Search found 12710 matches

by celia
Thu Jun 24, 2021 5:06 pm
Forum: Personal Investments
Topic: When Can We Stop Contributing to Retirement Funds
Replies: 37
Views: 3940

Re: When Can We Stop Contributing to Retirement Funds

Nobody said tax advantaged accounts were a free lunch. But careful planning can maximize the tax benefits without crimping your style too much. For example, the OP could utilize 72(t) distributions to access tax-advantaged accounts without penalty before 59.5. At age 27, and probably for the next 1...
by celia
Thu Jun 24, 2021 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Questions on Rollover IRA conversion rule of thumb AND taxes out of the conversion itself
Replies: 3
Views: 233

Re: Questions on Rollover IRA conversion rule of thumb AND taxes out of the conversion itself

1) How much does one have to transfer from a Rollover IRA to a Roth IRA to make much of a difference going forward with respect to future RMD's? As an example: If one has $2,000,000 what's the point of converting only $100,000? What's the point between trying to squeeze a dollar out of a stone and ...
by celia
Thu Jun 24, 2021 3:10 pm
Forum: Personal Investments
Topic: When Can We Stop Contributing to Retirement Funds
Replies: 37
Views: 3940

Re: When Can We Stop Contributing to Retirement Funds

Don't think of them as "retirement funds." Think of your accounts as tax advantaged space. The tax advantaged accounts are the best tax break going for middle to lower-upper class, regardless of what you want to do about retirement. I disagree with your terminolgy. “Tax-advantaged account...
by celia
Thu Jun 24, 2021 1:19 pm
Forum: Personal Investments
Topic: What fund to pick for retired Mom
Replies: 43
Views: 2537

Re: What fund to pick for retired Mom

If you’re going to help your mom, you should really be looking at her whole portfolio , and how this $90K fits in. Looking at only one account makes no sense. An important question to ask is if she has any assets in a tax-deferred account. If she is filing as Single and her tax-deferred will be ove...
by celia
Thu Jun 24, 2021 1:28 am
Forum: Personal Investments
Topic: I’m about to inherit a stake in a large family business. Does a traditional asset allocation still make sense for me?
Replies: 53
Views: 3418

I’m about to inherit... Is there an EXIT plan?

I'm not sure this is the correct question, but here it goes: Does the business have a written exit plan? I've read that one of the first things to think about when starting a business is how it will end... Will the business someday be sold? Go public? Be owned by the last surviving partner? One part...
by celia
Wed Jun 23, 2021 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: After Action Review Funding My Revocable Living Trust
Replies: 18
Views: 1532

Re: After Action Review Funding My Revocable Living Trust

You should probably read my OP a little closer before criticizing. USAA checking / savings…I never once mentioned brokerage. You talked about opening brokerage accounts at two other places. Then you said USAA doesn’t do trust savings and checking accounts. What other trust account could you be open...
by celia
Wed Jun 23, 2021 11:27 pm
Forum: Personal Consumer Issues
Topic: NY to Ca
Replies: 12
Views: 960

Re: NY to Ca

Here is a similar thread you should read if you think you might have allergies.
by celia
Wed Jun 23, 2021 4:25 pm
Forum: Forum Issues and Administration
Topic: What is the criteria for deleting entire threads?
Replies: 8
Views: 1033

Re: What is the criteria for deleting entire threads?

Everything we do is on a case-by-case basis at our discretion. Moving posts and threads around the forum takes time to consider what's needed, then do the work. And how can someone who is replying know this is under consideration until after they've spent an hour creating their reply, only to find ...
by celia
Wed Jun 23, 2021 3:09 am
Forum: Personal Finance (Not Investing)
Topic: After Action Review Funding My Revocable Living Trust
Replies: 18
Views: 1532

Re: After Action Review Funding My Revocable Living Trust

In all fairness to USAA, didn’t you “get the memo” a little over a year ago that Schwab was taking over USAA’s brokerage accounts? https://communities.usaa.com/t5/USAA-News/USAA-closes-deal-with-Schwab-to-acquire-USAA-brokerage-and-USAA/ba-p/231441 It sounds like your efforts there fell between the ...
by celia
Tue Jun 22, 2021 8:13 pm
Forum: Personal Consumer Issues
Topic: What was your best quality of life improvement for $1000?
Replies: 105
Views: 8441

Re: What was your best quality of life improvement for $1000?

Living trust

(Kids won’t appreciate it until you are gone.)
by celia
Tue Jun 22, 2021 6:49 pm
Forum: Personal Investments
Topic: Made Roth IRA contribution mistake - Prorata rule issue
Replies: 19
Views: 1027

Re: Made Roth IRA contribution mistake - Prorata rule issue

If you want to convert part of the rollover IRA money while it is in the IRA, you can do that too.
by celia
Tue Jun 22, 2021 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA RMD Shocker
Replies: 14
Views: 2963

Re: Inherited IRA RMD Shocker

There have been several changes to IRA and tax code in the last few years. Even someone who had a “perfect” estate plan 5 years ago but then became incapacitated could easily have things turn out differently than they wanted.
by celia
Tue Jun 22, 2021 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA RMD Shocker
Replies: 14
Views: 2963

Re: Inherited IRA RMD Shocker

Actually, this is what we often recommend—to do what’s best for the IRA owner and let the heirs worry about the tax.

Even after paying tax (at your tax brackets), you will still come out ahead. And if you haven’t taken control of your piece of the IRA yet, you can disclaim it.
by celia
Mon Jun 21, 2021 8:06 pm
Forum: Investing - Theory, News & General
Topic: Working and receiving (reduced) SS before FRA.
Replies: 4
Views: 465

Re: Working and receiving (reduced) SS before FRA.

It also depends on how much you’ve saved in tax-deferred, as many Bogleheads realize soon after retiring that their age 72 RMDs are going to push them into higher tax brackets if they don’t do Roth conversions for several years before then. By delaying SS as long as possible, they end up with more r...
by celia
Mon Jun 21, 2021 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: How did you find your tax expert?
Replies: 12
Views: 1040

Re: How did you find your tax expert?

double-checking that I have been and will continue to be doing all the right things with our Backdoor Roths (I have read the Boglehead wiki and many forum posts on it, but I can't fully reconcile it with TurboTax, and I'd like an expert to confirm my personal situation) This one is easy, especially...
by celia
Mon Jun 21, 2021 6:18 pm
Forum: Personal Investments
Topic: Having trouble approximating stock market with my 401k funds
Replies: 16
Views: 845

Re: Having trouble approximating stock market with my 401k funds

Your tax-deferred accounts are not supposed to be mirroring the stock market. They’re supposed to hold your bonds, as one part of making your whole portfolio tax-efficient. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement Put stock funds in Roth instead, to maximize tax-free growth there...
by celia
Mon Jun 21, 2021 5:18 pm
Forum: Personal Investments
Topic: Confused on how to change AA nearing retirement
Replies: 17
Views: 1099

Re: Confused on how to change AA nearing retirement

I added everything up and got $1,441k but you say $1,350 is for retirement. So one of us is off by $91k, or that amount is being saved for something else like remodeling, I guess.(?) Here’s how I simplify your assests, based on my calcs: Taxable $521k (36%) stocks $101k (7%) bonds Tax-deferred $197k...
by celia
Mon Jun 21, 2021 3:24 pm
Forum: Forum Issues and Administration
Topic: Time Frame for Searches
Replies: 3
Views: 329

Re: Time Frame for Searches

Time frames are news to me when doing a Bogleheads search. For example, how would I find all the posts in 2013 and 2014 where I am the OP?

Without using any time frame restrictions, I find 4 by looking at ALL the posts where I was the OP.
by celia
Mon Jun 21, 2021 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: How did you find your tax expert?
Replies: 12
Views: 1040

Re: How did you find your tax expert?

Whatever your complexities are (you should be able to name and list them here), you should ask each person you are considering how many returns they do a year involving each complexity. You might also ask if they also give financial advice, such as in making your portfolio more tax-efficient or chan...
by celia
Mon Jun 21, 2021 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning, Trust, and Fiduciary Advisor
Replies: 22
Views: 2648

Re: Estate Planning, Trust, and Fiduciary Advisor

Our successor trustee is a wonderful person, who we trust 100% to act in the best interest of our kids. But, they are not a CPA or financial professional and I worry that the financial issues around managing a trust that may have upwards of $5 million in assets would be stressful and difficult. Whe...
by celia
Mon Jun 21, 2021 6:21 am
Forum: Personal Investments
Topic: Funds for my parents
Replies: 10
Views: 1449

Re: Funds for my parents

I assume you (and they) know they can't contribute to an IRA if they don't have wages. Your post was not clear to me regarding that. How much do they already have in taxable? The reason I ask is that while money that is needed in a few years should be fairly liquid, if they have taxable money not ea...
by celia
Mon Jun 21, 2021 6:01 am
Forum: Investing - Theory, News & General
Topic: Roth Iras, Simple IRA, now taxable or what else?
Replies: 8
Views: 870

Re: Roth Iras, Simple IRA, now taxable or what else?

positivereturn wrote: Mon Jun 21, 2021 5:31 am
FiveK wrote: Sun Jun 20, 2021 11:04 pm A Solo 401(k) plan has a higher contribution limit than a SIMPLE.
Thanks, I read up on that but it sounds like if I have employees other than my spouse I can't utilize it, am I reading that right? I have 5 employees.
401k for each of you. But you first need to understand the rules.
by celia
Mon Jun 21, 2021 5:48 am
Forum: Investing - Theory, News & General
Topic: Impending Alzheimer’s: what would be your investment for life?
Replies: 52
Views: 6012

Re: Impending Alzheimer’s: what would be your investment for life?

It might be harder to figure out what to do when one person comes down with it 20 years before the other. How do you keep from spending more than half your assets when the survivor might need the same care later on? Tough call for someone to make.
by celia
Sun Jun 20, 2021 6:30 pm
Forum: Personal Investments
Topic: Great grandmother, $2MM excess funds, seeking advice
Replies: 11
Views: 2375

Re: Great grandmother, $2MM excess funds, seeking advice

She could add the 6 children as beneficiaries to her savings account and boost her FDIC coverage now to 1.5m, and simplify the transfer of assets later when she passes (assuming that's what she wants). Not really a good idea in the event one or more children predecease her. Not all that unlikely as...
by celia
Sun Jun 20, 2021 9:27 am
Forum: Personal Finance (Not Investing)
Topic: What should I do with extra overtime money?
Replies: 18
Views: 1465

Re: What should I do with extra overtime money?

If you were putting in more than 40 hrs a week, you probably need to take a vacation. It doesn’t need to be far, but you at least may need a change of scenery. And don’t take your computer with you or use internet on your phone. :D. Get out and see the world.
by celia
Sun Jun 20, 2021 9:11 am
Forum: Personal Investments
Topic: Portfolio Overhaul Advice Please
Replies: 18
Views: 1179

Re: Portfolio Overhaul Advice Please

You can get small cap and value funds that are INDEX funds. Index funds are preferred in Taxable accounts since they are more tax-efficient than managed funds. With a SIMPLE IRA, you won’t be able to do the Backdoor Roth without the pro rata rule applying. You also need to watch out for getting too ...
by celia
Sun Jun 20, 2021 5:20 am
Forum: Investing - Theory, News & General
Topic: Why do stocks always fall faster than they rise ?
Replies: 54
Views: 4735

Re: Why do stocks always fall faster than they rise ?

because of gravity!

Haven't you noticed that when you fall, it takes you longer to get up? :D
Meanwhile, your stocks are worrying about you. :oops:
by celia
Sun Jun 20, 2021 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions plans via RPM -- help me compare
Replies: 65
Views: 4285

Re: Roth conversions plans via RPM -- help me compare

If I make no conversions, RPM estimates an RMD of just under $60K . I would be paying 0 taxes from now until age 72, and from that point on would basically completely fill what is now the 22% bracket, perhaps dipping into the current 24% bracket by tiny amounts in my late 70's. ... I should also sh...
by celia
Sat Jun 19, 2021 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Converting to Roth by Isolating Basis - Downside?
Replies: 19
Views: 1288

Re: Converting to Roth by Isolating Basis - Downside?

Husband age 70 has a T-IRA that contains $625,000, of which $7500 is aftertax dollars (about 1% of total T-IRA). This sounds like he did the first half of the Backdoor Roth process, but didn't follow through on the second half. And it sounds like you already understand the pro rata rule, since you/...
by celia
Sat Jun 19, 2021 4:54 pm
Forum: Personal Investments
Topic: Working on Planning RMDs - Should I stop Contributing
Replies: 86
Views: 6031

Re: Working on Planning RMDs - Should I stop Contributing

Do not do Roth conversions at 37%. "Do not do Roth conversions at 37%." Agreed if that is the Fed rate only.... Did you read my original post in this thread? OP was asking: The big question for me is if I should stop contributing to the 401(K) and non-deductible IRA as my RMDs are going t...
by celia
Sat Jun 19, 2021 3:50 am
Forum: Personal Finance (Not Investing)
Topic: Dad wants Wife to live in house left to me and sister after he passes
Replies: 178
Views: 18784

Re: Dad wants Wife to live in house left to me and sister after he passes

He is going to go through the last few years of expenses, do some more thinking, and come up with a list of things to be paid for related to the house. Then he and I will go through that list together to hash out what's reasonable for Wife to pay for and what the 'account' I'll control will pay for...
by celia
Sat Jun 19, 2021 2:37 am
Forum: Personal Finance (Not Investing)
Topic: Dad wants Wife to live in house left to me and sister after he passes
Replies: 178
Views: 18784

Re: Dad wants Wife to live in house left to me and sister after he passes

Gift tax: 1) it is my understanding that recipients never have to pay a tax; 2) Gifts are taxable to the donor only if the estate exceeds $11 million. For gifts over $15k/year, additional income tax reporting requirements apply. Under current law, the great majority of donors never have to pay gift...
by celia
Fri Jun 18, 2021 9:46 pm
Forum: Investing - Theory, News & General
Topic: creating balanced portfolio with individual stock heavy taxable account
Replies: 24
Views: 2306

Re: creating balanced portfolio with individual stock heavy taxable account

I can't believe the conversation is continuing on changing some of her assets as the train is heading her way..... :oops: I can't speak for others, but I'm letting the expert (you!) cover that issue. I might have some ideas about the portfolio AA*, but you are one of the best equipped around here t...
by celia
Fri Jun 18, 2021 8:36 pm
Forum: Personal Investments
Topic: For 1-3 years, Treasuries or CDs or TIPS? Need to park $100k meant to help a relative
Replies: 11
Views: 1144

Re: For 1-3 years, Treasuries or CDs or TIPS? Need to park $100k meant to help a relative

Note that you'll likely have to file a form to report excess gifts over $15K unless you have a spouse and consider this a joint gift, which would then allow $30K. And if both you and the relative are married: you can give $15K to the relative your spouse can give $15K to the relative you can give $1...
by celia
Fri Jun 18, 2021 8:26 pm
Forum: Personal Investments
Topic: Roth Conversions at age 77
Replies: 19
Views: 2282

Re: Roth Conversions at age 77

My wife and I have 38,500 in Soc. Sec. Income.... This will also make me pay tax on more SS income. The most that SS can be taxed is 85% of it. So once $32,725 is taxed, no more will be taxed. And many states don't tax any of it. Look at your most recent tax return, line 6a to see how much SS was r...
by celia
Fri Jun 18, 2021 7:57 pm
Forum: Investing - Theory, News & General
Topic: What Is Your Longest-Held Investment?
Replies: 110
Views: 6843

Re: What Is Your Longest-Held Investment?

Couldn't tell you without digging out some old paper forms from before the internet (ie, online) existed. I've been at Vanguard about 40 years.

But I did inherit some company-held stock that was issued before I was born and still hold some of it in a Vanguard brokerage account now.
by celia
Thu Jun 17, 2021 6:12 pm
Forum: Personal Investments
Topic: Working on Planning RMDs - Should I stop Contributing
Replies: 86
Views: 6031

Re: Working on Planning RMDs - Should I stop Contributing

For some of those RMD naysayers and/or Always-Roth-only crowd — do get some clarity for folks new to Roths !! Roth is an umbrella - and each contribution chunk and each chunk of conversion that goes into a Roth has rules and 5-year clocks or it’s own. Despite whether or not you reached age 59.5 Eac...
by celia
Thu Jun 17, 2021 5:08 pm
Forum: Investing - Theory, News & General
Topic: creating balanced portfolio with individual stock heavy taxable account
Replies: 24
Views: 2306

Re: creating balanced portfolio with individual stock heavy taxable account

Uhmmm... Where are her Roth accounts? I'm still a long way from needing to do this, but I was wondering this. I just recently started understanding Roth Ladders, and was waiting for someone to chime in on this. She doesn't need a Roth ladder as she is already old enough to be able to access (withdr...
by celia
Thu Jun 17, 2021 3:55 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions - McQuarrie study
Replies: 249
Views: 17504

Re: Roth Conversions - McQuarrie study

Hello BHs, Have you seen this article ? https://www.marketwatch.com/story/to-roth-or-not-to-roth-11623431970 and the study, “When and for Whom Are Roth Conversions Most Beneficial?,” by Edward McQuarrie, a professor emeritus at the Leavey School of Business at Santa Clara University. https://poseid...
by celia
Thu Jun 17, 2021 1:51 pm
Forum: Personal Investments
Topic: How to Get my Relatives Out of Edward Jones
Replies: 80
Views: 6053

Re: How to Get my Relatives Out of Edward Jones

IF they lose $300,000 in their lifetime it sure is my business. How? No, it is not your business. You’ll probably be dead in 40 years when they retire and $300,000 will be insignificant after 40 years of inflation and their retirement accounts hold $30 million. Besides, they are young and need to m...
by celia
Thu Jun 17, 2021 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions plans via RPM -- help me compare
Replies: 65
Views: 4285

Re: Roth conversions plans via RPM -- help me compare

Your statement "As stated in other posts, for the purposes of using RPM, I have used my overall AA of 35/65 on every account in RPM. That won't be true in real life." tells me that your results are somewhat meaningless. A model is only as good as the input. The problem is that Retiree Por...
by celia
Thu Jun 17, 2021 3:11 am
Forum: Personal Finance (Not Investing)
Topic: How taxes figure into withdrawal rate
Replies: 14
Views: 1703

Re: How taxes figure into withdrawal rate

OP, I agree with Klang that you are asking the wrong question. I think you want a withdrawal/Roth conversion plan but it will depend on many variables, that are not even consistent from year to year. A big one is that you want to sell some real estate in some years, meaning you'll probably not want ...
by celia
Thu Jun 17, 2021 1:06 am
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1864

Re: Company sold

My initial thought for the money is to send around $600k to a Traditional IRA and leave the remaining $625 in the 401k. I would then annually convert a portion of the Traditional to our Roth. If I understand the Roth ladder correctly, after the deposits have seasoned for 5 years, we can withdrawal ...
by celia
Thu Jun 17, 2021 12:46 am
Forum: Personal Investments
Topic: Company sold
Replies: 19
Views: 1864

Re: Company sold

I am missing something here. How does having funds in a 401k make it easier to do a backdoor Roth? I though you could only do it from a IRA. Yes, a backdoor Roth starts in an IRA, but if you put this new payout in an IRA, the pro rata rule will apply when you do a backdoor Roth, so you wouldn't wan...
by celia
Wed Jun 16, 2021 11:57 pm
Forum: Investing - Theory, News & General
Topic: creating balanced portfolio with individual stock heavy taxable account
Replies: 24
Views: 2306

Re: creating balanced portfolio with individual stock heavy taxable account

Uhmmm... Where are her Roth accounts? Does she know that RMDs will be required in the year she turns 72? If her IRA holds $2.5M, her RMD will be about $100K. When that is withdrawn, she won't have to spend it but at least pay taxes on it. Now get this. The value of the IRA could easily double in 10 ...
by celia
Wed Jun 16, 2021 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpected Home Purchase - Portfolio Impacts for Stock/Bond Ratio (also: Taxes!)
Replies: 13
Views: 1352

Re: Unexpected Home Purchase - Portfolio Impacts for Stock/Bond Ratio (also: Taxes!)

You could always get a short-term loan, say against a 401K where you pay yourself back, from a credit union, if you're already a member, or a rich uncle. It doesn't have to be a "mortgage" per se. Pay it back next January after you have diverted some of this year's income to pay it off. Th...
by celia
Wed Jun 16, 2021 11:10 pm
Forum: Personal Investments
Topic: Recieved Unusual Dividend When Upgrading to new Vanguard Brokerage
Replies: 14
Views: 1160

Re: Recieved Unusual Dividend When Upgrading to new Vanguard Brokerage

Sorry, I wasn't accusing you of anything. I interpreted the earlier text as you thinking that: In the past, Vanguard clients got a 1099-DIV for the before account and a 1099-DiV for the after account , so next March be prepared for sets of 1099s from the accounts before rushing to file your 2021 inc...
by celia
Wed Jun 16, 2021 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Who is responsible for unsigned check
Replies: 16
Views: 1702

Re: Who is responsible for unsigned check

Could your granddaughter have taken the check to her bank and tried to get "cash" for it? That might be a problem. If she has an account with them, it is probably in her account now with a 2-3 day hold (for you to have a chance to report it stolen or whatever). Obviously, her bank passed t...
by celia
Wed Jun 16, 2021 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpected Home Purchase - Portfolio Impacts for Stock/Bond Ratio (also: Taxes!)
Replies: 13
Views: 1352

Re: Unexpected Home Purchase - Portfolio Impacts for Stock/Bond Ratio (also: Taxes!)

Could you sell what you need to in Taxable (for the least tax hit), and re-balance in tax-deferred and Roth to get back to your Asset Allocation?
by celia
Wed Jun 16, 2021 10:32 pm
Forum: Personal Investments
Topic: Recieved Unusual Dividend When Upgrading to new Vanguard Brokerage
Replies: 14
Views: 1160

Re: Recieved Unusual Dividend When Upgrading to new Vanguard Brokerage

I'll guess you got an accrued dividend. And dividend accrued since the account change and month-end will be the rest of the monthly dividend when it happens. In the past, Vanguard clients got a 1099-DIV for the before account and a 1099-DiV for the after account, so next March be prepared for sets ...