Search found 12489 matches

by celia
Wed May 12, 2021 8:14 pm
Forum: Personal Investments
Topic: Extreme Roth IRA contribution penalty
Replies: 20
Views: 1819

Re: Extreme Roth IRA contribution penalty

Historic Maximum IRA Contribution Each Year: https://dqydj.com/historical-ira-contribution-limit/ If maximum contributions were made in 2008 and were done for 4 years, that means $5,000 was contributed for each of 4 years ($20,000 was contributed). OP, the friend needs to put some effort into identi...
by celia
Wed May 12, 2021 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Best/tax-efficient sources for getting down payment together for a first-time house purchase
Replies: 7
Views: 455

Re: Best/tax-efficient sources for getting down payment together for a first-time house purchase

$40K savings $100K from taxable (option 3) $15K from HSA (option 6) This assumes you want to retire some day and you will need to tighten your belt for the next year to re-build your emergency fund. (We sold our first house after 2 years and hadn’t finished furnishing it when it was sold. “Oh, we se...
by celia
Wed May 12, 2021 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Seller wants to back out contract
Replies: 37
Views: 3541

Re: Seller wants to back out contract

I’m having trouble envisioning what type of surgery that one “might” need would require them to stay at their current residence for a year or two. I agree in that so much thought is being put into forcing the sale when we don’t know anything about the seller. If it is an elderly or chronically ill ...
by celia
Wed May 12, 2021 2:08 pm
Forum: Personal Investments
Topic: Recommendations for custodian of new taxable account?
Replies: 8
Views: 432

Re: Recommendations for custodian of new taxable account?

Is there a reason you wouldn’t want both accounts at Vanguard? Then you could even transfer assets back and forth as the balances change, if you want.

However, you need to confirm that changing beneficiaries on one account doesn’t impact beneficiaries listed on other accounts.
by celia
Wed May 12, 2021 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Mother is looking to refinance and asking me to co-sign
Replies: 40
Views: 2640

Re: Mother is looking to refinance and asking me to co-sign

I didn’t notice anything about how much time is left on that 6% mortgage and if it is the original mortgage she had with her ex. If it only has a few years on it, grin and bear it (with yor help). If she has re-financed a few times, that will likely keep happening, so don’t get involved. Another pos...
by celia
Wed May 12, 2021 1:25 pm
Forum: Personal Investments
Topic: Extreme Roth IRA contribution penalty
Replies: 20
Views: 1819

Re: Extreme Roth IRA contribution penalty

If the friend may be assumed to have contributed the max each year during the period they were contributing and they never qualified for any contribution, then could you not determine the excess amount by adding up the Roth contribution limits from each year the friend contributed? Then ask the cus...
by celia
Wed May 12, 2021 2:10 am
Forum: Personal Finance (Not Investing)
Topic: who notifies Vanguard beneficiaries?
Replies: 11
Views: 1568

Re: who notifies Vanguard beneficiaries?

If your executor or trustee won't do this basic task, you should choose someone else. First off, do your executor and trustee know where to find your will or trust and a list of your assets? Or for that matter, do I need to depend on my siblings to tell the charity of my passing? If they survive me ...
by celia
Tue May 11, 2021 8:32 pm
Forum: Investing - Theory, News & General
Topic: What Happens to Target Date Funds Long After Reaching Their Date?
Replies: 4
Views: 668

Re: What Happens to Target Date Funds Long After Reaching Their Date?

There is usually a fund with the same name but no year in the title where they end up after the invested percentages in each sub-fund are close to the non-year fund. If you transfer the shares there on your own early and the shares are in a Taxable account, you will incur Capital Gains that will be ...
by celia
Tue May 11, 2021 8:10 pm
Forum: Personal Consumer Issues
Topic: how to get rid of junk mail for my mother
Replies: 36
Views: 2070

Re: how to get rid of junk mail for my mother

I've moved at least a dozen times. I always get either a PO Box or a UPS Mailbox at each new location-it doesn't have to be in the same town. I'll submit the forwarding request to that address and check the mail there maybe once a week. Change the address to the companies you normally deal with to ...
by celia
Tue May 11, 2021 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: [Got mysterious letter from the IRS]
Replies: 16
Views: 1905

Re: DIDN’T get letter from the IRS—-yet!

My guess is that you were eligible for some/all of the stimulus checks over the past year but did not get them at the time. After your 2019 or 2020 tax return was processed, you may have been eligible and have now received them. So, first we should ask: 1. Did you receive the stimulus checks during ...
by celia
Tue May 11, 2021 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to Decide on Inheritance Allocation: Who gets What?
Replies: 40
Views: 3148

Re: Trying to Decide on Inheritance Allocation: Who gets What?

The last time I read about possible changes in tax laws, the plan was to stick most of it to the “rich” who are already paying the most and lose out on things like tax credits and stimulus checks. I was thinking it would be nice for them to feel like a regular person and be treated like anyone else....
by celia
Tue May 11, 2021 1:23 pm
Forum: Personal Consumer Issues
Topic: how to get rid of junk mail for my mother
Replies: 36
Views: 2070

Re: how to get rid of junk mail for my mother

I'd prefer to give cash or give it anonymously... This will not work if you make QCD donations. Ha, Ha, LOL, Not completely true. Before I make photcopies of our QCD checks, I write on the empty space above the check (in red) to not add us to any mailing lists as this is a one-time donation but to ...
by celia
Tue May 11, 2021 12:37 pm
Forum: Personal Consumer Issues
Topic: how to get rid of junk mail for my mother
Replies: 36
Views: 2070

Re: how to get rid of junk mail for my mother

my very diligent 82 year old mother made a list of 200 entities that send her junk mail. She is moving and does not want any of these mailings forwarded. The first thing to do is to not have the mail forwarded! Instead, have her make a list of the companies that she DOES want to receive mail from a...
by celia
Tue May 11, 2021 3:00 am
Forum: Personal Finance (Not Investing)
Topic: Charitable contribution to India
Replies: 6
Views: 758

Re: Charitable contribution to India

If you are thinking of trying to assist with the medical need, one organization to consider is Doctors Without Borders which is a 501(c)(3). I linked to their page about donations AND they do some work in India, but I'm not sure how much. This page says you can specify a particular area/project for ...
by celia
Mon May 10, 2021 8:09 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 9
Views: 404

Re: Backdoor Roth question ation

I believe you’ve misread his dates. Thank you. Now it makes sense to me. For some reason, I kept editing my reply before I posted, trying to figure out what had been done. (For a while I was thinking all these transactions were done in past years.) Part of it was probably the "her" vs &qu...
by celia
Mon May 10, 2021 7:40 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 9
Views: 404

Re: Backdoor Roth question ation

I contributed 6,000 to my wife’s 2020 traditional Ira in April 2021, then converted to a Roth. I then contributed 6,000 to her 2021 traditional ira and converted it to a Roth. When I now look at my vanguard account , it shows 6,000 in 2020 contributions, 6,000 for 2021 contributions and 12,000 in 2...
by celia
Mon May 10, 2021 7:33 pm
Forum: Personal Investments
Topic: Backdoor Roth question
Replies: 9
Views: 404

Re: Backdoor Roth question ation

Was the 2020 contribution reported as a non-deductible contributions to an IRA? Are you sure there was a Roth conversion in 2020? The custodian would have sent you a tax form 1099-R for the conversion part. Then whichever parts were done in 2020 would be reported on Form 8606 for your 2020 tax retur...
by celia
Mon May 10, 2021 1:44 pm
Forum: Personal Investments
Topic: Beneficiary Change Ignored DPOA by Raymond James
Replies: 18
Views: 1768

Re: Raymond James account moved to ??

I feel that for 20 years of investment that her accounts should be significantly higher. Instead they have maintained a level value. Are you forgetting that starting at age 70.5 (for your mother), she had to start taking RMDs from her IRA? Your mom is now at the age they are about 8% or so and need...
by celia
Mon May 10, 2021 1:05 pm
Forum: Personal Investments
Topic: Beneficiary Change Ignored DPOA by Raymond James
Replies: 18
Views: 1768

Re: Raymond James account moved to ??

I'd have one of the memory care employees sign as a witness. I don't think that they are allowed to be a witness to this. It probably would need to be notarized. That’s not the point. It’s more like the employees have the ability to pressure a client into signing a document they may not want to sig...
by celia
Mon May 10, 2021 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: How to convert solo 401(k) Roth to regular Roth?
Replies: 6
Views: 308

Re: How to convert solo 401(k) Roth to regular Roth?

I believe I can convert a solo 401(k) Roth to a regular Roth. Is that correct? If so, can it be done in a year when a contribution has also been made? In the world of taxes, “convert” has it’s own meaning. It means to change the tax characteristics of some assets from tax-deferred to post-tax while...
by celia
Mon May 10, 2021 4:05 am
Forum: Personal Investments
Topic: Retirement withdrawal mechanics
Replies: 27
Views: 5019

Re: Retirement withdrawal mechanics

The Roths should only hold stock funds to maximize your future tax-free growth while tax-deferred should hold your bond funds, to slow down the growth there . Conceptually, I understand that last paragraph. I understand how that is good in a growing market. But doesn't that approach put the Roth mo...
by celia
Mon May 10, 2021 3:02 am
Forum: Personal Consumer Issues
Topic: Are there quiet central air conditioners (the outside unit)?
Replies: 18
Views: 1508

Re: Are there quiet central air conditioners (the outside unit)?

We bought Lennox units about 5-7 years ago mainly because it was rated as the quietest. The units are against the house in the back yard. I don’t think they are quiet at all, but then I’ve never found one quieter than ours. I have sensitive hearing and hear sounds that others can’t such as the drip ...
by celia
Sun May 09, 2021 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Taxwise which account to draw form first in retirement
Replies: 11
Views: 1387

Re: Taxwise which account to draw form first in retirement

...in my mind, the answer should include some thoughts about what your current income and tax bracket, your retirement income and bracket, what you will be getting and when from Social Security, and pension and future RMD considerations. This is THE best observation I’ve see for a while. You need t...
by celia
Sun May 09, 2021 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: Taxwise which account to draw form first in retirement
Replies: 11
Views: 1387

Re: Taxwise which account to draw form first in retirement

I'm 61 and may retire this year. I have been working remote from Florida for the last 4 months but will likely return back to California. Love the weather but obviously taxes are killer. It is wise for you to look at several options at this point in your life and where to start drawing down. The wa...
by celia
Sun May 09, 2021 5:05 pm
Forum: Personal Investments
Topic: Mother is 64 & decided it might be worth trying to save for retirement...
Replies: 41
Views: 4985

Re: Mother is 64 & decided it might be worth trying to save for retirement...

My mom is a flower-power "Hey man, you can't tell me what to do!" type so she would never share any of that with me. If this statement is true, there may not be much you can do to help. Here’s what I would do. Start talking about your own retirement plans. What does your employer offer an...
by celia
Sun May 09, 2021 3:53 pm
Forum: Personal Investments
Topic: Mother is 64 & decided it might be worth trying to save for retirement...
Replies: 41
Views: 4985

Re: Mother is 64 & decided it might be worth trying to save for retirement...

If she has any employer provided healthcare benefits they likely become some sort of supplement to Medicare when she turns 65 and gets on Medicare. No. As long as she is working, her employer insurance will be primary and Medicare is second. But she still needs to enroll in Medicare at 65. The bigg...
by celia
Sun May 09, 2021 3:07 pm
Forum: Personal Investments
Topic: Trust investments
Replies: 16
Views: 1072

Re: Trust investments

I would like to thank everyone for their responses. I've done some more research and it appears we can transfer securities in-kind to the beneficiaries. This seems to be the best solution as I can invest the funds in Total Stock Index, for example and pass shares as needed. The trust document does ...
by celia
Sat May 08, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: end-of-life values statement
Replies: 42
Views: 5025

Re: end-of-life values statement

Medical professionals will need to follow the law and take different things into account. They probably won't withhold food or medicine just because your "qualify of life" is poor (whatever that means). Hi Celia, I have just started looking into these issues and I was under impression tha...
by celia
Sat May 08, 2021 12:56 pm
Forum: Personal Investments
Topic: Trust investments
Replies: 16
Views: 1072

Re: Trust investments

The trust stipulates distributions of 1/6 of the trust value at ages 21, 25 and 30 years of age. This adds unnecessary complexity. Pick a age where they receive the lump sum, i.e. 25 years of age, or a year in which they would all receive it, i.e. 2045 regardless of age. As someone on the receiving...
by celia
Sat May 08, 2021 12:40 pm
Forum: Personal Investments
Topic: Trust investments
Replies: 16
Views: 1072

Re: Trust investments

I would be concerned that whatever you do, the value being distributed each time would vary. A distribution could end up being less than one given 2 years earlier if the markets go down. And the trust also has to account for taxes along the way unless you "push" them onto the beneficiaries...
by celia
Sat May 08, 2021 11:38 am
Forum: Personal Finance (Not Investing)
Topic: How to contain Property Tax with extensive remodeling
Replies: 37
Views: 4015

Re: How to contain Property Tax with extensive remodeling

One of my friends in the Bay Area, CA recently remodeled their home. It was 3BR - 2Bath and they added about 700-800sq ft to the existing 1400sq home. The new home is two-story, about 2100 sq ft, 5BR and 2Bath with new kitchen, baths, etc. He paid about $500K for all this work. Before remodeling, h...
by celia
Sat May 08, 2021 11:24 am
Forum: Personal Finance (Not Investing)
Topic: How to contain Property Tax with extensive remodeling
Replies: 37
Views: 4015

Re: How to contain Property Tax with extensive remodeling

Ditto. The formula should be: Previous dwelling: assessment gets bumped a max of 2%, plus newly added Sq footage at current market sales comp rates x tax rate. Document this and send to assessor. I'm guessing the problem in OP's friend's case is that at the same time they did the addition, they rem...
by celia
Sat May 08, 2021 12:10 am
Forum: Personal Finance (Not Investing)
Topic: No need to file retrun/extension by 5/17??
Replies: 10
Views: 756

Re: No need to file retrun/extension by 5/17??

VanGuppy wrote: Fri May 07, 2021 12:29 pm Seems to support that, but has anyone on the board ever actually done that or know somebody who has?
This late filing, when no payment is due, has been around for awhile. It has nothing to do with the delayed filing deadline this year and last.
by celia
Fri May 07, 2021 11:45 pm
Forum: Personal Consumer Issues
Topic: Do you still read the print newspaper?
Replies: 84
Views: 3146

Re: Do you still read the print newspaper?

Our local freebie (donations accepted) is the best in telling what is happening in local government and local events. I like the print version because I often cut out some articles to retrieve or share at a later time. (There are certain topics I like to follow.) The online versions often disappear ...
by celia
Fri May 07, 2021 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki page UPGRADE: Backdoor Roth
Replies: 115
Views: 10224

Re: Wiki page UPGRADE: Backdoor Roth

I question whether that clause should even be there, since how would this data get onto Form 8606? Isn't the After-tax contribution supposed to be rolled into the Roth IRA only? On this page of the IRS documents , I think I found the answer that After-tax contributions are not eligible to be rolled...
by celia
Fri May 07, 2021 6:39 pm
Forum: Personal Investments
Topic: Self managed IRA Roth
Replies: 7
Views: 700

Re: Self managed Roth IRA

I have a 401K and my husband is planning 70% VTI and 30% VXUS in his IRA Roth. Having a 401K doesn't stop you from having a Roth IRA too. And he can also contribute to an employer plan, if/when he has an opportunity. If you are in the first 10 years of your working career(s), I recommend a Roth sin...
by celia
Fri May 07, 2021 10:44 am
Forum: Personal Finance (Not Investing)
Topic: California Homebuying Insanity
Replies: 224
Views: 19466

Re: California Homebuying Insanity

I'm trying to buy a house in a VHCOL area of Southern California, and I'm trying to figure out how I can do this while still respecting Boglehead principles . Everything in this market feels like a ripoff. The "problem" here is that you are trying to follow Boglehead principles! We had a ...
by celia
Fri May 07, 2021 10:02 am
Forum: Personal Finance (Not Investing)
Topic: What do you wish you knew before you retired you know now!
Replies: 98
Views: 15764

Re: What do you wish you knew before you retired you know now!

On the contrary!!! Why you need to have a Roth IRA Let’s look at your future self. Suppose you are age 70, would you be glad you had tax-deferred accounts that had grown to $2M or would you be glad that you had $1.5M in a Roth IRA? Or would you like half of each? [Forget the math for the moment and...
by celia
Fri May 07, 2021 8:55 am
Forum: Personal Consumer Issues
Topic: Medicare Fraud
Replies: 9
Views: 2144

Re: Medicare Fraud

So I think my mom may have just been victimized by a very elaborate medicare fraud attempt. It has taken me a couple of days to chase down some but not all of the details, but I wanted to get some thoughts and feedback on what happened and suggestions for next step. . . This sounds like the same sc...
by celia
Fri May 07, 2021 7:31 am
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8770

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

I don't doubt the Social Security life expectancy information at all, which applies to the general US population. I was just pointing out that the average Bogleheads are likely to live longer than the average of everyone else born the same year as they were. You have no proof for that statement. It...
by celia
Fri May 07, 2021 6:30 am
Forum: Personal Finance (Not Investing)
Topic: end-of-life values statement
Replies: 42
Views: 5025

Re: end-of-life values statement

I suspect some of what you wrote is contrary to law in your state. Medical professionals will need to follow the law and take different things into account. They probably won't withhold food or medicine just because your "qualify of life" is poor (whatever that means). And I doubt the cost...
by celia
Fri May 07, 2021 12:01 am
Forum: Personal Finance (Not Investing)
Topic: Addressing Form 8606 Nerds
Replies: 6
Views: 925

Re: Addressing Form 8606 Nerds

Many people in this situation made non deductible contributions between 1987 and 1998 before the Roth came out. While some could have converted, the MAGI income limit to convert was 100,000 until 2010, meaning that those who made earlier ND contributions because their income was too high to qualify...
by celia
Thu May 06, 2021 11:42 pm
Forum: Personal Investments
Topic: Self managed IRA Roth
Replies: 7
Views: 700

Re: Self managed Roth IRA

It depends on what he will buy. Most ETFs and mutual funds don't need much monitoring but he should read the company's annual reports and prospectus.

What do you have in YOUR Roth IRA?
by celia
Thu May 06, 2021 3:09 pm
Forum: Personal Investments
Topic: Need help to rebalance my complex (to me) portfolios
Replies: 29
Views: 5663

Re: Need help to rebalance my complex (to me) portfolios

Celia's original and a second that I've been working on may be found here. You can make a copy and modify as you desire. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=339900&p=5813611#p5813611 Sahara, Thank you for doing this. I kept forgetting to link to you, so now I've linked to y...
by celia
Thu May 06, 2021 2:16 pm
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8770

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

The age 85 is an actuarial number coming from the Social Security Administration. It's used by the IRS in their "simplified method worksheet" to determine how my previously taxed pension income is spread across the remaining years of my life. Some people will live longer, and some will di...
by celia
Thu May 06, 2021 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Former poor kid who has followed guides, but still lost...
Replies: 34
Views: 4057

Re: Former poor kid who has followed guides, but still lost...

Dear "Former poor kid", Looking at your shared data and that your parents are still on Medicaid, I think you have done amazing things so far!!! Print out your original post, date it, and look at it every few years and you will definitely see the progress you've made. I think part of your h...
by celia
Thu May 06, 2021 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: What do you wish you knew before you retired you know now!
Replies: 98
Views: 15764

Re: What do you wish you knew before you retired you know now!

What about if not married? You should also consider if you should be doing Roth conversions before RMDs start. If you do, then waiting to age 70 to start SS will give you more room in each tax bracket to do Roth conversions, before being pushed up to another tax bracket. I estimate that a Single wi...
by celia
Wed May 05, 2021 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Addressing Form 8606 Nerds
Replies: 6
Views: 925

Re: Addressing Form 8606 Nerds

We tend to avoid the pro rata rule here. Unless you can move the tax-deferred to an employer plan or convert it all in a few years, you will be stuck with the pro rata rule until all your tax-deferred IRAs are all emptied out. I can’t recall a recommendation here for someone to get into that situati...
by celia
Wed May 05, 2021 9:30 pm
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8770

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

Biggest concern in my mind is the part about living to 85. Why such an early age? I know many people who get to their 90's and a few over 100. The age 85 is an actuarial number coming from the Social Security Administration. It's used by the IRS in their "simplified method worksheet" to d...
by celia
Wed May 05, 2021 9:22 pm
Forum: Personal Investments
Topic: 401k plan termination, no new 401k available, keep ability to do backdoor Roth?
Replies: 12
Views: 925

Re: 401k plan termination, no new 401k available, keep ability to do backdoor Roth?

If your future spouse has lower wages than you, it would be better to do Roth conversions in years you file MFJ. You can probably spread out the conversions over 2 or 3 years while still doing Backdoor Roth for both of you (assuming spouse doesn’t have a larger TIRA). Open up your tax software and d...