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Re: Anyone use Legal Zoom for LivingTrust?

Legal zoom is not a computer program, ignore the previous poster.

I used Legal Zoom to form my LLC. They did a fine job.
by dickenjb
Mon Sep 01, 2014 7:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone use Legal Zoom for LivingTrust?
Replies: 2
Views: 280

Re: How similar/dissimilar should my wife's Roth IRA be to m

We also discussed the prospect of opening up each of our roth accounts at the same time using the 2055 target retirement (VFFVX) so that way we can establish both our funds now since the minimum investment is only 1k and switch to the total market funds once we've reached 3k. Is there any disadvant...
by dickenjb
Mon Sep 01, 2014 7:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: How similar/dissimilar should my wife's Roth IRA be to mine?
Replies: 13
Views: 872

Re: Reinvest dividends and capital gains?

I am retired so I have them go to my checking account where I spend them. Definitely don't reinvest unless you enjoy having dozens of tiny tax lots lying about. If you are in accumulation mode I would have them all go to a MM fund and reinvest quarterly into the asset class that is underweight. Of c...
by dickenjb
Mon Sep 01, 2014 4:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains?
Replies: 11
Views: 802

Re: Should I bite the bullet and pay 50k in fees?

The "financial advisor" was chosen for me when I was young and received inheritance money. He is working for a wealth management corporation. After doing more research (admittedly what I should have done before opening a thread) it turns out that the large tax burden I had to pay was from...
by dickenjb
Mon Sep 01, 2014 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: VG LT Treasury Bond Fund up

That is more risk than I like to take in my fixed income but if your IPS says your fixed income should be split 60/40 between TBM and LT Treasury I would stay the course.
by dickenjb
Mon Sep 01, 2014 3:50 pm
 
Forum: Investing - Theory, News & General
Topic: VG LT Treasury Bond Fund up
Replies: 7
Views: 462

Re: sell a 7 year old car or keep it?

Keep it. It should be good for 10 years and 200K miles.
by dickenjb
Mon Sep 01, 2014 3:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: sell a 7 year old car or keep it?
Replies: 15
Views: 1029

Re: transferring from coverdell to 529

I would think that the instructions for the Michigan equivalent of Form 1040 (or better, the Michigan tax code) would be the final authority on this, not some clerk at MESP I spoke to on the phone.
by dickenjb
Mon Sep 01, 2014 8:30 am
 
Forum: Personal Finance (Not Investing)
Topic: transferring from coverdell to 529
Replies: 3
Views: 255

Re: Paper or plastic?

nisiprius wrote:Sadly, most people continue to use the single-use plastic bags.

I'd love to know what material these bags are made of and where they come from.


That is an easy question. Polyolefin and they come from petroleum and/or NGL (natural gas liquids).
by dickenjb
Mon Sep 01, 2014 8:22 am
 
Forum: Personal Consumer Issues
Topic: Paper or plastic?
Replies: 38
Views: 1517

Re: How similar/dissimilar should my wife's Roth IRA be to m

There is a good reason to own different funds if you are just starting - you will have enough for Admiral shares.

After two years of $5500 contributions, you could own VTSAX in one and VBTLX in the other.
by dickenjb
Mon Sep 01, 2014 8:19 am
 
Forum: Investing - Help with Personal Investments
Topic: How similar/dissimilar should my wife's Roth IRA be to mine?
Replies: 13
Views: 872

Re: Philly Hotels, with the family

The Residence Inn by Marriott is right downtown and offers a separate bedroom and living area which is nice for families.
by dickenjb
Mon Sep 01, 2014 7:18 am
 
Forum: Personal Consumer Issues
Topic: Philly Hotels, with the family
Replies: 11
Views: 634

Re: q regarding VG ER's

Some fund families play games and waive part of their expenses over a period of time until they decide not to. The net er is net of waivers and favors.

Vanguard does not play these games, so their published er is both gross and net. IOW, what you see is what you get.
by dickenjb
Sun Aug 31, 2014 7:56 pm
 
Forum: Investing - Theory, News & General
Topic: q regarding VG ER's
Replies: 8
Views: 584

Re: Why invest in bonds?

EmergDoc wrote:Uh oh, are these threads starting to show up again? I remember seeing a lot of these in 2007 and early 2008. Not so many in 2009.


It is known as the Shoeshine Boy indicator.
by dickenjb
Sun Aug 31, 2014 7:49 pm
 
Forum: Investing - Theory, News & General
Topic: Why invest in bonds?
Replies: 88
Views: 4463

Re: Investments for Kids

It seems to me that all these parents who are worried their kids are going to spend their UTMA on "hookers and blow" (modern version) or "wine women and song" (old school version) have bigger issues to worry about than the $20 or $30K that their kid is potentially going to waste....
by dickenjb
Sun Aug 31, 2014 11:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Investments for Kids
Replies: 15
Views: 964

Re: How much money is too much for the 3 fund port?

ababs wrote:So even in record low interest rate environment, are the total bond fund and the intermediate term tax exempt bond fund still good choices?


Yes.
by dickenjb
Sun Aug 31, 2014 11:27 am
 
Forum: Investing - Help with Personal Investments
Topic: How much money is too much for the 3 fund port?
Replies: 15
Views: 1587

Re: How much money is too much for the 3 fund port?

IF interest rates rise, the bond fund will temporarily lose value.

Just like IF interest rates rise, an individual bond will lose value.
by dickenjb
Sun Aug 31, 2014 10:55 am
 
Forum: Investing - Help with Personal Investments
Topic: How much money is too much for the 3 fund port?
Replies: 15
Views: 1587

Re: refinance to max out Fidelity 403(b)?

Seems pretty marginal to me.
by dickenjb
Sun Aug 31, 2014 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: refinance to max out Fidelity 403(b)?
Replies: 9
Views: 389

Re: Why invest in foreign funds?

As the saying goes, "when the US sneezes the world catches a cold." I learned this the hard way in the 2008 crash. A few months before the crash, having read many articles about US stock market being a bubble, I moved a lot of money to foreign funds. But when the US stock market crashed t...
by dickenjb
Sun Aug 31, 2014 10:24 am
 
Forum: Investing - Theory, News & General
Topic: Why invest in foreign funds?
Replies: 23
Views: 1385

Re: Help dividing up estate when beneficiaries borrow

gordon9775 wrote:UPDATE: I didn't even call. I figured if she couldn't set up IRA #2, VG.com wouldn't allow it.

VG.com allowed it.

Thanks all! :beer


Awesome, that means I can do the same and do it online without worrying about how to phrase the question on the phone.
by dickenjb
Sun Aug 31, 2014 8:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Help dividing up estate when beneficiaries borrow
Replies: 21
Views: 1021

Re: How much money is too much for the 3 fund port?

If you don't like bond funds, and I don't, because of the principal risk, you should consider treasuries. That is what I am doing for the portion of my bond allocation that is not single premium fixed annunities. So individual bonds don't have principal risk? I am aware of bonds with a call option,...
by dickenjb
Sun Aug 31, 2014 8:26 am
 
Forum: Investing - Help with Personal Investments
Topic: How much money is too much for the 3 fund port?
Replies: 15
Views: 1587

Re: How much money is too much for the 3 fund port?

Who says the 3 fund portfolio can't sub VWIUX for VBTLX for people in high brackets and high taxable balances?
by dickenjb
Sun Aug 31, 2014 8:24 am
 
Forum: Investing - Help with Personal Investments
Topic: How much money is too much for the 3 fund port?
Replies: 15
Views: 1587

Re: Investments for Kids

We funded UTMA's for all our kids. If you have a high federal+state marginal tax rate a UTMA might save you $1,000 per child per year in taxes, so for example 3 kids x 10 years x $1,000 = $30,000. Even if you exceed the kiddie tax limit so the surplus is taxed at the parent's marginal rate, if the ...
by dickenjb
Sun Aug 31, 2014 8:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Investments for Kids
Replies: 15
Views: 964

Re: Next phase of minimizing taxes for high-income household

Yes, they might do it for free. The guy who does our tax returns does them all for free. It takes me less than an hour to do a kid's return. The $600 of tax savings is net, so equivalent to over $1,000 gross income at my marginal rate. So I'm making $1,000/hour, which is better than my real job. My...
by dickenjb
Sun Aug 31, 2014 8:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Next phase of minimizing taxes for high-income household
Replies: 31
Views: 2846

Re: Move for nicer home in better school district?

Sounds like a no brainer to move.

You are saving actual cash of $256K on private school, and the $400K invested in the new home is not being spent, just put into real estate.

Plus you are in a nicer home in a nicer area with nicer neighbors.
by dickenjb
Sun Aug 31, 2014 8:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Move for nicer home in better school district?
Replies: 14
Views: 966

Re: Highly Appreciated Stock

Welcome to BH. How old is your FIL's father? The individual stocks basis will be stepped up at death. I wouldn't be in a hurry to see a 90 year old male realize cap gains. With 20-30 "names" he is probably decently diversified, not perfectly but again I don't see an urgent need to sell and...
by dickenjb
Sun Aug 31, 2014 8:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Highly Appreciated Stock
Replies: 8
Views: 939

Re: How do you compute RMDS for late retiree?

I used Vanguards table but it ended at 90! Perhaps that is why Vanguard tells you it is only an excerpt and refers you to the source document on the IRS website. Note: This is an excerpt of the IRS table. For the complete IRS Uniform Lifetime Table, refer to IRS Publication 590, available on the IR...
by dickenjb
Sat Aug 30, 2014 8:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you compute RMDS for late retiree?
Replies: 10
Views: 716

Re: Should I bite the bullet and pay 50k in fees?

This does not make sense to me. You paid tax on the increased value from $250,000 to $400,000 already. This is now your basis and you don't have to pay tax on basis of $400,000. If you sold today your increase in value is another $100,000. You must pay 10% early withdrawal tax on this ($10,000). Yo...
by dickenjb
Sat Aug 30, 2014 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: Should I bite the bullet and pay 50k in fees?

Original annuity=250k Transferred annuity=purchased at a bit over 400k, income taxes paid at this time (from a separate account, I did not withdraw anything from the annuity) Annuity is now around 500k. So let's say I would have to pay 25k in early withdrawal fees (10% of 250k total gains) and abou...
by dickenjb
Sat Aug 30, 2014 5:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: Should I bite the bullet and pay 50k in fees?

We need your basis in the current annuity to advise.
by dickenjb
Sat Aug 30, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: How do you compute RMDS for late retiree?

Please let me know which life expectancy table I use if I retire at 75? Table III for most folks. Table II if your hubby is >10 years younger (you cougar, you!) Table I is for heirs only (inherited IRA's) If you retire at 75 but turn 76 later in the year, your divisor is 22, else 22.9. There, I gav...
by dickenjb
Sat Aug 30, 2014 5:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you compute RMDS for late retiree?
Replies: 10
Views: 716

Re: How do you compute RMDS for late retiree?

So if you retired in 2014, then your RMD for 2014 would be based on your year-end 2013 balance in the account and your current age of 75.http://www.irs.gov/Retirement-Plans/RMD-Comparison-Chart-(IRAs-vs.-Defined-Contribution-Plans) Almost correct. The RMD divisor is based on the age you will be at ...
by dickenjb
Sat Aug 30, 2014 5:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you compute RMDS for late retiree?
Replies: 10
Views: 716

Re: Should I bite the bullet and pay 50k in fees?

The cost basis is fairly low right now. Most of my fees would be from early withdrawal. Did you mean to say the cost basis is fairly HIGH and the untaxed appreciation is LOW? We don't know anything about you, but I could definitely make a case for cashing this baby out then when you get a job use t...
by dickenjb
Sat Aug 30, 2014 4:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: Should I bite the bullet and pay 50k in fees?

Well, I definitely paid income taxes on it, and it was not an early withdrawal penalty. My (soon to be former) financial advisor did the transfer. I knew nothing about investing (seems like I still don't) and I just went along with it. In the previous annuity I was a beneficiary with my mother's na...
by dickenjb
Sat Aug 30, 2014 4:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: Should I bite the bullet and pay 50k in fees?

My mistake. I did not realize that the 10% early withdrawal penalty was only for the earnings. Thanks for clarifying. In that case, I would be paying about 25,000 in early withdrawal penalty. Makes the idea seem much more enticing. I would probably pay about 5,000 in income taxes also. I transferre...
by dickenjb
Sat Aug 30, 2014 1:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and pay 50k in fees?
Replies: 36
Views: 3126

Re: Help dividing up estate when beneficiaries borrow

The question might have bee asked the wrong way or their might have been a misunderstanding when the word "funded" was used like it was new money. Talking about rolling the money over might have left less room for a misunderstanding. I would call them again. I think this may be true. My M...
by dickenjb
Sat Aug 30, 2014 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help dividing up estate when beneficiaries borrow
Replies: 21
Views: 1021

Re: Help dividing up estate when beneficiaries borrow

Can she do the following:

Take her RMD for the year.

Take out a second distribution for 3x the loan.

Roll that into an IRA at Fidelity and name the other 3 parties beneficiaries.
by dickenjb
Sat Aug 30, 2014 11:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Help dividing up estate when beneficiaries borrow
Replies: 21
Views: 1021

Re: Anyone used Vanguard Flagship Services With Portfolio $1

Access to closed funds is of no value to me. You do have a single rep assigned to your account, although mine has changed 4 times. I have met some of my reps in person at the Vanguard mixer during BH reunion. They are sincere young men. My favorite one got promoted to Flagship Select which is for cl...
by dickenjb
Sat Aug 30, 2014 7:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Anyone used Vanguard Flagship Services With Portfolio $1M+
Replies: 41
Views: 4219

Re: How to donate shares of mutual fund?

If they are appreciated (have high cap gains) your plan makes sense. Given that they are short term bond funds I doubt that is the case. In which case just sell them and write a check to the church.
by dickenjb
Sat Aug 30, 2014 7:38 am
 
Forum: Investing - Help with Personal Investments
Topic: How to donate shares of mutual fund?
Replies: 3
Views: 247

Re: Should elderly play it safe & risk not having enough or

If there is any risk that they could outlive their money, going to a high equity allocation will just make the ruin rate worse. You can run some scenarios in FIREcalc to confirm this. Generally an SPIA is recommended in a case like your parents' case. You may need to research the issue quickly as mo...
by dickenjb
Fri Aug 29, 2014 11:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should elderly play it safe & risk not having enough or no?
Replies: 13
Views: 1500

Re: Does it make any sense to switch from VFIAX to VTSAX?

So, I invested in VFINX before I knew about the Total Stock Market Index... I have about $75k in a taxable account... I've made up the difference with $15,000 in Extended Market. What's the ideal allocation if I wanted to mimic Total Stock Market? Is it 50 VFINX/50 VEXAX? or 75 VFINX/25% VEXAX? Tha...
by dickenjb
Fri Aug 29, 2014 7:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does it make any sense to switch from VFIAX to VTSAX?
Replies: 20
Views: 2572

Re: Newbie - Boglehead method rid need for financial advisor

Let's not confuse a financial advisor with an investment advisor. The latter is for hand holding people so they don't panic sell. Some studies have shown that certain people get 100-200 basis points of outperformance by using same, although I believe most reasonably intelligent people don't need one...
by dickenjb
Fri Aug 29, 2014 7:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie - Boglehead method rid need for financial advisors?
Replies: 7
Views: 490

Re: ACH transfers

Yes you can do it both ways.
by dickenjb
Fri Aug 29, 2014 6:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: ACH transfers
Replies: 14
Views: 987

Re: Do you mix inheritance and earned money?

The primary argument I've seen for keeping inheritance separate is that inheritance is separate property in case of a divorce (in most states), provided it has been kept separate. When you start commingling it with joint funds, it becomes property of the couple. Obviously, no one wants to hedge aga...
by dickenjb
Fri Aug 29, 2014 6:21 pm
 
Forum: Personal Consumer Issues
Topic: Do you mix inheritance and earned money?
Replies: 25
Views: 2127

Re: Probability question

Independent events is the term people are describing here. Past draws do not affect future draws anymore than a coin knows it is time to come up heads because the last 3 flips were tails.
by dickenjb
Fri Aug 29, 2014 3:49 pm
 
Forum: Personal Consumer Issues
Topic: Probability question
Replies: 14
Views: 1114

Re: milestones, skepticism, wealth creation. A thought

OK I had to dig out my 2013 1040 and look. 9a over 8a is only 314 so pales in comparison to livesoft. I am lazy and often allow $10K to $20K to sit in my checking account and until very recently my CU paid 0.25% on checking balance. Now down to 0.15% so my magic ratio should improve - or I can try t...
by dickenjb
Fri Aug 29, 2014 2:06 pm
 
Forum: Investing - Theory, News & General
Topic: milestones, skepticism, wealth creation. A thought
Replies: 15
Views: 1666

Re: Non-qualified pension plan taxation

Sidney wrote:Distributions from NQ pension plans normally get reported on Line 7 of the 1040 and are considered ordinary income. Note, it is not considered compensation for the purposes of qualification for IRA deductions.


Correct and if received as a lump sum it can not be rolled over to an IRA.
by dickenjb
Fri Aug 29, 2014 1:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Non-qualified pension plan taxation
Replies: 4
Views: 262

Re: PA529 Guaranteed Savings plan -- is it worth it?

I think you are too late, ideally you make your first contribution just before the tuition credit is posted Sep 1.
by dickenjb
Fri Aug 29, 2014 10:32 am
 
Forum: Investing - Help with Personal Investments
Topic: PA529 Guaranteed Savings plan -- is it worth it?
Replies: 12
Views: 587

Re: Poll: How many own zero/few stocks?

I had one share of my former employer. I bought it so I could attend the annual meeting last year. I thought it might be interesting since we had an activist investor who fired our CEO and put his people on the board. It wasn't at all interesting. This thread prompted me to go on Vanguard and sell t...
by dickenjb
Fri Aug 29, 2014 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: [Sell off individual stocks?] How many own zero/few stocks?
Replies: 68
Views: 2671

Re: Contribution limit 401k

In the scenario you describe you could put in $17,500 pretax and $22,500 after tax. That would allow $12K headroom for match and profit sharing. Read up on the "Mega back door Roth" for why after tax contributions could be very valuable if your plan allows in service rollover of same to a ...
by dickenjb
Fri Aug 29, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Contribution limit 401k
Replies: 6
Views: 431

Re: Who else's IRA would you (do you) fill?

I match the earnings of my two sons into their Roth IRA's. The 20 year old stayed at college this summer so no earnings. The 17 year old didn't get back from his exchange student gig in Germany until Aug 5th so he will be lucky to earn $1000 before the pool where he lifeguards closes on Labor Day. T...
by dickenjb
Fri Aug 29, 2014 7:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Who else's IRA would you (do you) fill?
Replies: 18
Views: 1197

Re: milestones, skepticism, wealth creation. A thought

What about inheritances? It seems to me you could do something of a DCF / IRR analysis, with cash flows in (what you are proposing from salaries plus any inheritances) and the wealth remaining. It has to all balance: Salaries+Inheritances-COL+investment returns=Net Worth Where COL (cost of living) i...
by dickenjb
Fri Aug 29, 2014 7:29 am
 
Forum: Investing - Theory, News & General
Topic: milestones, skepticism, wealth creation. A thought
Replies: 15
Views: 1666
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