Search found 12265 matches

by celia
Sat Apr 10, 2021 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA or IRA rollover?
Replies: 2
Views: 190

Re: Inherited IRA or IRA rollover?

A 401K, as you know, is money you (and your employer) contribute to a retirement account. Your contributions are ususally made pre-tax and you will pay the taxes on it as the money is withdrawn in retirement. An IRA is a retirement account that you contribute to on your own (outside of work). Basica...
by celia
Sat Apr 10, 2021 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse died in January: What taxes do I need to be aware of?
Replies: 13
Views: 916

Re: Spouse died in January: What taxes do I need to be aware of?

As I just posted in another thread: Good thing is that I have done our budget, taxes, mortgage, refinance, etc. all these years. You definitely have an advantage over other women in a similar situation. Your experience and familiarity with terminolgy will help you here. Biggest concern I have at th...
by celia
Sat Apr 10, 2021 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Help me untangle this Roth tax issues: first time home purchase + rollover + over-contribution
Replies: 7
Views: 362

Re: Help me untangle this Roth tax issues: first time home purchase + rollover + over-contribution

instead of both of you  ‘recharacterizing’ $1310 from your respective Roths to your Traditional IRA, one of you could recharacterize $2620 (or more) instead. After reading the Backdoor Roth wiki page, if one of you has a large ‘Traditional’ IRA and no employer plan to roll the pre-tax money to, the...
by celia
Sat Apr 10, 2021 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Age 63 retired, planning how to use Roth conversions
Replies: 8
Views: 761

Re: Age 63 retired, planning how to use Roth conversions

I can’t ‘get’ the overview of what your current portfolio looks like without knowing how much is in Taxable, Tax-deferred, and Roth. Please note that it doesn’t make sense to see what the current value of your portfolio is (by adding up the Taxable, Tax-deferred and Roth) because the value of a doll...
by celia
Sat Apr 10, 2021 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Help me untangle this Roth tax issues: first time home purchase + rollover + over-contribution
Replies: 7
Views: 362

Re: Help me untangle this Roth tax issues: first time home purchase + rollover + over-contribution

Second, instead of both of you  ‘recharacterizing’ $1310 from your respective Roths to your Traditional IRA, one of you could recharacterize $2620 (or more) instead. I believe this is only true if OP and Partner are legally married. Since OP said partner rather than spouse, they might not be. If th...
by celia
Sat Apr 10, 2021 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Help me untangle this Roth tax issues: first time home purchase + rollover + over-contribution
Replies: 7
Views: 362

Re: Help me untangle this Roth tax issues: first time home purchase + rollover + over-contribution

Yes, you now have a paperwork mess and some reading to do. The most important thing for you to look for while reading is the difference between the Basis in a Roth IRA and the Basis in a traditional IRA. Neither one includes growth that happened in the account. The second most important thing to und...
by celia
Sat Apr 10, 2021 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Gift Tax form 709
Replies: 10
Views: 479

Re: Gift Tax form 709

First, you need to understand the IRS rules. You currently can give up to $15,000 a year to as many people as you want without having to notify the IRS. So can your spouse. The reason for this is that if you are subject to estate tax when you die (we all wish we had $11M a person, which is the curre...
by celia
Sat Apr 10, 2021 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: In-Laws' HOA demanding $8000 lumpsum payment
Replies: 64
Views: 7252

Re: In-Laws' HOA demanding $8000 lumpsum payment

Title insurance is a huge ripoff and this situation will likely prove that again. Title “insurers” are the only insurers out there that pay out <5% of premiums in claims. It's worse than that. Title insurers pay only 0.5% of premiums in claims. Title insurers claims a 5% loss ratio, but that's actu...
by celia
Sat Apr 10, 2021 5:29 am
Forum: Non-US Investing
Topic: after retirement allocation
Replies: 5
Views: 566

Re: after retirement allocation

It would be better if you shared your portfolio using the format presented in the Asking Portfolio Questions wiki page. Since we are already familiar with this layout, you will get better answers. In particular, we are looking to see if you will need to use the ACA for medical insurance, if you need...
by celia
Sat Apr 10, 2021 5:04 am
Forum: Personal Investments
Topic: Rebalance Tax Quandry
Replies: 10
Views: 774

Re: Rebalance Tax Quandry

... the Taxable Account houses our entire US equities which is all in VTI (Total US Stock Market Index ETF) Because these shares were purchased in 2009 - 78% of the balance is long term gains. So anything we sell will have a lot of gains that effects both Federal Tax and our Health Care Subsidy. I ...
by celia
Fri Apr 09, 2021 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: In-Laws' HOA demanding $8000 lumpsum payment
Replies: 64
Views: 7252

Re: In-Laws' HOA demanding $8000 lumpsum payment

The real estate listing read the following "2013 & 2014 STORM LITIGATION HAS BEEN SETTLED". Did the in-laws ask what this meant? It was part of the listing for a reason. I read it as there had been a lawsuit which is now decided. But it doesn’t say what the decision is. I would have a...
by celia
Fri Apr 09, 2021 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Removing non-deductible portion from t-IRA
Replies: 4
Views: 313

Re: Removing non-deductible portion from t-IRA

Since your IRA contributions are now only partly deductible, the odds are that they will soon be completely non-deductible (ie, you will be making too much money to be eligible for any deductible IRA contributions ). Instead of worrying about just the part of the past contribution that is a non-ded...
by celia
Fri Apr 09, 2021 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Questions for 10+ year retirees
Replies: 21
Views: 2885

Re: Questions for 10+ year retirees

1. It is generally stated that expenses go down in retirement over time, has this turned out to be true for you and if so, by roughly what percentage over what time period? Considering that something like 40% of the retired population has SS as their only income, they HAVE TO live within that given...
by celia
Fri Apr 09, 2021 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Anyways to improve financial aid?
Replies: 70
Views: 3608

Re: Anyways to improve financial aid?

This. Only the PSAT/NMSQT test taken in the fall of the student’s Junior year counts towards the National Merit Scholarship. But if a student can do well on one test, on one day, they can get a full ride at a number of good public universities, and a substantial scholarship at some private universi...
by celia
Fri Apr 09, 2021 12:08 pm
Forum: Investing - Theory, News & General
Topic: Can this be true? [CNBC: Investors put more money into stocks]
Replies: 17
Views: 2307

Re: Can this be true?

The same dollar can go "in" more than once. Buy, sell, buy, sell, buy,... There's been a lot of tiny purchases with Robinhood and other apps all the way to mutual funds rebalancing. So, it depends on how you want to look at it (and create a "huge" headline).
by celia
Fri Apr 09, 2021 11:44 am
Forum: Personal Consumer Issues
Topic: Hire a contractor without worker's comp insurance if it's a family business?
Replies: 14
Views: 1048

Re: Hire a contractor without worker's comp insurance if it's a family business?

Did you ask them if they carried it? Maybe the database is not up-to-date, especially with state workers sidelined during covid.
by celia
Thu Apr 08, 2021 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust Question - Disclaiming?
Replies: 8
Views: 699

Re: Revocable Living Trust Question - Disclaiming?

I don't think a beneficiary can disclaim part of a bequest unless that part is separately bequeathed. (I defer to the experts on this point, however.) In other words, if a bequest reads, I bequeath all of my property, real and personal, to beneficiaries A, B and C, to be divided equally, I don't be...
by celia
Thu Apr 08, 2021 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: My House
Replies: 7
Views: 744

Re: My House

You should first talk with your son. What if he is thinking the same thing but hasn’t said it to you yet? In addition, your daughter could change her mind. What if she (and a spouse) buy a house and fix it up to make it “perfect” for them and decide not to leave. What if a (future?) son-in-law says ...
by celia
Thu Apr 08, 2021 6:05 pm
Forum: Investing - Theory, News & General
Topic: The Emotional Side of Investing
Replies: 28
Views: 2576

Re: The Emotional Side of Investing

rockstar wrote: Tue Apr 06, 2021 9:19 pm The market needs to move a lot for me to get at all emotional. Mostly it's frustration because the market will always drop after I buy shares in my taxable.
Please let us know when you are about to buy a lot of shares in taxable. I want to be ready for the downturn. :D :D :sharebeer
by celia
Thu Apr 08, 2021 6:00 pm
Forum: Investing - Theory, News & General
Topic: The Emotional Side of Investing
Replies: 28
Views: 2576

Re: The Emotional Side of Investing

There was a story about a manager at a large company who made a decision that cost the company millions and millions of dollars. He felt bad about it. After the CEO found out about it, he called the manager into his office. The manager was not looking forward to the meeting, but showed up as request...
by celia
Thu Apr 08, 2021 1:09 pm
Forum: Investing - Theory, News & General
Topic: How much do you spend annually in retirement?
Replies: 112
Views: 10220

Re: How much do you spend annually in retirement?

To calculate this for yourself, go onto your state’s ACA website, and plug in your location and look at the plans. A good proxy for your expenses would be the cost of the premiums, plus the full deductible. ACA plan premiums vary widely across the country. Also remember that as you age, the ACA pre...
by celia
Thu Apr 08, 2021 12:10 pm
Forum: Investing - Theory, News & General
Topic: How much do you spend annually in retirement?
Replies: 112
Views: 10220

Re: How much do you spend annually in retirement?

To calculate this for yourself, go onto your state’s ACA website, and plug in your location and look at the plans. A good proxy for your expenses would be the cost of the premiums, plus the full deductible. ACA plan premiums vary widely across the country. Also remember that as you age, the ACA pre...
by celia
Thu Apr 08, 2021 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Anyways to improve financial aid?
Replies: 70
Views: 3608

Re: Anyways to improve financial aid?

I was surprised that at his Ivy (Yale) only around 2% get combined degrees (don’t know how many get double majors), but it has buttressed my “birds of a feather” theory, as his friend cohort overwhelmingly went for the double degree and/or major even though their majors were very different. Our CMU...
by celia
Thu Apr 08, 2021 11:19 am
Forum: Personal Finance (Not Investing)
Topic: IRS 2019 tax return not yet processed - Weird??
Replies: 13
Views: 822

Re: IRS 2019 tax return not yet processed - Weird??

goshenBogle wrote: Thu Apr 08, 2021 9:14 am I used the IRS web site https://www.irs.gov/individuals/get-transcript to look at my 2019 tax return.
Why do you even want to look at a filed return? Don’t you save a paper or digital copy?

You know they received it since they cashed your check.
by celia
Thu Apr 08, 2021 6:11 am
Forum: Personal Finance (Not Investing)
Topic: Anyways to improve financial aid?
Replies: 70
Views: 3608

Re: Anyways to improve financial aid?

Appreciate all of the advice in here. Right now the highest assistance offer he has is 37k total and as he goes from a high school freshman to senior that offer will go up. Its from a school I have never heard of but if they are accredited, I'm sure its fine. Other name schools have lower offers bu...
by celia
Thu Apr 08, 2021 5:40 am
Forum: Personal Finance (Not Investing)
Topic: Anyways to improve financial aid?
Replies: 70
Views: 3608

Re: Anyways to improve financial aid?

.... Don't overdo the AP's if they could impact GPA, since our experience is that (high GPA + less AP courses) >> (lots of AP courses but lower GPA). FWIW, for myself and both my children AP courses allowed us to graduate early and thus saved the costs of a full year of college. That was nothing to...
by celia
Thu Apr 08, 2021 3:31 am
Forum: Personal Finance (Not Investing)
Topic: Disappointed in Missing a Long Term Financial Goal
Replies: 61
Views: 9147

Re: Disappointed in Missing a Long Term Financial Goal

Congratulations, OldSport! You did it!
OldSport wrote: Sun Jan 07, 2018 5:45 pm It has been a goal of mine to be a 'millionaire' by the time I'm 40 ...
...If you don't have a goal, how will you know when you reached it? :beer :sharebeer :beer
by celia
Thu Apr 08, 2021 3:18 am
Forum: Personal Finance (Not Investing)
Topic: Revocable Living Trust Question - Disclaiming?
Replies: 8
Views: 699

Re: Revocable Living Trust Question - Disclaiming?

If an account has listed beneficiaries, if you are listed as one, when you disclaim, your portion will go to whoever would have inherited, had you died before your parent(s). That could mean the other primary beneficiaries split your share. There is an exception if your portion of the account is lis...
by celia
Wed Apr 07, 2021 8:49 pm
Forum: Investing - Theory, News & General
Topic: How much do you spend annually in retirement?
Replies: 112
Views: 10220

Re: How much do you spend annually in retirement?

I've seen a lot of Bogleheads who will have to withdrawn RMDs over $100K when they turn 72, unless they do HUGE Roth conversions before then. That doesn't mean they have to spend the RMD, but that they have to withdraw and pay taxes on it. Are taxes considered an expense? What about the extra taxes ...
by celia
Wed Apr 07, 2021 7:30 pm
Forum: Personal Investments
Topic: Family with 4 little humans: chances of retiring/financial independence
Replies: 70
Views: 7009

Re: Family with 4 little humans: chances of retiring/financial independence

Being able to retire (or not) doesn't depend on any particular number. It is primarily dependent on what your living expenses will be in retirement. All I can tell at the moment is that you would likely have a paid-off house at that time, so you won't have to make mortgage payments. We also don't kn...
by celia
Wed Apr 07, 2021 5:07 pm
Forum: Personal Investments
Topic: Roth conversion ideas needed
Replies: 35
Views: 3189

Re: Roth conversion ideas needed

FlamePoint wrote: Wed Apr 07, 2021 9:59 am $800k of the $4M is a pension I opted to take as a lump sum rather than an annuity to better control taxable income and free up space for large conversions in the early years.
Did you convert the $800K? The taxes would be the same whether you converted it or put it in taxable.
by celia
Wed Apr 07, 2021 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bill split between spouses
Replies: 81
Views: 4224

Re: Tax bill split between spouses

I haven’t yet figured out what to do in this situation, so comments are requested . My dad was widowed twice and he and third wife have always kept their money separate for inheritance reasons. They lived in his paid off house until late last year when they were both moved to assisted living. (She ...
by celia
Wed Apr 07, 2021 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bill split between spouses
Replies: 81
Views: 4224

Re: Tax bill split between spouses

We have joint assets and our pensions and SS are considered joint (since the contributions while working were from family (joint) income and the surviving spouse will benefit). We each also have separate trusts holding inherited assets from our own extended families. First I put the joint assets int...
by celia
Tue Apr 06, 2021 11:43 pm
Forum: Personal Investments
Topic: Roth conversion ideas needed
Replies: 35
Views: 3189

Re: Roth conversion ideas needed

In 20 years, I suspect I'll look back and wish I had picked the next bracket higher to convert to. Of course, I'll wish that because I'm still alive and dealing with taxes, so it seems like a firm win :-). You could do it one year if you think you might end up with a targe tax-deferred account. And...
by celia
Tue Apr 06, 2021 11:32 pm
Forum: Personal Investments
Topic: Roth conversion ideas needed
Replies: 35
Views: 3189

Re: Roth conversion ideas needed

Previously, I had only tried to calculate what RMD’s might be around 72, at current asset values. It is quite common that people forget that the tax-deferred will continue to grow until 72 and after. I recently saw a case in the forum where someone had $1M in tax-deferred at age 62. I started my co...
by celia
Tue Apr 06, 2021 8:28 pm
Forum: Personal Investments
Topic: Roth conversion ideas needed
Replies: 35
Views: 3189

Re: Roth conversion ideas needed

Here’s how I see the OP’s situation: By the time you are 72, your $3M will likely be about $4M. RMDs will then start at $160K and keep increasing until your late 80s. That income alone puts you at the top of the 24% tax bracket . The next tax bracket is 32% and tax brackets are scheduled to revert t...
by celia
Tue Apr 06, 2021 6:16 pm
Forum: Personal Investments
Topic: Should my parents invest an inheritance? (No current retirement savings)
Replies: 19
Views: 2013

Re: Should my parents invest an inheritance? (No current retirement savings)

Thanks for your input, Lakpr. I do think their rental income and SS should support them so I'd like to be more aggressive as well. I think I'm going to sit them down and walk through the target date 2020 vs. 2015 and see what they are more comfortable with. Asking them which they are more comfortab...
by celia
Tue Apr 06, 2021 5:53 pm
Forum: Personal Investments
Topic: Should my parents invest an inheritance? (No current retirement savings)
Replies: 19
Views: 2013

Re: Should my parents invest an inheritance? (No current retirement savings)

I got stuck at this part: My parents just received an inheritance of ~120K. They have asked me for help in deciding what to do with this money. They used an initial 16K to pay off all current debts (RV they live out of, CC, and car). This leaves ~87K left. ...because 120 - 16 = 104 (not 87) If they ...
by celia
Tue Apr 06, 2021 3:26 pm
Forum: Personal Investments
Topic: Inherited Trust Portfolio - Planning Advice
Replies: 6
Views: 811

Re: Inherited Trust Portfolio - Planning Advice

3. I suspect the tax brackets are higher for trust assets than for you as a couple. You should therefore be hoping to remove everything in the trust as soon as it is permitted, instead of leaving it in the trust. Are you and your spouse maxing out your Roth IRAs and own 401Ks? If not, ask the truste...
by celia
Tue Apr 06, 2021 1:19 pm
Forum: Personal Investments
Topic: Roth conversion order cancellation (1st post)
Replies: 11
Views: 966

Re: Roth conversion order cancellation (1st post)

OP, don’t touch anything in your IRAs until this is resolved. But since you were attempting to convert the small IRA, were you aware that the pro rata rule would apply when calculating taxes on any withdrawal or conversion from your TIRAs (and that it will continue to apply until all your TIRAs are ...
by celia
Tue Apr 06, 2021 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: State taxes for pilot
Replies: 5
Views: 577

Re: State taxes for pilot

I would think that talking to other Ohare-based pilots and flight attendants would tell you more ways of how to look at it and problems that can come up. And don’t limit yourself to your own airline.
by celia
Tue Apr 06, 2021 9:31 am
Forum: Personal Investments
Topic: Roth conversion order cancellation (1st post)
Replies: 11
Views: 966

Re: Roth conversion order cancellation (1st post)

Marco, your post does nothing to calm the OP, which was requested. Based on the little info we have, the OP is already in a high tax bracket (able to max out 401K, doing Backdoor Roth’s). High wage earners are likely the ones to also have high income streams in retirement, unless they retire very e...
by celia
Tue Apr 06, 2021 1:12 am
Forum: Personal Investments
Topic: Roth conversion order cancellation (1st post)
Replies: 11
Views: 966

Re: Roth conversion order cancellation (1st post)

Given the information we have, how would having the year end with a 20% gain make this a good move? Because the taxes would be paid on a smaller amount (today’s IRA value—-or a percentage of it). In addition, if/when taxes are raised, we might all wish we had taken more advantage of today’s tax bra...
by celia
Tue Apr 06, 2021 12:29 am
Forum: Personal Investments
Topic: Roth conversion order cancellation (1st post)
Replies: 11
Views: 966

Re: Roth conversion order cancellation (1st post)

In the worst case and the order goes through, do you have enough in taxable to pay the taxes (even if you have to sell something)? If so, time may show that you made a good move, such as if the year ends 20%+ higher.
by celia
Mon Apr 05, 2021 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy for having a high deductible?
Replies: 18
Views: 1915

Re: Am I crazy for having a high deductible?

I bought a house last year that was built ~25 years ago with a roof that has never been replaced. Not only did you make the right decision when you got the insurance, you are also being pro-active in your house maintenance since roofs usually last about 30 years. https://www.bobvila.com/articles/ho...
by celia
Mon Apr 05, 2021 6:23 pm
Forum: Personal Investments
Topic: 2021 Check Up. 31 Years Old. NW $5M.
Replies: 48
Views: 5770

Re: 2021 Check Up. ???????????

There’s nothing shown here to help answer the big picture questions, since equites (stock) in Roth accounts means something very different than equity in tax-deferred. Instead of showing how much you have in each asset, it would be more useful to see how much of each asset is in Taxable, Tax-deferre...
by celia
Mon Apr 05, 2021 6:12 pm
Forum: Personal Investments
Topic: RPM Suggests Lower Roth Conversion is Better?
Replies: 6
Views: 1166

Re: RPM Suggests Lower Roth Conversion is Better?

Your criteria is not useful since a dollar in Roth is worth more than a dollar in taxable. And both kinds of dollars are worth more than a dollar in tax-deferred (since the taxes haven’t been paid yet) and each dollar has different spending power. What you are saying is generally true. But aren't t...
by celia
Mon Apr 05, 2021 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 595

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

I am surprised to hear of your job dissatisfaction. I thought I had read somewhere along the way that you had vetted this job carefully. I worry about our system driving the good people away. ...But then corona changed many aspects of the job, and I think also changed me. But in late 2020 I agreed ...
by celia
Mon Apr 05, 2021 1:46 am
Forum: Personal Consumer Issues
Topic: how to determine the cost of medical procedure
Replies: 18
Views: 2054

Re: how to determine the cost of medical procedure

I doubt this will matter with medical health insurance, but we had overlapping dental insurance not too long ago. Thought it would be nice to get 2x the cleanings since we had the insurance. The extra cleanings in our situation would not get covered since we had one within 6 months :oops Then sched...
by celia
Mon Apr 05, 2021 12:45 am
Forum: Investing - Theory, News & General
Topic: Common Cents On Roth Conversions
Replies: 32
Views: 3874

Re: Common Cents On Roth Conversions

It's frustrating that what should be a simple, fundamental, self-evident principle -- the complete equivalence of pre-tax and Roth accounts, given equal tax rates -- should be so difficult to explain simply and clearly (this is not a knock on the author, who does one of the better jobs with it). At...