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Re: SPIA - what do guarantee associations cover?

Thanks PJW. Anyone has has a take on this or understand what the current rules mean? Thanks!
by learning_head
Mon Apr 21, 2014 3:17 pm
 
Forum: Investing - Theory, News & General
Topic: SPIA - what do guarantee associations cover?
Replies: 4
Views: 484

Re: Backdoor Roth and Turbotax

Not an expert here but had similar situation and here is my take... Hello, I know this is probably basic, but I'm missing. I looked at http://www.bogleheads.org/forum/viewtopic.php?t=67303 and I'm still confused. In 2011 and 2012, we weren't eligible for a Roth, so I tried to do the backdoor Roth fo...
by learning_head
Tue Apr 08, 2014 5:19 pm
 
Forum: Investing - Theory, News & General
Topic: Backdoor Roth and Turbotax
Replies: 1
Views: 200

Re: Wade Pfau: Lifecycle Finance

Suppose R40 didn't give a hoot about when she retired. Instead she came to you for advice in the following situation. I want very little risk in my portfolio, but I want the portfolio to consist 100% of emerging market small cap stocks. What AA advice would you give? Might you consider suggesting t...
by learning_head
Sun Apr 06, 2014 2:32 pm
 
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Lifecycle Finance
Replies: 118
Views: 12120

Re: Wade Pfau: Lifecycle Finance

I appreciate your response grayfox... I guess this is the best R40 can do... Unfortunately, I don't think it's realistic just because of this: Make a guess about inflation, Say 3% inflation per year. (Actually inflation expectations are more like 2.5% right now, so 3% has a margin for error.) BTW, y...
by learning_head
Sun Apr 06, 2014 1:04 pm
 
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Lifecycle Finance
Replies: 118
Views: 12120

SPIA - what do guarantee associations cover?

I've looked at http://www.nolhga.com and http://www.annuityadvantage.com/stateguarantee.htm but have not found an explanation of what do state associations actually cover for inflation-adjusted SPIAs... Hoping some folks on this board would know... Say, in a state with $250,000 limit on "presen...
by learning_head
Sat Apr 05, 2014 3:03 pm
 
Forum: Investing - Theory, News & General
Topic: SPIA - what do guarantee associations cover?
Replies: 4
Views: 484

Re: Wade Pfau: Lifecycle Finance

If you do not have flexibility in the retirement age, LCF says as you approach retirement you should be taking very little risk, because that inflexibility gives you very little risk capacity. Hi BobK, The point of the question was HOW IN PRACTICE with TODAY's products could R40 take the least amou...
by learning_head
Sat Apr 05, 2014 2:45 pm
 
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Lifecycle Finance
Replies: 118
Views: 12120

Re: Wade Pfau: Lifecycle Finance

BobK, thank you so much for all the info and great posts. I have a similar kind of question as Richard. Let's imagine a simple scenario: someone with wierd name R40 who wants to retire at 40 and provide a floor of $25k/year. I think following assumptions would be reasonable: - R40 accumulated $300K...
by learning_head
Sat Apr 05, 2014 2:33 pm
 
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Lifecycle Finance
Replies: 118
Views: 12120

Re: Wade Pfau: Lifecycle Finance

There is not any strategy that can help much, if you are only going to work to age 40, or even 50. There are simply too few years of work compared to many years of expected retirement. You have to be either wealthy, or be willing to live a simple inexpensive lifestyle in retirement. Thanks for your...
by learning_head
Tue Apr 01, 2014 7:57 pm
 
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Lifecycle Finance
Replies: 118
Views: 12120

Re: Wade Pfau: Lifecycle Finance

BobK, thank you so much for all the info and great posts. I have a similar kind of question as Richard. Let's imagine a simple scenario: someone with wierd name R40 who wants to retire at 40 and provide a floor of $25k/year. I think following assumptions would be reasonable: - R40 accumulated $300K ...
by learning_head
Fri Mar 28, 2014 8:18 am
 
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Lifecycle Finance
Replies: 118
Views: 12120

Re: Tax form 1116 questions

I tried using IRS freefile site for 1116 and it got rejected with this code: "Issue : Business Rule F1116-012 - If for any country in Form 1116, Line 2 'ForeignIncRelatedExpensesAmt' has a non-zero value, then [ForeignIncmRelatedExpensesStmt] must be attached to Line 2. The following informatio...
by learning_head
Thu Mar 20, 2014 12:30 pm
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Tax form 1116 questions

Hi grabiner, HouseBlend, I think one of our big questions here has been for state taxes on line 2: - do we account for just 2013 state taxes (in full), or - do we account for part of 2013 / part of 2012 state taxes as reflected on Schedule A, line 5 I think reasons to think that line 5 of Schedule A...
by learning_head
Sun Mar 09, 2014 11:16 am
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Tax form 1116 questions

<deleted>
by learning_head
Sat Mar 08, 2014 10:31 am
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Tax form 1116 questions

@HouseBlend: Thanks for response. I corrected my earlier post based on it. Only other difference I wanted to note is that [Full foreign income + State Taxed Income - Federal AGI] formula I came up with (thanks for correcting it) only applies when State Taxed Income <= US sourced part of Federal AGI....
by learning_head
Tue Mar 04, 2014 11:27 am
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Form 8960 (Net Investment Income Tax)

@sscritic: you are right, thanks for catching - I should not have said "modified 2013 AGI". I remove "modified" word. It does not change my (and OP's) main question though: why are we combining numbers from line 5 of Schedule A (which is a combination of state tax related payment...
by learning_head
Mon Mar 03, 2014 5:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Form 8960 (Net Investment Income Tax)
Replies: 6
Views: 1392

Re: Tax form 1116 questions

So, for state taxes - do you mind answering my question #2? I think part of your reply already suggests that indeed effective state tax rate for current year is needed to properly get the number (i.e. as current year 2013 state tax rate * total foreign sourced income in 2013)... Would you put this ...
by learning_head
Mon Mar 03, 2014 5:24 pm
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Tax form 1116 questions

Hi grabiner, You need to determine what fraction of your taxable income was foreign. For VWO and VEA, since Vanguard website says "The foreign income percentage for this fund was 100%.", I believe ALL of their reported qualified and non-qualified reported numbers are foreign-sourced, right...
by learning_head
Sun Mar 02, 2014 11:01 pm
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Tax form 1116 questions

livesoft wrote:OK, if someone else doesn't, I will plug in your numbers into TurboTax, but give me at least a week to do that (and hope grabiner or others answer in the meantime).


Thanks livesoft, it would be interesting to see what it shows this time around - maybe they fixed the bugs from earlier year :-)
by learning_head
Sun Mar 02, 2014 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Tax form 1116 questions

No, I don't have Turbo Tax but when I did try it in 2011, it did NOT come up with correct numbers - it double counted real estate taxes on lines 3a and 3b, and I think put State taxes on line 3a instead of line 2 (and also mishandled early withdrawal penalty too) according to my notes... So, I would...
by learning_head
Sun Mar 02, 2014 7:09 pm
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Tax form 1116 questions

Hi folks, I apologize for long post but I have very specific questions. I am hoping some of the detail-oriented members here that like to go into nitty-gritty details might have had similar questions in the past and/or know how to resolve them... Also, below is a scenario that might be applicable to...
by learning_head
Sun Mar 02, 2014 7:02 pm
 
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 29
Views: 1644

Re: Form 8960 (Net Investment Income Tax)

Wonder if anyone has updates on this? I am confused just as OP about line 9b on 8960. If I am to follow the instructions, it looks like I can deduct Schedule A line 5 state income tax (which in turn has some payments for 2012 income and other payments are for 2013 income) and then, to find part that...
by learning_head
Sat Mar 01, 2014 6:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Form 8960 (Net Investment Income Tax)
Replies: 6
Views: 1392

Personal Defined Benefits Plan

Has anyone had any experience with this? http://www.forbes.com/sites/robertberger/2014/02/24/3-stealth-retirement-savings-moves-for-the-wealthy/?ss=personalfinance Finally, for self-employed individuals, a personal defined benefit plan may enable you to save more than $100,000 a year in a tax-deferr...
by learning_head
Wed Feb 26, 2014 8:54 am
 
Forum: Investing - Theory, News & General
Topic: Personal Defined Benefits Plan
Replies: 15
Views: 1503

Re: When tax-efficient taxable investing isn't?

^ Although we are squarely in the "official" 25% marginal income tax bracket and pay an effective rate of about 10%, when we do that exercise, we get in the high forties for the marginal rate. Bob's not my name has written about this: http://thefinancebuff.com/your-marginal-tax-rate.html ...
by learning_head
Wed Feb 19, 2014 9:36 am
 
Forum: Investing - Theory, News & General
Topic: When tax-efficient taxable investing isn't?
Replies: 51
Views: 3578

Re: When tax-efficient taxable investing isn't?

If I put muni bonds in taxable and stocks in tax-advantaged, I save that 0.58% drag, for this particular blend of domestic and international holdings. That's assuming I hold muni bonds equivalent in risk, duration, yield, etc, to my current tax-advantaged holdings. I believe muni bonds normally sho...
by learning_head
Tue Feb 18, 2014 11:16 pm
 
Forum: Investing - Theory, News & General
Topic: When tax-efficient taxable investing isn't?
Replies: 51
Views: 3578

Re: Questions about filling out PenFed IRA CD forms

Due to IRA CD maturity in another institution around end of month I will literally have 5 calendar days next week to transfer the funds to Penfed and open the CDs. By what I am hearing on this thread, it would be almost impossible... So, I wonder, has anyone had experience wiring the money to Penfe...
by learning_head
Wed Feb 05, 2014 8:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Questions about filling out PenFed IRA CD forms
Replies: 118
Views: 5935

Re: How do you use Penfed?

Yesterday night decided to open one more (taxable) CD account online before the rates changed today. Took 5 minutes from logging in to Penfed site to having CD confirmation page with new account number and CD showing up along with my other accounts. Most of that 5 minutes I was double checking that ...
by learning_head
Sat Feb 01, 2014 11:25 am
 
Forum: Investing - Theory, News & General
Topic: How do you use Penfed?
Replies: 24
Views: 2453

Re: Help! Paralyzed by bond choices. Is MM the answer?

So assuming you are the sole member-owner (e.g., no spouse), you are insured for $500K with two beneficiaries across all POD accounts. You could easily bump that to $1M by opening a couple of $1,000 CDs and naming a couple of charities or good friends as beneficiaries of those small CDs. Hi Kevin, ...
by learning_head
Thu Jan 30, 2014 1:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Help! Paralyzed by bond choices. Is MM the answer?
Replies: 27
Views: 2416

Re: Question about PenFed Certificate Opening

The day they receive your funds is the day whose rates you get. So you will have to overnight any application that includes a check to ensure you get the 3.04%. I wonder what it means that they have your funds... Cash in the account or check in the paperwork? If they have your check, and sit on it ...
by learning_head
Thu Jan 30, 2014 12:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Question about PenFed Certificate Opening
Replies: 17
Views: 1589

Re: How do you use Penfed?

I had opened accounts online with them. Had account number and online access within 10-20 minutes of starting as I recall. Did not receive mail paperwork until some time later, but by then I already had opened CDs, etc and did not really need to wait for that snail-mailed paperwork for anything (exc...
by learning_head
Thu Jan 30, 2014 12:49 am
 
Forum: Investing - Theory, News & General
Topic: How do you use Penfed?
Replies: 24
Views: 2453

Re: Penfed question: indirect IRA rollover

On a side note: those that wonder if they still have time to transfer IRA to Penfed, this process takes two days, if you already have IRA account opened with Penfed: 1 day to withdraw money from your current IRA to some taxable account (via cashier's check); second day to wire the money and fax in t...
by learning_head
Wed Jan 29, 2014 12:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Penfed question: indirect IRA rollover
Replies: 2
Views: 155

Penfed question: indirect IRA rollover

Question for those that have done indirect IRA rollover to Penfed; i.e. rollover via money distributed to your taxable account and then adding IRA CD to your Penfed IRA account with that money later, within 60 days: what supporting documentation has Penfed required for this? Or was the money + free-...
by learning_head
Wed Jan 29, 2014 12:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Penfed question: indirect IRA rollover
Replies: 2
Views: 155

Re: Questions about filling out PenFed IRA CD forms

In my case multiple CSRs did confirm they received the check on Jan 17th, but I have the same concern - IRA dept has been sitting on that cashier's check from a bank for over a week now. If they send it next week and funds end up arriving after Feb 1, would they NOT guarantee the 3% rate basically b...
by learning_head
Sat Jan 25, 2014 3:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Questions about filling out PenFed IRA CD forms
Replies: 118
Views: 5935

Re: Questions about filling out PenFed IRA CD forms

Due to IRA CD maturity in another institution around end of month I will literally have 5 calendar days next week to transfer the funds to Penfed and open the CDs. By what I am hearing on this thread, it would be almost impossible... So, I wonder, has anyone had experience wiring the money to Penfe...
by learning_head
Tue Jan 21, 2014 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Questions about filling out PenFed IRA CD forms
Replies: 118
Views: 5935

Re: Questions about filling out PenFed IRA CD forms

Due to IRA CD maturity in another institution around end of month I will literally have 5 calendar days next week to transfer the funds to Penfed and open the CDs. By what I am hearing on this thread, it would be almost impossible... So, I wonder, has anyone had experience wiring the money to Penfed...
by learning_head
Mon Jan 20, 2014 6:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Questions about filling out PenFed IRA CD forms
Replies: 118
Views: 5935

Re: Any passive funds that avoid dividend-paying stocks?

Thanks for reminder, grabiner. I also found related thread that I forgot about. Earlier, I had found that VEA was by far the most tax efficient, followed by VWO (emerging markets) / IJS, then VTI (US stock market), and only then by VXUS (total international), VBR, etc. I guess we don't have a clear ...
by learning_head
Mon Jan 20, 2014 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: Any passive funds that avoid dividend-paying stocks?
Replies: 19
Views: 1590

Re: Any passive funds that avoid dividend-paying stocks?

My understanding is that VEA is trying to that for International stocks (outside of US) as opposed to VXUS... Not sure why same kind of fund would not be available for US stocks too... What am I missing? VEA (and the mutual fund Tax-Managed International) didn't actually deviate from the index the ...
by learning_head
Mon Jan 20, 2014 12:50 am
 
Forum: Investing - Theory, News & General
Topic: Any passive funds that avoid dividend-paying stocks?
Replies: 19
Views: 1590

Re: Any passive funds that avoid dividend-paying stocks?

My understanding is that VEA is trying to that for International stocks (outside of US) as opposed to VXUS... Not sure why same kind of fund would not be available for US stocks too... What am I missing?
by learning_head
Sun Jan 19, 2014 9:58 pm
 
Forum: Investing - Theory, News & General
Topic: Any passive funds that avoid dividend-paying stocks?
Replies: 19
Views: 1590

Re: Exercise stock options?

Good question OP and thanks for the link, Wagnerjb. I find it interesting that having stock options can effectively force one to become much more of a market timer and make one try to evaluate intrinsic value of their company. I am not sure what the correct "boglehead" way of doing this is...
by learning_head
Wed Jan 15, 2014 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: Exercise stock options?
Replies: 5
Views: 349

Re: Harder to stay the course with Bull than with Bear

Thanks for responses so far. A few follow ups: @Imperabo: normally at accumulation stage people do not depend on their investments to live on. Yes, indeed, that would make it easier to handle bears for them (good point), but it does not make it any easier to handle bulls :-( @jimbojones: do you mean...
by learning_head
Wed Jan 15, 2014 2:14 pm
 
Forum: Investing - Theory, News & General
Topic: Harder to stay the course with Bull than with Bear
Replies: 18
Views: 1566

Harder to stay the course with Bull than with Bear

Just wanted to share that I find it much much harder in accumulation stage to "stay the course" with desired AA in bull markets than with bear markets. Yet it seems like most of discussions on this board (and elsewhere) are about how people lose it during bear markets. What I find is that ...
by learning_head
Wed Jan 15, 2014 11:56 am
 
Forum: Investing - Theory, News & General
Topic: Harder to stay the course with Bull than with Bear
Replies: 18
Views: 1566

Re: 401(k) loan interest double taxed myth?

Even if company did not require you to repay the loan because they did not want to keep track of it or figured it would be between IRS and you, it would be against IRS rules I am sure to allow you to effectively take withdrawal from 401(k) without paying penalty and taxes that you would have paid ot...
by learning_head
Wed Jan 15, 2014 11:45 am
 
Forum: Investing - Theory, News & General
Topic: 401(k) loan interest double taxed myth?
Replies: 60
Views: 4497

Re: 401(k) loan interest double taxed myth?

I'm confused. How does the TSP loan rate matter at all? I could be wrong as I have not looked at all the details but if you look at my earlier post , at the end of it you will find that whether to take loan from 401k or taxable depends on whether [ Rt - R4 * AT ] is greater or less than [ LR * (1 -...
by learning_head
Wed Jan 15, 2014 12:54 am
 
Forum: Investing - Theory, News & General
Topic: 401(k) loan interest double taxed myth?
Replies: 60
Views: 4497

Re: IMPORTANT INFO re: Penfed's IRA certificate policy

Hi gad, were you talking to anyone specifically from IRA department in any of these times?

P.S. Engineer's example from another thread keep me going with Penfed but examples like gad's made me switch from my original plan for 7-year CD to choosing 5-year CD option :-(
by learning_head
Thu Jan 02, 2014 2:13 pm
 
Forum: Investing - Theory, News & General
Topic: Penfed IRA CD partial withdrawal penaties
Replies: 67
Views: 1692

Re: IMPORTANT INFO re: Penfed's IRA certificate policy

Not sure if this helps but... From PenFed’s IRA Application Booklet at https://www.penfed.org/Opening-an-IRA-Account/ (which is under https://www.penfed.org/Forms/ -> Deposit Accounts -> "IRA Account / ROTH IRA / Converting IRA to ROTH - Application Booklet"), see items (f-2) and (g-iv) me...
by learning_head
Wed Jan 01, 2014 3:19 pm
 
Forum: Investing - Theory, News & General
Topic: Penfed IRA CD partial withdrawal penaties
Replies: 67
Views: 1692

Re: New PenFed CD rates!

I don't have references handy but I did look into FDIC And NCUA coverages in the past and one (I thought important) difference was in the question related to POD account titling. FDIC had specific instructions that to consider POD accounts as separate category (from individual), you must have had Ac...
by learning_head
Sun Dec 29, 2013 12:42 pm
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 33202

Re: Thoughts on mortgage as a negative bond

my rent versus buy decision was easy because my mortgage payment is lower or equal to rent. [...] I do not think about my mortgage at all because I consider it as housing cost since rent = mortgage payment. This appears to be a common misconception. You should never be comparing mortgage and rent. ...
by learning_head
Sun Dec 29, 2013 12:33 pm
 
Forum: Investing - Theory, News & General
Topic: Thoughts on mortgage as a negative bond
Replies: 53
Views: 3567

Re: Penfed IRA CD partial withdrawal penaties

Victoria, if you can do partial withdrawal (of all but $1k) for free, why bother with 5 years and not open 10 years? Currently, Penfed offers 3% CDs only for 5 years and 7 years. I might get 7-year CDs, but I don't think it's likely that 3% will be considered a great rate for seven years. Victoria ...
by learning_head
Mon Dec 23, 2013 3:56 pm
 
Forum: Investing - Theory, News & General
Topic: Penfed IRA CD partial withdrawal penaties
Replies: 67
Views: 1692

Re: Penfed IRA CD partial withdrawal penaties

Thanks Engineer, in your case, it sounds like you kept the money all within IRA, right? So this was not considered a distribution then? How was this transaction classified on your forms (their form 735 specifically)? This is a very good data point and sounds promising. I wonder if anyone also was ab...
by learning_head
Mon Dec 23, 2013 3:49 pm
 
Forum: Investing - Theory, News & General
Topic: Penfed IRA CD partial withdrawal penaties
Replies: 67
Views: 1692

Re: Penfed IRA CD partial withdrawal penaties

Thanks john94549, this was my understanding as well from reading online info but their CSR seemed to contradict this, as I even gave her example of 100k CD with 50k withdrawal, to which she replied they would need to know the reason for such large withdrawal, whether it's for medical purposes or som...
by learning_head
Mon Dec 23, 2013 3:29 pm
 
Forum: Investing - Theory, News & General
Topic: Penfed IRA CD partial withdrawal penaties
Replies: 67
Views: 1692

Penfed IRA CD partial withdrawal penaties

Has anyone had experience withdrawing money from non-matured Penfed IRA CD after age 60, in the amount more than RMD (or at least more than RMD based on IRA funds that Penfed knows about)? I just talked to a CSR who implied that unless distribution is in the RMD amount (and it was not clear if they ...
by learning_head
Mon Dec 23, 2013 3:16 pm
 
Forum: Investing - Theory, News & General
Topic: Penfed IRA CD partial withdrawal penaties
Replies: 67
Views: 1692
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