Search found 8171 matches

by sailaway
Sat Mar 16, 2024 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Discrepancy with employer withholding and federal tax I owe
Replies: 16
Views: 1076

Re: Discrepancy with employer withholding and federal tax I owe

If your bonus and any other supplemental income is withheld at the flat rate (22%), as your marginal rate exceeds that you will fall further and further behind.

With lumpy, unpredictable income, the solution to that may be to wait until several months into the year and make adjustments as the picture becomes clearer. We always had a large chunk of income arrive in December and had to make best guesses ahead of time.
by sailaway
Sat Mar 16, 2024 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Dollar Cost Averaging
Replies: 18
Views: 1635

Re: Dollar Cost Averaging

I prefer to distinguish between periodic investing (at specific intervals, because money comes in at periodic intervals) and dollar cost averaging (having funds on hand and choosing to invest at intervals).

Ironically, that makes our investing pattern harder to explain, as income is lumpy with bonus, ESPP and RSUs. 401k is periodic, except when bonus is used to top up after tax. Roth IRA is lump sum when we determine eligibility. Any taxable investing is lump sum, usually with RSU vest.

However, I have no concept of "a stock or fund that I like." The whole point of lump sum vs DCA is to invest the money in a predetermined investment according to a plan.
by sailaway
Sat Mar 16, 2024 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Taxing Roth IRA-I need Help
Replies: 13
Views: 1160

Re: Taxing Roth IRA-I need Help

Were you eligible to make the 2022 contribution? Part of the problem could be return of contributions, penalty and tax on earnings. Which is not quite the same as the whole distribution being taxable and so I still wouldn't want someone doing my taxes who couldn't explain that...
by sailaway
Fri Mar 15, 2024 10:09 pm
Forum: Investing - Theory, News & General
Topic: Question about withdrawing from Roth IRA
Replies: 9
Views: 1171

Re: Question about withdrawing from Roth IRA

Hyperchicken wrote: Fri Mar 15, 2024 10:03 pm
Charles Joseph wrote: Fri Mar 15, 2024 8:32 pm The problem is that once you withdraw from your Roth IRA that tax-advantaged space is gone forever.
[...]
It's also gone forever if you never contribute in the first place.
Right?!?

If one does start Roth in this way, I would have much safer investments than one would usually prefer for Roth. After all, you don't want it to drop lower than your contributions right when you need the emergency fund.
by sailaway
Fri Mar 15, 2024 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7799

Re: Letter to heir - what would you include?

It would not replace what the OP is trying to do, but it sure would be nice to have an estate version of If You Can that lays out step up in basis, tax implications of traditional accounts, etc.
by sailaway
Fri Mar 15, 2024 8:38 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3322

Re: Retire in 7 years, getting close enough to plan

Does either 401k allow for after tax contributions that can become the Mega Backdoor Roth? If so, you may not need to add to taxable at all. This would help you control "income" for ACA purposes.
by sailaway
Fri Mar 15, 2024 7:31 pm
Forum: Investing - Theory, News & General
Topic: Should I Keep Sacrificing or Start Enjoying Myself
Replies: 32
Views: 3769

Re: Should I Keep Sacrificing or Start Enjoying Myself

Those percentages tell us nothing. Generally someone who can pay off $300k of debt in two years will have a big enough income to live pretty well off 30%. Also, 20% to cash reserves over 3 to 4 years would suggest your cash could cover up to two years of current expenses. That is a lot. Savings doesn't have to be all or nothing. If you think you are ready to spend more, make sure it is on things that genuinely bring you happiness. A lot of people spend a good bit of their lives chasing what other people want. And be sure you don't swing the other way and sacrifice the progress you have made. How did your finances result in sacrificing relationships? That generally doesn't happen with healthy strong relationships, although it can happen easi...
by sailaway
Fri Mar 15, 2024 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Tricare Retired Reserve: wow it sucks wth?
Replies: 25
Views: 2471

Re: Tricare for Life: wow it sucks wth?

That premium would get us a partially subsidized bronze plan with much higher out of pocket and very limited local network.
by sailaway
Fri Mar 15, 2024 2:38 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22612

Re: Great news! No more agent commission

Mike Scott wrote: Fri Mar 15, 2024 2:34 pm There will be new fees which will somehow add up to about 6% but probably in a less transparent way.
Either that or flat fees that add up to much more than 6% for houses below the median.
by sailaway
Fri Mar 15, 2024 12:42 pm
Forum: Investing - Theory, News & General
Topic: Bonuses from Brokerages tax implications
Replies: 19
Views: 1251

Re: Bonuses from Brokerages tax implications

As others have reported, a bonus is treated as interest. Interest in a tax sheltered account just doesn't matter from a tax perspective. I, too, was shocked when we realized this.
by sailaway
Fri Mar 15, 2024 10:24 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22612

Re: Great news! No more agent commission

If the seller cannot set compensation for the buyer's agent, sounds like you will only save if you insist on dual agency, which requires more work on your part.
by sailaway
Fri Mar 15, 2024 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Tax withholding question (again!)
Replies: 8
Views: 356

Re: Tax withholding question (again!)

Was your prior W4 within the last couple of years or was it the old form? There was a large difference between how the two affect your withholdings that would easily explain what you are seeing.

Fill the w4 as intended. Once you see the amounts on your paycheck, if you are concerned about under withholding, file another with the additional amount necessary for you to meet safe harbor.
by sailaway
Fri Mar 15, 2024 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Savings % if Roth
Replies: 6
Views: 558

Re: Savings % if Roth

How old are you? How long did you save 18%? How close are you to your goals? Do you expect to make withdrawals at less than 22%?

The idea that you save less because some is in Roth would mean no savings in taxable. Is that the case for you?
by sailaway
Fri Mar 15, 2024 9:07 am
Forum: Personal Investments
Topic: 401k Salary Amount Phase Out? - $345k
Replies: 12
Views: 1966

Re: 401k Salary Amount Phase Out? - $345k

My understanding has always been that you can make the full contribution if you front load so that you are done before cutoff point. This is one reason that companies with lots of high income folks sometimes opt for a safe harbor plan that matches % contribution rather than % salary.

I admit I never looked too close, as we were already front loading before DH reached that threshold.
by sailaway
Thu Mar 14, 2024 2:54 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15739

Re: 5M, probably enough to retire to a frugal lifestyle

We live on less than half that in pricey coastal California, using a 3.5% SWR. But we do generally live a frugal life, with occasional forays into upper middle class choices.
by sailaway
Wed Mar 13, 2024 8:40 pm
Forum: Personal Investments
Topic: 80 year old mother's retirement accounts
Replies: 23
Views: 2154

Re: 80 year old mother's retirement accounts

Yes, I mean that she is not financially comfortable. She receives $1,800 monthly in social security, and her IRAs and 401k total about $60,000. But that $ is invested in those organizations that I have never heard of--Primerica and Sentinel. Can I trust them? And what does "short fall" mean? You say she isn't financially comfortable. This implies that she doesn't have enough to live on. Has she been spending down savings or getting help elsewhere? Primerica is an insurance company. She probably has some kind of annuity/ insurance product that needs to be understood before it can be moved. Depending on what it is and when it was put in place, it could be an appropriate investment. There is a benefits company called Sentinel, is th...
by sailaway
Wed Mar 13, 2024 2:53 pm
Forum: Personal Investments
Topic: Seeking end of career 401(k) advice
Replies: 11
Views: 1801

Re: Seeking end of career 401(k) advice

How are the options in her new job's 401(k) plan? If good, can she consider rolling over the existing tIRA to the 401(k), and perhaps do backdoor Roth? Then she can get $38k into Roth this year ($30k for Roth 401k, being over age 50; $8k similarly to Roth IRA for being over the age of 50). I knew there was something I wanted to add: if the new plan allows for after tax contributions for the mega backdoor Roth, even if traditional makes sense, this would build Roth balances. Since downshifting, DH's paychecks are entirely deducted for ESPP and 401k/MBR. We defer up to the annual limit and fill the remainder with after tax. I could have him defer 1% more, since his take home is just over 1% of gross, but that just seems pretty at this point....
by sailaway
Wed Mar 13, 2024 2:24 pm
Forum: Personal Investments
Topic: Seeking end of career 401(k) advice
Replies: 11
Views: 1801

Re: Seeking end of career 401(k) advice

This can make a lot of sense. One thing to watch out for would be IRMAA. Might make sense to split contributions between traditional and Roth if you are near any cut offs for tax brackets or additional charges.
by sailaway
Wed Mar 13, 2024 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Question about long term capital gains and taxes
Replies: 6
Views: 502

Re: Question about long term capital gains and taxes

Last year was my first time selling mutual funds for a gain. These were long term capital gains. I had a CPA do my taxes, and I had questions on how it was reported. For simplicity, let's say we had 5k of long term capital gains. The CPA has the 5k listed on line 7 of the 1040, which increases my AGI by 5k. Looking at schedule D, there's a note about a Qualified Dividends and Capital Gain Tax Worksheet. Is that where that 5k in gains should be broken down into the taxable amount? As I understand it, capital gains should be taxed at 15%. Therefore, the amount on line 7 of the 1040 should be $750. Am I wrong on this? Line 7 is the total capital gains (or loss), not the tax. You are still in the section that determines taxable amounts. A lot ...
by sailaway
Wed Mar 13, 2024 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Do I Need a Retirement Income Strategy?
Replies: 16
Views: 1839

Re: Do I Need a Retirement Income Strategy?

If you were 75 today, your RMD would be about $70k. That is well under the QCD limit, but if you have any growth between now and 75, you could be getting close. Seems to me, Roth conversions could make a lot of sense for you. A complete case study could help you dial in the ideal amount. I think if I add in the RMDs from my inherited accounts, the projection at age 75 is much higher. The table below was output from the Fidelity tool. You can see how it's estimating my inherited account RMDs since I'm already taking them and can continue over my lifetime. In 2036 the total RMD increases to $126k. This is assuming average market conditions and I think the model is applying my overall portfolio asset allocation to all my accounts, vs consider...
by sailaway
Wed Mar 13, 2024 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Do I Need a Retirement Income Strategy?
Replies: 16
Views: 1839

Re: Do I Need a Retirement Income Strategy?

catchinup wrote: Wed Mar 13, 2024 10:47 am
greenrebellion wrote: Wed Mar 13, 2024 10:22 am What is wrong with adding stock in tax deferred accounts?
I thought as much as possible we wanted growth to be in our Roth and taxable accounts for tax efficiency reasons.
As much as possible being the key. That doesn't mean you avoid growth because the space you have available is tax deferred.
by sailaway
Wed Mar 13, 2024 10:51 am
Forum: Personal Investments
Topic: Retiring at 77 - Annuity vs. investment income
Replies: 17
Views: 2696

Re: Retiring at 77 - Annuity vs. investment income

Half of her portfolio would purchase a SPIA with a payout of about $1400/mo, leaving the other half for an emergency fund and to make up for inflation. I know my parents have appreciated having the income from annuities and the safety of CDs. Personally, I prefer a bond fund, because even as someone who is on top of my finances, I don't want to keep track of any ladder system, but we have recently seen what can happen to our bond funds... That could provoke a lot of anxiety for someone we are trying to create a portfolio for here.
by sailaway
Wed Mar 13, 2024 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Do I Need a Retirement Income Strategy?
Replies: 16
Views: 1839

Re: Do I Need a Retirement Income Strategy?

Regardless of how "safe" you are, I think you need some sort of plan on which accounts to pull from and which assets to liquidate with regards to long term tax and net worth impacts. We've all read about various stock/bond allocations, but there's not a lot of info on how to turn a portfolio into income to pay monthly bills. Having a plan made the transition for us much easier. Seems that way. I'm unclear on how to make such a plan. For example, I'm being taxed on dividends in my taxable account. So as long as I'm being taxed, it seems I should use the money for my spending needs, rather than reinvest them as I've been doing during accumulation. But over time, this could result in reducing my stock/bond ratio, and I don't want to...
by sailaway
Wed Mar 13, 2024 9:52 am
Forum: Personal Finance (Not Investing)
Topic: When is the right time to set up a trust?
Replies: 31
Views: 3342

Re: When is the right time to set up a trust?

The answer to "when" is when you determine it is necessary.

In your case, depending on your state of residence, a testamentary trust might be the right answer. Generally, leaving large sums outright to minor children is not ideal.

In some states, certain kinds of trusts might be recommended immediately to minimize the hassle and costs of probate.
by sailaway
Tue Mar 12, 2024 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Cash Do You Keep In Your Home?
Replies: 207
Views: 15482

Re: How Much Cash Do You Keep In Your Home?

balofagus wrote: Tue Mar 12, 2024 10:39 pm Haven’t had any need for cash in a few years
Band tips. There are still a few out there who don't put up a Venmo QR ...
by sailaway
Tue Mar 12, 2024 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule D -- Turbotax Premier
Replies: 21
Views: 1783

Re: Schedule D -- Turbotax Premier

Are you using the desktop version or the online version? The former will let you fill everything out without upgrading.
by sailaway
Tue Mar 12, 2024 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontributed to HSA in 2023 - Easiest Path Forward
Replies: 6
Views: 481

Re: Overcontributed to HSA in 2023 - Easiest Path Forward

You will owe the penalty every year until the excess is removed. Just take it out. Fidelity will calculate the associated earnings for you.
by sailaway
Tue Mar 12, 2024 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Divorce settlement money from IRA, cash, or 401k
Replies: 15
Views: 1389

Re: Divorce settlement money from IRA, cash, or 401k

Can you not get a QDRO, which would allow the recipient to maintain the tax status?
by sailaway
Tue Mar 12, 2024 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Health Care Savings account contribution question
Replies: 11
Views: 810

Re: Health Care Savings account contribution question

Again, you get the deduction when you fill out the taxes. You will have paid payroll taxes and won't get those back, but the deduction will reduce your income tax liability.
by sailaway
Tue Mar 12, 2024 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Health Care Savings account contribution question
Replies: 11
Views: 810

Re: Health Care Savings account contribution question

It is similar to contributing to a deductible tIRA. You will receive a form for the contribution, but usually not until May. Once you have made the contribution (we use ACH), you just make the entry in your tax forms.
by sailaway
Tue Mar 12, 2024 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7799

Re: Letter to heir - what would you include?

If I were to include #1 at all, it would go at the end of the list. A lot of people will deal with grief by getting back to normal as soon as possible, rather than having the additional downtime.
by sailaway
Tue Mar 12, 2024 11:29 am
Forum: Personal Finance (Not Investing)
Topic: SSA possible reporting error?
Replies: 32
Views: 2754

Re: SSA possible reporting error?

tman9940 wrote: Tue Mar 12, 2024 11:06 am Well, I went in person. I walked in and I walked out. Had to be 75 people waiting on ONE person to help, with a security guard unwilling to answer questions or attempt to help. Going to try to do it online.
The security guard isn't there to answer questions and they are probably strictly prohibited from trying to help, as their training is in situational awareness, not customer service.
by sailaway
Tue Mar 12, 2024 11:25 am
Forum: Personal Investments
Topic: Post tax money in IRA
Replies: 2
Views: 205

Re: Post tax money in IRA

Were these after tax contributions or Roth contributions that accidently got rolled into a traditional account?

What documentation do you have?

How long ago did you perform the rollover?
by sailaway
Tue Mar 12, 2024 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts
Replies: 27
Views: 3686

Re: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts

terran wrote: Tue Mar 12, 2024 9:57 am
tashnewbie wrote: Tue Mar 12, 2024 9:49 am I don't think your calculation of the taxable portion of the Roth conversion is right. Because of the pro rata rule, the vast majority of the conversion is taxable.
If there's a previously deducted traditional IRA balance (which I think there is re-reading the posts) then you're definitely right that more/much of the conversion would be taxable, not just the $600 earnings.
It is a bit confusing because OP mentions the tIRA balances while talking about the recharacterization and associated earnings.
by sailaway
Tue Mar 12, 2024 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts
Replies: 27
Views: 3686

Re: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts

The $600 in the recharacterization is the earnings associated with the original Roth contribution because there were existing balances. The actual balance doesn't matter in the calculation, only the percent increase from the contribution date to the recharacterization date. This is a pro rata rule that determines what earnings are associated with a contribution, but not THE pro rata rule we usually worry about with backdoor Roth. There is no tax owed for the recharacterization. When the full amount was converted from the tIRA to Roth, the $600 would be taxable, assuming no growth or losses occurred and no existing tIRA balances. As you stated you do have tIRA balances, the pro rata rule comes into effect and you will actually owe taxes on m...
by sailaway
Tue Mar 12, 2024 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Multiple 401k Accounts Possible?
Replies: 8
Views: 424

Re: Multiple 401k Accounts Possible?

No.

Depending on your purpose, you could move all funds up to that date to one investment and direct all future funds to a different investment. This would give up any rebalancing benefits in that account, though.
by sailaway
Tue Mar 12, 2024 3:04 am
Forum: Personal Investments
Topic: Been saving HSA receipts for 5+ years, why not just withdraw & cash flow to Roth IRA via mega backdoor?
Replies: 20
Views: 2088

Re: Been saving HSA receipts for 5+ years, why not just withdraw & cash flow to Roth IRA via mega backdoor?

funxional wrote: Tue Mar 12, 2024 1:42 am Why are you putting money in taxable before MBR?
I was wondering this, as well. OP mentions wanting a house, but they clearly already have Roth basis and it seems reasonable to be adding more, knowing the rules for access.

To OP's question, you talk about using the HSA for future expenses, but why not go ahead and withdraw the receipts you have saved and make an equivalent increase to MBR?

DH pays current expenses from the HSA because it is convenient. I generally don't use it, but we also don't save receipts. We figure we will have plenty of medical expenses as we age.
by sailaway
Mon Mar 11, 2024 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Cash Do You Keep In Your Home?
Replies: 207
Views: 15482

Re: How Much Cash Do You Keep In Your Home?

My wife comes from a Portuguese background where they keep cash over investments or evening savings in a bank. So she started keeping more cash especially around 2020 in an envelope. Like another posted here, it helps at times when we have large, unexpected car repair bills or other expenses, so we don't have to put it all on a credit card. It's up to $2,000. I'd rather run the large bill on a credit card paying 2% cash back and then pay it off with money from a HYSA or MM fund paying 5% on my 2K than just let it sit in the house. I understand it's a cultural thing, but it doesn't math right for me. Very small price to pay for a happy wife. Life is about more than just squeezing every penny out of every situation. Also, not every merchant ...
by sailaway
Mon Mar 11, 2024 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: DH Got Rear-Ended Saturday. What to Expect from Insurance Process
Replies: 21
Views: 1600

Re: DH Got Rear-Ended Saturday. What to Expect from Insurance Process

Thanks for all the quick replies, they are helpful! Just got off the phone with DH who heard back from State Farm. It sounds like car #1 insurance is disputing that that driver is at fault. Driver #1 is claiming that driver #2 hit DH and that driver #1 then hit driver #2. DH says he was hit once so this should be fun. :oops: I will FYI, I just found out that the subrogation process failed for my case and I will have to pursue it with the at fault insurance myself. It took four months to get to this point even with nothing to dispute: the at fault driver had a medical emergency and was unconscious when they hit my car. Just letting you know, it could drag on. However, it may well be worth it to get the car fixed on your insurer's dime and o...
by sailaway
Mon Mar 11, 2024 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10619

Re: What's your primary credit card?

B of a with platinum honors tough to beat. 2.625% baseline for everything (ie including property taxes) and 5.25% for gas, dining, online purchases (using a different cash rewards card for each category). No annual fee, easy redemption. This. We don't have a primary. We use these cards with one each set to dining, gas, online purchases and travel (occasionally have to adjust when we spend a lot in one quarter) and 3.5% at Costco The 2.625% card is for just about everything else except we use a Citi custom cash for 5% back on groceries. It was a hassle to dial in, but now it is habit. It helps that DH goes for months without spending any money except maybe ordering something online. But we have a note on our phones to remind him if he does ...
by sailaway
Mon Mar 11, 2024 12:08 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth/Roth IRA question
Replies: 6
Views: 517

Re: Mega Backdoor Roth/Roth IRA question

2) My company offers Mega Backdoor Roth with Fidelity. I started contributing to Mega Backdoor from 2022 and till now my contribution is 10K and with balance of 14K(gain of 4K). Fidelity does the after-tax contribution to In Plan Roth conv ersion the same day. Now, if want to withdraw my Megaback door money without penalty and tax before retirement what should I do This may depend on your age. If you are under 59.5, you should roll the Roth 401k (sourced from the in-plan Roth rollovers) into Roth IRA. Obviously, you have to see if your plans allow that first. If allowed, the $10k of contributions will roll into the contributions bucket of your Roth IRA (available immediately) and the earnings will roll into the earnings bucket of your Roth...
by sailaway
Mon Mar 11, 2024 11:43 am
Forum: Personal Finance (Not Investing)
Topic: DH Got Rear-Ended Saturday. What to Expect from Insurance Process
Replies: 21
Views: 1600

Re: DH Got Rear-Ended Saturday. What to Expect from Insurance Process

exodusNH wrote: Mon Mar 11, 2024 11:32 am
sailaway wrote: Mon Mar 11, 2024 11:05 am Since you filed through State Farm, they will set everything up, but get reimbursed by the at fault insurance. It should not affect your premiums.
They may lose a "no claims" discount.
I don't think they can in CA. Certainly, State Farm does not list that as an available discount, but I recognize the list may not be comprehensive.
by sailaway
Mon Mar 11, 2024 11:38 am
Forum: Personal Investments
Topic: Treasuries - Up or Down rest of 2024
Replies: 20
Views: 1875

Re: Treasuries - Up or Down rest of 2024

Probably one of the two, but they could be flat.
by sailaway
Mon Mar 11, 2024 11:09 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241469

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

DH died last month. His son is the beneficiary on two bonds (I have advised him to establish a TD account) and I am the beneficiary on some others. The TD website says "Electronic savings bonds. If the person who died has an online TreasuryDirect account, contact us. We will put a hold on the account and tell you what to do." I recall there is something an account holder can do to give a beneficiary access to the I bonds and this is the procedure I am looking for. Follow this blog by the financebuff. How To Grant Transact or View Right on Your I Bonds https://thefinancebuff.com/grant-transact-right-second-owner-treasurydirect.html#:~:text=Grant%20View%20or%20Transact%20Rights,-Select%20one%20of&text=You%20need%20to%20enter%20...
by sailaway
Mon Mar 11, 2024 11:05 am
Forum: Personal Finance (Not Investing)
Topic: DH Got Rear-Ended Saturday. What to Expect from Insurance Process
Replies: 21
Views: 1600

Re: DH Got Rear-Ended Saturday. What to Expect from Insurance Process

Since you filed through State Farm, they will set everything up, but get reimbursed by the at fault insurance. It should not affect your premiums. CA is well regulated. Your car will be made whole. Since you are making arrangements through your own insurance, you may have to pay the deductible and wait for the reimbursement from the other agency. I had my repairs done in November and am still waiting for the process to complete. I have never had enough damage on a newer vehicle to worry about repairs, much less diminished value, and I have never been in a crash involving injuries, so I have never so much as spoken to a lawyer. I feel that the number of times I or my car have been hit while stopped is excessive, but insurance has never been ...
by sailaway
Sun Mar 10, 2024 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Take lower paying job for less stress
Replies: 14
Views: 1021

Re: Take lower paying job for less stress

Talk to people at the level you are about to be promoted to. Folks a level and two above DH consistently claim that their jobs are less stressful than they were at his level. He chose part time over a promotion, but then we are already FI.
by sailaway
Sun Mar 10, 2024 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Bank of America Outbound ACH Fee now zero!
Replies: 22
Views: 2091

Re: Bank of America Outbound ACH Fee now zero!

gotoparks wrote: Sun Mar 10, 2024 10:37 am I've only been a credit union member for my entire life. I am surprised people would stick around with a bank that charges a fee for ACH.
I once lived someplace where I had to pay rent by setting up a wire, but other than that I don't initiate ACH at my bank ever. I have a couple of pulls set up, but those don't have fees. Bill pay is probably technically ACH when not done by check, but again, no fees.
by sailaway
Sun Mar 10, 2024 10:49 am
Forum: Personal Investments
Topic: Asset allocation and location when approaching (early) retirement
Replies: 10
Views: 1288

Re: Asset allocation and location when approaching (early) retirement

DH just turned 40. We are targeting 3.5%. DH was a high earner and therefore has crossed the second bend point for SS: additional years of earnings or zeros won't affect his eventual benefits by much. However, we don't take that additional income into account just because with up to 30 years until it starts for him, our plan needs to be pretty robust without it. 1. We went to 70/30 as soon as we got close to our goals. However, we have plenty of room in traditional accounts, so a sudden change didn't have tax consequences. We have also been building up I bonds, especially with the current fixed rate. There isn't much statistical difference between 60/40 to 80/20, so it is all a bit of a shot in the dark. Make a plan and stick to it. 2. I wo...
by sailaway
Sat Mar 09, 2024 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 139
Views: 12989

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

We still drive my old Honda and we both need to get around to some clothes shopping, so perhaps not the best folks to ask. We have been traveling more since hitting our initial FI goals, although COVID made us wait an extra year. We don't travel any fancier. There are a number of reasons I prefer mid grade hotels, one big one being they tend to use few air fresheners or other scents. And we just don't believe that the bigger seats are that much more comfortable. If you could pay extra for room to move around on a long haul flight... Now that we have exceeded our initial financial goals, we are also considering upgrading our boat. A new one would knock us out of FI, but we can afford one much newer than what we have and with some modern conv...
by sailaway
Sat Mar 09, 2024 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: When do the negatives of Pro Rata outweigh the positives of a Backdoor Roth?
Replies: 11
Views: 1212

Re: When do the negatives of Pro Rata outweigh the positives of a Backdoor Roth?

2023 is already gone, so I don't think that is what you meant. If you already made the contributions, convert now and you will also not have a tIRA balance at the end of 2024. The key is to minimize the time that the contributions are earning gains before being converted to Roth.

The pro rata rule is an issue for folks who waited until their investments had doubled or who have existing tIRA balances. You will be paying tax on gains and the more efficiently you convert, the less that will be.