Her LTCG tax rate is 0% federal and 0% state. Won't the VBS commission on those bonds be only $5 - $40?MktGoddess wrote:Marginal Tax rate (2012) Federal 15% State 6% (after senior retirement income exclusion, 0%)
There will be costs of sale (commissions and LTCG).
4. Are there any other adjustments you think I should make considering the situation?
The information I've learned from this website and the knowledgeable and less experienced investors has been very helpful. Thank you in advance for any assistance you can provide.
A half million dollars may or may not be enough to cover this healthy 85-year-old. In some areas (including every area I've lived in), assisted living costs $100,000/year, so a half million is enough for six or seven years.Mktgoddess wrote:I'm seeking advice in hopes of making her mid-6-figure portfolio last for the remainder of her life.
Also, ALL brokered CDs have death puts. They are not truffles you need a special pig to find. You can just go on Vanguard's website and buy them online.MooreBonds wrote:I came across a broker that helps find callable CDs with death puts.
I recommend against it. Your mother may need the money before death.MktGoddess wrote:I didn't know about CDs with death puts. I have heard of the strategy of buying CDs with the best yield available even if it's longer term, knowing that if forced we could cash in early and pay the penalty. Perhaps I'll look into that.
Bob's not my name wrote:I recommend against it. Your mother may need the money before death.
Same experience, except it's Medicare that covers everything. The supplemental statements are deceptive and lead you to believe they're covering stuff Medicare isn't. This has been discussed in greater detail in prior threads.BigFoot48 wrote:I was astounded at how little they had to pay with Medicare [+ retiree supplemental insurance.]
Bob's not my name wrote:The other major opportunity is converting a TIRA to Roth at 0% tax (thanks to the deductibility of assisted living and nursing care). Most trustees/attorneys-in-fact are overwhelmed by the emotional and logistical challenges of a death and don't have time or energy left over for investing gimmicks.
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