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Re: Tax Efficient "Gifting" for K-12 private school tuition

There is no Federal estate tax for estates under a very large value - was $5.25 million, may be more now.
by dickenjb
Wed Apr 16, 2014 3:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Efficient "Gifting" for K-12 private school tuition
Replies: 11
Views: 334

Re: Looking for Low-Cost Eyeglass Shop I can visit

Costco. My wife and MIL are very satisfied. I had Lasik and don't need glasses anymore. Otherwise I would go to Costco.
by dickenjb
Wed Apr 16, 2014 11:15 am
 
Forum: Personal Consumer Issues
Topic: Looking for Low-Cost Eyeglass Shop I can visit
Replies: 14
Views: 626

Re: Financial check-up request and unusual 403(b) question

Need your marginal tax rate, not effective.

At $200K HHI, your wife probably should fund 401(k), not Roth 401(k), Her choices are pretty poor - high expense and no large cap blend? I would not fund beyond employer match.

Can't advise on pastor 401(b).
by dickenjb
Wed Apr 16, 2014 11:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Financial check-up request and unusual 403(b) question
Replies: 12
Views: 371

Re: Child's Roth

It was/is a 1099. I'm new here but already love this group. I hope you don't mind if I stick around Thank you! To everyone ~Tove We would love you to stick around. It is a great community. Turbo Tax will give you the correct answer, as does my CPA, but I like to understand the logic behind the calc...
by dickenjb
Wed Apr 16, 2014 9:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Child's Roth
Replies: 27
Views: 1290

Re: Reducing employer stock exposure

A good rule of thumb is to limit your exposure to company stock to 10% of your net worth.

Until you get to the point in your career where in addition to RSU's they start loading you up with options, you should be alright.
by dickenjb
Wed Apr 16, 2014 9:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Reducing employer stock exposure
Replies: 5
Views: 280

Re: Options used to fund ROTH after retirement?

dickenjb - Any portion of “Wages, tips, other compensation” that’s also reflected in the box labeled “Nonqualified plans” doesn’t count as “compensation income” for this purpose. You have probably been making illegal contributions to your IRA. Bruce By the way, not only are you wrong on this point ...
by dickenjb
Wed Apr 16, 2014 9:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Options used to fund ROTH after retirement?
Replies: 11
Views: 501

Re: Child's Roth

tovetove is incorrect if it is W2 compensation - you get to put in the entire contents of Box 1 less Box 11, or $5500 whichever is less. He is correct on 1099 compensation - the allowed contribution is compensation, less any business expenses, less 1/2 SE tax . This puts the SE person on equal footi...
by dickenjb
Wed Apr 16, 2014 9:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Child's Roth
Replies: 27
Views: 1290

Re: Options used to fund ROTH after retirement?

dickenjb - Any portion of “Wages, tips, other compensation” that’s also reflected in the box labeled “Nonqualified plans” doesn’t count as “compensation income” for this purpose. You have probably been making illegal contributions to your IRA. Bruce You are right on the first point and wrong on the...
by dickenjb
Tue Apr 15, 2014 6:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Options used to fund ROTH after retirement?
Replies: 11
Views: 501

Re: Child's Roth

- What custodian will allow retirement accounts for minors - as far as I know it's not Vanguard but could well be wrong. You are wrong. Both of my children's Roth IRA's are with Vanguard. Vanguard will not let you open the account online if the beneficiary is a minor. Has to be done "old schoo...
by dickenjb
Tue Apr 15, 2014 6:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Child's Roth
Replies: 27
Views: 1290

Re: Child's Roth

Well I have my 20 year old in Vanguard TR2050 and the 17 year old in TR2055, so TR2060 for a 5 year old sounds about right. Especially since Vanguard does not offer TR2065 yet. :happy My children have summer jobs as lifeguards. It is all on the up-and-up. I let them keep 100% of their net, and I mat...
by dickenjb
Tue Apr 15, 2014 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Child's Roth
Replies: 27
Views: 1290

Re: Options used to fund ROTH after retirement?

papiper, I can assure you they do count. The safe harbor for IRA contributions with respect to W2 income is Box 1 less Box 11. My option profits (NSO's) show up in Box 1 on a W-2 from my former employer. I make sure to exercise enough options each year to realize $13,000 of income to cover Roth for ...
by dickenjb
Tue Apr 15, 2014 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Options used to fund ROTH after retirement?
Replies: 11
Views: 501

Re: Investments/Allocations

Looks great to me although I personally would not have added the international bonds. Ignore your friend who says you have to fund your retirement cash flow needs with dividends. Quite frankly, he does not know what he is talking about. You have a well diversified and low cost portfolio. You can exp...
by dickenjb
Tue Apr 15, 2014 3:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investments/Allocations
Replies: 11
Views: 633

Re: How far in advance to look for rental house or apt?

If it is of any help, I just got back from a week in Reno and my wife and I spent several nights in the Residence Inn just south of town. It was a nice place and they even give you dinner 3 nights a week as well as breakfast every day. Stays of 30+ days are only $99 a night. This was my first visit ...
by dickenjb
Tue Apr 15, 2014 11:07 am
 
Forum: Personal Consumer Issues
Topic: Moving to Reno: When to look for a rental?"
Replies: 12
Views: 561

Re: IRA Contributions AFTER 70 1/2 years of age??

You must be under 70.5 years age to contribute in a traditional IRA. However, no age limit for ROTH IRA as long as other criterion satisfied. i.e. earned income. Actually you don't even need earned income, just compensation. That includes W-2 income, self employment income, non taxable combat pay, ...
by dickenjb
Tue Apr 15, 2014 10:38 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA Contributions AFTER 70 1/2 years of age??
Replies: 12
Views: 720

Re: Almost out of time: Roth, Intrm Investment OR Intrm Bond

You are overanalyzing this. Either will be fine. You are talking about a $5500 investment.
by dickenjb
Tue Apr 15, 2014 10:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Almost out of time: Roth, Intrm Investment OR Intrm Bond Idx
Replies: 13
Views: 498

Re: New homeowner: lawn care advice

I have never owned a lawnmower. Lawn service is easily outsourced for cheap. I estimate it would take me at least 2 hours to cut and trim my 30,000 ft2 lawn. I earn $400 if I consult for 2 hours. I pay $49 to have the lawn done. Note that I mowed lawns as a summer job in high school. Like Scarlett O...
by dickenjb
Tue Apr 15, 2014 8:21 am
 
Forum: Personal Consumer Issues
Topic: New homeowner: lawn care advice
Replies: 44
Views: 2634

Re: Social security benefits as spouse and pension benefits.

And you started a brand new thread for this because...?
by dickenjb
Mon Apr 14, 2014 6:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social security benefits as spouse and pension benefits.
Replies: 5
Views: 573

Re: traditional ira question

So I guess this is a non deductible traditional ira contribution backdoor into Roth. Do I have to amend my 2013 return at all, or do everything for this when I file my 2014 taxes? As I said, you need to file Form 8606 with your 2013 return to document that you made a nondeductible IRA contribution ...
by dickenjb
Mon Apr 14, 2014 6:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: traditional ira question
Replies: 17
Views: 485

Re: traditional ira question

No cutoff but most back door practitioners prefer to do it quickly as the earnings are taxable to you. But they will be taxable in 2014 regardless of whether you do the conversion before or after 4/15.
by dickenjb
Mon Apr 14, 2014 5:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: traditional ira question
Replies: 17
Views: 485

Re: traditional ira question

Solo K maxed out or not is irrelevant. If a contribution was made for 2013, you are considered "covered by a plan at work". Back door is the way to go for you. You do not have to convert tomorrow. You can do it whenever you wish. I think you need to file form 8606 to document your non dedu...
by dickenjb
Mon Apr 14, 2014 5:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: traditional ira question
Replies: 17
Views: 485

Re: traditional ira question

Yes it is.

But you are only considered "covered" if you and/or your business made a contribution for you in the tax year in question.
by dickenjb
Mon Apr 14, 2014 5:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: traditional ira question
Replies: 17
Views: 485

Re: Late Roth Contribution - have to amend taxes?

Quick question for a friend, She has already files her taxes for 2013 but didn't make an IRA contribution. Can she still do a Roth before 4/15 anyway - she doesn't qualify for the traditional. I googled a bit and it seems the answer is Yes - and with the Roth she wouldn't have to amend her tax fili...
by dickenjb
Mon Apr 14, 2014 3:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Late Roth Contribution - have to amend taxes?
Replies: 6
Views: 294

Re: Help with Improving my Portfolio

I do not understand: 1) How you have no idea what you will spend in retirement and 2) Why you will have no social security benefit - either your own or ex spouse or widow benefit It seems to me if you are not able to live on roughly $36K of income from a $900K portfolio that this is a train wreck si...
by dickenjb
Mon Apr 14, 2014 8:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with Improving my Portfolio
Replies: 45
Views: 2499

Re: Older and Wiser - Allocation Advice After Rookie Mistake

Is it ok to hold just US large equities with VFIAX Vanguard 500 Index Admiral? I'm concerned that I don't have enough US market coverage. I wish I had access to a Vanguard total US market index fund in my 401k. Six of one, half a dozen of the other. I personally would add the SC to the mix. But as ...
by dickenjb
Mon Apr 14, 2014 8:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Older and Wiser - Allocation Advice After Rookie Mistake
Replies: 16
Views: 2093

Re: Help with Wife's 401k Plan

Is your ASRS a defined benefit (pension) plan? If so, I would not worry too much about the pension plan's AA - that is their business and they are obligated to pay you a percentage of your last salary. I would consider going all in with the Target 2050 fund in your wife's 401(k). Cheap at 0.1% and h...
by dickenjb
Sun Apr 13, 2014 9:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Wife's 401k Plan
Replies: 6
Views: 367

Re: Help with Wife's 401k Plan

Vince at a minimum we need her expense ratios and your 401(k) choices as well.

Yes her account is a mess. A Target Retirement fund is meant to be a one fund solution. Mixing it with other funds is senseless. But we need to see costs!
by dickenjb
Sun Apr 13, 2014 6:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Wife's 401k Plan
Replies: 6
Views: 367

Re: Costa Rica?

We stayed 5 nights in an ecolodge on Osa Pensinsula. Our cabin was on stilts and our windows were at canopy level. El Remanso - not cheap but worth it.

Also stayed a couple of nights in Alajuela and drove to Vulcan Poas - that was fun.

Ticos are very friendly and we thoroughly enjoyed our trip.
by dickenjb
Sun Apr 13, 2014 7:14 am
 
Forum: Personal Consumer Issues
Topic: Costa Rica?
Replies: 14
Views: 1361

Re: suggestion for awd luxury sedan

I love my 2010 Lexus LS460. Like you, I have had very good experience with Lexus cars.

I can see going for the Hyundai if the $$ savings is important but you say it is not. The Genesis did get very good reviews in Consumer Reports.
by dickenjb
Sun Apr 13, 2014 7:10 am
 
Forum: Personal Consumer Issues
Topic: suggestion for awd luxury sedan
Replies: 35
Views: 2391

Re: deferred comp plans

^ Correct. Note how in the deferred comp example you have $66.44 after withdrawal, which is the same $66.44 you have in taxable before applying taxes. Thus my assertion that gains are not taxed in a deferred comp account. At all. I look at it this way: I earn $100 and am in 25% bracket. I defer $100...
by dickenjb
Sun Apr 13, 2014 7:06 am
 
Forum: Personal Finance (Not Investing)
Topic: deferred comp plans
Replies: 20
Views: 1347

Re: Newly eligible for a 401k-Allocation question

Your best bet is to roll the 401(k) over to a TIRA when you start grad school and convert it to a Roth IRA - just enough each year that you pay no or very little Fed income tax.
by dickenjb
Sat Apr 12, 2014 7:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newly eligible for a 401k-Allocation question
Replies: 14
Views: 561

Re: Online Retirement Calculators

FIREcalc is decidedly not the best, but probably the easiest to use and provides very entertaining graphical output. Fidelity Retirement Income Planner is probably the best but is a lot of work to use. FIREcalc is great for a quick and dirty if you are 10+ years away. FIDO RIP if you are <5 years fr...
by dickenjb
Sat Apr 12, 2014 3:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Online Retirement Calculators
Replies: 17
Views: 1527

Re: IRA or Roth IRA and other decisions

IRS just this past year adopted a safe harbor home office deduction of so many dollars per square foot. You can pay cash for the house and just take the safe harbor deduction of $x times the square footage of your garage.
by dickenjb
Sat Apr 12, 2014 7:34 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA or Roth IRA and other decisions
Replies: 13
Views: 788

Re: gold , silver and copper

The reason I do not own precious metals is because they are not investments, they are tools for speculation. In terms of diversification, you want to own asset classes that not only are uncorrelated or weakly correlated but also have a positive expected return. Metals do not have a positive expected...
by dickenjb
Sat Apr 12, 2014 7:28 am
 
Forum: Investing - Theory, News & General
Topic: gold , silver, copper and uranium only
Replies: 46
Views: 2187

Re: deferred comp plans

2. If I leave before my income is low, it seems my contributions and gains will be taxed at my marginal rate. In the case of the capital gains, this would be significantly higher than the rate I would have paid in a taxable account. I haven't done the math yet. It is sometimes hard to grasp (I know...
by dickenjb
Sat Apr 12, 2014 7:00 am
 
Forum: Personal Finance (Not Investing)
Topic: deferred comp plans
Replies: 20
Views: 1347

Re: deferred comp plans

jji wrote:Yes, it's an NQ plan, but the company is very healthy and at no practical risk of bankruptcy.


That is what ENE and WCOM employees said right before their firms imploded.
by dickenjb
Sat Apr 12, 2014 6:56 am
 
Forum: Personal Finance (Not Investing)
Topic: deferred comp plans
Replies: 20
Views: 1347

Re: Anyone else very reluctant to buy right now?

It seems to me that you choose an asset allocation. When you are working, you direct new moneys to the asset class(es) which are underweight wrt your target AA. When you are retired, you sell securities from the overweighted asset class(es) to supplement pension, dividends, SS, and RMD's. If your ne...
by dickenjb
Fri Apr 11, 2014 7:32 am
 
Forum: Investing - Theory, News & General
Topic: Anyone else very reluctant to buy right now?
Replies: 124
Views: 11384

Re: Passport, TSA Pre-Check, and Global Entry

My wife and I get TSA Precheck free on at least 50% of the flights we take. If your Frequent Flier number is in the res, and you book through the airline vs an OTA it seems to be close to 100%. It is nice but no big deal, basically you get to leave your shoes on and laptop in the bag (liquids too). ...
by dickenjb
Fri Apr 11, 2014 7:23 am
 
Forum: Personal Consumer Issues
Topic: Passport, TSA Pre-Check, and Global Entry
Replies: 58
Views: 2381

Re: Paying a load fee for a lower expense ratio?

Another reason to favor the 401(k) over the TIRA is as you advance in your career, some day you will find you are not eligible to make direct Roth IRA contributions. The TIRA will prevent back door Roth.
by dickenjb
Fri Apr 11, 2014 7:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Paying a load fee for a lower expense ratio?
Replies: 6
Views: 737

Re: Annuities

CountryBoy, don't make the mistake of thinking you need "income" - it is OK to spend down principal as well. Read in the wiki about "total return approach" - Vanguard has a white paper on it as well. I would only be concerned if you were spending more than 4% of your portfolio ba...
by dickenjb
Fri Apr 11, 2014 6:58 am
 
Forum: Investing - Theory, News & General
Topic: Annuities
Replies: 59
Views: 3589

Re: Reducing Sequence of Returns Risk

I am not sure what problem you are trying to solve. If stocks do poorly the first 5 years of retirement, don't you just sell bonds to live on and rebalance at the same time? If paying down a mortgage is like buying a bond, does it not also hold true that taking out a mortgage (or HEL or SRM) is like...
by dickenjb
Thu Apr 10, 2014 7:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Reducing Sequence of Returns Risk
Replies: 11
Views: 1014

Re: Job Offer (Pension Closed since Interview?)

When my previous employer froze the pension plan, it was not offered to employees with join dates after xx/xx/20xx. Presumably this employer has done the same. If the date is 4/1/2014 you are SOL. They won't make any exceptions. If it is 5/1/2014, and you act fast maybe they can bring you on board b...
by dickenjb
Thu Apr 10, 2014 7:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Job Offer (Pension Closed since Interview?)
Replies: 8
Views: 1197

Re: This time it's different?

Well I started my first job after my PhD in 1981 and retired at age 55 in 2010. So I guess I invested during what you term the golden age. However, I am now retired and hold the largest percentage of my assets in fixed income ever (40%). So during decumulation I face the same low yields and high(?) ...
by dickenjb
Thu Apr 10, 2014 6:51 am
 
Forum: Investing - Theory, News & General
Topic: This time it's different?
Replies: 16
Views: 2396

Re: Retirement Saving - My Options

Are you self employed? You can create your own type of 401K and roll the tIRA money into it to hide it from conversion taxes. There are a few posts on here about how to do it, maybe someone has the links? If you do this, make sure to open the solo K at Fidelity. I have a solo K with Vanguard and th...
by dickenjb
Wed Apr 09, 2014 8:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Saving - My Options
Replies: 4
Views: 403

Re: Backdoor Roth IRA Strategy? Help?

Ah, never mind, I found an article online which dealt with this very issue. (I will post the link if and/or cut and paste the information if it's allowed by this website.) But, basically, to help other users of the forum, the choices in my situation would be: 1) Convert the traditional IRA and pay ...
by dickenjb
Wed Apr 09, 2014 8:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Strategy? Help?
Replies: 39
Views: 1140

Re: Seattle trip at end of May - Any tips?

Wild Ginger if you like Asian food.

The revolving restaurant at the top of the Space Needle is surprisingly good for that type of restaurant (usually overpriced and bad food).

Pike's Place Market to see the fishmonger throw whole fish.
by dickenjb
Wed Apr 09, 2014 8:19 pm
 
Forum: Personal Consumer Issues
Topic: Seattle trip at end of May - Any tips?
Replies: 22
Views: 1203

Re: Getting over huge mistakes

1) Yes, forgive yourself for making some mistakes, learn from them, and move on. 2) Your wife has what, a quarter of a million in her 401(k) and you have total savings of ca $300K at age 34? Believe me, you are ahead of 80% of americans. 3) I am not a big fan of putting money in either taxable or 52...
by dickenjb
Wed Apr 09, 2014 8:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Getting over huge mistakes
Replies: 30
Views: 3161

Re: Missing 1099-R for Rollover to Roth IRA

tornado163 wrote:1 other question, does the source of the 403(b) funds matter, in terms of employer contributions vs. employee contributions? Or are both of those taxed when rolling over to a Roth IRA?


It is all taxed as it all went in pre-tax
by dickenjb
Wed Apr 09, 2014 7:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Missing 1099-R for Rollover to Roth IRA
Replies: 9
Views: 353

Re: 529b and Gift Tax, if making excess contribution 1+ year

Why do people keep referring to these qualified tuition plans as 529b? I have always thought they were 529 plans. Am I mistaken, is the formal name 529b (like a 403(b) or a 401(k)?)
by dickenjb
Wed Apr 09, 2014 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: 529b and Gift Tax, if making excess contribution 1+ years
Replies: 6
Views: 256

Re: Unsubsidized Fixed Rate Stafford Loans - a good deal?

Bob's not my name wrote:
By the way, the AOTC is available only through 2017 under current law.


Did not know that. Thank you for that info.
by dickenjb
Wed Apr 09, 2014 6:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Unsubsidized Fixed Rate Stafford Loans - a good deal?
Replies: 22
Views: 813
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