If your father is the sole beneficiary he can disclaim all or part of an inheritance and it will pass to his offspring. Disclaiming needs to be done in writing and retained by the executor of the estate. So getting a check from the estate as inheritance is not a bad thing if it has been properly documented.
We disclaimed funds from my mother-in-law's estate and those funds passed equally to our two children. The executor has a letter noting the disclaiming of funds from an account that was closed. The checks went from the estate directly to our children.
Search found 5520 matches
- Mon Mar 25, 2024 10:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is a check written from an estate account going to look like an inheritance rather than gift?
- Replies: 7
- Views: 1413
- Sun Mar 24, 2024 3:38 pm
- Forum: Personal Investments
- Topic: Portfolio Review in Retirement
- Replies: 30
- Views: 2727
Re: Portfolio Review in Retirement
Do some research regarding TIPS funds. Note the change in TIP share values over time. I prefer to limit risk to equities and there prefer individual TIPS rather than TIP funds.
- Sun Mar 24, 2024 10:19 am
- Forum: Personal Finance (Not Investing)
- Topic: Timing my retirement date
- Replies: 15
- Views: 1680
Re: Timing my retirement date
I too advise working a bit into the next year. Create a low income tax year that allows you to increase your retirement contributions to IRA and Roth. Roth conversions in that year might be advantageous as well.
- Sun Mar 24, 2024 10:13 am
- Forum: Personal Investments
- Topic: Portfolio Review in Retirement
- Replies: 30
- Views: 2727
Re: Portfolio Review in Retirement
You are generally on target and that is evidenced by the responses you have received so far.
An item missing in your profile is spending, specifically charitable contributions. If you make regular contributions to charities you should set up an IRA to be able do easily do Qualified Charitable Distributions. (Some IRAs allow a checking account which makes charitable gifting easy.)
The first step up for IRMAA is not horrible, the second step gets a bit expensive. QCDs can help control taxable income.
An item missing in your profile is spending, specifically charitable contributions. If you make regular contributions to charities you should set up an IRA to be able do easily do Qualified Charitable Distributions. (Some IRAs allow a checking account which makes charitable gifting easy.)
The first step up for IRMAA is not horrible, the second step gets a bit expensive. QCDs can help control taxable income.
- Sat Mar 23, 2024 5:34 pm
- Forum: Investing - Theory, News & General
- Topic: three fund portfolio tax efficiency
- Replies: 4
- Views: 744
Re: three fund portfolio tax efficiency
You are in the 22% marginal tax bracket. While not a high tax bracket, you can defer some of your tax liability by putting some money in a regular IRA.
I agree with you that it is wise to have a Roth IRA as well.
My approach would be to fund both a Roth IRA and a regular IRA. Put the Roth assets in a stock fund - I would use a total stock market fund. Put the IRA money in a bond fund. An 80/20 or 70/30 portfolio are fine for your age if you have the risk tolerance to not sell during a down market.
I agree with you that it is wise to have a Roth IRA as well.
My approach would be to fund both a Roth IRA and a regular IRA. Put the Roth assets in a stock fund - I would use a total stock market fund. Put the IRA money in a bond fund. An 80/20 or 70/30 portfolio are fine for your age if you have the risk tolerance to not sell during a down market.
- Thu Mar 21, 2024 2:57 pm
- Forum: Personal Consumer Issues
- Topic: Ancestry.Com Membership
- Replies: 11
- Views: 1227
Re: Ancestry.Com Membership
Your "personal family tree" needs definition with respect to Ancestry and Familysearch.
Correct you cannot build your family tree in its entirety. What you can do is create a family tree that consists of your ancestors. As you list your ancestors you can add all of their offspring, not just your particular descendant line. You and other family members can access that tree and add, delete and make modifications to that tree. My French cousins (sixth cousins) and I have both added detail to our tree based on finding and noting original documents in the US, France, Germany, and Belgium.
Correct you cannot build your family tree in its entirety. What you can do is create a family tree that consists of your ancestors. As you list your ancestors you can add all of their offspring, not just your particular descendant line. You and other family members can access that tree and add, delete and make modifications to that tree. My French cousins (sixth cousins) and I have both added detail to our tree based on finding and noting original documents in the US, France, Germany, and Belgium.
- Wed Mar 20, 2024 7:17 pm
- Forum: Personal Consumer Issues
- Topic: Ancestry.Com Membership
- Replies: 11
- Views: 1227
Re: Ancestry.Com Membership
Steelersfan wrote
This is not true I have my family tree available on both. Do note that familytree it is a bit like Wikipedia in that anyone can edit your contributions. One would need my password to edit my tree on Ancestry."But be aware that the Library Edition and one one at FamilySearch are for research only. You can't build or maintain your personal family tree there."
- Wed Mar 20, 2024 7:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: House insurance - hail claim question
- Replies: 11
- Views: 1184
Re: House insurance - hail claim question
We had ours inspected by a local roofer first. That roofing company then showed up and was present when the insurance adjuster did his inspection. The two parties were in agreement that the roof was damaged and needed replacing.
Having the roofer was key. The roofer pointed out the age of our roof and the fact that it needed to be rebuilt, not just reshingled.
Having the roofer was key. The roofer pointed out the age of our roof and the fact that it needed to be rebuilt, not just reshingled.
- Sat Mar 16, 2024 8:48 am
- Forum: US Chapters
- Topic: Minnesota Bogleheads Spring Meeting: April 27, 2024
- Replies: 0
- Views: 726
Minnesota Bogleheads Spring Meeting: April 27, 2024
Save the Date
Date: 4/27/24
Time: 9:30 - Noon
Place: Minnetonka, Ridgedale Library - Rohlf Room (plus 172 & 174)
This has been our regular meeting place for the past few years.
An agenda with information regarding the plenary session and breakout sessions will follow when finalized
Date: 4/27/24
Time: 9:30 - Noon
Place: Minnetonka, Ridgedale Library - Rohlf Room (plus 172 & 174)
This has been our regular meeting place for the past few years.
An agenda with information regarding the plenary session and breakout sessions will follow when finalized
- Tue Mar 12, 2024 4:31 pm
- Forum: Personal Investments
- Topic: Newbie for Bonds
- Replies: 30
- Views: 2569
Re: Newbie for Bonds
Not mentioned specifically here is where will you hold your bond allocation? Will it be in an IRA or in a regular brokerage account? If in a regular account there may be income tax implications for some holdings.
- Mon Mar 11, 2024 2:51 pm
- Forum: Personal Investments
- Topic: T Notes versus TIPS
- Replies: 5
- Views: 638
Re: T Notes versus TIPS
A little more background in terms of this particular purchase. Initially it will be about 2% of my investment portfolio so I'm not inclined to do a 50/50 split of T Notes and TIPS. I expect a couple future purchases over the next year or so to increase that holding to about 5%. My 457b plan has some restrictions regarding withdrawals from stable value funds.
(I'm over 70.5 years in age and RMDs and estate planning with regard to beneficiary designations are reasons I continue to hold a 457b account as well as an IRA.)
(I'm over 70.5 years in age and RMDs and estate planning with regard to beneficiary designations are reasons I continue to hold a 457b account as well as an IRA.)
- Mon Mar 11, 2024 10:22 am
- Forum: Personal Investments
- Topic: T Notes versus TIPS
- Replies: 5
- Views: 638
T Notes versus TIPS
I have historically invested a portion of my non equity allocation in a stable value fund. The low guaranteed yields have me searching for an alternative in my IRA. (I'm rebalancing between my deferred account (457b) and my IRA to maintain the same overall asset allocation.) I do not want to have to do continual reinvesting that is required with a CD ladder. I already have a modest CD ladder. I do not want funds as they have historically fluctuated too much in value negating the risk avoidance feature I seek in non equities. Ergo, I would prefer moderate term (5 to 10 years) individual T Notes or TIPS in my IRA that I can buy through my brokerage account. Which would be your recommendation, and why? My IRA is with Schwab. I do not have acco...
- Thu Feb 15, 2024 4:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: Keeping SS at lower taxable level
- Replies: 17
- Views: 2131
Re: Keeping SS at lower taxable level
How old is your mother?
If she is in her 70's she can make qualified charitable distributions from her IRA instead of gifting to charities from her regular accounts. The gifts from an IRA do not count as taxable withdrawals and would possibly reduce the amount of her social security benefits being taxed.
If she is in her 70's she can make qualified charitable distributions from her IRA instead of gifting to charities from her regular accounts. The gifts from an IRA do not count as taxable withdrawals and would possibly reduce the amount of her social security benefits being taxed.
- Tue Jan 30, 2024 7:20 pm
- Forum: Personal Investments
- Topic: I need reassurance that I'm doing the right thing.[portfolio review]
- Replies: 30
- Views: 5987
Re: My First Portfolio Review - Feedback Requested, Please. Large Percentage of Portfolio Is In Cash.
I think you are well situated and got a good response from lakpr.
Long term it would be a good idea to have a tax deferred account even though you are currently in a low tax bracket. Once you go that route - perhaps as you work your way into a higher tax bracket, slowly move your bond allocation there until you reach your target asset allocation in bonds.
Long term it would be a good idea to have a tax deferred account even though you are currently in a low tax bracket. Once you go that route - perhaps as you work your way into a higher tax bracket, slowly move your bond allocation there until you reach your target asset allocation in bonds.
- Mon Jan 29, 2024 7:56 pm
- Forum: Personal Investments
- Topic: Portfolio Review 7 years prior to retiring
- Replies: 9
- Views: 1694
Re: Portfolio Review 7 years prior to retiring
You are retiring a bit on the early side in terms of IRA withdrawals.
I would suggest putting more money into Roth IRAs. Keep in mind that you can withdraw contributions (not earnings) w/o penalty. In your early years of retirement you can withdraw contributions from a Roth and then replace them with a Roth conversion.
This might be helpful in managing your taxes.
I would suggest putting more money into Roth IRAs. Keep in mind that you can withdraw contributions (not earnings) w/o penalty. In your early years of retirement you can withdraw contributions from a Roth and then replace them with a Roth conversion.
This might be helpful in managing your taxes.
- Fri Jan 26, 2024 7:11 pm
- Forum: US Chapters
- Topic: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
- Replies: 6
- Views: 9145
Re: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
Just a brief reminder that the meeting is tomorrow. If so inclined, come a few minutes early to help with set up.
One resource that will be mentioned tomorrow is the Numbers Unlimited reference sheet which is now available for 2024. It is an excellent tax planning and RMD planning reference produced by Financial Plan Inc. The reference sheet can be downloaded for free.
One resource that will be mentioned tomorrow is the Numbers Unlimited reference sheet which is now available for 2024. It is an excellent tax planning and RMD planning reference produced by Financial Plan Inc. The reference sheet can be downloaded for free.
- Thu Jan 25, 2024 10:56 pm
- Forum: Personal Investments
- Topic: 403 vs 457b
- Replies: 9
- Views: 1174
Re: 403 vs 457b
If there are reasonable low cost investment options the 457b is a better option if you are considering retiring early.
I have a 457b, also through Empower, and the options are just fine. Low cost, broad based equity funds are available.
My wife had both a 457b and a 403b (a public university was her employer) and her investment options were very similar in both account types.
I have a 457b, also through Empower, and the options are just fine. Low cost, broad based equity funds are available.
My wife had both a 457b and a 403b (a public university was her employer) and her investment options were very similar in both account types.
- Tue Jan 23, 2024 3:59 pm
- Forum: Personal Consumer Issues
- Topic: UK Trip Estimate
- Replies: 104
- Views: 9665
Re: UK Trip Estimate
I question the logic of the original itinerary and am ignoring the cost factor.
During the fall you are losing daylight. To start in London and end in Scotland does not take that into account.
Missing on the itinerary are a couple of Scotland highlights, Inverness and Loch Ness. They are worth a day each.
The revised approach is very doable. Stonehenge and Salisbury used to be a day trip from London. Perhaps it still is available as such.
During the fall you are losing daylight. To start in London and end in Scotland does not take that into account.
Missing on the itinerary are a couple of Scotland highlights, Inverness and Loch Ness. They are worth a day each.
The revised approach is very doable. Stonehenge and Salisbury used to be a day trip from London. Perhaps it still is available as such.
- Tue Jan 23, 2024 10:21 am
- Forum: Personal Consumer Issues
- Topic: Family International Trip - Italy or France
- Replies: 13
- Views: 1611
Re: Family International Trip - Italy or France
Starting from the premise that the OP wants to add 2-3 days to the trip, I agree that staying in the Barcelona area is advisable. Florence would be my pick for a single walkable city but getting there and international travel considerations to and fro would make me inclined to a different choice.
Certainly, lots to do Madrid. A not mentioned interesting alternative from Barcelona is Andorra.
Do flight to Barcelona go through Paris? If yes that becomes a more viable option.
Certainly, lots to do Madrid. A not mentioned interesting alternative from Barcelona is Andorra.
Do flight to Barcelona go through Paris? If yes that becomes a more viable option.
- Fri Jan 19, 2024 3:09 pm
- Forum: Personal Investments
- Topic: Starting Over
- Replies: 17
- Views: 2701
Re: Starting Over
You are proposing a simple approach and that is certainly a good approach.
While aiming for an almost equally simple approach I would add a minor adjustment to improve your future overall tax liability.
First step - be aware of your risk tolerance and choose a target retirement fund accordingly.
Second step - Because earnings from a Roth account are tax free it is generally recommended to have more equity expose in one's Roth and less in a tax deferred account.
Third step - Consider putting Roth funds in equities only and balancing that with slightly more conservative target retirement funds in your tax deferred accounts. The combined should be close to your desired asset allocation.
While aiming for an almost equally simple approach I would add a minor adjustment to improve your future overall tax liability.
First step - be aware of your risk tolerance and choose a target retirement fund accordingly.
Second step - Because earnings from a Roth account are tax free it is generally recommended to have more equity expose in one's Roth and less in a tax deferred account.
Third step - Consider putting Roth funds in equities only and balancing that with slightly more conservative target retirement funds in your tax deferred accounts. The combined should be close to your desired asset allocation.
- Wed Jan 17, 2024 7:25 pm
- Forum: Personal Investments
- Topic: 2024 Portfolio Checkup - Married Couple
- Replies: 15
- Views: 2019
Re: 2024 Portfolio Checkup - Married Couple
I'm of a similar opinion as Duckie.
With relatively high cost options in her 403b - choose a single broad based low cost option for this account. You have lots of other accounts where you can use better options to meet your desired asset allocation.
In general I would strive to simplify a bit and would add some diversification into non equities. 10% is my personal minimum hold for non equities - a position you would want to hold in a tax deferred account.
With relatively high cost options in her 403b - choose a single broad based low cost option for this account. You have lots of other accounts where you can use better options to meet your desired asset allocation.
In general I would strive to simplify a bit and would add some diversification into non equities. 10% is my personal minimum hold for non equities - a position you would want to hold in a tax deferred account.
- Wed Jan 03, 2024 7:06 pm
- Forum: US Chapters
- Topic: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
- Replies: 6
- Views: 9145
Re: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
A printable version of the agenda is available on the Minnesota Bogleheads Facebook page at https://www.Facebook.com/groups/MNbogleheads/
Please feel free to ask questions here in advance of the meeting.
Check the Minnesota website here: https://www.bogleheads.org/blog/portfol ... l-chapter/
Please feel free to ask questions here in advance of the meeting.
Check the Minnesota website here: https://www.bogleheads.org/blog/portfol ... l-chapter/
- Sun Dec 31, 2023 10:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth Conversion question
- Replies: 9
- Views: 1378
Re: Roth Conversion question
Generally speaking, the basic question with a Roth conversion is does it make sense to pay more taxes now and less later. Part of the calculation is current tax bracket versus future tax bracket when taking taxable RMD's (some RMD's can be non taxed qualified charitable contributions, for example). In the case presented by the OP making a conversion during a year of unemployment can be a conversion where very little taxes are paid. Example: Converting $20,000 with no other income would result in $6,150 in taxable income after the standard deduction. That amount is within the very low 10% marginal tax rate bracket - almost a no brainer. Converting $200,000 more than fills the 24% bracket with a substantial amount of money taxed at 24%. A muc...
- Mon Dec 18, 2023 7:23 pm
- Forum: Personal Finance (Not Investing)
- Topic: Schwab checking
- Replies: 62
- Views: 5692
Re: Schwab checking
I've used the Schwab ATM card in multiple counties in Europe without any problems. The checking pays very little interest but it is easy to link the account to your brokerage account and park funds in a money market or short term CD. Very easy user interface. Account transfers are easy as well.
- Sun Dec 03, 2023 11:45 am
- Forum: US Chapters
- Topic: Suggestions for the Wiki
- Replies: 699
- Views: 537630
Re: Suggestions for the Wiki
Any thought about adding the link for "New Topics" to the Wiki page? The location of the link is not particularly intuitive.
- Sun Dec 03, 2023 11:37 am
- Forum: US Chapters
- Topic: Minnesota Bogleheads Winter Meeting: Jan 27, 2024
- Replies: 6
- Views: 9145
Minnesota Bogleheads Winter Meeting: Jan 27, 2024
January 3 Update - Minnesota Bogleheads will meet on January 27, 2024. Ridgedale Library, 12601 Ridgedale Drive, Minnetonka, MN: 9:30 – 11:30 am Rohlf Meeting Room (Note to those who have attended previous meetings -this is our usual location.) MN Bogleheads - … “dedicated to do-it-yourself, low cost, diversified, stay the course investing” Draft Agenda 9:30 Introduction Welcome, opening remarks, splinter group update - by Chris 9:40 Plenary Session Details Below 10:25 5-Minute Break Breakout attendee sorting and breakout room assignments, attendees should have back-up break-out in mind due to room limits 10:30 Breakout Sessions Details below 11:30 Wrap Up Thank you for attending! Wo longer need to stack chairs or return tables. 11:30 Socia...
- Mon Nov 13, 2023 4:44 pm
- Forum: Personal Investments
- Topic: New to retirement planning
- Replies: 25
- Views: 2021
Re: New to retirement planning
You are on the right path.
Saving to a 401k and putting it in a target retirement fund is fine. At your tax rate a Roth would be an acceptable approach as well.
Because you are the only breadwinner, I would suggest keeping a bit more in an emergency fund. If you can find a bank account that pays some interest that would be good.
Being debt free at your age is excellent. Many would envy you.
I would put some of the inheritance into an index fund and use some of it to increase your emergency fund. Maybe a couple $10,000 CD's - one a one year CD and the other a two year CD.
Note - this is relatively conservative advice.
Saving to a 401k and putting it in a target retirement fund is fine. At your tax rate a Roth would be an acceptable approach as well.
Because you are the only breadwinner, I would suggest keeping a bit more in an emergency fund. If you can find a bank account that pays some interest that would be good.
Being debt free at your age is excellent. Many would envy you.
I would put some of the inheritance into an index fund and use some of it to increase your emergency fund. Maybe a couple $10,000 CD's - one a one year CD and the other a two year CD.
Note - this is relatively conservative advice.
- Sat Nov 04, 2023 7:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I ask my in-laws to change their trust?
- Replies: 83
- Views: 10041
Re: Should I ask my in-laws to change their trust?
cchrissyy wrote:
If yes, any one of the three (or all) could disclaim all or part of their proceeds and those proceeds would pass to their children.
Read up on disclaiming and on per stirpes provisions in wills and trusts.
Indeed - this is the first step. Read the trust. Does the trust divide assets by three "per stirpes'?it is possible their trust is already written such that if your husband disclaims his share will flow to his children.
or it is possible if he disclaims it flows to the siblings.
this would be a question for the current lawyer, and honestly, i would not raise it until the parents had passed.
i would focus on my own estate plan and gifts while living.
If yes, any one of the three (or all) could disclaim all or part of their proceeds and those proceeds would pass to their children.
Read up on disclaiming and on per stirpes provisions in wills and trusts.
- Fri Oct 27, 2023 7:17 pm
- Forum: US Chapters
- Topic: Minnesota Bogleheads Fall Meeting this Saturday
- Replies: 1
- Views: 4782
Re: Minnesota Bogleheads Fall Meeting this Saturday
Reminder - the meeting is tomorrow at the Ridgedale Library. Library opens at 9:00, meeting begins at 9:30.
- Sun Oct 22, 2023 2:58 pm
- Forum: US Chapters
- Topic: Minnesota Bogleheads Fall Meeting this Saturday
- Replies: 1
- Views: 4782
Minnesota Bogleheads Fall Meeting this Saturday
Reminder - our fall meeting is this Saturday, October 28th. Ridgedale Library, Minnetonka, MN. 9:30 am
For full details follow this link viewtopic.php?t=411827
As always - sessions are free, no sales. One of our goals is to teach you to do your own financial planning. Come a bit early to select the breakout session topic of most interest to you.
For full details follow this link viewtopic.php?t=411827
As always - sessions are free, no sales. One of our goals is to teach you to do your own financial planning. Come a bit early to select the breakout session topic of most interest to you.
- Fri Oct 06, 2023 11:28 am
- Forum: US Chapters
- Topic: Minnesota Bogleheads Fall Meeting October 28, 2023
- Replies: 8
- Views: 7746
Re: Minnesota Bogleheads Fall Meeting October 28, 2023
Main Meeting Fall 2023 October 28, 2023 Ridgedale Library, 12601 Ridgedale Drive, Minnetonka, MN: 9:30 – 11:30 am Rohlf Meeting Room MN Bogleheads - … “dedicated to do-it-yourself, low cost, diversified, stay the course investing” mnbogleheads@gmail.com www.facebook.com/groups/MNBogleheads/ FINAL AGENDA 9:30 Introduction Welcome, opening remarks, splinter group update by Chris 9:40 Plenary Presentation Details Below 10:25 5-minute break Breakout attendee sorting and breakout room set up, have back-up breakout due to room limits 10:30 Breakout Sessions Choose one topic/table to attend and participate; 45 minutes in length; 11:30 Wrap Up Thank you for attending! Help clean up. No longer need to stack chairs, return tables. 11:30 Social Time/B...
- Mon Oct 02, 2023 11:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: I have enough money, but I want a little bit more.
- Replies: 24
- Views: 4559
Re: I have enough money, but I want a little bit more.
Assuming the 145K is gross income and is taxable, with a standard deduction you are at $117,300 in taxable income. That is in the low middle of the 22% marginal tax bracket with current tax law. I would be inclined to withdraw some each year from the 457 act. You might also consider setting up a Roth for each of you and moving some funds to that. Keep in mind that your Medicare B is dependent on your Gross income not your taxable income. With a two year lookback that means at age 63 you will have to watch things more closely. My inclination would be to do withdrawals and modest Roth conversion for the next 5 years and then reassess. A goal would be to stay in the 22% bracket in the near future with a long term goal of not bumping much above...
- Fri Sep 22, 2023 10:36 pm
- Forum: Personal Finance (Not Investing)
- Topic: Inheritance?
- Replies: 4
- Views: 1467
Re: Inheritance?
There are a couple simple options. In many states one can have a Transfer on Death Deed. The deed to the house would transfer to the named person upon the death of the owner.
Another option is that if you are the only child, you can disclaim an inheritance and it would pass to your heirs as if you had already died. If you have multiple children disclaiming an inheritance would pass to your heirs (plural) not just to one heir. This may not work in your case if there are multiple children in the per stirpes line.
Another option is that if you are the only child, you can disclaim an inheritance and it would pass to your heirs as if you had already died. If you have multiple children disclaiming an inheritance would pass to your heirs (plural) not just to one heir. This may not work in your case if there are multiple children in the per stirpes line.
- Wed Aug 30, 2023 7:14 pm
- Forum: US Chapters
- Topic: Minnesota Bogleheads Fall Meeting October 28, 2023
- Replies: 8
- Views: 7746
Re: Minnesota Bogleheads Fall Meeting October 28, 2023
A brief note. There will be an updated more complete agenda posted in late September.
- Wed Aug 30, 2023 7:12 pm
- Forum: Personal Investments
- Topic: Roth Conversion goals for Bogleheads
- Replies: 104
- Views: 11837
Re: Roth Conversion goals for Bogleheads
If possible convert enough so that RMD's don't push you into a high tax bracket. Note that at age 70.5 you can make charitable donations from IRAs.
Also, not often mentioned. Keeping some money in an IRA can serve as a health insurance supplement. If you have a high cost year in terms of medical expenses you may be in a zero tax bracket and can take funds from an IRA tax free. Note that $200,000 in an IRA generates about $8000 in RMD withdrawals the first couple years. That is very manageable in terms of tax planning.
Also, not often mentioned. Keeping some money in an IRA can serve as a health insurance supplement. If you have a high cost year in terms of medical expenses you may be in a zero tax bracket and can take funds from an IRA tax free. Note that $200,000 in an IRA generates about $8000 in RMD withdrawals the first couple years. That is very manageable in terms of tax planning.
- Wed Aug 30, 2023 3:42 pm
- Forum: US Chapters
- Topic: Minnesota Bogleheads Fall Meeting October 28, 2023
- Replies: 8
- Views: 7746
Minnesota Bogleheads Fall Meeting October 28, 2023
Save the Date - Minnesota Bogleheads Fall Meeting scheduled for October 28, 2023 Final Agenda Update follows in this thread Ridgedale Library, 12601 Ridgedale Drive, Minnetonka, MN: 9:30 – 11:30 am Rohlf Meeting Room 9:30 Introduction Welcome, opening remarks, splinter group update by Chris 9:40 Plenary Presentation Secure Act 2.0 - Top 10 highlights - Chris 10:25 5-minute break Please help arrange meeting rooms for breakout sessions: Rohlf, Hallway, Rooms 172 and 174 10:30 Breakout Sessions Choose one topic/table to attend and participate; 45 minutes in length; 11:30 Wrap Up Thank you for attending! Help clean up. No longer need to stack chairs, return tables. 11:30 Social Time (opt.) Continue discussions with your fellow Boglehead friends...
- Mon Aug 28, 2023 5:34 pm
- Forum: Personal Investments
- Topic: Roth Conversion
- Replies: 62
- Views: 5778
Re: Roth Conversion
If you have the ability to do so, run your numbers through the Retiree Portfolio Model spreadsheet. It is a downloadable spreadsheet so you can model the effect of various approaches to Roth conversion.
The wild card here is the poor health of one spouse. Calculations change a lot when one spouse dies. A couple years of conversions modestly into the 22% bracket may be a good approach. Better done sooner rather than later because of the statement "poor health". Bumping up into the second tier or IRMAA is not particularly costly, the third tier yes. If your husband is going to continue working and is covered by health insurance that again is reason to covert now rather than latter. (IRMAA has a two year look back provision.)
The wild card here is the poor health of one spouse. Calculations change a lot when one spouse dies. A couple years of conversions modestly into the 22% bracket may be a good approach. Better done sooner rather than later because of the statement "poor health". Bumping up into the second tier or IRMAA is not particularly costly, the third tier yes. If your husband is going to continue working and is covered by health insurance that again is reason to covert now rather than latter. (IRMAA has a two year look back provision.)
- Mon Aug 28, 2023 5:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: Navigating Estate Distribution: A Guide to Fair Resolutions Amidst Family Dynamics
- Replies: 9
- Views: 1023
Re: Navigating Estate Distribution: A Guide to Fair Resolutions Amidst Family Dynamics
Sorry to hear about this. We are going though the same thing with the estate of an uncle. The executor refuses to provide information. It is evident through public records, however, that the executor, who also had power of attorney, transferred real estate and stock holdings to himself prior to the uncle's death. The process is not as simple as the OP's description and the answers given. First of all, a will does not cover all of the assets of an estate. Was there a joint account as is often the case with some child helping manage an elderly parent's finances? This would pass to the joint account holder. Were there beneficiaries named on any accounts? These accounts would pass to the beneficiaries regardless of wishes stated in the will. We...
- Wed Aug 23, 2023 11:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: retirement spending
- Replies: 167
- Views: 18049
Re: retirement spending
We live next door in Minnesota - slightly higher taxes than Wisconsin but cost of living about the same. We travel some, but not a lot, and not expensive destinations, and we rarely eat out. We are retired with 2 SS benefits payments and one pension.
2022 Tax summary
Federal taxes $32K
State Income tax $15.6K
Real estate tax $9.1K (metro area house plus summer lake cabin)
Medicare supplemental insurance $9.6K
So we are at $66,000 before we look at charitable contributions and living expenses. We do about $20K in charitable contributions - mostly from an IRA using qualified charitable distributions.
2022 Tax summary
Federal taxes $32K
State Income tax $15.6K
Real estate tax $9.1K (metro area house plus summer lake cabin)
Medicare supplemental insurance $9.6K
So we are at $66,000 before we look at charitable contributions and living expenses. We do about $20K in charitable contributions - mostly from an IRA using qualified charitable distributions.
- Mon Aug 14, 2023 3:52 pm
- Forum: Personal Consumer Issues
- Topic: Barcelona, Spain this September 9-22
- Replies: 19
- Views: 2088
Re: Barcelona, Spain this September 9-22
We stayed within walking distance of the beach in Barcelona. We had to walk a few blocks to catch the metro, but no big deal.
Monserrat was not mentioned yet, well worth the visit. I agree with the suggestions of the Dali museum and Tarragona. Girona is on the way to the Dali site and is worth a few hours as well.
Sagunto is a little father south, but also worth the visit if you are interested in Roman ruins.
Monserrat was not mentioned yet, well worth the visit. I agree with the suggestions of the Dali museum and Tarragona. Girona is on the way to the Dali site and is worth a few hours as well.
Sagunto is a little father south, but also worth the visit if you are interested in Roman ruins.
- Sun Jul 23, 2023 5:05 pm
- Forum: Personal Investments
- Topic: Reached Retirement – Appreciate Advice Regarding Portfolio Changes
- Replies: 9
- Views: 2198
Re: Reached Retirement – Appreciate Advice Regarding Portfolio Changes
I disagree with the advice to convert the 457b to an IRA. It sounds like you have a good paying stable value fund. That is not available in an IRA. A stable value fund can be considered a bond and can be the anchor of your bond allocation. It is all I hold in my 457b.
My inclination would be to simplify your wife's account and to reduce bond holdings in Roths. Better to have your bond allocation in a tax deferred account and your equities in a Roth.
My inclination would be to simplify your wife's account and to reduce bond holdings in Roths. Better to have your bond allocation in a tax deferred account and your equities in a Roth.
- Sun Jul 23, 2023 4:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Question Re: Applying for Social Security (Slightly) Early
- Replies: 20
- Views: 2519
Re: Question Re: Applying for Social Security (Slightly) Early
If you have some savings from which to draw, take a close look at the suggestion to delay until January of next year. If you do so there will be no income offset (for wages already earned this year) and you will be entitled to a slightly higher monthly payment.
- Sun Jun 25, 2023 7:31 pm
- Forum: Personal Investments
- Topic: Help with portfolio consolidation
- Replies: 10
- Views: 1168
Re: Help with portfolio consolidation
A rule of thumb that is sometimes mentioned is that a holding of less than 5% of your total allocation is not enough to make a difference.
Some who post here recommend a 3 fund portfolio. The Wiki has recommendations for portfolios with a few more funds.
As noted - pay attention to your capital gains as you do this. You may be able to make an initial consolidation that offsets capital gains and capital losses.
Some who post here recommend a 3 fund portfolio. The Wiki has recommendations for portfolios with a few more funds.
As noted - pay attention to your capital gains as you do this. You may be able to make an initial consolidation that offsets capital gains and capital losses.
- Sat Jun 24, 2023 7:01 pm
- Forum: Investing - Theory, News & General
- Topic: The Three-Fund Portfolio
- Replies: 3898
- Views: 2434931
Re: "Bogleheads 3 Fund Portfolio Review"
Just a heads up - here is the contents outline
Contents
Bogleheads 3 Fund Portfolio Review Video
What Is the Bogleheads 3 Fund Portfolio?
Why Index Funds?
Why International Stocks?
Bogleheads 3 Fund Portfolio Benefits
Bogleheads 3 Fund Portfolio – Choosing Assets and ETFs
U.S. Stocks
International Stocks
Bonds
Why No International Bonds?
Bogleheads 3 Fund Portfolio Portfolio Historical Performance vs. S&P 500
Bogleheads 3 Fund Portfolio ETF Pies for M1 Finance
Traditional – Total Bond Market
Intermediate Term Treasury Bonds
Long Term Treasury Bonds
Contents
Bogleheads 3 Fund Portfolio Review Video
What Is the Bogleheads 3 Fund Portfolio?
Why Index Funds?
Why International Stocks?
Bogleheads 3 Fund Portfolio Benefits
Bogleheads 3 Fund Portfolio – Choosing Assets and ETFs
U.S. Stocks
International Stocks
Bonds
Why No International Bonds?
Bogleheads 3 Fund Portfolio Portfolio Historical Performance vs. S&P 500
Bogleheads 3 Fund Portfolio ETF Pies for M1 Finance
Traditional – Total Bond Market
Intermediate Term Treasury Bonds
Long Term Treasury Bonds
- Sat Jun 24, 2023 6:58 pm
- Forum: Personal Investments
- Topic: How to execute a rebalancing strategy?
- Replies: 9
- Views: 1115
Re: How to execute a rebalancing strategy?
The unknown in this question is where are the assets held. There are no tax implications when rebalancing in tax deferred and Roth. There may be in taxable.
Also unknown - what is the OP's risk tolerance?
Also unknown - what is the OP's risk tolerance?
- Thu Jun 22, 2023 3:23 pm
- Forum: Personal Finance (Not Investing)
- Topic: USPS warning about mailing checks
- Replies: 55
- Views: 8538
Re: USPS warning about mailing checks
I talked to my local USPS delivery person, we know each other well. He advised not dropping bills with checks in the street drop boxes throughout the City of St. Paul. He recommended dropping envelopes with checks at the inside drop slot at one of the local post offices. He affirmed the fact that there have been issues with checks being "washed" and reissued to a different person with a different amount.
- Tue Jun 20, 2023 7:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: What is your favorite retirement calculator and how can one get it?
- Replies: 49
- Views: 12301
Re: What is your favorite retirement calculator and how can one get it?
We did a review of a number of calculators at a Minnesota Bogleheads meeting (about 100 attendees).
Firecalc came out on top in terms of pre-retirement planning.
Firecalc came out on top in terms of pre-retirement planning.
- Mon Jun 19, 2023 11:07 pm
- Forum: Personal Investments
- Topic: What to Do When Planning to Retire
- Replies: 62
- Views: 9949
Re: What to Do When Planning to Retire
You have plenty in assets to retire and to delay taking social security. In your case it is the placement of those assets that complicates planning.
I too did a multiple year spreadsheet approach and it served me well. You can try running some Roth conversion scenarios using the Retiree Portfolio Model spreadsheet.
A starting point would be to aim for the top of the 12% tax bracket (about $89,500 in taxable income . . . about $116,000 in adjusted gross income). That is a target for doing Roth conversions for the next 2-3 years. Taxes and living expenses would be paid from your regular accounts.
Medicare B has a two year lookback so staying below $194,000 in Modified Adjusted Gross Income becomes a factor for you in a couple of years.
I too did a multiple year spreadsheet approach and it served me well. You can try running some Roth conversion scenarios using the Retiree Portfolio Model spreadsheet.
A starting point would be to aim for the top of the 12% tax bracket (about $89,500 in taxable income . . . about $116,000 in adjusted gross income). That is a target for doing Roth conversions for the next 2-3 years. Taxes and living expenses would be paid from your regular accounts.
Medicare B has a two year lookback so staying below $194,000 in Modified Adjusted Gross Income becomes a factor for you in a couple of years.
- Wed May 03, 2023 10:45 pm
- Forum: Personal Investments
- Topic: Help Me Simplify my Portfolio
- Replies: 13
- Views: 2300
Re: Help Me Simplify my Portfolio
I respect (and echo) both livesoft's and Watty's answers. (They are both long time, knowledgeable, posters.) A simple start to this is to reduce the complexity in your retirement accounts because there are no tax consequences for doing so. While a 3 fund portfolio is the right answer for many investors it is not the only approach. Target retirement funds are not usually used in conjunction with other funds. Their goal is to create an asset allocation that is appropriate for the investor in terms of risk - need to take risk, ability to take risk, and willingness to take risk. When you add in additional funds you are essentially countermanding the approach of the target retirement fund you hold. For me, that would be the first decision point....
- Sat Apr 22, 2023 9:12 am
- Forum: US Chapters
- Topic: Minnesota Bogleheads Spring Meeting: April 29, 2023
- Replies: 2
- Views: 2065
Re: Minnesota Bogleheads Spring Meeting: April 29, 2023
Just a reminder that the Spring meeting is next Saturday.
Of note: The plenary session is meant to be interactive - not a lecture. There are many aspects to estate planning and many attendees will have insights based on their personal experiences - be those experiences positive or negative. Family dynamics can make each experience unique. or
Feel free to post some questions and comments here in advance.
Of note: The plenary session is meant to be interactive - not a lecture. There are many aspects to estate planning and many attendees will have insights based on their personal experiences - be those experiences positive or negative. Family dynamics can make each experience unique. or
Feel free to post some questions and comments here in advance.