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Re: How to Contact IRS to suspend tax levy on paycheck

OK, but it seems that the son is guilty of Tax Evasion, so discharge of the tax owed isn't feasible...
by The Wizard
Fri Sep 19, 2014 10:49 am
 
Forum: Personal Finance (Not Investing)
Topic: How to Contact IRS to suspend tax levy on paycheck
Replies: 13
Views: 835

Re: How to Contact IRS to suspend tax levy on paycheck

These 1099's are self-employment income and can be offset on Schedule C by expenses incurred in producing the income. But, of course, "our hero" won't have any hard evidence of his expenses either. Nonetheless, the proper tax pro probably knows how to deal with this the best way. Do you go...
by The Wizard
Fri Sep 19, 2014 10:31 am
 
Forum: Personal Finance (Not Investing)
Topic: How to Contact IRS to suspend tax levy on paycheck
Replies: 13
Views: 835

Re: Immediate payable annuity is a bad investment?

I am just curious, when you sign up for an SPIA, are there any fees associated with it? I don't think the "fees" are explicitly stated, but rather, are embedded in the whole transaction. Example: if no fees or Ins Co profits at all, you might get a payout of $6700 per year per $100,000 an...
by The Wizard
Fri Sep 19, 2014 10:11 am
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 32
Views: 1336

Re: How to Contact IRS to suspend tax levy on paycheck

$189,000 owed to the IRS in back taxes is, umm, QUITE A BIT for an individual. I have to say that ignorance isn't a really good excuse when dealing with tax issues, but right now he has to deal with the present situation and THEN do things better in the future. For the amount of money involved, I wo...
by The Wizard
Fri Sep 19, 2014 9:33 am
 
Forum: Personal Finance (Not Investing)
Topic: How to Contact IRS to suspend tax levy on paycheck
Replies: 13
Views: 835

Re: Shuffling between TSP, Edward Jones, and Vanguard

We're not big fans of EJ here. Yes, move it all to Vanguard and use Bogleheads.org to get any advise you need regarding strategies. I'm not familiar with TSP intricacies, but I would continue making traditional tax-deferred contributions there until you have a few million and get within 5-10 years o...
by The Wizard
Fri Sep 19, 2014 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Shuffling between TSP, Edward Jones, and Vanguard
Replies: 5
Views: 268

Re: Immediate payable annuity is a bad investment?

To deal with inflation, it's nice to have access to inexpensive variable annuities that are based on stock market and/or real estate investments. That's what I have in TIAA-CREF but unfortunately, they are not available to the general public, so I'll not go on about them too much here...
by The Wizard
Fri Sep 19, 2014 9:09 am
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 32
Views: 1336

Re: Immediate payable annuity is a bad investment?

If you have children and want to leave some inheritance, SPIA does not sound very attractive (to me). However, if you do not want to leave some inheritance, I see buy SPIA is better than leave money to nobody (charity?). This is incorrect, as I've stated previously. Creating a Personal Pension by a...
by The Wizard
Fri Sep 19, 2014 8:14 am
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 32
Views: 1336

Re: Do I need to send in estimated tax????

That would lessen the penalty for sure...
by The Wizard
Thu Sep 18, 2014 9:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need to send in estimated tax????
Replies: 13
Views: 732

Re: Do I need to send in estimated tax????

Goal should be to get within a few percent of the total amount due by regular withholding.
Easy to do when income is predictable.
Less easy when transitioning significantly...
by The Wizard
Thu Sep 18, 2014 8:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need to send in estimated tax????
Replies: 13
Views: 732

Re: Immediate payable annuity is a bad investment?

An immediate annuity is not insurance, it's an Income Stream, for life.
But yes, there are some insurance aspects to it...
by The Wizard
Thu Sep 18, 2014 8:16 pm
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 32
Views: 1336

Re: Do I need to send in estimated tax????

Note: if you retired in the last few months and have quite lower retirement income than working income, you might be OK for 2014.
But start withholding anyway to get used to it...
by The Wizard
Thu Sep 18, 2014 8:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need to send in estimated tax????
Replies: 13
Views: 732

Re: Do I need to send in estimated tax????

Start auto withholding now.
Adjust it next year until it's about right.
Easier than paying estimated taxes...
by The Wizard
Thu Sep 18, 2014 8:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need to send in estimated tax????
Replies: 13
Views: 732

Re: The Annuity Puzzlement

It is a significant MISNOMER to call any sort of do it yourself scheme an "annuity".
This is because you cannot get any MORTALITY CREDITS which come from pooling risk over a few thousand people of the same age...
by The Wizard
Thu Sep 18, 2014 5:53 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 90
Views: 5193

Re: The Annuity Puzzlement

...Before you call a thoughtful post horse-pucky, you should know your topic and master basic math. I think the answer is in your prior post I think that some retirees like to live with lower income in retirement than they could have, while conserving their lump sum for an emergency of some sort. I...
by The Wizard
Thu Sep 18, 2014 12:44 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 90
Views: 5193

Re: Pre-Retirement Tasks & Timeline

It depends. Take a look at all your deductions for insurances and prepare to handle those on your own. Figure out where the cash flow for retirement living will be coming from for the first few years at least and do what's needed in a timely basis to set that in motion. (I did a 10 year income proje...
by The Wizard
Wed Sep 17, 2014 9:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-Retirement Tasks & Timeline
Replies: 15
Views: 1117

Re: Which debt to tackle first?

I'd check into doing a refi on that mortgage since 5.2% *seems* a bit high right now, tho I don't track those rates. But with 27 years remaining, it must be a newer loan and perhaps your equity in the property isn't too much yet. Continue paying down all the loans right now and get ready to focus on...
by The Wizard
Wed Sep 17, 2014 8:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Which debt to tackle first?
Replies: 21
Views: 1166

Re: How much you need to save as multiple of salary

We've discussed this issue a number of times (multiples of salary vs multiples of expenses) along with the usual strident complaints from some posters that only expenses matter, not your salary. I partly disagree. It's JUST FINE to track your investment worth as a multiple of salary. It's EASY to do...
by The Wizard
Wed Sep 17, 2014 8:07 am
 
Forum: Investing - Theory, News & General
Topic: How much you need to save as multiple of salary
Replies: 51
Views: 6186

Re: Where do I put my cash now?

OP says I am very well diversified across stocks and bonds including international investments. So it's unclear how much this unallocated cash is compared to his existing investments, but I'll guess maybe 10% to 20%? Regardless, it would have been good to continue contributions to your portfolio on ...
by The Wizard
Wed Sep 17, 2014 2:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Where do I put my cash now?
Replies: 23
Views: 2424

Re: Tax Stupid Investment

OP hasn't given us their specifics yet, but yes, it's possible to be in the 28% Federal income tax bracket (or higher!) in retirement if you're fortunate to have put away a few million bucks each into tax-sheltered investments during your working years. I see no problem with this at all and especial...
by The Wizard
Wed Sep 17, 2014 2:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax Stupid Investment
Replies: 16
Views: 1642

Re: What Happens To Mortgage When Borrower Dies?

dgdevil wrote:
Bill M wrote:
If there are a few months that the payments are not made, it will affect your grandmother's credit score. That should not be an issue.


Some people here would be mortified about a post-mortem drop in their credit score.

Good one.
Victoria F will be proud of you...
by The Wizard
Mon Sep 15, 2014 12:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: What Happens To Mortgage When Borrower Dies?
Replies: 12
Views: 1893

Re: 401(k) 20% Mandatory Tax Withholding

...I'm not even sure why there has to be any tax withholding on distributions at all. Why can't the tax simply be figured out at the end of the year? Why should the IRS assume 20% taxes are owed, and then I have to chase them at the end of the year to get my money back? You are aware that we have a...
by The Wizard
Sun Sep 14, 2014 6:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) 20% Mandatory Tax Withholding
Replies: 24
Views: 1766

Re: Can You Build Your Retirement Portfolio Young, then Coas

Not generally feasible to do, for a number of reasons, no. Some young people DO earn large amounts in their younger years as performers or athletes, but that doesn't always work out for the long run either. I suppose if you have a particular situation, it could be done, but I'd call it tapering back...
by The Wizard
Sun Sep 14, 2014 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can You Build Your Retirement Portfolio Young, then Coast?
Replies: 54
Views: 5969

Re: 401(k) 20% Mandatory Tax Withholding

...I'm not even sure why there has to be any tax withholding on distributions at all. Why can't the tax simply be figured out at the end of the year? Why should the IRS assume 20% taxes are owed, and then I have to chase them at the end of the year to get my money back? You are aware that we have a...
by The Wizard
Sun Sep 14, 2014 3:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) 20% Mandatory Tax Withholding
Replies: 24
Views: 1766

Re: 401(k) 20% Mandatory Tax Withholding

Same for 403(b) accounts, 20% mandatory withholding for amounts withdrawn in retirement, on a monthly basis in my case.
But annuitized payouts are NOT subject to a minimum, so I adjust that to get total w/h about where I want it, which is about 16% of gross income, based on most recent predictions...
by The Wizard
Sun Sep 14, 2014 3:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) 20% Mandatory Tax Withholding
Replies: 24
Views: 1766

Re: The dangerous practice of rebalancing...

...Since the market stock price is high these days, selling stokes to cash is called market timing, and selling stokes to bonds is called rebalancing. (If interest rises as expected, then the one holding cash will probably be happier). Not quite right. Selling 2% to 10% of your "stocks" a...
by The Wizard
Sun Sep 14, 2014 3:23 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: The dangerous practice of rebalancing...

...A lot of folks are saying that rebalancing from stocks to bonds is good for risk control. If you are younger, rebalancing from bonds to stocks might be a great idea and lead to higher returns over time. If you are older, lets say 50 or older, you might consider one-way rebalancing only rebalanci...
by The Wizard
Sun Sep 14, 2014 11:51 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: The dangerous practice of rebalancing...

OK, we should probably quantify the new Boglehead rule of thumb for rebalancing from bonds into stocks during (significant) declines in the stock market. Does it vary with age? People in theiir 20's and 30's can direct new contributions to stocks and effectively rebalance that way in many cases sin...
by The Wizard
Sun Sep 14, 2014 11:32 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: Reminder: estimated taxes due Monday

Schedule them to be paid through EFTPS.gov and you own't have to think of them again the rest of the year. Gill OK for some, but others may have variable self-employment income from month to month. And some of us do Roth conversions later in the year, with the amount computed after other income for...
by The Wizard
Sun Sep 14, 2014 11:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Reminder: estimated taxes due Monday
Replies: 17
Views: 1118

Re: The dangerous practice of rebalancing...

OK, we should probably quantify the new Boglehead rule of thumb for rebalancing from bonds into stocks during (significant) declines in the stock market. Does it vary with age? People in theiir 20's and 30's can direct new contributions to stocks and effectively rebalance that way in many cases sinc...
by The Wizard
Sun Sep 14, 2014 11:21 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: Retiree Poll: Do you own your primary residence?

Yes, bought my house in 1976 and still living there.
I expanded it in the 1980's.
I bought the ex-wife's half in 1998.
I have a small HELOC balance on it at present.

I stay with it for now since it gives me an excess of space, to store my excess of stuff...
by The Wizard
Sun Sep 14, 2014 10:56 am
 
Forum: Personal Consumer Issues
Topic: Retiree Poll: Do you own your primary residence?
Replies: 18
Views: 1573

Re: Glitchy Web-Browsing

I would try to isolate the problem first.
Try both Ethernet and WiFi at home.
Try additional smartphones and tablets as well.
Then try your original device at a friend's house as well.
And perhaps try different browsers as well.
Then we'll be ready to fix the problem...
by The Wizard
Sat Sep 13, 2014 12:49 pm
 
Forum: Personal Consumer Issues
Topic: Glitchy Web-Browsing
Replies: 21
Views: 908

Re: The dangerous practice of rebalancing...

It depends entirely on the individual's situation.
Someone with JUST ENOUGH to retire, but 80% in stocks is at significant risk no matter what.
Someone with TWICE AS MUCH as he needs to retire, but 30% in stocks can rebalance to his heart's content with almost no worries...
by The Wizard
Sat Sep 13, 2014 9:05 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: Consumer Cellular with 4G-LTE android smartphone

Well, it’s September, and I have begun the activation process to Consumer Cellular on a new unlocked Moto X (first generation). CC sent me an activation packet with the appropriate SIM card. I popped the SIM card into the phone (Yes, the SIM card is in the phone correctly), and I started the SIM ca...
by The Wizard
Sat Sep 13, 2014 7:58 am
 
Forum: Personal Consumer Issues
Topic: Consumer Cellular with 4G-LTE android smartphone
Replies: 47
Views: 5170

Re: Consumer Cellular with 4G-LTE android smartphone

CC has what could generously be called Terrible Customer Service. I'm up & running with them now after a week of ineptness on their part. They get back to you in two days or so, but with a generic email address. So if "Adam" replies to you and you try to follow up, perhaps "Emily...
by The Wizard
Sat Sep 13, 2014 7:51 am
 
Forum: Personal Consumer Issues
Topic: Consumer Cellular with 4G-LTE android smartphone
Replies: 47
Views: 5170

Re: The dangerous practice of rebalancing...

I browsed the Sharpe paper; will print it and read fully later. Possible confusion between owning index funds and owning an array of individual stocks. This due to one part of the paper talking about a stock becoming "worthless". Yes, individual companies can go bust and their stock become...
by The Wizard
Sat Sep 13, 2014 7:21 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: The Annuity Puzzlement

I think you've made a basic case for an SPIA. But there are numerous other considerations. Here are two that I think most people are likely to be concerned about. 1) If you have any bequest motive, then you may be reluctant to give up 40% of your wealth to an SPIA. Your calculation only talks about...
by The Wizard
Fri Sep 12, 2014 11:08 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 90
Views: 5193

Re: The dangerous practice of rebalancing...

When was the last time the US stock market, the S&P 500 let's say, declined and never recovered?
How about "never", does that seem like a reasonable guess?
by The Wizard
Fri Sep 12, 2014 10:54 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: The Annuity Puzzlement

I think that some retirees like to live with lower income in retirement than they could have, while conserving their lump sum for an emergency of some sort.
I annuitized a hefty sum at age 63 and am happy with that...
by The Wizard
Fri Sep 12, 2014 8:53 pm
 
Forum: Investing - Theory, News & General
Topic: The Annuity Puzzlement
Replies: 90
Views: 5193

Re: The dangerous practice of rebalancing...

Maybe the better thing to do in a falling market is not to be in a rush to rebalance. Let it go a bit longer and see what happens. And then rebalance halfway back initially.

But ultimately, we need to rebalance to play the game correctly...
by The Wizard
Fri Sep 12, 2014 8:27 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: As music sales fall, Kenny G turns to stockpicking

Sounds like another non-actionable celebrity article to me...
by The Wizard
Fri Sep 12, 2014 5:40 pm
 
Forum: Investing - Theory, News & General
Topic: As music sales fall, Kenny G turns to stockpicking
Replies: 5
Views: 879

Re: The dangerous practice of rebalancing...

I've heard similar stuff before and don't agree with it. What's left unsaid in that article is what happens during 40 years of investing up to the time you are ready to retire. Does one stay in low-risk assets all through their 20's and 30's and avoid those risky stock funds? Horse-pucky, as another...
by The Wizard
Fri Sep 12, 2014 5:31 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11275

Re: Angry when stock market is down

Could be a good day for Buying On The Dips with REITs...
by The Wizard
Fri Sep 12, 2014 3:18 pm
 
Forum: Investing - Theory, News & General
Topic: Angry when stock market is down
Replies: 79
Views: 3921

Re: Credit Score and Individual History

Yeah, I think you just have to wait it out.
Part of this is to find out if you're able to pay your accounts in both good times and bad, since some people have less income in recessions...
by The Wizard
Fri Sep 12, 2014 1:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Credit Score and Individual History
Replies: 4
Views: 457

Re: How should I invest the money in my taxable account?

Buying all at once is fine, provided you're not one of those folks with buyer's remorse psychological issues. But rearrange things to hold that 20% in bonds in tax-deferred account if at all possible... I take it the bonds have more of a tax liability than the stock index funds? Should I be concern...
by The Wizard
Fri Sep 12, 2014 1:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: How should I invest the money in my taxable account?
Replies: 20
Views: 2632

Re: Angry when stock market is down

I disagree with the replies saying to not check the markets on a daily basis. The OP needs to confront reality, not ignore it. REITs, for example, are one of the more volatile asset classes (or sub-classes). So you're going to see a lot of movement in REIT prices whenever theres any news on interest...
by The Wizard
Fri Sep 12, 2014 1:04 pm
 
Forum: Investing - Theory, News & General
Topic: Angry when stock market is down
Replies: 79
Views: 3921

Re: How should I invest the money in my taxable account?

Buying all at once is fine, provided you're not one of those folks with buyer's remorse psychological issues.
But rearrange things to hold that 20% in bonds in tax-deferred account if at all possible...
by The Wizard
Fri Sep 12, 2014 12:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: How should I invest the money in my taxable account?
Replies: 20
Views: 2632

Re: Angry when stock market is down

I'm not much ANGRY at anything anymore, especially not the various investment markets.
OK, I lied; I sometimes get angry at crabgrass...
by The Wizard
Fri Sep 12, 2014 12:41 pm
 
Forum: Investing - Theory, News & General
Topic: Angry when stock market is down
Replies: 79
Views: 3921

Re: low expxpense mobile phone?

$80 a month is a lot.
I pay half of that with Consumer Cellular.
And it's spelled "expense"...
by The Wizard
Thu Sep 11, 2014 8:09 pm
 
Forum: Personal Consumer Issues
Topic: low expense mobile phone?
Replies: 16
Views: 1346

Re: How should I invest the money in my taxable account?

Put long-term $$$ in your taxable account into stock index funds for best tax efficiency.
I presently have some $$ in a bond fund in my taxable account, but that's short term, for a vehicle purchase next year...
by The Wizard
Thu Sep 11, 2014 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: How should I invest the money in my taxable account?
Replies: 20
Views: 2632
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