Search found 12453 matches

by celia
Fri May 07, 2021 10:44 am
Forum: Personal Finance (Not Investing)
Topic: California Homebuying Insanity
Replies: 87
Views: 6861

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: 79
Views: 11605

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: 8
Views: 1788

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: 49
Views: 6392

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: 32
Views: 3681

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: 865

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: 3
Views: 290

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: 5586

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: 49
Views: 6392

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: 3838

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: 79
Views: 11605

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: 865

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: 49
Views: 6392

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: 895

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...
by celia
Wed May 05, 2021 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Need a retirement focused mother's day present for wife!
Replies: 39
Views: 2120

Re: Need a retirement focused mother's day present for wife!

I got a new mother today! My dad died at 99 recently after having been widowed twice and was now with his third wife living in assisted living until he needed to be hospitalized. After my siblings informed his wife in assisted living today that he had passed, and they all cried together, my brother...
by celia
Wed May 05, 2021 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Need a retirement focused mother's day present for wife!
Replies: 39
Views: 2120

Re: Need a retirement focused mother's day present for wife!

Is your wife also your mother?

And are you her father (come June)?

... that would make you your own grandfather!
by celia
Tue May 04, 2021 9:50 pm
Forum: Personal Investments
Topic: Question about Backdoor Roth conversion and existing tIRA
Replies: 14
Views: 835

Re: Question about Backdoor Roth conversion and existing tIRA

Don’t withhold from the converted amount since less money will go into the Roth. And if she is under 59.5, there will be a 10% early withdrawal penalty since the amount withheld is really going to Taxable (your taxes are paid from Taxable). If this if the first time you two are converting, it will b...
by celia
Tue May 04, 2021 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: What do you wish you knew before you retired you know now!
Replies: 79
Views: 11605

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

People will always tell you to contribute to a IRA. But few can explain why you should have and need a Roth. Let me just double check my situation here. If one has a 403b and 457b which they are maxing out (including catchups) all this IRA stuff is moot right as we can't do it? On the contrary!!! W...
by celia
Tue May 04, 2021 6:43 pm
Forum: Investing - Theory, News & General
Topic: Do I have to read the prospectus before buying an index fund?
Replies: 89
Views: 5641

Re: Do I have to read the prospectus before buying an index fund?

I only read them when I can't fall asleep. But then I only get one sentence into it. :oops:

...Maybe that's why I dream of "reading" them...
by celia
Tue May 04, 2021 5:46 pm
Forum: Personal Consumer Issues
Topic: Ca Expats- do you love your new home?
Replies: 76
Views: 7725

Re: Ca Expats- do you love your new home?

I've known dozens of people who left & were happy staying where they went, and left & were unhappy and came back. Every one of them came down to 1) family roots and 2) sensitivity to weather & bugs. If you have no connections to CA, and you can tolerate 3 months of bad weather and/or bu...
by celia
Mon May 03, 2021 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: What do you wish you knew before you retired you know now!
Replies: 79
Views: 11605

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

Oenophileangler wrote: Mon May 03, 2021 9:33 pm I wish I knew about the Bogleheads forum before I retired a year ago.
So, what were the most useful concepts you learned since you found the forum?
by celia
Mon May 03, 2021 9:45 pm
Forum: Personal Investments
Topic: Question about Backdoor Roth conversion and existing tIRA
Replies: 14
Views: 835

Re: Question about Backdoor Roth conversion and existing tIRA

The last two years, I have done the backdoor roth by putting money into a tIRA and then converting it to my Roth IRA. I created the Traditional IRA strictly for converting purposes, so have no money in the tIRA each time I convert it to my Roth. I assume you are saying that you reported the NON-DED...
by celia
Mon May 03, 2021 4:31 pm
Forum: Investing - Theory, News & General
Topic: Advice on conversions
Replies: 30
Views: 2139

Re: Advice on conversions

We each have over a million in our tax deferred accounts. . . So if I am listed as the beneficiary, for the full amount, I could disclaim just a part of that amount? Or does it need to be in a separate IRA? How would I disclaim some of it? That's a very good idea. First, I know nothing about discla...
by celia
Mon May 03, 2021 3:49 pm
Forum: Investing - Theory, News & General
Topic: Advice on conversions
Replies: 30
Views: 2139

Re: Advice on conversions

I would first look at what your tax bracket would be at 72, when RMDs begin. With ~$2 million, initial RMD would be $74,000. At most 85% of SS is taxable, so total income for tax purposes would be about $108K and after the std deduction, taxable income would be about $95K. That puts you in the 24% ...
by celia
Mon May 03, 2021 2:06 pm
Forum: Investing - Theory, News & General
Topic: Advice on conversions
Replies: 30
Views: 2139

Re: Advice on conversions

OP, If you do not yet have a Roth IRA, you should open one asap to start the 5-year clock. You can possibly contribute $7,000 for 2020 before May 17 and that would make the clock start at January 1, 2020! This would ensure you could withdraw from the Roth tax-free starting in 2025 and you would also...
by celia
Mon May 03, 2021 1:07 pm
Forum: Investing - Theory, News & General
Topic: Advice on conversions
Replies: 30
Views: 2139

Re: Advice on conversions

I would first look at what your tax bracket would be at 72, when RMDs begin. With ~$2 million, initial RMD would be $74,000. At most 85% of SS is taxable, so total income for tax purposes would be about $108K and after the std deduction, taxable income would be about $95K. That puts you in the 24% ...
by celia
Mon May 03, 2021 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: My Dear Friend Forgot to Apply for Social Security
Replies: 18
Views: 2912

Re: My Dear Friend Forgot to Apply for Social Security

DF has a pension from a government job where he did not contribute to Social Security, but since retiring decades ago operated a small business and maxed Social Security contributions annually through that. DF was under the misapprehension that he was not entitled to Social Security retirement bene...
by celia
Mon May 03, 2021 7:47 am
Forum: Investing - Theory, News & General
Topic: Advice on conversions
Replies: 30
Views: 2139

Re: Advice on conversions

This is a tough problem since you have some unknowns, both in your personal life, but also taxes laws could easily change. But based on the questions you've asked, I can tell you already know more than you realize. The first thing I suggest is to not stress out over this since you will still have 10...
by celia
Sun May 02, 2021 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 145
Views: 15561

Re: Are Roth Accounts Overrated?

1) Different contribution limits and 2) RMDs applying to Roth 401k's (and I believe also the Roth TSP) but not to Roth IRAs. But I made the distinction mainly because it's important that we use correct terminology. For example, there was a recent thread where a lot of confusion over contribution li...
by celia
Sun May 02, 2021 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 145
Views: 15561

Re: Are Roth Accounts Overrated?

I believe the Federal TSP added a Roth IRA feature not to long ago. It is certainly moving in that direct more and more. TSP added a Roth option in 2012. Just want to make clear though, that has nothing to do with a Roth IRA . (I see Roth workplace plans and Roth IRAs conflated with surprising freq...
by celia
Sun May 02, 2021 10:17 pm
Forum: Investing - Theory, News & General
Topic: When can I begin contributing to a Roth IRA again?
Replies: 3
Views: 405

Re: When can I begin contributing to a Roth IRA again?

You can contribute for Roth IRA 2020 from Jan 1 2020 to when you file taxes in 2021 (May is deadline this year) You can contribute for Roth IRA 2021 from Jan 1 2021 to April 2022. You would not have been able to contribute to your IRA for 2021 until Jan 1st of this year. +1 What makes you think you...
by celia
Sun May 02, 2021 9:01 pm
Forum: Investing - Theory, News & General
Topic: The Power of Working Longer
Replies: 518
Views: 37980

Re: The Power of Working Longer

I'm betting this is the excellent retirement planning advice that many Bogleheads don't want to hear. :wink: I'm betting you are exactly right. I'm betting this is advice that many Bogleheads don't need to hear. This is the place where people to ask, "Is $10M enough to retire with $50k/year li...
by celia
Sun May 02, 2021 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Tax Reporting Question
Replies: 14
Views: 1106

Re: Backdoor Roth Tax Reporting Question

Since you are doing a Backdoor Roth each year, I suggest you read our wiki page on it, paying particular attention to the pro rata rules. That's the area in which people usually get mixed up. The work is helpful. I’ll need to read it again. One thing I learned is that your spouse IRAs do not affect...
by celia
Sun May 02, 2021 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth questions
Replies: 9
Views: 453

Re: Backdoor Roth questions

They already max out their individual ROTH IRAs every year. But they don't have access to a mega backdoor 401K Roth (and one does not even have a 401K). This just seemed to be a way for them to increase retirement savings. They? Are you asking questions about backdoor Roth for someone else? This is...
by celia
Sun May 02, 2021 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth questions
Replies: 9
Views: 453

Re: Backdoor Roth questions

FYI, There is no such thing as a “non-deductible IRA” either. It is just the contributions that are non-deductible, not the IRA account. If you think about it, the day after you contribute, there is a little growth in the IRA. The growth is pre-tax so the account now has pre-tax AND post-tax money i...
by celia
Sun May 02, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: What do you wish you knew before you retired you know now!
Replies: 79
Views: 11605

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

I didn’t realize how much time we’d have to spend on our own health issues and taking care of relatives who need help.

We recently lost one elder but others may need help soon. But I prefer being a helper than someone who needs help.
by celia
Sun May 02, 2021 5:47 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Tax Reporting Question
Replies: 14
Views: 1106

Re: Backdoor Roth Tax Reporting Question

For any year you make a non-deductible contribution, you need to file Form 8606 and tell the software you made a non-deductible contribution so it can fill out Part I of Form 8606. Then for any year in which you did a Roth conversion that involves any non-deductible contributions in the conversion, ...
by celia
Sat May 01, 2021 11:10 pm
Forum: Personal Investments
Topic: What is your favorite retirement calculator?
Replies: 50
Views: 6644

Re: What is your favorite retirement calculator?

Excel spreadsheets and tax software.

I know of no “retirement calculators” that take planning of Roth conversions into account and does a good job of it. So if you have a large amount in tax-deferred accounts, this is a DIY project.
by celia
Sat May 01, 2021 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Trust Services
Replies: 13
Views: 1275

Re: Vanguard Trust Services

It depends on what you expect the trustee to do. If you want a house or car(s) sold off after death or to find a new home for the pets, Vanguard won't be able to do that. If someone objects to parts of the trust or if it is written poorly, that it is not clear, Vanguard may not want to get involved ...
by celia
Sat May 01, 2021 7:47 pm
Forum: Personal Investments
Topic: Friend's Father's Financial Advisor - 100% Bonds Last 10 Years
Replies: 42
Views: 5273

Re: Friend's Father's Financial Advisor - 100% Bonds Last 10 Years

What in the world is going on here? Seems like this advisor has found enough clients who agree with him (although I see the possibility of "churning" here). What are the communities thoughts on an advisor that positions clients' money this way? I say "to each his own...". AND, m...
by celia
Sat May 01, 2021 5:05 pm
Forum: Personal Investments
Topic: Inherited IRA Portfolio Review
Replies: 27
Views: 1635

Re: Inherited IRA Portfolio Review

SuzBanyan ’s post reminds me of other ways to take advantage of tax laws for someone who has a disability. If your partner incurs any expenses out of pocket due to the disability, those above 7.5% of her AGI can be itemized on her tax return. Then, if the total itemizations are more than the Standa...
by celia
Sat May 01, 2021 1:24 am
Forum: Personal Investments
Topic: Inherited IRA Portfolio Review
Replies: 27
Views: 1635

Re: Inherited IRA Portfolio Review

1. ... At the end of 10 year drawdown period, assuming 7% yearly growth, the total in the account should be just over double, at which point we'd take it all out. Does this make sense? Since my partner does not have any income, does it make sense to withdraw more every year to spread the tax load? ...
by celia
Fri Apr 30, 2021 10:19 pm
Forum: Personal Investments
Topic: Inherited IRA Portfolio Review
Replies: 27
Views: 1635

Re: Inherited IRA Portfolio Review

May I suggest that you started off by asking the wrong question. You should have asked for suggestions on your partner's portfolio (her holdings only) and how she should figure out what to do. By including yourself in the situation, that made it complicated to some people here and introduced options...
by celia
Fri Apr 30, 2021 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Please Help - No Beneficiary Listed on Deceased IRA
Replies: 31
Views: 3210

Re: Please Help - No Beneficiary Listed on Deceased IRA

The will could be a pour-over will that puts everything not otherwise designated into the trust (or makes the trust a beneficiary). I agree there's insufficient info here to respond very much. An estate planning lawyer probably needs to be consulted anyway.
by celia
Fri Apr 30, 2021 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: Please Help - No Beneficiary Listed on Deceased IRA
Replies: 31
Views: 3210

Re: Please Help - No Beneficiary Listed on Deceased IRA

A loved one recently passed away. This person neglected to name a beneficiary on their IRA (which represents 90% of the investible assets in the estate). According to the will, the IRA was SUPPOSED to go into a trust upon death. Vanguard is the brokerage and apparently the default is to automatical...
by celia
Fri Apr 30, 2021 8:38 pm
Forum: Personal Investments
Topic: Inherited IRA Portfolio Review
Replies: 27
Views: 1635

Re: Inherited IRA Portfolio Review

A great deal will depend on if you two are married or will be by the end of the year. She will have to withdraw each year and pay taxes at the federal tax rates. The space in each tax bracket for Singles is half as much as it is for Married Filing Jointly. So Singles will bump into higher tax bracke...
by celia
Fri Apr 30, 2021 6:58 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 72
Views: 6066

Re: IRA rollover problem. Please help

Econberkeley , Assuming the two deposits (and their growth/loss) are the only money in the IRA (ie, you started a new IRA and didn't make new contributions or roll the "interest" checks into the IRA), here's what I would do: Calculate the exact percentage that the small check was compared...
by celia
Fri Apr 30, 2021 6:10 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 72
Views: 6066

Re: IRA rollover problem. Please help

What I am wondering is an analyst working in the back office can make decision on behalf of me? In my case this person decided to deposit the small amount check first and then the big check as 2nd deposit. Depositing 2 checks in the same Traditional IRA plan in the same year was a violation on its ...
by celia
Fri Apr 30, 2021 5:37 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 72
Views: 6066

Re: IRA rollover problem. Please help

Could BOTH contributions be distributed as excess contributions? And then either the larger one be “re-deposited” into tIRA and the smaller one converted to Roth, or The larger one rolled into 401(k)? No. Unless you are going to state that BOTH of these are excess contributions, which cannot be the...
by celia
Fri Apr 30, 2021 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Help on Irrevocable Trust Tax Planning question
Replies: 22
Views: 1694

Re: Help on Irrevocable Trust Tax Planning question

Was this trust originally a Revocable Living Trust for your dad and it became Irrevocable on his death? Did he own that house and did it get a step-up in value when he died? Note that the trustee usually has a fiduciary duty to get as much as possible on the house sale to support your mom, unless th...