Search found 72 matches

by ProfLA
Sat Mar 11, 2023 8:25 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

You mentioned in your OP- "we have about 250k in capital losses being carried forward." Are these losses mostly/all in your taxable account or your wife's account or a mix of the two? If you own the capital losses in your account, they will be 100% lost upon your demise. $250k of losses is quite valuable & you should plan to use the losses sooner rather than later, depending on your assessment of your health, longevity, etc. In addition, inflation has been running fairly high for a few years & capital losses are like cash, in that they lose value over time in periods of high inflation. These two factors taken together indicate that you shouldn't wait too long to use the losses to balance capital gains. Since only $3k of l...
by ProfLA
Sat Mar 11, 2023 7:52 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

Hopefully you already know you should split your tax liability proportionally (unless you want to “gift” her some or all of the taxes you paid on her behalf). One way to determine portions is for each of you to draft a tax return as filing as Single. Split any interest/ capital gains on any accounts owned jointly and put half in each return. Note the tax liability for federal and state for each of you (NOT the amount of taxes refunded or still owed). Then save both data files. Start over for a joint return by first importing the more complicated return and changing to MFJ. Then add the data for the simpler return. Compare the joint tax liability to the sum of the two single liabilities. Split the difference in higher or lower and make sure...
by ProfLA
Sat Mar 11, 2023 12:47 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

Oh boy, this makes things better! You can withdraw from this instead of from Taxable before age 59.5 for living expenses. We are all discouraging withdrawals from tax-deferred to prevent a 10% early withdrawal penalty. But that doesn’t apply to Inherited IRAs as the original owner is now gone and the IRS thus wants the taxes paid. One thing I forgot to mention is that only 85% of your SS will be taxed. Most states (including Calif) won’t tax it at all. That makes perfect sense now, thank you!! I'll note we married late in life and have mostly separate property. This is because we would like our separate residual estates to ultimately go to our own sets of relatives after we are both deceased. It is not relevant to our spending strategy whi...
by ProfLA
Sat Mar 11, 2023 1:33 am
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

You should consider taxes as part of your living expenses since you will need yearly money for that. But if you withdraw to the top of the 24% tax bracket each year, your taxes should be somewhat consistent, unless your Qualified Dividends vary each year. You and DW should consider retiring now, and live off of taxable dividends and sales in taxable along with starting Roth conversions now. After you turn 59.5, see the remaining comments. This will stop both of you from contributing more to tax-deferred, which is already one of the largest values I've seen here! Moving on to your questions: 1)  Is a reasonable withdrawal strategy to meet expenses to use, in order? -dividends in taxable accounts -taxable assets, selling those with lowest ca...
by ProfLA
Fri Mar 10, 2023 8:15 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

Navillus1968 wrote: Fri Mar 10, 2023 7:40 pm With your net worth & unique situation, you need to pay a fee-only tax & estate planning expert for guidance. It will be money well-spent.
Agree. I will research advisors but off the top off your head do you know one who would be good for me or how I can find one?
by ProfLA
Fri Mar 10, 2023 8:08 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

I would definitely use taxable dividends & cap gains to live on while executing partial Roth conversions. This keeps your ordinary income (OI) brackets as free as possible for Roth conversion money. With your substantial capital losses, you should be able to generate the required $110k of extra income per year with zero LTCG taxes fairly easily. Is the $100k of income for the next 2-4 years W-2 income or similar? In other words, taxed as OI? Thank you for clarifying-this way of thinking and managing our money will be new for me and is a bit intimidating. Yes, the $100k income is W-2 income. Yes, you should convert up to the top of the 24% bracket. I assume you're committed to staying in CA in retirement? Roth conversion in Nevada would...
by ProfLA
Fri Mar 10, 2023 7:39 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

If you're really only expecting to live that long, do you need to make arrangements for Long Term Care? Unfortunately for us, purchasing more LTC insurance is a non-starter from an underwriting perspective at this point. We hope we have enough assets to cover expenses. Another challenge is figuring out who will act as our POA if needed, but that's another topic. "Arrangements" does not have to mean LTC insurance. Reserving funds to self-insure is another method. If you really think insufficient assets will be a problem, then you might want to start thinking now about how to ensure that she has enough income after he is gone. Point well taken. I am still working part time, which helps, though it does not move the needle greatly. A...
by ProfLA
Fri Mar 10, 2023 7:03 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Re: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

I deeply appreciate every one of these thoughtful responses. If you really only expect to live until 70 or 75, then I'd withdraw in a different order. I'd use the taxable accounts until you turn 59.5, then I'd start to spend down the T-IRA/401k money. At your age, and with current law, you may not live to RMD age (75), which would mean your spouse is facing RMDs as a single taxpayer, which could bump her up a bracket (or two). Regards, These were my thoughts as well. Given reduced life expectancy reducing the retirement accounts in an accelerated fashion seems very sensible, in addition to Roth conversions. Thank you!! drawing down the tax deferred looks good for this situation. However, there are over 80 years of capital loss carry-forward...
by ProfLA
Fri Mar 10, 2023 2:15 pm
Forum: Personal Investments
Topic: Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS
Replies: 20
Views: 2947

Cusp of retirement. Questions on withdrawals, Roth conversions, TIPS, SS

We are a married couple. Him:  age 57.  Life expectancy age 70-75. Her:  age 53 normal life expectancy.   Portfolio: Taxable:   $5 million tIRA/401k:  $3.7 million Roth:  $0.6 million Total:  $9.3 million  Current allocation:  VTI 53 %, VXUS 7 %, BND 40% All BND is in tIRA/401k Income going forward probably in the range of $100k annually for 2-4 years.     Annual expenses not including taxes $210k (not much flexibility on this, much of this is medical/insurance related expenses).  We own home outright.  No pensions.  No debt. SS estimate:  him: $3200 if taken at age 67.  Her:  $1500 if taken at age 67 Taxes:  Currently 9.3 % state, 24 % federal tax brackets No children or legacy concerns.  Questions: 1)  Is a reasonable withdrawal strategy ...
by ProfLA
Thu Dec 08, 2022 6:38 pm
Forum: Personal Consumer Issues
Topic: AvertX Security Cameras
Replies: 10
Views: 973

Re: AvertX Security Cameras

Visit http://www.ipcamalk.com/ Most of the camera packages that I've seen are horrible. Megapixles mean very little. I think there is a typo and the address is ipcamtalk.com. It's got a lot of good discussion, thank you! The Arlo Pro series can be wireless or hardwired. They come with an adapter that can be plugged into an AC outlet. I see, thank you! We have found that the Arlo system cameras work best when just plugged in with the power adapters rather than being dependent on battery power. All 5 of our Arlo Pro cameras have the power adapters and also the optional "silicone skin" for added outdoor protection. They are all mounted under the roof eave lines or otherwise protected from direct rain and ice and snow. Once in a grea...
by ProfLA
Thu Dec 08, 2022 12:21 pm
Forum: Personal Consumer Issues
Topic: AvertX Security Cameras
Replies: 10
Views: 973

Re: AvertX Security Cameras

We've tried various security camera systems ever since the early Foscam dome and other systems that had to be configured, etc. Now, we have an expanded 5 camera Arlo System for outdoors. All are wired to power but otherwise WIFI. https://www.amazon.com/Arlo-VMS5240-200NAS-Spotlight-Security-Wire-Free/dp/B08HRML25F?ref_=ast_sto_dp&th=1 j :D Appreciate your response Sandtrap, as all your thoughtful posts. I am looking at the system you linked to and it seems to be powered by a rechargeable battery rather than wired to power. Am I missing something or is there a way to work around the battery issue and connect their cameras to power? I would much prefer wiring the system to power as I already have cameras with wires in place. Also, can i ...
by ProfLA
Wed Dec 07, 2022 6:54 pm
Forum: Personal Consumer Issues
Topic: AvertX Security Cameras
Replies: 10
Views: 973

Re: AvertX Security Cameras

tortoise84 wrote: Wed Dec 07, 2022 3:27 pm $2k is way too much. Here's a Reolink 8 x 4K camera + 4 TB NVR for $800: https://www.amazon.com/dp/B082KGF6FX

Or you can buy different kits, or individual cameras and connect them to your own recording system. That's what I did with 4 x Reolink RLC-520 (2560x1920) PoE cams and record to a QNAP NAS.
Thank you, I will look into the Reolink further. Wow, what a difference in price.

I do not think I'm capable of getting and keeping a homegrown system functional. One thing I find appealing about AvertX is they get many rave reviews for their customer support on Costco website.
by ProfLA
Wed Dec 07, 2022 6:38 pm
Forum: Personal Consumer Issues
Topic: AvertX Security Cameras
Replies: 10
Views: 973

Re: AvertX Security Cameras

lthenderson wrote: Wed Dec 07, 2022 1:43 pm I have another brand but find dome cameras the only ones I like. The bullet ones tend to collect spiders webs, bird and wasp nests, etc. The dome cameras I have had for the last decade have never once been touched by me and are still clear of all those things.
This is helpful information. Also, I currently have a system with dome cameras and I think replacing dome cameras with dome cameras will be a cleaner install.
by ProfLA
Wed Dec 07, 2022 1:21 pm
Forum: Personal Consumer Issues
Topic: AvertX Security Cameras
Replies: 10
Views: 973

AvertX Security Cameras

Greetings, I am thinking of purchasing an AvertX security camera system from Costco. Trying to decide between a system that is $1999 and one that is $2999, the more expensive system having "dome" cameras instead of "bullet cameras". The dome cameras have the ability to zoom the recording field of view. The systems are wired POE and record to an on site server. I am wondering if anyone here has purchased a camera system from AvertX and can offer opinions on how good it has been and whether the dome cameras are worth a premium. I am a bit concerned about spending this amount of money on the system because Costco seems to be virtually the only retailer selling it (components can also be purchased directly from AvertX). The ...
by ProfLA
Sun Apr 17, 2022 2:41 pm
Forum: Personal Consumer Issues
Topic: Donation to individual in Ukraine
Replies: 26
Views: 2541

Re: Donation to individual in Ukraine

My thanks to LadyGeek for the action taken. I proceeded today with a transfer. As information on how it went, withdrawal was limited to $69. I do not know when another will be allowed. I will try tomorrow. The money was received within about 5 minutes, even on today, Sunday. Fee was $1. Before withdrawal could be initiated, the system required a 2 minute timeout after logging in, two rounds of 2-factor confirmation and a final email confirmation. I plan to deactivate the ACH connection to my checking account very soon. I did not want to discuss the likelihood this entire thing is a scam because -I can live with the distress of this ultimately being a scam. -I have no hope of persuading others it is not a scam. -There is probably nothing tha...
by ProfLA
Sat Apr 16, 2022 10:22 pm
Forum: Personal Consumer Issues
Topic: Donation to individual in Ukraine
Replies: 26
Views: 2541

Re: Donation to individual in Ukraine

Binance is a well known exchange and wallet owner names are not known. Other than that the transaction itself is quite safe, and you are anonymous to the recipient to the extent that the exchange Binance.US keeps your information private (it wil at least send it to the IRS and maybe some other authorities). Appreciate this information, thank you. One risk I see is you could be donating to an individual under US sanctions or unwillingly taking part into a money laundering scheme. Thank you for raising this. I am still inclined to proceed since the amounts of money involved are small and on the assumption that since I have no intent to violate sanctions or participate in money laundering, the risk this devolves into something of this nature ...
by ProfLA
Sat Apr 16, 2022 5:55 pm
Forum: Personal Consumer Issues
Topic: Donation to individual in Ukraine
Replies: 26
Views: 2541

Donation to individual in Ukraine

I would like to donate money to an individual in Ukraine with whom I recently became acquainted with on the internet. My motive is a desire to assist victims of the war there in a direct and efficient (low fees) manner. This individual suggested that I open an account in binance.us, transfer money in via ACH from my bank account, and then transfer money on the binance platform using something called Bep-2 to a digital address provided by the individual. The advantage of this method over western union is that fees are minimal and it is anonymous. (I would like my real name to remain anonymous.) The amount I plan to give in total is around $1000, probably in $250 increments. So far I have successfully opened the binance account and connected ...
by ProfLA
Tue Nov 09, 2021 11:26 pm
Forum: Forum Issues and Administration
Topic: Thank you Boglehead Admins, Moderators and participants
Replies: 36
Views: 3848

Re: Thank you Boglehead Admins, Moderators and participants

Broken Man 1999 wrote: Tue Nov 09, 2021 4:18 pm A good time to mention the ease that $$$ contributions can be made for benefit of the forum.

Very, very few forums are ad-free, and deliver such value to the members as does this site.

Open up the wallets and give generously!

Broken Man 1999
I am more of a lurker than a poster but wanted to echo appreciation to those who maintain this site.
I hadn't noticed the link to support the website so thank you for mentioning it.
by ProfLA
Sun Dec 20, 2020 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Do my wife and I even need a traditional estate plan?
Replies: 78
Views: 5063

Re: Do my wife and I even need a traditional estate plan?

At the onset of this discussion I just wanted advice on whether assets would pass from me to wifey unimpeded without a will or trust provided our documents were titled correctly. I received some very helpful opinions. And I thank those for their respectful input. But I can really do without the moral platitudes from some or personal attacks. That's really crazy. You are being a bit revisionist because in your OP you also asked whether it was reasonable to ask your heirs to fund the expenses of drawing up your will or trust. In subsequent comments, you repeated that question a couple times. That's the question that got the most negative feedback, certainly not always written in the gentlest way, but given the unanimously negative response, ...
by ProfLA
Mon Jun 08, 2020 1:58 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4273
Views: 1072299

Re: Share your net worth progression

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by ProfLA
Tue Dec 03, 2019 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth contribution
Replies: 3
Views: 419

Re: Excess Roth contribution

Can anyone tell me what kind of IRA reporting Schwab will do and what tax we will be responsible for? Schwab will send a 1099-R reporting the recharacterized contribution. You will need to add an explanation on your taxes stating how much was originally contributed and when and how much was recharacterized. See page 29 of IRS Publication 590-A . Schwab will also send a 1099-R for the conversion. You will report this and the now (after recharacterization) non-deductible contribution on Form 8606. Not clear to me whether we will have to pay tax on $800 which were the earnings in the Roth IRA before the recharacterization or on $700 which was the amount of pretax IRA money that was converted. You will only pay taxes on the $700 growth that wa...
by ProfLA
Tue Dec 03, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth contribution
Replies: 3
Views: 419

Excess Roth contribution

I got married this year :) My spouse made a $7000 direct Roth IRA contribution earlier this year but now that we are married she is above the income limits to do this. Last week we recharacterized the $7000 contribution, plus earnings calculated by Schwab, and transferred in kind the recharacterized total of $7800 to a new tIRA. Today we converted the full amount, now $7700 due to drop in market, back to her Roth IRA. We have no other tIRA holdings so no pro rata issue. I am trying to get a handle on what exactly will happen come tax filing time. Can anyone tell me what kind of IRA reporting Schwab will do and what tax we will be responsible for? Not clear to me whether we will have to pay tax on $800 which were the earnings in the Roth IRA...
by ProfLA
Sun Aug 25, 2019 3:35 pm
Forum: Personal Consumer Issues
Topic: The cost to talk to a doctor
Replies: 151
Views: 11745

Re: The cost to talk to a doctor

IngognitoUSA wrote: Sun Aug 25, 2019 12:33 pm Just a matter of time before MDLIVE or some one else will use doctors overseas at a fraction the cost. What is stopping an app in India to provide medical consulting to anyone in the world. Doctors Without Borders indeed.
A physician must be licensed to practice medicine in the state where the patient is located. Most physicians licensed to practice medicine in the U.S. would expect compensation in line with what they would receive in the U.S.
by ProfLA
Mon Jul 29, 2019 1:24 am
Forum: Personal Finance (Not Investing)
Topic: Social Security survivor benefits when spouse dies before age 62
Replies: 4
Views: 1187

Re: Social Security survivor benefits when spouse dies before age 62

"700.5 What If An Insured Worker Dies Before Reaching Age 62 In 1979 Or Later? If an insured worker dies before age 62, his or her earnings are indexed differently to compute the PIA on which widow(er)'s benefits are based, if this results in a higher benefit. In this case, the worker's earnings are indexed up to and including the earlier of the following: The year in which the widow(er) reaches age 60; or The second year before the widow(er) becomes eligible, but never earlier than the second year before the worker died." https://www.ssa.gov/OP_Home/handbook/handbook.07/handbook-0700.html Additional info re: how to compute Avg. Monthly Wage https://www.ssa.gov/OP_Home/cfr20/404/404-0221.htm Thanks for the reply. On a first read,...
by ProfLA
Mon Jul 29, 2019 1:20 am
Forum: Personal Finance (Not Investing)
Topic: Social Security survivor benefits when spouse dies before age 62
Replies: 4
Views: 1187

Re: Social Security survivor benefits when spouse dies before age 62

Nestegg_User wrote: Sun Jul 28, 2019 1:26 pm try this:
https://socialsecurityintelligence.com/ ... and-death/

(couldn't find POMS equivalent; where's good old sscritic when you need him, as he was an excellent source)


this shows survivors FRA and reductions for benefits:
https://www.ssa.gov/planners/survivors/ ... rtred.html
Many thanks. Based on the first link, I think the answer to my first question is yes.
by ProfLA
Sun Jul 28, 2019 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security survivor benefits when spouse dies before age 62
Replies: 4
Views: 1187

Social Security survivor benefits when spouse dies before age 62

Have not found clear answers so far to the following questions and hope for some help from this forum. Jim and Mary are married. Jim dies today at age 55, when Mary is age 50. Jim has SS earnings much greater than Mary. First question: My understanding is that Mary, when she turns 60 can claim social security survivor benefits based on Jim's earnings. if Mary does this, the benefit will be 71.5 % of Jim's FRA benefit, even though Jim died at age 55 before claiming any social security. If Mary delays claiming SS survivor benefits until her FRA, she will receive 100 % of Jim's FRA benefit. Is this correct? Second question: How is the calculation of Jim's FRA benefit (on which Mary's survivor benefit will be based) done given that he was not o...
by ProfLA
Sun Sep 02, 2018 2:29 pm
Forum: Personal Investments
Topic: Help evaluate my financial situation
Replies: 27
Views: 2989

Re: Help evaluate my financial situation

Luckywon wrote: Sun Sep 02, 2018 10:49 am
Once OP sells all real estate he will have about $14M in liquid assets. His sole child is a hard working MD. Of their current $160k expenses, $40k is property tax, they give a lot to charity and send money to family abroad. OP is frugal in his cars and vacations. And you advise cutting back expenses?
And OP is already planning to get rid of his gardener, maid and poolman!! Not passing judgment, but I just marvel at what I read here sometimes.
Luckywon wrote: Sun Sep 02, 2018 10:49 am I would advise OP to loosen the pursestrings. A lot.
I would say rip the pursestrings out, hold the purse upside down and start dancing. Every morning, repeat.
by ProfLA
Sat Jun 30, 2018 5:24 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900072

Re: What are you up YTD? [Year To Date]

livesoft wrote: Sat Jun 30, 2018 5:20 pm
samuck wrote: Sat Jun 30, 2018 4:21 pmSo what is the point of this thread? Does not seem very helpful...
That is a good question. I think most people actually don't calculate their portfolio performance correctly anyways. But I do think one should compare the performance of their portfolio to a suitable benchmark. That would require one to calculate their portfolio performance correctly and to select a suitable benchmark.
So well said, as usual. Thanks Livesoft.
by ProfLA
Sat Jun 30, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900072

Re: What are you up YTD? [Year To Date]

I reviewed (quickly so mea culpa if I missed anything) one full year of posts on this thread and 14/14 stock pickers reported beating, (usually smashing) equity indices. Apparently this thread thoroughly disproves the Boglehead dictum that it is folly to try to outperform the markets. Time to sell all my ETF's and start picking stocks (or bitcoin)? Apparently stock pickers who don't do well compared to indexing keep it to themselves. So what is the point of this thread? Does not seem very helpful... Well this thread may serve a purpose for some, but it is obviously not a meaningful source of information for the evaluation of your own portfolio's performance. I thought there might be one person who admits to underperforming as a result of p...
by ProfLA
Sat Jun 30, 2018 10:01 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900072

Re: What are you up YTD? [Year To Date]

tolerable2323 wrote: Mon Sep 04, 2017 12:25 am Dont feel upset if/when theirs a bear market a lot of ppl are going to proudly show there 30/70 -0/100 allocation.
I think the foil to my post immediately above is somewhere in this excellent prediction :D :D
by ProfLA
Sat Jun 30, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900072

Re: What are you up YTD? [Year To Date]

I reviewed (quickly so mea culpa if I missed anything) one full year of posts on this thread and 14/14 stock pickers reported beating, (usually smashing) equity indices. Apparently this thread thoroughly disproves the Boglehead dictum that it is folly to try to outperform the markets. Time to sell all my ETF's and start picking stocks (or bitcoin)?
by ProfLA
Sat Jun 30, 2018 8:57 am
Forum: Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 6893

Re: How much of your taxable holdings is unrealized capital gains?

corn18 wrote: Fri Jun 29, 2018 11:37 am
I plan to retire @ 55 in 3 years. i-ORP has me taking out of taxable from 55-62 and taking cap gains @ 0%. It also has me doing 401k-Roth conversions from 55-62 up to the top of the current 12% bracket. Then it's all Roth after that.
Appreciate the information, I will check i-ORP to see what it recommends for me. Seems like a big leap of faith making these plans which rely on tax laws not affecting them over 30-40 years but I guess we have no better option than to plan with these tools yet remain flexible.
by ProfLA
Fri Jun 29, 2018 10:52 am
Forum: Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 6893

Re: How much of your taxable holdings is unrealized capital gains?

corn18 wrote: Thu Jun 21, 2018 4:22 pm
+1. i-ORP gave me a plan where I pay no taxes on my unrealized cap gains which are about 20% of my taxable account. It also showed me how to convert all of my 401k @ 12% fed tax before I hit RMD's. Considering my current cap gains tax is 24% and my marginal income tax rate is 40% (federal+state), that is quite the savings.
I'm assuming this involves very early retirement? Would be interested in any details on how early, and how much is being realized in capital gains and 401k conversions over what period of time?
by ProfLA
Mon Jun 25, 2018 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Pre nups.
Replies: 70
Views: 10720

Re: Pre nups.

thangngo wrote: Mon Jun 25, 2018 11:28 pm
I mean everything acquired after marriage would be divided equally in a community property state in the absent of a pre-nup. That includes gain/loss on assets acquired pre-marriage, gains in IRA's, 401k's.

To answer your second question: you will need legal advice because each state has different laws on what can or can't be included in the pre-nup. Since the gains remains on a separate account of the spouse who owns the account pre-marriage, it seems fair that the gains would belong to that spouse. This is why a pre-nup is necessary.
Great information, thanks thangngo.
by ProfLA
Mon Jun 25, 2018 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Pre nups.
Replies: 70
Views: 10720

Re: Pre nups.

Is your state a community property state? If it is, everything is joint after marriage. Everything after marriage will be split right down the middle. Yes, California. I'm not sure I understand fully what you mean when you say "everything is joint after marriage". If you mean everything, including assets that each person brought to the marriage, I have it on pretty good authority that is not the case. If you mean everything acquired after the date of marriage is joint, that jives with my understanding. The question is does everything acquired after the date of marriage include any gains (dividends and stock appreciation) in separate accounts? What about gains in IRA's, 401K's even if they were kept completely separate? If the ans...
by ProfLA
Mon Jun 25, 2018 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Pre nups.
Replies: 70
Views: 10720

Re: Pre nups.

And this definitely isn't legal advice but if you don't comingle assets (i.e. you keep everything you make before marriage separate and don't add joint contributions), that asset isn't considered martial and doesn't get split in a divorce. Obviously somewhat state specific. And those assets will be considered when things like alimony is calculated. It seems to me that if spouse A has a taxable account, its dividends and capital gains will have tax implications that affect spouse B at tax time, even if those proceeds are kept within spouse A's taxable account. Same with spouse A's retirement accounts once distributions are made, even if those distributions are kept separate from joint accounts. Not to mention if Roth conversions are made, u...
by ProfLA
Thu Jun 21, 2018 12:12 am
Forum: Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 6893

Re: How much of your taxable holdings is unrealized capital gains?

I have also been curious about this.

I'm 52. 26% unrealized capital gains in taxable. Have 12k in carryover capital loss.
by ProfLA
Sat Nov 25, 2017 10:36 am
Forum: Personal Investments
Topic: Anyone tired of the stock market going up?
Replies: 375
Views: 52807

Re: Anyone tired of the stock market going up?

At one of the card clubs, a player came to my poker table once complaining that at his last table, he hadn't won a hand in three hours, and that he felt like it was fixed against him. One of the sharks at my table shook his head and said "If it was fixed, they would have let you won a few!" :happy

Yes, the market's remarkably steady rise up has me thinking it's fixed in some way that we don't understand, and that it's not going to end well.
by ProfLA
Sun Nov 12, 2017 12:47 pm
Forum: Personal Investments
Topic: What's your weighted average expense ratio?
Replies: 65
Views: 6255

Re: What's your weighted average expense ratio?

0.147% overall.

Further breakdown:

Fixed income 36 % of portfolio ER 0.29 (Have some actively managed bonds, munis with relatively high ER's)
International equities 17 % of portfolio ER 0.11
Domestic equities 48 % of portfolio ER 0.05
by ProfLA
Mon Nov 06, 2017 6:55 pm
Forum: Personal Investments
Topic: Convert VBMFX to BND?
Replies: 2
Views: 583

Re: Convert VBMFX to BND?

Sure. What else is available in the Solo 401k, though? Is it just the regular Schwab brokerage platform in terms of products offered and fee schedule? I am able to purchase anything in the regular Schwab brokerage platform. I am usually able to get trading fees waived so those are not an issue. Schwab has their own Bloomberg Barclays Aggregate index fund*, Schwab US Aggregate Bond Index (SWAGX) with an ER of 0.04%. There are also competitor ETFs and regular mutual funds doing much the same thing for less than what it costs to use investor shares of the Vanguard index fund. I actually do already hold shares of SWAGX, also PIMIX and DBLTX. The latter two are managed and have ER ratios in the 0.50 range. Rationale for this mix: not anything p...
by ProfLA
Mon Nov 06, 2017 6:06 pm
Forum: Personal Investments
Topic: Convert VBMFX to BND?
Replies: 2
Views: 583

Convert VBMFX to BND?

I currently have about 200k in VBMFX (ER 0.15) in my solo 401k at Schwab. I am thinking of converting these to the equivalent Vanguard ETF BND (ER 0.05) . My sole reason for doing is the lower expense ratio. I anticipate holding these shares until at least when RMD's begin which is about 18 years away, and possibly longer. At 0.1 % difference in ER I figure this may save about $4000 over the next twenty years. I imagine this will more than cover any potential hit related to bid-ask spread or NAV at the time of my conversion.

Does my analysis seem correct and I missing something here or are there other things I might consider before doing this?
by ProfLA
Mon Nov 06, 2017 3:37 pm
Forum: Personal Consumer Issues
Topic: WSJ Digital Subscription - a bargain!
Replies: 152
Views: 60973

Re: WSJ Digital Subscription - a bargain!

jhfenton wrote: Mon Nov 06, 2017 1:54 pm
I dug a little deeper, and they are using a third-party service to verify educational status. You will have to go to the third-party site and enter your birthdate and institutional information. It's a site I haven't heard of, but they are making an effort to dig beyond having .edu.
Thanks for sharing this helpful info!
by ProfLA
Mon Nov 06, 2017 1:13 pm
Forum: Personal Consumer Issues
Topic: WSJ Digital Subscription - a bargain!
Replies: 152
Views: 60973

Re: WSJ Digital Subscription - a bargain!

I apologize if this is common knowledge here, but I just found out a few months ago that the Washington Post gives free access for anyone who verifies with .gov, .mil, or .edu email addresses. Hope that helps someone else. +1. I take full advantage of my .edu alumni address. I have been taking advantage of this too but last week got a notice from WP that they are ending this and implementing an "academic rate" for $5/4 weeks, which is a 50 % discount from their regular digital subscription rate. :oops: All good things come to an end! I got the same email. What I don't know is whether they'll actually restrict the "academic rate" to current educators and students. The email says they will, but they may extend it to every...
by ProfLA
Sun Nov 05, 2017 5:55 pm
Forum: Personal Investments
Topic: Please critique tax efficiency of my portfolio
Replies: 18
Views: 2378

Re: Please critique tax efficiency of my portfolio

Longdog wrote: Sun Nov 05, 2017 4:42 am I probably have enough to retire now, but a little more is icing on the cake. And I like icing! :happy
:) :) I like icing too, it's so addictive!! In this case, I hope I don't die eating it though!!
by ProfLA
Sun Nov 05, 2017 5:51 pm
Forum: Personal Investments
Topic: Please critique tax efficiency of my portfolio
Replies: 18
Views: 2378

Re: Please critique tax efficiency of my portfolio

I think for some situations, munis in taxable have additional financial benefits (harder to calculate than tax equivalent yield) beyond current tax exempt status. If you can convert more into Roth accounts at lower tax rates, that’s less in taxes you’d eventually pay. This would have the biggest benefit for those with significant assets in pre-tax accounts. You should use ANYPIA (downloadable from the social security site) to project your future social security benefits. If you do that, you will likely see how little every extra year of work impacts your eventual benefits. If the realization that you’re in a higher tax bracket than you thought is motivation to cut back work, this activity will cement that feeling. We seem to be similarly s...
by ProfLA
Sun Nov 05, 2017 5:40 pm
Forum: Personal Investments
Topic: Please critique tax efficiency of my portfolio
Replies: 18
Views: 2378

Re: Please critique tax efficiency of my portfolio

JW-Retired wrote: Sat Nov 04, 2017 10:44 am I would bet on the 35% too.

OP,
If you don't do your own taxes this online calculator is quick and easy. https://www.hrblock.com/get-answers/tax ... e/aboutYou
JW
Thanks JW, that's a nice site for me to estimate taxes. Using it, the effect of increased W-2 income on federal taxes are a little off I think because I do not know the change in state tax to input along with income changes but what it give me is that if I

increase W-2 income by $1000 fed tax goes up $370
increase qualified dividends by $1000 fed tax goes up $268
increase nonqualified dividends by $1000 fed tax goes up $398

So your assessment that my federal marginal rate for W2 income is 35 % is correct.
by ProfLA
Sun Nov 05, 2017 12:40 pm
Forum: Personal Consumer Issues
Topic: bidets
Replies: 35
Views: 5520

Re: bidets

Deleted.
by ProfLA
Sun Nov 05, 2017 11:29 am
Forum: Personal Consumer Issues
Topic: WSJ Digital Subscription - a bargain!
Replies: 152
Views: 60973

Re: WSJ Digital Subscription - a bargain!

jhfenton wrote: Wed Feb 08, 2017 7:38 am
brew wrote:I apologize if this is common knowledge here, but I just found out a few months ago that the Washington Post gives free access for anyone who verifies with .gov, .mil, or .edu email addresses. Hope that helps someone else.
+1. I take full advantage of my .edu alumni address.
I have been taking advantage of this too but last week got a notice from WP that they are ending this and implementing an "academic rate" for $5/4 weeks, which is a 50 % discount from their regular digital subscription rate. :oops: All good things come to an end!