned due to today's expectations for interest rates
That depends upon the age when you start counting. It is a whole different scenario if you start counting at age 50 vs age 65 vs age 30.
by wrongfunds
Tue Apr 19, 2022 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Coworker shared he is earning $50k more than me annually
Replies: 184
Views: 26835

Re: Coworker shared he is earning $50k more than me annually

jumbopapa wrote: Tue Apr 12, 2022 10:04 am Update here. I am starting a new job next month with a 2x increase in comp. Don’t settle for low pay, folks!
Congratulations! Let us hope all the manager types who have replied here come back and give their input but don't hold your breath.
by wrongfunds
Tue Apr 19, 2022 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401K and in plan Roth Rollover (IRR) TurboTax
Replies: 9
Views: 856

Re: After tax 401K and in plan Roth Rollover (IRR) TurboTax

Looked there too for 2 year comparison and it looks OK and no crossing of the magic threshold there! sailaway is probably right and it only shows up when one goes to do the actual filing and that screen was more colorful than the 2 year comp from forms.
by wrongfunds
Tue Apr 19, 2022 4:25 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

I am making wildest of wildest guess but instead of 6X-10X, you either already are way beyond that or the probability of that happening when you reach that age is over 0.9999 :-) Sure, we have reached it. I'm sure the probability is relatively high that we will stay above it, but I prefer not to treat life as being pulled from a fixed probability distribution or to put much reliance on what has happened in the past. I know that this part, though, is somewhat "atypical" here (I guess Klangfool dislikes probabilities even more than I do). True; but only you know if your trajectory is on the path to keep increasing that multiplier or not. And if you have already crossed that threshold, then all you have to compute is "does the ...
by wrongfunds
Tue Apr 19, 2022 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: For those retired or FI, how much do you spend annually?
Replies: 499
Views: 79453

Re: For those retired or FI, how much do you spend annually?

Rick Ferri wrote: Mon Jan 04, 2021 9:58 am
Does anybody spend significantly more than $90k/year in retirement?
I speak with hundreds of retirees each year. Most are HNW individuals or couples. The median budget in retirement is about $70,000 - this includes travel but does not include income tax or gifts. Only about 10% of the retirees I speak with spend more than $100,000 per year, and that's usually because they have two homes or travel extensively.

Rick Ferri
Mic Drop Moment Right Here! Why on earth do we have so much agony here on BH? How many of you who are prolific poster here anticipate or have trouble meeting that number when *all sources of income are included*?
by wrongfunds
Tue Apr 19, 2022 4:00 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

I am making wildest of wildest guess but instead of 6X-10X, you either already are way beyond that or the probability of that happening when you reach that age is over 0.9999 :-)
by wrongfunds
Tue Apr 19, 2022 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: How accurate were you at predicting retirement expenses?
Replies: 55
Views: 6701

Re: How accurate were you at predicting retirement expenses?

marcopolo wrote: Tue Apr 19, 2022 3:09 pm Our retirement expenses are running a bit below what we expected/planned, but quite a bit more than pre-retirement.

Less concerned about running out of money now than when we retired.
That is only because you are closer to the end date.











(Sorry for the macabre joke, I hope you have decades of healthy and joyful retirement)
by wrongfunds
Tue Apr 19, 2022 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Tax Payment via Bank Account set up with Turbo Tax.
Replies: 12
Views: 1080

Re: IRS Tax Payment via Bank Account set up with Turbo Tax.

that is why I always *try* to do cut and paste from two screens aka Bank and TurboTax to avoid having to manually type the numbers.
by wrongfunds
Tue Apr 19, 2022 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401K and in plan Roth Rollover (IRR) TurboTax
Replies: 9
Views: 856

Re: After tax 401K and in plan Roth Rollover (IRR) TurboTax

sailaway wrote: Tue Apr 19, 2022 2:58 pm I only remember seeing this screen most clearly laid out when completing the return. Maybe you could try doing that again?
I almost went as far as I can comfortably go before real e-filing it again but did NOT see the screen
by wrongfunds
Tue Apr 19, 2022 3:08 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

Nor would it be particularly hard for a couple with a $500k household income to have 2/3 of their total retirement expenses covered by non-portfolio income. I am NOT trying to pick on you but I am trying to understand the above statement. Are we assuming that total retirement expenses have some relationship to the household income? Is the $500K income pre-retirement income? Are you saying that 2/3 of that is coming from non-portfolio income? Are pensions involved? Are income producing properties involved? Are annuities in the picture? Are you thinking about deferred compensation? The example you chose seems little bit odd that is why I am asking. Usually, in retirement, the most common would be your taxable portfolio, your still untaxed po...
by wrongfunds
Tue Apr 19, 2022 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401K and in plan Roth Rollover (IRR) TurboTax
Replies: 9
Views: 856

Re: After tax 401K and in plan Roth Rollover (IRR) TurboTax

When I get a 1099-R for the after tax 401K contribution which shows code "G" and specifically says "zero taxable", why does TurboTax adds that to my income, albeit it does say that it is NOT taxed. That income was already included in my W2, so why does it add it again? For example, if my 2021 taxable W2 income was $100K and I put $31K from that in to after-tax 401K and did instant IRR, TurboTax tells me that my total 2021 income was $131K :oops: I have use TT for last few years along with After-tax + IRR and never saw the amount from 1099-R added to income. The income breakup shows the income if any reported on 1099-R box 2a but not the amount in box 1. I am guessing you probably need to revisit some section in TT in or...
by wrongfunds
Tue Apr 19, 2022 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

AL:

Every Tuesday morning I eagerly wait for the new episode and scan the description before deciding if I am going to listen to it or not. Today's episode, I thought I would not like it but I am halfway done through listening, I am now hooked on Alex and Nicole saga.

I did feel very sick to my stomach about hearing the physical therapy couple who has humongous student debt. My MIL has PT person coming in to help after her hospital stay and now I look at PT person differently.
by wrongfunds
Tue Apr 19, 2022 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

One way to make this reply "actionable" would be to have your better half register and participate here on BH forum. With the immense talent of BH, it would be in different stratosphere than Sethi's podcast! :-) I read your suggestion to her. She just smiled and returned to reading her paper. Interestingly, when we got the call saying the trawler was on the market, I was the hesitant one, saying "why don't we just keep sailing" and her reply was "If we don't do this now, we'll never get the chance again". Same here; when I could not pull the trigger on Model 3 Performance few years ago, she twisted my arm to get the car :-) Alas, she also does not let me sell her 1999 minvan with 300K miles on it. "It sti...
by wrongfunds
Tue Apr 19, 2022 2:06 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

59Gibson wrote: Tue Apr 19, 2022 12:39 pm Ha. I thought it was cat food and finding the most fashionable highway overpass to live under
You are right, it is eating catfood while from an abode under highway overpass BUT STILL WORRIED ABOUT THE DREADED RMD and IRMAA taxes!
by wrongfunds
Tue Apr 19, 2022 1:55 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

I didn’t disagree. My point was this isn’t the place you come to discuss retirements where SS will cover 2/3 of expenses. I realize you were just illustrating a point, but your illustrations are sometimes not indicative of a typical user of this forum. Probably far more retirees here are paying for their grandkids college than are living on SS plus a third. Rick Ferri has said that only about 10% of the retirees he speaks with spend more than $100,000 per year, and that's usually because they have two homes or travel extensively. Median spending (even among this HNW group) is more like $70,000. Dual income professionals can readily cover 2/3 of that kind of spending with Social Security, even if scheduled future benefit cuts come to pass (...
by wrongfunds
Tue Apr 19, 2022 1:00 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

JoMoney wrote: Thu Apr 14, 2022 7:57 am Sometimes I think there's a weird sense of entitlement wealthy people get, with the belief that they're entitled to earn money by just having money.
What? That is the entire idea of being here on this forum! Unless you are talking about Soviet/Mao style communism, this is the principle by which we all live. You need to make your money work for you. Indeed there are two classes of people in our society and I aspire to be in the class of people who have excess income that can be made to create more excess income.
by wrongfunds
Tue Apr 19, 2022 12:17 pm
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

Ok. I'm thinking more along the lines of wanting to fat FIRE where I'd still be perfectly content trimming off 20% of expenses. OK, so you are inflating X, which allows you to talk yourself into accepting “only” 25X. You’re really talking 31X for what is presumably an acceptable level of retirement spending - your cut back to 0.8X. That cut may come during year one and it could take quite some time before you feel comfortable going above that 0.8X spending level. I should feel comfortable spending 1.0X (not 0.8X) from day 1 since the flex threshold hasn't been met. The cut may never come and if it does come it'll likely be temporary. It's common for retirees to cut back during bear markets. So I don't think adjusting spending during a big ...
by wrongfunds
Tue Apr 19, 2022 9:36 am
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

For those concerned with long term costs, how much are you anticipating costs and for how long? I just punched in some numbers to Rich, Broke, Dead: Say you retire at 50, with $2.5M. You spend $100k/year except if your balance falls below $2M, you spend $80k/year (that's the flex I mentioned that are a lot of people aren't factoring in). You're 67/33 stocks to bonds. At 70 you take $30k in social security. At 90 you spend an extra $130k annually and you live to 100. That's spending $260k / year for 10 years in your 90s! Success rate is showing as 100% But do you think you will be able to get a decent long term care facility for mere $260K at that time? I can guarantee you that in will be more likely in $2M per year (real) when you reach th...
by wrongfunds
Tue Apr 19, 2022 9:28 am
Forum: Investing - Theory, News & General
Topic: Why save over 25x?
Replies: 598
Views: 58738

Re: Why save over 25x?

I hope most people in this forum aiming for more than 25x by retirement age. Depending on how you define x, 25x might be too much. Is that expenses or residual expenses after Social Security? If you count Social Security, you have to estimate how much your benefit "should be", how much it actually will be, and you have to decide when you will claim in order to do those estimates, and then you have to do some sort of weighted average before and after you claim, to get your residual expenses, which is kind of complicated, so then people just ignore Social Security, and end up with 25x being more than they need. Correct. If SS benefits cover two-thirds of your spending, for instance, then you only need your portfolio to cover the re...
by wrongfunds
Tue Apr 19, 2022 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

The Sethi podcast with Jessica and Javier (an immigrant from Colombia) is very interesting. Lots of unexpected twists in that story. It’s the one titled, “my love language is spending money I don’t have.” I’m appreciating Sethi more. We are all collectively waiting for you to let us know about the follow-up letters :-) I used to have lots of junk email addresses in the past but now I don't have any, so I am very reluctant to give Sethi my email address. By the way, often I get third degree from the better half because I purchased some grocery item for $1.29 from one store instead of purchasing it from another one which sells it for $0.99 I bite my tongue and don't argue about $700 per night hotel instead of $400 per night hotel that she bo...
by wrongfunds
Tue Apr 19, 2022 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

Or, just don't buy stuff you don't want. I think you are missing the point here. When both individuals in the relationship don't want the stuff, it is NOT an issue. It is an issue when either - one does want it but other does not see any need - or both want it but are agonizing to pay for it because they collectively believe it "should be" priced "lower" and on principle will NOT buy it but still lust after it. If neither of is true, then it does not matter. What Ramit points out or what I learned independently after decades of marriage is that after reaching a certain financial step, be it a single million or five millions, you need to let go of those battles. Those battles could be internal with yourself or external w...
by wrongfunds
Tue Apr 19, 2022 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

We have been super savers since our marriage in 78. And I still can't believe what I am about to be doing, but we have an opportunity to get a different boat to enjoy our golden years (turning 70 is a few months). But the stress of buying this boat is causing great spending anxiety. (The boat costs more than we paid for our house in 1993!) As we look at the little time we have left with little physical limitations, my head says this should be a good thing. But after a lifetime of over-saving, the thought of spending so much nearly makes me ill. Is there a way you can get the experience without spending so much that the thought nearly makes you ill? Like buying used, renting, a boat club or anything else? I’ve owned a few jet skis and actua...
by wrongfunds
Mon Apr 18, 2022 5:26 pm
Forum: Personal Investments
Topic: Reverse rollover at Vanguard
Replies: 16
Views: 2836

Re: Reverse rollover at Vanguard

You can actually find the form yourself. Log into your vanguard account and go to forms. Search for IRA and find the form for VBA IRA distribution. You can fill it out online and one of the options is roll over to a qualified plan. You will also want to start the roll over process on the Vanguard 401k side. You walk it right up to the point of “receiving the check”. Apparently there is a batch process which runs which will match up both sides. Basically the IRA distribution process will look for an open roll over for you in the designated 401k plan and then distribute it there even though it may appear it will mail you a check. Anyway, the above is what was explained to me by a Vanguard rep about 2 years ago when I was having the same prob...
by wrongfunds
Mon Apr 18, 2022 4:33 pm
Forum: Personal Investments
Topic: "Best" software for "tax torpedo?"
Replies: 29
Views: 5157

Re: "Best" software for "tax torpedo?"

I am not really convinced that OP is going to get hit by "tax torpedo". I think he will be well past that "hump". OP did NOT give real numbers but given the list of exhaustive assets they already have and plus the desire to work until age 70 means it is not unreasonable guess that their total income would be far ahead of that hump.
by wrongfunds
Mon Apr 18, 2022 4:19 pm
Forum: Personal Investments
Topic: Retirement Mistakes
Replies: 115
Views: 29064

Re: Retirement Mistakes

... A CPA posted a video on Youtube, in which he shows a Line 8 (Standard deduction or Itemized deduction) of a mock 1040, a deduction of $310,000 for his hypothetical retiree that is converting a 1 million IRA to a Roth IRA. He calls this a Comprehensive Supercharged Roth IRA Conversion strategy. “Comprehensive planning looks at specific and actionable tax strategies that most people are not toking advantage of in the tax code to create tax deductions and accelerate Roth conversions.” The mock 1040 shows Line 4b - $1,088,412 but only paying $70,839 in taxes - because of a $310,000 deduction on Line 8. The video ends without any details on the tax code that allows this strategy. He asks you to click the link to get additional information……...
by wrongfunds
Mon Apr 18, 2022 3:02 pm
Forum: Personal Investments
Topic: [Could I have avoided this capital gains tax?]
Replies: 15
Views: 2200

Re: Capital Gains Tax

tj wrote: Sun Apr 17, 2022 3:42 pm
mkc wrote: Sun Apr 17, 2022 3:36 pm
Nikki wrote: Sun Apr 17, 2022 12:24 pm Based on USAA closing it's Mutual Funds and moving them to Victory Capital. I transferred my USAA Extended Market Index Fund(us mix) to Vanguard, but I did not sell any of it in 2021.Once I got my "Long term capital gains distributions from Vanguard for 2021, I got assessed for $40,662.95 in Capital gains. My question is could I have avoided this capital gains tax by doing something different, besides not moving it to Vanguard.
Doubtful it was caused by moving to Vanguard - USMIX paid a whopping $4.22 per share (17.6%) LTCG in December 2021
Yikes. Did other extended market index funds experience something similar?
Yes, Fidelity Extended Market Index (FSMAX) too in FY2021 :-(
by wrongfunds
Mon Apr 18, 2022 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payments for '22 - do I really need to pay $24k?
Replies: 26
Views: 3260

Re: Estimated tax payments for '22 - do I really need to pay $24k?

The question that I have is if I managed to hit the safe harbor at the end of the year, does it matter if the estimated payment was done only in Q4? To ask it differently, if there is NO penalty as there is no underpayment, then all this discussion is irrelevant or am I wrong? It depends. If your withholding alone is enough for a safe harbor then you'll be ok. But any estimated payments need to be made quarterly or better (i.e. accelerated into earlier quarters). If you only make an estimated payment in Q4 then you'll owe a penalty for Q1-3 unless you can annualize your income and show that it all occured in Q4. It's possible to be due a refund for overpaying and still owe a penalty for quarterly underpayment. The penalty is just interest ...
by wrongfunds
Mon Apr 18, 2022 10:40 am
Forum: Personal Finance (Not Investing)
Topic: H&R Block software and Foreign Tax Credit
Replies: 6
Views: 610

Re: H&R Block software and Foreign Tax Credit

Let me understand this. If one skips this, does Treasure gets more money from me or less money from me? I am guessing more. I will involuntarily paying more than my fair share of taxes if I don't take the credit.
by wrongfunds
Mon Apr 18, 2022 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Should I switch from roth 401k (post tax) to pre-tax 401k contributions?
Replies: 10
Views: 1394

Re: Should I switch from roth 401k (post tax) to pre-tax 401k contributions?

I will ask question. Why was OP NOT doing pre-tax 401K for last ten years? Very few careers (aka interning neuro surgeon or interning CEO's daughter ) are conducive to sacrificing pre-tax 401K; for the rest of the usual W2 population, rule of thumb is to put the money in pre-tax 401K first.
by wrongfunds
Mon Apr 18, 2022 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payments for '22 - do I really need to pay $24k?
Replies: 26
Views: 3260

Re: Estimated tax payments for '22 - do I really need to pay $24k?

The question that I have is if I managed to hit the safe harbor at the end of the year, does it matter if the estimated payment was done only in Q4? To ask it differently, if there is NO penalty as there is no underpayment, then all this discussion is irrelevant or am I wrong?
by wrongfunds
Mon Apr 18, 2022 8:47 am
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payments for '22 - do I really need to pay $24k?
Replies: 26
Views: 3260

Re: Estimated tax payments for '22 - do I really need to pay $24k?

The maddening thing about TurboTax ES payments business is that it assumes no withholding or something like that. For example, my suggested (is that correct word here?) estimated quarterly payments are [(my 2021 tax liability * 1.3) / 4 ] Mind you, the reason the taxes were so high for this year was because of year end distribution from mutual funds. May be I should just ask the funds to do the withholding? I do send Q4 ES payment every year which I think I would put me in safe harbor using 110% rule.

I have been ignoring those quarterly ES payment subs because I have got them even when I had refund due!
by wrongfunds
Mon Apr 18, 2022 4:17 am
Forum: Personal Finance (Not Investing)
Topic: After tax 401K and in plan Roth Rollover (IRR) TurboTax
Replies: 9
Views: 856

Re: After tax 401K and in plan Roth Rollover (IRR) TurboTax

I believe Mega Backdooor Conversion is done via In service Roth Rollover (IRR)

The apparent error is NOT on the tax form 1040 page 1 or the data submitted to IRS (Thank God for that!)
It is the tax analysis page where it wants to be very helpful and shows you historical comparative data. I don't how I had that screen on before I filed the taxes. May be somebody else knows how to do that after taxes have been filed?
by wrongfunds
Mon Apr 18, 2022 12:35 am
Forum: Personal Finance (Not Investing)
Topic: After tax 401K and in plan Roth Rollover (IRR) TurboTax
Replies: 9
Views: 856

After tax 401K and in plan Roth Rollover (IRR) TurboTax

When I get a 1099-R for the after tax 401K contribution which shows code "G" and specifically says "zero taxable", why does TurboTax adds that to my income, albeit it does say that it is NOT taxed. That income was already included in my W2, so why does it add it again?

For example, if my 2021 taxable W2 income was $100K and I put $31K from that in to after-tax 401K and did instant IRR, TurboTax tells me that my total 2021 income was $131K :oops:
by wrongfunds
Sun Apr 17, 2022 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

Sorry for leading you the wrong path about Ramit's father! It is just that Ramit Sethi is more like my own son aka born to Desi immigrant parents and inherited their values, including money and education. I really would love to read the follow-up letters of his podcasts but I am NEVER going to register on his website to do that.
by wrongfunds
Sun Apr 17, 2022 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

I just listened to the Sethi episode about a two-lawyer couple on their second marriages (ages 61 and 44). They are full of financial worries and job stress (at a small law firm) due to, among other things, his $70k alimony payment obligation. He doesn’t always make retirement plan contributions and he can’t sleep from the stress. Sounds atrocious. This one was pretty bad. The gentleman is innumerate. The lady is doing good by normal standards (10% to retirement, 10% to savings, homeowner), but not at all on track for financial independence until late 60s at best. They have $435k to $500k HHI and should be very well established. They had separate finances in a situation where it would be most commonly recommended - 2nd marriage, later in l...
by wrongfunds
Sun Apr 17, 2022 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

But don't you agree that if you take 3% of that 10M, effectively, the 10M will still stay at 10M? Why would you subtract 3% and think you are going to run out?
by wrongfunds
Sun Apr 17, 2022 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Underestimated my taxes
Replies: 14
Views: 1956

Re: Underestimated my taxes

I am glad that I satisfy 110% through W2 withholding! But I am afraid that State of Massachusetts does not seem to have such clear cut definition of safe harbor. Am I wrong? Appears you will be fine if "Your estimated payments and withholding equal or exceed your 2020 tax" (based on a quick read of https://www.mass.gov/doc/2021-form-m-2210-underpayment-of-massachusetts-estimated-income-tax/download). That is good! Yes, fortunately 2021 withholding exceeds 2020 taxes. I am glad that even after the "wrong funds" "joined to our income" but never payed a dime in taxes during the year end, we still will be spared off any penalty. I have no idea what emoji to use here; sad but not as sad as it could be! :confused
by wrongfunds
Sun Apr 17, 2022 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Underestimated my taxes
Replies: 14
Views: 1956

Re: Underestimated my taxes

I am glad that I satisfy 110% through W2 withholding! But I am afraid that State of Massachusetts does not seem to have such clear cut definition of safe harbor. Am I wrong?
by wrongfunds
Sun Apr 17, 2022 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

Marseille07 wrote: Wed Apr 13, 2022 12:43 pm I don't have podcasts or books, but Imo the idea is simple. Determine your withdrawal method and you can spend up to that amount monthly or annually or whatever.

But even with 10M, we're really talking about 300K~350K/year of spending, leaving 9.7M unspent. And even if you *can* spend 300K, you don't want to fill up the house with gadgets either. How to spend $ is a topic that requires serious consideration.
Can you explain where 9.7M unspent is coming from? Is the 10M is at the Bank of Big Mattress? :happy
by wrongfunds
Sun Apr 17, 2022 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Leading a rich life
Replies: 265
Views: 36876

Re: Leading a rich life

In another thread, someone mentioned Ramit Sethi’s podcast I Will Teach You to be Rich. I tried it and have gotten sucked in. In each episode, he has conversations with couples who have problematic relationships with money. Many of the episodes are about people who have high income, have saved quite a bit, but are so frugal that it negatively impacts them and their relationships. One episode had a couple that was worth over $10 million but were on the brink of divorce because the husband refused to let his wife spend on anything but the bare necessities. At any rate, this podcast has really resonated with me. We’re in good shape with our finances, and yet, I have a hard time spending. A really hard time. I’m curious whether folks have podc...
by wrongfunds
Sun Apr 17, 2022 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Underestimated my taxes
Replies: 14
Views: 1956

Re: Underestimated my taxes

FiveK wrote: Sun Apr 17, 2022 12:15 pm
wrongfunds wrote: Sun Apr 17, 2022 12:09 pm Am I correct that as long as I had paid 110% of last years taxes, I am covered under safe harbor rule regardless of the magnitude of the underpayment?
Yes. See Form 2210 if you want to confirm for yourself.
Thanks! As long as TurboTax does NOT do something stupid behind my back!
by wrongfunds
Sun Apr 17, 2022 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Underestimated my taxes
Replies: 14
Views: 1956

Re: Underestimated my taxes

Am I correct that as long as I had paid 110% of last years taxes, I am covered under safe harbor rule regardless of the magnitude of the underpayment? The capital gain distribution on wrong (active) funds had been massive for FY2021 and I am looking at significant shortfall in the tax payment for this tax return.
by wrongfunds
Sat Jan 08, 2022 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Is it too soon to pay estimated fed taxes with EFTPS?
Replies: 11
Views: 1700

Re: Is it too soon to pay estimated fed taxes with EFTPS?

Question:-

I have the printout of the payment information and also have the confirmation that my bank account has been debited. I am presuming this as good as the old method of copy of cancelled check written to US Treasuries for the purpose of Estimated Taxes Paid documentation.

The underlying reason for this question here is that I am trying to avoid having to create an IRS account.
by wrongfunds
Tue Jan 04, 2022 7:39 am
Forum: Personal Investments
Topic: Is 4% SWR for FIRE still viable under these circumstances
Replies: 86
Views: 8157

Re: Is 4% SWR for FIRE still viable under these circumstances

OP is asking theoretically. They still have few more years to go before actually pulling the plug. Why not wait and ask this question at that time?

OP might have doubled their portfolio and then it will no longer be 4% but only 2%. On the other hand, market may have crashed and OP would NOT be entertaining any ER avenue!

Either way, OP will have clearer and definitive answer then.
by wrongfunds
Mon Jan 03, 2022 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Is it too soon to pay estimated fed taxes with EFTPS?
Replies: 11
Views: 1700

Re: Is it too soon to pay estimated fed taxes with EFTPS?

Direct Guest Pay is very easy; will know tomorrow after my bank shows the completed transaction. It makes sense that IRS does NOT make it difficult to pay them :-)
by wrongfunds
Fri Dec 31, 2021 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Is it too soon to pay estimated fed taxes with EFTPS?
Replies: 11
Views: 1700

Re: Is it too soon to pay estimated fed taxes with EFTPS?

Every year I had been sending checks but this year I want to do electronically. So I thought I would setup an account with IRS. Which requires ID.me registration. What an utter fraud that web site is :-(

I think I will just try Guest user and do direct pay. I hope that is straightforward.
by wrongfunds
Tue Dec 28, 2021 9:34 am
Forum: Investing - Theory, News & General
Topic: Year End Distributions
Replies: 8
Views: 1969

Re: Year End Distributions

I know. I have NOT done the analysis, I think for this calendar year, the fund distributed more gains than the fund had gone up in NAV. So in reality, I will be paying taxes on some of the phantom gains.

Oh well, that is life. The taxes have to be paid at our income level one way or another. There is no getting away from it. I don't have to like it but I accept it.