Search found 1186 matches

by powermega
Sat Feb 06, 2021 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 100
Views: 5125

Re: Whole Life Insurance

I consider purchasing my whole life policy 13 years ago as somewhere between a mistake and a terrible mistake. Now that the cash value is about 80% of what I've put in, I'm thinking it's time to cancel the policy and invest that money, and also invest the future premiums. I don't feel good that I g...
by powermega
Sat Jan 23, 2021 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Online Car Loans?
Replies: 7
Views: 557

Re: Online Car Loans?

Lightstream +1 as a happy Lightstream customer. We actually have two loans with them. At the time, they offered the lowest interest rates we could find. When we last bought a car, we found a lower rate with a local credit union and went with them instead, but Lightstream was the first option we exp...
by powermega
Fri Jan 01, 2021 3:39 pm
Forum: Investing - Theory, News & General
Topic: Do you lump sum full amount into IRA at beginning of the year?
Replies: 49
Views: 2878

Re: Do you lump sum full amount into IRA at beginning of the year?

Yes. Investing the IRA contributions is just part of a larger overall portfolio re-balancing event. HSA and taxable accounts treated the same way.
by powermega
Sat Dec 26, 2020 11:51 am
Forum: Personal Consumer Issues
Topic: Health Trackers?
Replies: 10
Views: 836

Re: Health Trackers?

I've used a Fitbit for many years now. Happy user. Currently using a Charge 4.
by powermega
Sat Dec 26, 2020 11:34 am
Forum: Personal Consumer Issues
Topic: Continental Tires
Replies: 24
Views: 1852

Re: Continental Tires

We have Continental Extreme Contact tires on two of our cars. Great tires.
by powermega
Tue Dec 08, 2020 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP vs PPO help calculating (family planning)
Replies: 51
Views: 1659

Re: HDHP vs PPO help calculating (family planning)

I have a simple spreadsheet that I use for comparing the PPO and HD plans. I plugged in your numbers and you can see the result here: https://docs.google.com/spreadsheets/d/1H-DJiKaZhH-3BrDaHNt33pylxvG40d960-AIjNcx_Wo/edit?usp=sharing From what I can tell, the HD plan has a lower after tax outlay th...
by powermega
Thu Dec 03, 2020 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: 529 account - is there a better way?
Replies: 175
Views: 8566

Re: 529 account - is there a better way?

trying to find the best way to save for my kid's education. If i put the money in a 529 account i can reduce my taxable income right away, and when I withdraw it for education expenses it's tax free. the downside is that the 529 account is considered a students asset for financial needs calculation...
by powermega
Mon Nov 30, 2020 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Maintaining high FICO score
Replies: 45
Views: 3223

Re: Maintaining high FICO score

Anything higher than 800 will qualify you for the best credit pricing available for loans. Even 750+ would likely get you the best credit pricing for the vast majority of lenders.
by powermega
Mon Nov 30, 2020 5:31 pm
Forum: Personal Investments
Topic: Married Retirement Couple Maxing Order?
Replies: 16
Views: 2099

Re: Married Retirement Couple Maxing Order?

I think the general order for most people is this:

1. Max 401k company match.
2. Max the rIRAs (both people).
3. Max 401k.

Sounds to me that you're working on completing #2 right now.
by powermega
Wed Oct 14, 2020 11:31 pm
Forum: Personal Investments
Topic: Schwab International fund
Replies: 2
Views: 552

Re: Schwab International fund

Being a taxable account, ETFs would definitely be a better investment than traditional mutual funds. VXUS give you one complete ETF for the entire world. Simple and complete. SCHF, SCHE, SCHC are the Schwab ETFs that fill out the international space. 70/20/10 percent weighting (roughly) to match VXU...
by powermega
Thu Jul 23, 2020 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Salvaging funds from IUL - Index Universal Life Insurance
Replies: 14
Views: 830

Re: Salvaging funds from IUL - Index Universal Life Insurance

Don't surrender/cancel the policy. Stop putting money into the IUL policy and just let the policy charges eat up the Cash Value of the policy. Eventually the policy will lapse, but during this time at least you still have life insurance. If you surrender the policy, you get nothing. The only way to ...
by powermega
Sun Jun 14, 2020 9:34 pm
Forum: Personal Investments
Topic: Dump 40 year old whole life policy?
Replies: 20
Views: 2089

Re: Dump 40 year old whole life policy?

I would keep that sucker, I might even put more cash in it since the interest rate is so much better than anything else. You should research how much you can overfund before it converts into a MEC. If the policy is really 40 years old, then it cannot become a MEC. Only policies issued after 1988 ha...
by powermega
Wed Apr 01, 2020 5:42 pm
Forum: Personal Consumer Issues
Topic: Online / Gun Dealer Recommendations
Replies: 101
Views: 9458

Re: Online / Gun Dealer Recommendations

Go to a good indoor range (look up GSSF 4 and 5 star ranges) and find one near you that is hopefully still open. Get instruction and rent several pistols to find one that fits your hands and points and shoots well for you. Glocks are great pistols but there may be others that "fit" you be...
by powermega
Thu Mar 12, 2020 12:10 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 6493

Re: Total Bond Market Down >4%

I remember Bogleheads like Larry Swedroe making the case that intermediate treasuries are a better bond allocation than the total bond market. It's during times like these that it's easy to understand his point. Corporate bonds have a higher correlation to the stock market than treasuries. Treasurie...
by powermega
Thu Feb 27, 2020 3:16 pm
Forum: Personal Investments
Topic: What's your TLH trigger/timing?
Replies: 23
Views: 2209

Re: What's your TLH trigger/timing?

Our IPS says to sell all losing positions in early December. We rebalance in early January, so that's when we would repurchase positions. I don't care enough to use a swap fund.
by powermega
Thu Feb 20, 2020 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Basic HSA question
Replies: 14
Views: 1381

Re: Basic HSA question

That is my understanding too. Ok, that makes sense.... With the rising costs of health care though every year, by the time I am actually retired I think I will need every dollar in that account for actual medical expenses so I don't see myself being too worried about saving receipts now... That's w...
by powermega
Thu Feb 06, 2020 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Surrender Flexible Premium Variable Life Policy?
Replies: 10
Views: 480

Re: Surrender Flexible Premium Variable Life Policy?

I'm not going to discuss whether you should keep the policy or not, just how you could avoid taxes with it... A first step you could do would be to withdrawal your tax basis ($300k), which would be tax-free. This will reduce your face amount and cash value. You could then also request a face decreas...
by powermega
Thu Feb 06, 2020 12:06 pm
Forum: Personal Investments
Topic: How much REIT in portfolio?
Replies: 53
Views: 4935

Re: How much REIT in portfolio?

10% of our equity allocation goes to REITs. We also have a single rental property.
by powermega
Wed Feb 05, 2020 9:00 am
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5696

Re: Allan Roth: Schwab is now a huge threat to Vanguard

In my ideal world.....I could direct index/ invest every bit of income immediately... via fractional shares. This platform would create free and seamless tax loss harvesting.... the platform would also have a checking account tied to it, where I could keep whatever level of cash I wanted for everyd...
by powermega
Wed Jan 29, 2020 5:18 pm
Forum: Personal Investments
Topic: AXA Advisor - VUL and Term Insurance
Replies: 36
Views: 1647

Re: AXA Advisor - VUL and Term Insurance

This post has a couple of errors: 1. You can take withdrawals from a VUL policy, not just loans. 2. If the VUL policy is a Modified Endowment Contract (MEC), then the withdrawals would come from gain first, then basis. I'm quite sure that the policy that being proposed is not a MEC, in which case t...
by powermega
Wed Jan 29, 2020 4:01 pm
Forum: Personal Investments
Topic: AXA Advisor - VUL and Term Insurance
Replies: 36
Views: 1647

Re: AXA Advisor - VUL and Term Insurance

DO NOT INVEST IN VUL!!! Variable Universal Life Insurance, basically, is an investment vehicle where the death benefit amount is variable, based on the investment returns. But what happens is that, when you contribute $10k into the fund, for example, some $800 is taken out for "mortality charg...
by powermega
Tue Jan 28, 2020 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 11
Views: 992

Re: Whole Life Insurance

With whole life, there are two components of the cash value and death benefit: the Base portion, and the paid-up additions (PUA) portion. You can withdrawal from the PUA, but not the Base. You'll get PUA in the policy from policy dividends (if your dividend option is to buy PUA), and from paying pre...
by powermega
Tue Jan 28, 2020 6:40 pm
Forum: Personal Investments
Topic: how to sell shares tax-smart?
Replies: 14
Views: 940

Re: how to sell shares tax-smart?

I think Schwab's "Tax Lot Optimizer" method is generally good, especially if you're talking about realizing some kind of gain with the sale of position(s). Short-term Losses: Lots reflecting short-term losses are sold first, from greatest short-term loss to least short-term loss. Long-term...
by powermega
Mon Jan 27, 2020 11:15 am
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 3749

Re: Inherited IRA or Traditional. ex advisor not helpful

I know this covers his RMD for the year, but my next question is since the money was put into Primerica and it was over $8000 do I now have an issue with being over the 2019 contribution limit for an IRA of $6000 and if so what would the steps be to fix this? When the money was transferred to Prime...
by powermega
Sat Jan 25, 2020 6:17 pm
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5696

Re: Does Schwab's growth threaten Vanguard's domination (article)

Would you supply more details. Like if I have say 3 lots each with fractional shares can I sell just the fractional parts of all three at one time assuming I'm using specific ID cost basis method? The recent scenario I had was that I was swapping out SLYV and IJS for VBR in qualified accounts at Sc...
by powermega
Sat Jan 25, 2020 9:12 am
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5696

Re: Does Schwab's growth threaten Vanguard's domination (article)

According to a Schwab spokesperson quoted in an ETF.com article, the fractional shares initiative will only apply to stocks, at least in 2020. Last week I set up a reinvest dividends option on an ETF at Schwab. Will find out in a few weeks what the true story is. Schwab has had the ability to reinv...
by powermega
Fri Jan 24, 2020 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: HSA receipts
Replies: 64
Views: 4051

Re: HSA receipts

I don't see the point in hassling over small receipts. Health care expenses are a major part of retirement expenses. I can't see how it would be hard to blow through an HSA when you're racking up the kind of health care expenses you'll see in your 60s, 70s, and 80s.
by powermega
Fri Jan 24, 2020 3:00 pm
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 3749

Re: Inherited IRA or Traditional. ex advisor not helpful

Like Alan said above, it's rare but sometimes custodians do make a mistake in the creation of the inherited IRA. I do think you need to elevate this issue beyond the normal customer service level since your adviser is not responding to your calls. Like others have said, an inherited IRA cannot be ro...
by powermega
Fri Jan 24, 2020 1:32 pm
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5696

Re: Does Schwab's growth threaten Vanguard's domination (article)

I agree with Alan's point in the article that the ability for fractional shares opens up the capability for direct index investing. This would be a feature that is only relevant to taxable investment accounts, but it has the ability to allow enormous tax-loss harvesting and essentially zero cost ind...
by powermega
Thu Jan 23, 2020 9:37 am
Forum: US Chapters
Topic: Sad news: LadyGeek's husband has passed
Replies: 352
Views: 29260

Re: Sad news: LadyGeek's husband has passed

Very sorry to hear about your loss LadyGeek. Thank you for sharing all of this with us. My thoughts and prayers are with you and your family.
by powermega
Wed Jan 22, 2020 4:40 pm
Forum: Personal Investments
Topic: Should I move my 401k funds from VTIVX (Target Ret. 2045) to VTSAX/others? Based on ER
Replies: 8
Views: 659

Re: Should I move my 401k funds from VTIVX (Target Ret. 2045) to VTSAX/others? Based on ER

The difference between the VTTHX (2035 TDF) and its weighted average components is about 0.07%. In other words, it works out to $70 for every $100k you have invested. Whether that's important to you is really up to you. I like the TDFs because of the simplicity and lack of rebalancing needed. Like t...
by powermega
Sat Jan 18, 2020 12:55 pm
Forum: Personal Investments
Topic: Incorrect basis in Roth IRA
Replies: 7
Views: 781

Re: Incorrect basis in Roth IRA

Like 123 said above, tax qualified accounts (IRAs, 401ks, etc) do not have a notion of cost basis. Some custodians might keep track of the cost basis and gain/loss in those accounts, but it's really meaningless. There are no taxable events for transactions that occur within one of these accounts. W...
by powermega
Sat Jan 18, 2020 12:48 pm
Forum: Personal Investments
Topic: Need help on deciding regarding VULs
Replies: 29
Views: 1359

Re: Need help on deciding regarding VULs

The deal with VUL is that, while the growth within the wrapper is tax free, when you withdraw it is considered as earnings distributions first and return of capital last. In other words, opposite of taxable investment. This is incorrect (usually). If the life insurance policy is not a Modified Endo...
by powermega
Fri Jan 17, 2020 5:13 pm
Forum: Personal Investments
Topic: Incorrect basis in Roth IRA
Replies: 7
Views: 781

Re: Incorrect basis in Roth IRA

Like 123 said above, tax qualified accounts (IRAs, 401ks, etc) do not have a notion of cost basis. Some custodians might keep track of the cost basis and gain/loss in those accounts, but it's really meaningless. There are no taxable events for transactions that occur within one of these accounts.
by powermega
Thu Jan 16, 2020 11:54 am
Forum: Personal Investments
Topic: Target funds and others in my 401k
Replies: 6
Views: 560

Re: Target funds and others in my 401k

Roughly half of our entire portfolio is in one of the Vanguard target date funds (TDF). The TDF is really just a composite fund of 5 other broad market funds. We also invest in those individual component funds as well. Overall, about 85% of our entire portfolio is either in the TDF itself or in the ...
by powermega
Mon Jan 13, 2020 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Which Tax Software
Replies: 43
Views: 5391

Re: Which Tax Software

I've used TurboTax for years.
by powermega
Fri Jan 10, 2020 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional PPO vs. HSA/HDHP
Replies: 19
Views: 800

Re: Traditional PPO vs. HSA/HDHP

Your'e free to copy and edit my PPO vs HDHP/HSA spreadsheet. The first step is to simply compare the plans by themselves, and you can see where the break even point is between the two. The next step is to get the FSA/HSA portion of the comparison if you're interested. All cells in grey are formula c...
by powermega
Fri Jan 10, 2020 12:50 pm
Forum: Personal Investments
Topic: Where do you keep your Emergency Funds? How is it invested?
Replies: 139
Views: 12375

Re: Where do you keep your Emergency Funds? How is it invested?

We keep our emergency fund in two savings accounts. One account is Discover Bank that earns a decent rate (currently 1.7%), and the bulk of the money is there. We also have a smaller part of the emergency fund at a local credit union that has a local branch open 6 days a week. We have the local acco...
by powermega
Wed Jan 08, 2020 7:46 am
Forum: Personal Investments
Topic: Inherited Roth and RMD
Replies: 20
Views: 1325

Re: Inherited Roth and RMD

Alan S. wrote: Tue Jan 07, 2020 9:38 pm Mom wouldn't have an RMD due because this is a Roth IRA.
Thanks for the informative response Alan. Glad to know the OP can get caught up with the IRS that easily. Definitely a brain fart on my part with Mom's RMDs from a Roth IRA,
by powermega
Tue Jan 07, 2020 8:56 pm
Forum: Personal Investments
Topic: Inherited Roth and RMD
Replies: 20
Views: 1325

Re: Inherited Roth and RMD

It sounds like the account has been properly re-titled for you (the "FBO..." part of the account name). If your mom was over 70.5 years old when she died in 2012, then she should have had an RMD due for 2012. If she didn't already take that RMD before she died, then you would have been req...
by powermega
Sat Jan 04, 2020 9:27 pm
Forum: Investing - Theory, News & General
Topic: VTSAX & VTIAX Dividends
Replies: 19
Views: 3056

Re: VTSAX & VTIAX Dividends and Interest payouts

The interest portion and some of the dividends would be taxed as ordinary income. Most of the dividends should be "qualified dividends" and taxed at 15%.
by powermega
Sun Dec 29, 2019 11:56 am
Forum: Personal Consumer Issues
Topic: Skiing
Replies: 48
Views: 4797

Re: Skiing

Like others have said, if you're going to buy anything it should be the boots. Spend the extra money to see a good boot fitter and get a quality pair of boots. The boots are the most important gear, much more important than the skis. Don't bother buying any skis/bindings; rent those for at least a c...
by powermega
Thu May 30, 2019 12:43 pm
Forum: Personal Investments
Topic: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?
Replies: 12
Views: 1309

Re: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?

This sounds like a whole life (WL) policy. Another possible explanation for the NCV to exceed the NDB is that the dividends are being used to accumulate at interest. When a policy holder does this, it's basically the same as diverting the dividends into a savings account where it accumulates interes...
by powermega
Tue May 28, 2019 3:59 pm
Forum: Personal Investments
Topic: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?
Replies: 12
Views: 1309

Re: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?

Normally, the Net Cash Value (NCV) will always be less than the Net Death Benefit (NDB), with the NCV eventually becoming equal to the NDB when the policy reaches the Maturity Age. I suppose it could be possible to have a very temporary situation where a premium that has been received has been credi...
by powermega
Mon Feb 25, 2019 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Nervous about locking up money in SPIA
Replies: 101
Views: 7486

Re: Nervous about locking up money in SPIA

With your low concern for your heirs, you should consider a Life Only SPIA. It would have a greater payout than any Life With Period Certain, and certainly more than a Period Certain Only option. It is also possible to buy an inflation adjusted SPIA, or at least one that has a known annual adjustmen...
by powermega
Sun Jan 27, 2019 6:11 pm
Forum: Personal Investments
Topic: Schwab ETF vs Mutual Fund
Replies: 9
Views: 903

Re: Schwab ETF vs Mutual Fund

In a taxable investment account, go with the ETF. Better tax efficiency, and greater portability (transfer in kind) to other accounts.
by powermega
Fri Jan 04, 2019 8:32 am
Forum: Personal Investments
Topic: Orphaned Roth IRA
Replies: 19
Views: 1563

Re: Orphaned Roth IRA

Invest in the same 3-fund investments you have in your 401k. The rIRA allocation could be identical to your Roth 401k. FWIW, I would also suggest that you start contributing to the rIRA too. It seems that your income is above the regular contribution limit, but the Backdoor Roth conversion is still ...
by powermega
Thu Jan 03, 2019 10:36 pm
Forum: Personal Investments
Topic: Vanguard Deposit Slips Incorrectly Fitting into Their Postage Paid Envelopes
Replies: 17
Views: 1593

Re: Vanguard Deposit Slips Incorrectly Fitting into Their Postage Paid Envelopes

I completely agree with the Vanguard rep. You should link your checking account electronically so you don't have to bother with sending checks in the mail. ACH transfer is much faster and far more secure.
by powermega
Tue Jan 01, 2019 10:37 am
Forum: Personal Investments
Topic: Orphaned Roth IRA
Replies: 19
Views: 1563

Re: Orphaned Roth IRA

I don't understand why the rIRA cannot be contributed to any more. What am I missing?
by powermega
Mon Dec 31, 2018 1:03 am
Forum: Personal Finance (Not Investing)
Topic: Another Annuity Question
Replies: 14
Views: 952

Re: Another Annuity Question

SPIAs only make sense if you get some kind of life contingent option. That is the area where insurance and annuities can gain advantages for policy holders by using pools of annuitants and giving you "mortality credits" in the calculation of the SPIA payout. The fixed period only SPIAs don...