Search found 125 matches

by DEBTINATOR
Mon Mar 06, 2023 4:45 pm
Forum: Personal Investments
Topic: Minimum income for IRA contribution
Replies: 16
Views: 1152

Re: Minimum income for IRA contribution

erp wrote: Mon Mar 06, 2023 2:24 pm
DEBTINATOR wrote: Mon Mar 06, 2023 1:54 pm Right. It seems like if you have a W2 for $75 you can contribute $75 to a Roth IRA or IRA. If you have $12,000, you can contribute $6500 or $7500 depending on age. MAGI doesn't seem to have any impact on these lower income contribution calculation.
If you are talking for 2022, the limit is $6k or $7k.

btw if your dad is MFJ, and his wife had enough compensation income, he can still contribute to his IRA anyway. Or in the reverse case, if his wife had no income, then they can split his 10k into both their IRAs if they wanted.
Thanks. Divorced and flying solo for now.
by DEBTINATOR
Mon Mar 06, 2023 1:54 pm
Forum: Personal Investments
Topic: Minimum income for IRA contribution
Replies: 16
Views: 1152

Re: Minimum income for IRA contribution

Your MAGI determines your eligibility to make contributions to a IRA , as well as how much you can contribute. If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $144,000 for tax year 2022 and $153,000 for tax year 2023 to contribute to a Roth IRA, and if you’re married and filing jointly, your MAGI must be under $214,000 for tax year 2022 and $228,000 for tax year 2023. I don't think this is true, and what seems to be a common misconception. From Pub 590-A, emphasis mine. MAGI seems to only be relevant in REDUCING or limiting the contribution. These are indeed the maximum MAGI to be eligible to contribute to a Roth, i.e. your contribution eligibility is reduced to zero. Not sure what the misconc...
by DEBTINATOR
Mon Mar 06, 2023 10:19 am
Forum: Personal Investments
Topic: Minimum income for IRA contribution
Replies: 16
Views: 1152

Re: Minimum income for IRA contribution

Your MAGI determines your eligibility to make contributions to a IRA, as well as how much you can contribute. If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $144,000 for tax year 2022 and $153,000 for tax year 2023 to contribute to a Roth IRA, and if you’re married and filing jointly, your MAGI must be under $214,000 for tax year 2022 and $228,000 for tax year 2023. I don't think this is true, and what seems to be a common misconception. From Pub 590-A, emphasis mine. MAGI seems to only be relevant in REDUCING or limiting the contribution. https://www.irs.gov/pub/irs-pdf/p590a.pdf Roth IRAs only. If contributions are made only to Roth IRAs, your contribution limit is generally the lesser of: ...
by DEBTINATOR
Mon Mar 06, 2023 10:05 am
Forum: Personal Investments
Topic: Minimum income for IRA contribution
Replies: 16
Views: 1152

Re: Minimum income for IRA contribution

Lee_WSP wrote: Mon Mar 06, 2023 9:27 am Yes, but what’s the point? Unless you’re referring to the Roth IRA.
Referring to a Roth IRA. Dad has enough with SSDI and 2 pensions to meet monthly obligations, so why not 1 more roth contribution. I omitted the word Roth, but I guess I shouldn't have.
by DEBTINATOR
Mon Mar 06, 2023 9:12 am
Forum: Personal Investments
Topic: Minimum income for IRA contribution
Replies: 16
Views: 1152

Minimum income for IRA contribution

2021-22 was my dads final year working. To his surprise he had some lingering W2 pay in 2022. We think it was final sick or vacation payout. Not exactly sure, and don’t think it matters- shows as regular income on the w2.

The amount was a bit under 10k. After standard deduction his AGI would be zero. Can he still max his IRA in this situation?


He does have some SSDI and pension income. Not huge but does carry his AGI higher, but I was curious of the answer in both situations. Zero pension and a high pension pushing AGI higher.
by DEBTINATOR
Sat Mar 04, 2023 10:51 am
Forum: Personal Investments
Topic: Roll IRA into 401k to enable backdoor Roth?
Replies: 20
Views: 1409

Re: Roll IRA into 401k to enable backdoor Roth?

Also consider if your 401(k) is “good” (the investment options). With 100k this is probably your only option. As others have said you don’t need to wait until 12/31/23, but it needs to be completed by then, and it’s prudent to complete the rollover before doing Ira contributions (you could get laid off, etc).

In fact if you hurry you can still backdoor 2022 and 2023
by DEBTINATOR
Sat Mar 04, 2023 10:48 am
Forum: Personal Investments
Topic: Does anyone know where to view SEC fees on sales in Merrill Edge?
Replies: 11
Views: 763

Re: Does anyone know where to view SEC fees on sales in Merrill Edge?

I don’t know but it’s SO small it’s not worth brain power for a bogleheads. This initially worries me too but it’s been less than like a dollar in my 5 years using them.
by DEBTINATOR
Sun Feb 12, 2023 3:58 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads® Live: submit ?s on disability insurance
Replies: 18
Views: 1670

Re: Bogleheads® Live: submit ?s on disability insurance

I have a few! 1. Own occ makes complete sense to me for an athlete, doctor, dentist, etc. It feels less critical for someone who is say a “middle manager.” It would be helpful to hear some actual examples of a non-physician where this made a difference. Employer plans have a definition that is often is regular occ or transitional. I’m not nec. Talking about social securities Any Occ. 2. Obviously COLA when young and own occ are riders that I feel are pretty much mandatory. Residual is often pushed but the use case seems tenuous to me. If someone can work 60% and get by on close to that is it really needed? 3. Employer LTD is WAY cheaper. Often a blend of 50-60% employer and 25-40% might be more affordable. Do you actually recommend that cli...
by DEBTINATOR
Thu Feb 02, 2023 11:02 am
Forum: Personal Investments
Topic: HomerJ - retirement plan
Replies: 81
Views: 16198

Re: HomerJ - retirement plan

LTC seems to be your biggest exposure. As is often the case with married couples with 500-3M ish. The risk is one goes into care and depletes the others savings.

Overall though. Looks pretty solid. I’d want to see some
Monte Carlo scenarios as you’re quite young.
by DEBTINATOR
Tue Apr 05, 2022 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Form 5498 Roth IRA 2021 showing $12000
Replies: 7
Views: 652

Re: Form 5498 Roth IRA 2021 showing $12000

vk_217 wrote: Tue Apr 05, 2022 11:59 am
nolesrule wrote: Tue Apr 05, 2022 10:57 am Did you ever file the 2020 Form 8606 showing the 2020 non-deductible contribution you made in Feb 2021?
Yes, I did file Form 8606 showing the 2020 non-deductible contribution.
Next question, did you import that in turbotax and show the basis from the prior year? What does this current year's 8606 show?

You did it in a confusing way which requires you to understand the forms carefully.

Your 2020 should show a contribution of 6k and no conversion

Your 2021 should show that carry forward basis of 6k, a new 6k and a conversion of the total 12k with almost no gain/tax owed.
by DEBTINATOR
Tue Sep 14, 2021 8:10 am
Forum: Personal Investments
Topic: Is anyone intentionally overpaying the IRS to get IBONDS?
Replies: 39
Views: 6908

Re: Is anyone intentionally overpaying the IRS to get IBONDS?

This sounds like a giant headache for me and my heirs. I'd probably lose them. VTSAX for me.
by DEBTINATOR
Sun Sep 05, 2021 8:49 am
Forum: Personal Consumer Issues
Topic: Car Under Warranty Burning Oil
Replies: 57
Views: 7690

Re: Car Under Warranty Burning Oil

My wife' has a 4 year old Kia Soul that has 75k miles on it that consistently burns about 1 quart of oil every 1000 miles. Since the car's still under warranty (until 100k miles) she took it into the Kia dealership service center who changed her oil and then had her come back in 1000 miles for a reading. Sure enough, car was loosing about a quart every 1000 miles. They said that this was perfectly normal, was within Kia specs, and that a vehicle may consume up to 3 quarts of oil in one 3000 mile period. Does this sound reasonable? To me it seems very excessive. I don’t know the exact threshold but my wife’s Subaru did the same test and they reached a different conclusion. It was burning too much. Rebuilt the entire engine for free - just b...
by DEBTINATOR
Thu Aug 19, 2021 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance policy (older man, younger woman)
Replies: 12
Views: 1302

Re: Life insurance policy (older man, younger woman)

Athena_03 wrote: Thu Aug 19, 2021 9:38 pm No kids thank the lord :D I didn't mention my income because I didn't think it matters or would make any difference. :? My net take home pay is $4000 after taxes/benefits (70k/annually). I have 30K in my employers 401K. But for how much long is my job gonna last? Can I even rely on my income? What if I lose the job or my income goes down or I get disabled? The flip side is yes my income could go up. I'm climbing my way up the career ladder so it's possible ill be making more later.
These are reasons to invest in yourself/have an emergency fund or get long-term disability insurance. None of this shows a need for life insurance.
by DEBTINATOR
Sun Jun 20, 2021 12:25 pm
Forum: Personal Investments
Topic: Great grandmother, $2MM excess funds, seeking advice
Replies: 11
Views: 2686

Re: Great grandmother, $2MM excess funds, seeking advice

There’s no reason she can’t give more than the 15k now, because most of this money should be invested or used according to the heirs goals and objectives. 15k is just the annual exemption. She still has an 11m exemption, she can chose to jump start using that now. For instance if she wanted to give out 6x100k now to the families to help with a down payment or home remodel or pay for a grandchild’s school, that seems reasonable and would likely give them some enjoyment.

I’d still want to keep a good amount for her, but it sounds like given the pensions, ss, etc and her age 1m is probably more than enough.
by DEBTINATOR
Sat May 29, 2021 3:52 pm
Forum: Personal Investments
Topic: Too much in Roth?
Replies: 12
Views: 2355

Re: Too much in Roth?

We need more info: income/tax bracket and state. I would NOT do taxable instead of Roth seeing as you can get out your contributions early if needed.

Reg 401k instead of Roth 401k. Probably
by DEBTINATOR
Thu Mar 04, 2021 10:05 am
Forum: Personal Investments
Topic: TSP Allocations Out Of "L" Fund
Replies: 23
Views: 1852

Re: TSP Allocations Out Of "L" Fund

Target funds in general are neither good and bad. Some have very low fees and some charge nearly 1%. The concept is great and works for most people but you need to know what you have.

The TSP falls into the category of good, or very good. You could fidget and do your own swapping some G for F, but it’s also ok as is.

Here’s an example, NOT specific to your TSP
https://www.marketwatch.com/story/targe ... 2019-08-07
by DEBTINATOR
Fri Nov 27, 2020 1:51 pm
Forum: Personal Investments
Topic: Inheritance Advice
Replies: 18
Views: 2475

Re: Inheritance Advice

lakpr wrote: Fri Jul 24, 2020 4:12 pm
DEBTINATOR wrote: Fri Jul 24, 2020 4:05 pm Full disclosure - we keep one account at ML for BofA preferred rewards. It's not any better or worse than others. Rest of our funds at are TD Ameritrade.
Sorry, a 1% AUM fee is worse than Vanguard or Fidelity, who charge only 0.3%. As far as BofA Preferred Rewards, you can have them by keeping $100k at Merrill-Edge, the do-it-yourself alternative from BofA/Merrill
This is an old quote, but I pay 0 AUM to manage a 3 fund portfolio at Merrill Edge. Don’t be so pretentious.
by DEBTINATOR
Fri Nov 27, 2020 1:49 pm
Forum: Personal Investments
Topic: If one were to start investing today - late to the game
Replies: 42
Views: 5924

Re: If one were to start investing today - late to the game

Dont the over think it.

Pick an allocation...70/30 or 60/40. It doesn’t matter much.

Implement 3 fund.

Rebalance or TLH.
by DEBTINATOR
Sat Nov 14, 2020 10:05 am
Forum: Investing - Theory, News & General
Topic: You’ve won the game, now what? 45-55 how to allocate assets?
Replies: 98
Views: 11097

Re: You’ve won the game, now what? 45-55 how to allocate assets?

The difference in those 3 options are not huge. 60:40 works in many cases. You’re on the fence so it will probably work in yours. You could probably stay 60:40 forever. Pick one that will give you peace and just stick with it.
by DEBTINATOR
Fri Jul 24, 2020 4:07 pm
Forum: Personal Investments
Topic: Risk in the Muni market
Replies: 8
Views: 840

Re: Risk in the Muni market

Van wrote: Fri Jul 24, 2020 4:03 pm If it is not a substantially higher risk premium, then what is it that explains the tax-free yield of the Muni MM being essentially twice that of the taxable Prime MM?
What if the tax free muni was yielding 0.02 and the Prime MM was yielding 0.01, would it be twice the risk or a rounding error?

What if it was yielding 10% and Prime was yielding 5%?

Scale matters. I am not worried about a yield of 0.12.

Both are crap, open a CD if this is keeping you up at night.
by DEBTINATOR
Fri Jul 24, 2020 4:05 pm
Forum: Personal Investments
Topic: Inheritance Advice
Replies: 18
Views: 2475

Re: Inheritance Advice

Any advice on what to tell Merrill Lynch? My sympathies for your loss. ML will almost certainly require you to open a personal account with them in order to transfer your uncle's estate account to you. Get that process done ASAP. In your new account, sell everything to cash. Contact Vanguard and discuss the moving of your inheritance from your new [and temporary] ML account. I just wanted to comment that it's usually recommended by other financial planners that I work with to allow Merrill Lynch to open accounts for you at Merrill and deposit the funds there, at least as a first step. It just makes the process smoother and easier in the long run. Once it's open, you can choose to liquidate (you've already been given good advice about taxes...
by DEBTINATOR
Fri Feb 07, 2020 10:50 pm
Forum: Personal Investments
Topic: Make The Case: Fidelity v. Schwab
Replies: 66
Views: 9263

Re: Make The Case: Fidelity v. Schwab

NJ_Bogler wrote: Fri Feb 07, 2020 10:42 pm
123 wrote: Fri Feb 07, 2020 10:12 pm The other difference is that Fidelity offers automatic rollover on treasury securities at auction whereas Schwab does not.

Our solution has been to use Fidelity when we want treasury securities at auction with rollovers.
Schwab now has automatic rollovers. Started last month.

Not sure if it matters to you, but Schwab has a slightly better checking account product (no foreign transaction fees). In short though you can’t go wrong either way.
You might be surprised to learn that fidelity also waived and reimbursed FTF. Also their checking options actually pay interest. So I would call schwab inferior hands down, nothin slight about it.
by DEBTINATOR
Mon Oct 14, 2019 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 1169
Views: 229461

Re: Relationship mortgage discounts for moving a million assets

Just to add details for comparison sake of a refi we are in the midst of: 30 yr fixed, 1.2 mill loan @ 3.625%, no points, closing costs about $1000 all in. Also relationship discounts of: $250,000-$499,999 the interest rate is lower by .125% $500,000-$749,999 the interest rate is lower by .250% $750,000-$1,000,000 the interest rate is lower by .375% $1,000,000 or more the interest rate is lower by .500% This was with Wells Fargo, we locked several days ago. Since one point usually lowers a 30-year rate by .125%, this is effectively a $12,000 rebate on every $250,000 transferred, a 5% rebate. This large a rebate is certainly worth taking, even if the investment options are slightly inferior (commissions on the ETFs you want to trade). What ...
by DEBTINATOR
Mon Oct 14, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: BoA preferred rewards - worth it for very high spend?
Replies: 16
Views: 2820

Re: BoA preferred rewards - worth it for very high spend?

You seem to have thought through everything.

You probably make a ton of money but are agonizing over $400 bucks/year and you’re happy where you are.

I have the same struggles and I feel you. I have a Merrill edge account too, if only for curiosity. Is it worth it? Probably not. But we double dipped and refi’d Our mortgage getting a relationship discount.
by DEBTINATOR
Fri Jul 26, 2019 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Student Loan Forgiveness advice
Replies: 46
Views: 5203

Re: Student Loan Forgiveness advice

TL/DR: your hardship may go away due to increase income, but they won't kick you off the IDR plan. And, any payments made while on an IDR plan count [on-time, while at a qualifying employer], even if they ended up being more than the standard 10-year repayment. That may not leave much to be forgiven though. If my hardship goes away, even though they don’t kick me off IDR lack of hardship result in my loss of a chance to obtain the Public Service Loan forgivness? No. But have you figured out if your loan even qualifies in the first place? They told me I’d qualify. But is there anyone I can get a third party to confirm this information is accurate? Why not just go to the first party? This is the national database. https://nslds.ed.gov/nslds/...
by DEBTINATOR
Sun Jul 07, 2019 1:30 am
Forum: Personal Finance (Not Investing)
Topic: Refi at this rate?
Replies: 31
Views: 4038

Re: Refi at this rate?

finite_difference wrote: Sat Jul 06, 2019 10:34 am
DEBTINATOR wrote: Sat Jul 06, 2019 3:24 am
mervinj7 wrote: Fri Jul 05, 2019 1:43 pm
DEBTINATOR wrote: Fri Jul 05, 2019 12:19 pm No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?
Yes. BofA
Was it a no cost refi? Otherwise how much did you pay for points?
Almost, about $800 out of pocket after lender credits. Breakeven in 2mos.
by DEBTINATOR
Sat Jul 06, 2019 3:24 am
Forum: Personal Finance (Not Investing)
Topic: Refi at this rate?
Replies: 31
Views: 4038

Re: Refi at this rate?

mervinj7 wrote: Fri Jul 05, 2019 1:43 pm
DEBTINATOR wrote: Fri Jul 05, 2019 12:19 pm No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
30 year refinance for 3.5%? If so, which bank was that?
Yes. BofA
by DEBTINATOR
Fri Jul 05, 2019 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Refi at this rate?
Replies: 31
Views: 4038

Re: Refi at this rate?

No, I wouldn’t.

I just did a 30yr at 3.5%.

All that interest rate risk for 0.06%? Pass!

Search for the relationship mortgage thread.
by DEBTINATOR
Mon Jun 24, 2019 10:27 pm
Forum: Personal Investments
Topic: Just to be clear - Mega Backdoor Roth
Replies: 11
Views: 2667

Re: Just to be clear - Mega Backdoor Roth

Said another way, a 30year old at your company has the exact same amount of after tax space, assuming enough or equal salary.

You, however, can put more total money into the retirement plan.
by DEBTINATOR
Tue Jun 11, 2019 11:20 pm
Forum: Investing - Theory, News & General
Topic: Dividend Reinvestment Plan (DRIP) in a Taxable Account - Good or Bad Idea?
Replies: 5
Views: 1142

Re: Dividend Reinvestment Plan (DRIP) in a Taxable Account - Good or Bad Idea?

teelainen wrote: Tue Jun 11, 2019 11:04 pm For a taxable account, is it a good idea to turn OFF the automatic Dividend Reinvestment Plan?

Wouldn't that make tax tracking easier? (because you won't have as many lots with a different cost basis)

Any other advantages or disadvantages?
Generally you turn it off and use the dividends to rebalance.

Yes it would make tax tracking easier, but software allows you to import this stuff so it’s not a big deal.

One example each way- i hold a vanguard ca bond at TD Ameritrade. I reinvest the dividends to save on ticker charges.

If you don’t reinvest dividends, then you’ll have to manually make a rebalancing trade, allowing room for behavioral bias to creep in.
by DEBTINATOR
Sat Jun 08, 2019 7:00 pm
Forum: Personal Consumer Issues
Topic: Nest Smoke/CO Detectors
Replies: 21
Views: 2475

Re: Nest Smoke/CO Detectors

As others have said, the integrated motion-activated nightlight is helpful in the bedroom, especially with a newborn.
by DEBTINATOR
Wed Jun 05, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 1169
Views: 229461

Re: Relationship mortgage discounts for moving a million assets

Question for those that have done this before. My wife has an 810 credit score. I don't know, but suspect I'm closer to 780-800 (they use the mortgage lending model which is hard to find w/out paying myFICO.com). I may add myself but it'll reduce lender credits and possibly rate, which kind of defeats the purpose of moving the money in the first place. My questions: 1. If my wife was alone on the mortgage, does that mean only her assets can count toward the $500k of assets? (e.g. cannot count my IRA, but can count hers + joint brokerage) 2. If I'm on the title, does that matter (for purposes of asset counting)? 3. The mortgage guy seemed a bit loose on the details regarding relationship pricing, but basically said it would show up later in ...
by DEBTINATOR
Tue Jun 04, 2019 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 1169
Views: 229461

Re: Relationship mortgage discounts for moving a million assets

WOW BofA finally came through after several days with this offer: 2.625% 10/1 ARM, -1/8 point lender credit, conditional on $500k in new money This caused me to give BOA a call today. The guy basically said that was impossible (I'm not questioning Startled Cat, the CSR could be wrong). For 10/1, they quoted me 3.375 with a sliding scale of points based on credit scores between 760 and 800. For a 30yr fixed, they also quoted me 3.625 with negative points (some lender credits) that could be reduced by 0.25% if I move $500k. So I could go from 4% to 3.375, and pick up some IRA bonuses as well. He was fairly sure that IRAs count, and even said the $ doesn't have to stay. Rate locks are for 60 days, so I have some time to move the $ (though you...
by DEBTINATOR
Wed May 29, 2019 3:52 pm
Forum: Personal Investments
Topic: Married to an S-Corp owner
Replies: 12
Views: 1589

Re: Married to an S-Corp owner

As others have pointed out, with 5 employees it gets complicated. Are they full-time?

The full-fledged 401(k) is more complicated, but probably a necessity given her structure. If she is really not interested in offering the retirement plan to the employees, then taxable accounts + IRA can be the way to go. Better than nothing.

But 1M is not small, a 6-7k IRA is not going to get you very far. If you want to skew it in her favor and get the deferral, look at defined benefit/contribution pension plans. You can use things like age-weighted, social security permitted disparity, etc.

Lastly, as others have also said, the S-Corp doesn't really "retain" earnings in the same way - whether they're in the bank account or not.
by DEBTINATOR
Mon May 20, 2019 3:12 pm
Forum: Personal Investments
Topic: Am I off my rocker? Shift some assets to real estate?
Replies: 23
Views: 2359

Re: Am I off my rocker? Shift some assets to real estate?

Personal anecdote: I worked from ages 14-18 as a busbuy at Outback Steakhouse. My parents didn't have money. I made $2.83/hr + tips (minimum wage). Would be 7-9/hr. I worked Sat-Sunday and maybe a Friday night or Thursday. I was also Valedictorian, an Eagle Scout, and played 3 Varsity sports. So, don't let someone tell you its distracting. You can do it and I recommend it. Time management is an important skill. It also helped me to realize the importance of going to a college and sticking with it. My co-workers were all very nice people but the place was filled with people who started and stopped to never go back. I've been back at age ~30 and there are still people there a decade later who were planning to finish up their degrees. You woul...
by DEBTINATOR
Wed May 15, 2019 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Paying down mortgage - college aid?
Replies: 3
Views: 587

Re: Paying down mortgage - college aid?

As SC said, you were getting different answers because schools have different standards. You need to look at the federal standards in the institutional standards.

Since you are six years out and you don’t know where your kid will go to school, You don’t know which set of standards to look at, or if those standards will change or not.

In other words it’s impossible to answer your question, but I can tell you that there is a better chance that moving money from my brokerage account to say home equity will help you versus hurt you.

Also worth mentioning that income is a much bigger factor then assets so you should figure out first if you qualify for any need-based aid due to your income before you start moving assets around
by DEBTINATOR
Wed May 15, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Too much disability insurance?
Replies: 4
Views: 402

Re: Too much disability insurance?

You should be OK to get the private disability insurance now, and Its probably a good idea given that you have no insurance at the moment. If you were to reapply in one year after your work disability would be in place then you would qualify for a reduced premium/benefit. So by applying now you can essentially lock in more insurance than you otherwise could. If your concern is the monthly outlay for the private policy, you could reduce the amount to save 40% or year from now. It’s not well documented or explain but you can generally go down in benefit, just not the other way around without underwriting. This is something that occurs with a lot of physicians for example that purchased disability during residency. You should clarify with your...
by DEBTINATOR
Fri May 10, 2019 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Help me pull the trigger-need to quit
Replies: 41
Views: 6177

Re: Help me pull the trigger-need to quit

Since DH is still contributing, you’re drawing down 60 and maybe replacing 20 or more with a match, etc.

40k/2.3M is 1.7% withdrawal.

Only on this forum would people find a way for that not to work.

10k is an RMD.

30k can come from taxable easily or you can play with rothnconv ladder or 72t. Many options.
by DEBTINATOR
Tue May 07, 2019 11:23 am
Forum: Personal Finance (Not Investing)
Topic: 529 Question--one per child, or one per family?
Replies: 13
Views: 1373

Re: 529 Question--one per child, or one per family?

First off, very kind.

Do you know how much $ the parents (your kid) makes? Will they be qualifying for financial aid? If they are well off and won’t qualify for need based aid, then this doesn’t matter, but if they do you need to be careful.

Grandparent 529 asset is invisible, BUT is counted as income when received, so you really only want to use it for year 3.5 and 4.

https://www.capstonewealthpartners.com/ ... r-college/
by DEBTINATOR
Sun May 05, 2019 1:45 am
Forum: Personal Finance (Not Investing)
Topic: Jumbo vs Super Conforming Mortgage
Replies: 4
Views: 1167

Re: Jumbo vs Super Conforming Mortgage

When we bought. I was told that banks have to hold jumbo loans on their books longer than confirming, which get flipped almost instantly.

So, the underwriting process can be a bit more stringent and possibly lower risk.
by DEBTINATOR
Sat May 04, 2019 10:42 pm
Forum: Personal Investments
Topic: Vanguard PAS experience - weird
Replies: 9
Views: 1917

Re: Vanguard PAS experience - weird

As the expression goes, you get what you pay for. PAS isn't a full-service financial advisor. They aren't going to help you with cash flow or insurance beyond sending you a pdf and sending you on your way. If you want them to determine your AA and implement, that's what you should expect. Beyond that, they are pretty constrained and conservative in what they will allow advisors to do.
by DEBTINATOR
Fri May 03, 2019 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Boat close enough to the dock? Career transition question
Replies: 10
Views: 1548

Re: Boat close enough to the dock? Career transition question

How does your financial planning business make you feel when you do the work versus your IT consulting career? You have the resources to make the jump, but I would say to walk away from that kind of income, your heart has to be 100% in the new business. Keep your IT skills sharp, if after several years the financial planning business isn’t going as well as planned, you should be able to get back into the IT world. IMO - do it! I really really enjoy working with young couples and helping them sort through their finances. It has been extremely rewarding. On the other hand, I wish I had time to do it a bit more to do some volunteer work, with couples who cannot afford but need financial planning - just no time! Seems the IT job allows you to ...
by DEBTINATOR
Fri May 03, 2019 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Boat close enough to the dock? Career transition question
Replies: 10
Views: 1548

Re: Boat close enough to the dock? Career transition question

That's a great salary for family medicine physician. Is that VA/Government position - i am guessing because of the 5 year pension. If so, and spouse is continuing to be happy with work after first kid, then I count her position as super super secure and would be comfortable dropping out of the consulting gig. Spend more time with kid, spouse, doing CFP work, enjoying good weather. Agree, it really is! We feel very fortunate. It's not gov't but it does vest after 5 and it's well funded. I think a FT job, a PT job, a baby and a spouse who is a doctor is probably too much to not live a crazed life. However, if you have more kids, all in daycare, you may have a problem if you cut the FT job. Maybe you could cut the FT job and do part time dayc...
by DEBTINATOR
Fri May 03, 2019 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Please Critique our Budget
Replies: 28
Views: 3001

Re: Please Critique our Budget

rashad3000 wrote: Fri May 03, 2019 2:39 pm 11 more years on a 15-year at 0.125% (NACA).
Could you explain this?

You're saving like $5k/month, which is great. I assume based on age and NW that this is a recent increase in the last few years, but it seems like you are well within your means.
by DEBTINATOR
Fri May 03, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Boat close enough to the dock? Career transition question
Replies: 10
Views: 1548

Re: Boat close enough to the dock? Career transition question

Jack FFR1846 wrote: Fri May 03, 2019 2:12 pm Just think of how far that physician salary would go in Austin. Why not just move there? Then you can start out a CFP hobby and if it's not really paying....who cares?
It's a good question that I can speak to. Within her specialty, which is Family Medicine, the pay and more importantly job responsibility and lifetyle vary a lot. In Pittsburgh, PA for instance, where she did her residency, the market rate is about $100k lower (160-190k), and includes some additional responsibility.
by DEBTINATOR
Fri May 03, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Boat close enough to the dock? Career transition question
Replies: 10
Views: 1548

Boat close enough to the dock? Career transition question

Long post! Some may get the Dave Ramsey reference. I’ve been a Boglehead for a while now, since ’11 when I first wrote for help in prioritizing student loans and 401(k). Started a 2nd career as a financial planner and think it’s time to cut the cord. Not looking for portfolio advice, just general impressions on long-term success w/ making the change. It’s a big income to forego, and I don’t want to be an idiot. Background: VHCOL – Bay Area. Just had our first in January. Healthy boy, 3 months old. Probably will have 2 total. Maybe 1 -3, nothing is for sure! We moved to the Bay Area at DW's request to avoid snow, and we have friends here. I know Austin would have been cheaper 😊. Wife (31): going into her 3rd year as a practicing physician. S...
by DEBTINATOR
Thu Mar 21, 2019 2:14 pm
Forum: Personal Investments
Topic: Will rolling over 401(k) jeopardize future backdoor Roth IRA conversions?
Replies: 5
Views: 601

Re: Will rolling over 401(k) jeopardize future backdoor Roth IRA conversions?

chazas wrote: Thu Mar 21, 2019 2:09 pm 1. Yes.
2. No reason not to leave your money in your old employer's 401(k) if the investment options are good. I had one 401(k) I left with a former employer back in the days when good investment options were hard to come by, and it stayed there for more than 15 years until I eventually rolled it over.

This is good advice. Some 401(k) plans are really really bad, some are great. The more $ you have there the more of a difference it makes.

How old are you? 25 years of future Backdoor Roth IRAs is a big deal if it even lasts. 2 years of it maybe not so much.
by DEBTINATOR
Thu Mar 21, 2019 2:04 pm
Forum: Personal Consumer Issues
Topic: Recall: Subaru 2015, 2016 & 2017 Legacy & Outback steering
Replies: 59
Views: 12839

Re: Recall: Subaru 2015, 2016 & 2017 Legacy & Outback steering

We have a 2013 Subaru that has already been through 2 recalls and a full engine rebuild. Less than 30k miles.

On top of that, the Bluetooth phone connection is incompatible with the headlights and runs on a frequency that causes a buzzing noise that is unbearable.

I know people love Subaru but what a massive heap of crap.
by DEBTINATOR
Fri Mar 15, 2019 11:21 am
Forum: Personal Investments
Topic: Backdoor Roth worth it?
Replies: 23
Views: 1647

Re: Backdoor Roth worth it?

To clarify, age 67-70 you aren’t working and don’t have to take RMD. Depending on spouse you can probably convert some pretax to Roth and maybe defer social security.
by DEBTINATOR
Fri Mar 15, 2019 11:19 am
Forum: Personal Investments
Topic: Backdoor Roth worth it?
Replies: 23
Views: 1647

Re: Backdoor Roth worth it?

You honestly have a really good grasp on the process, pro rata rule and it seems like the only risk is being out of the market as it seems you have already ruled out custodian to custodian transfer.

I would probably do it but with hesitation as we are at a high point in the market...though who knows how high.

I would also take into account no RMD
on Roth versus your IRA, and you can delay IRA withdrawals by remaining employed at 401k company. So I would do more planning there first and optimize social security, rmd and maybe an early retirement Roth conversion.