Best of luckDeeDee3 wrote: ↑Sun Mar 17, 2024 9:47 pm IRS Form 709 must be completed if making gifts in excess of the annual exclusion amount ($18,000 in 2024).
MANY of the lines on the form, however, ask questions about one's spouse.
1) Is Form 709 the correct form to use if not married?
Yes
2) Should anything related to spouse simply be left blank?
Yes
3) Can I file my taxes using online software ...and MAIL form 709 separately if the software does not include Form 709?
Yes
Search found 3492 matches
- Mon Mar 18, 2024 9:39 am
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 - Gift Tax Return
- Replies: 1
- Views: 269
Re: IRS Form 709 - Gift Tax Return
- Sun Mar 17, 2024 8:19 pm
- Forum: Personal Investments
- Topic: Can I recover from backdoor Roth IRA conversion error?
- Replies: 4
- Views: 606
Re: Can I recover from backdoor Roth IRA conversion error?
OP,
Yes you are correct providing the Rollover to the 401k is complete by Dec31,2024
WoodSpinner
Yes you are correct providing the Rollover to the 401k is complete by Dec31,2024
WoodSpinner
- Thu Mar 14, 2024 10:39 pm
- Forum: Personal Finance (Not Investing)
- Topic: The best game-changing financial advice you ever received (or "discovered")
- Replies: 120
- Views: 11147
Re: The best game-changing financial advice you ever received (or "discovered")
How to build a Bottom’s Up Portfolio to determine my investments and Asset Allocation and use a Funded Ratio to help manage my spending decisions.
Total game changer….
WoodSpinner
Total game changer….
WoodSpinner
- Thu Mar 14, 2024 7:12 pm
- Forum: Investing - Theory, News & General
- Topic: Index Investing Basics - Revisited
- Replies: 128
- Views: 8093
Re: Index Investing Basics - Revsited
Is it really true that a 50/50 AA for a non-retired person is NOT considered a conservative allocation? Even Vanguard's 2030 fund which assumes a retirement target of 2026-2030, holds less that 40% bonds. https://investor.vanguard.com/investment-products/mutual-funds/profile/vthrx There is no single authority that defines this, but it’s clear that the definition has changed in common usage over time. My suspicion is that the latest bull market has skewed the definitions towards owning more stock. In my mind a 50/50 portfolio is Moderate and a 20/80 Conservative. A 50/50 portfolio has been a standard recommendation for most Retirees (this was John Bogle’s recommendation among others). Here is what Investopedia says: https://www.investopedia...
- Thu Mar 14, 2024 10:46 am
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5321
Re: Newly Retired: Start Roth Conversions For IRA or Not?
As one of a few examples.... Roth conversions from Dec. 15 2023 are targeted for heirs. Heirs tax rates at January 1st 2024 are higher than the conversion rates. Personally, I would not consider this an immediate break even, although it may still be a reasonable strategy. Given your example, any of the following future events would affect the outcome: - Large drop in the market - Loss of income for the beneficiaries - Change in estate plans (e.g. disinheriting) WoodSpinner "Given your example, any of the following future events would affect the outcome: - Large drop in the market Does your future plans include large market drops which have no reversal? Given your example, any of the following future events would affect the outcome: - ...
- Tue Mar 12, 2024 10:12 am
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5321
Re: Newly Retired: Start Roth Conversions For IRA or Not?
Excellent post really. "Many who convert thinking that they will save on taxes fail to look at the Breakeven Point for the savings as compared to their Life expectancy" Or maybe sometimes the 'breakeven' point is almost immediate. The only case I know of for an immediate breakeven point involves a Deathbed Conversion which will save hoers in known Marginal Brackets and/or reduce Estate tax bills. Any others come to mind for you? WoodSpinner As one of a few examples.... Roth conversions from Dec. 15 2023 are targeted for heirs. Heirs tax rates at January 1st 2024 are higher than the conversion rates. Personally, I would not consider this an immediate break even, although it may still be a reasonable strategy. Given your example, a...
- Mon Mar 11, 2024 10:11 am
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5321
Re: Newly Retired: Start Roth Conversions For IRA or Not?
OP, I strongly suggest you step back and figure out WHY you need to convert! Having a clear set of goals for Roth Conversions and a clear understanding of who you are optimizing for is one of the keys to a successful strategy. Aligning these with your Retirement, Estate Planing, and Charitable Giving will make for an even better approach, Many who convert thinking that they will save on taxes fail to look at the Breakeven Point for the savings as compared to their Life expectancy. Lastly, there are few sure things with Roth Conversions so using Modeling Software and considering a variety of scenarios is highly encouraged. Here is a link to the approach I used and the help and advice I received on this forum. https://www.bogleheads.org/foru...
- Sun Mar 10, 2024 10:19 am
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5321
Re: Newly Retired: Start Roth Conversions For IRA or Not?
OP, I strongly suggest you step back and figure out WHY you need to convert! Having a clear set of goals for Roth Conversions and a clear understanding of who you are optimizing for is one of the keys to a successful strategy. Aligning these with your Retirement, Estate Planing, and Charitable Giving will make for an even better approach, Many who convert thinking that they will save on taxes fail to look at the Breakeven Point for the savings as compared to their Life expectancy. Lastly, there are few sure things with Roth Conversions so using Modeling Software and considering a variety of scenarios is highly encouraged. Here is a link to the approach I used and the help and advice I received on this forum. https://www.bogleheads.org/foru...
- Sun Mar 10, 2024 9:36 am
- Forum: Personal Investments
- Topic: Gifting stock
- Replies: 30
- Views: 1110
Re: Gifting stock
OP,
For Federal Taxes, you this is one of many good calculators that you can use to play around with various strategies.
https://www.dinkytown.net/java/1040-tax-calculator.html
WoodSpinner
For Federal Taxes, you this is one of many good calculators that you can use to play around with various strategies.
https://www.dinkytown.net/java/1040-tax-calculator.html
WoodSpinner
- Sat Mar 09, 2024 9:15 am
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5321
Re: Newly Retired: Start Roth Conversions For IRA or Not?
OP, I strongly suggest you step back and figure out WHY you need to convert! Having a clear set of goals for Roth Conversions and a clear understanding of who you are optimizing for is one of the keys to a successful strategy. Aligning these with your Retirement, Estate Planing, and Charitable Giving will make for an even better approach, Many who convert thinking that they will save on taxes fail to look at the Breakeven Point for the savings as compared to their Life expectancy. Lastly, there are few sure things with Roth Conversions so using Modeling Software and considering a variety of scenarios is highly encouraged. Here is a link to the approach I used and the help and advice I received on this forum. https://www.bogleheads.org/forum...
- Thu Mar 07, 2024 9:57 am
- Forum: Personal Finance (Not Investing)
- Topic: Withdrawal rates for a 45, 50, 55, and 60 year old?
- Replies: 12
- Views: 1447
Re: Withdrawal rates for a 45, 50, 55, and 60 year old?
I use https://www.immediateannuities.com/ to get market quotes on the percentage payout rate starting in one month at different ages. (After entering your purchasing details, you can click on the little blue question mark next to the “Life” quote to see the payout rate). This is actionable, accurate, and simple. It will also correctly adjust to current bond and stock prices. You can test different COLAs, joint life, and bequest assumptions too. Crucially, the payout rate will also insure against longevity risk, which is impossible to self-insure. In my view, it’s a little silly to try to calculate my own constant and flawed SWR when there are companies filled with actuaries who will tell you their estimate of a SWR at current asset prices ...
- Thu Mar 07, 2024 9:49 am
- Forum: Investing - Theory, News & General
- Topic: New Retirement
- Replies: 50
- Views: 6653
Re: New Retirement
Just a quick note that for some Roth Conversions are very beneficial but not for Tax reasons. - Estate Planing - Retirement Resilience (especially if almost all funds are in a Pre-Tax Account WoodSpinner I would say estate planning is 50/50, in that conversions are decidedly not helpful for donations to qualified charities for example. I'm not sure what "resilience" means in this context. I know that I would have been better off if I'd diversified more between taxable, deferred, and Roth accounts. Because I didn't I've ended up doing Roth conversions at much higher tax rates than I had ever paid during my working years. Estate planning is a very personal part of personal finance and Roth Conversions can be a great way to help min...
- Wed Mar 06, 2024 11:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Donating appreciated stock
- Replies: 11
- Views: 677
Re: Donating appreciated stock
Correct if you are actually itemizing and under the 30% of AGI.CharlieEvans wrote: ↑Wed Mar 06, 2024 8:13 am My understanding is if appreciated stocks are gifted from a taxable account to a charity or to a donor-advised fund, the donor would be able to claim the full amount of the donation as a Schedule A deduction, and neither the donor nor donee would pay capital gains tax on the appreciated amount.
Does this rule change if the stocks have already gotten a step up in basis? These particular stocks were inherited and got a step-up at that time.
It’s a great way to give (especially DAFs) before being eligible for QCDs at 70 1/2.
WoodSpinner
- Wed Mar 06, 2024 11:36 am
- Forum: Investing - Theory, News & General
- Topic: New Retirement
- Replies: 50
- Views: 6653
Re: New Retirement
Just a quick note that for some Roth Conversions are very beneficial but not for Tax reasons. - Estate Planing - Retirement Resilience (especially if almost all funds are in a Pre-Tax Account WoodSpinner I would say estate planning is 50/50, in that conversions are decidedly not helpful for donations to qualified charities for example. I'm not sure what "resilience" means in this context. I know that I would have been better off if I'd diversified more between taxable, deferred, and Roth accounts. Because I didn't I've ended up doing Roth conversions at much higher tax rates than I had ever paid during my working years. Estate planning is a very personal part of personal finance and Roth Conversions can be a great way to help min...
- Tue Mar 05, 2024 12:21 pm
- Forum: Investing - Theory, News & General
- Topic: New Retirement
- Replies: 50
- Views: 6653
Re: New Retirement
Just a quick note that for some Roth Conversions are very beneficial but not for Tax reasons.
- Estate Planing
- Retirement Resilience (especially if almost all funds are in a Pre-Tax Account
WoodSpinner
- Sat Mar 02, 2024 10:38 am
- Forum: Personal Finance (Not Investing)
- Topic: IRS identity protection pin - executor of estate/final return
- Replies: 8
- Views: 1062
- Thu Feb 29, 2024 12:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Leaving IRA to DAF (donor advised fund) on death, a sanity check
- Replies: 45
- Views: 3575
Re: Leaving IRA to DAF (donor advised fund) on death, a sanity check
I think you are mistaken.rkhusky wrote: ↑Thu Feb 29, 2024 10:01 amSeems to be common knowledge:
viewtopic.php?t=363153
viewtopic.php?p=2805605#p2805605
Beneficiaries are often alive.
A DAF absolutely can be the beneficiary of n IRA. They cannot be the recipient of a QCD though.
https://missionwealth.com/naming-a-char ... -your-ira/
WoodSpinner
- Tue Feb 27, 2024 11:24 am
- Forum: Investing - Theory, News & General
- Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
- Replies: 129
- Views: 16936
Re: Retirees apparently tend to maintain assets - lessons for BH investors?
OP, Our plan is to spend significantly during our GoGo years while our health and desire permits it. We also plan for Inheritances, LTC and Charitable Giving as well. We absolutely do NOT want to adjust spending based on Short Term Market trends —for us that is a huge opportunity cost. Instead we build our portfolio from the Bottom-Up, see https://www.bogleheads.org/forum/viewtopic.php?t=392120 and review it yearly. We focus on the Funded Ratio as the key metric for when we need to cut back either spending or Inheritance. There is so much we want to do and experience and have no problem spending down the portfolio as long as we can meet our other priorities. WoodSpinner Thanks for your view/experience. I recognize that there are many (most...
- Tue Feb 27, 2024 10:44 am
- Forum: Investing - Theory, News & General
- Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
- Replies: 129
- Views: 16936
Re: Retirees apparently tend to maintain assets - lessons for BH investors?
OP,
Our plan is to spend significantly during our GoGo years while our health and desire permits it. We also plan for Inheritances, LTC and Charitable Giving as well.
We absolutely do NOT want to adjust spending based on Short Term Market trends —for us that is a huge opportunity cost.
Instead we build our portfolio from the Bottom-Up, see viewtopic.php?t=392120 and review it yearly. We focus on the Funded Ratio as the key metric for when we need to cut back either spending or Inheritance.
There is so much we want to do and experience and have no problem spending down the portfolio as long as we can meet our other priorities.
WoodSpinner
Our plan is to spend significantly during our GoGo years while our health and desire permits it. We also plan for Inheritances, LTC and Charitable Giving as well.
We absolutely do NOT want to adjust spending based on Short Term Market trends —for us that is a huge opportunity cost.
Instead we build our portfolio from the Bottom-Up, see viewtopic.php?t=392120 and review it yearly. We focus on the Funded Ratio as the key metric for when we need to cut back either spending or Inheritance.
There is so much we want to do and experience and have no problem spending down the portfolio as long as we can meet our other priorities.
WoodSpinner
- Sun Feb 25, 2024 10:27 am
- Forum: Personal Consumer Issues
- Topic: Advice/ideas on how to navigate spending/distributing significant net worth/income
- Replies: 11
- Views: 1863
Re: Advice/ideas on how to navigate spending/distributing significant net worth/income
OP,
What worked for my wife and I was:
- We worked together to prioritize a list of our goals
- We decided on a purchase/spending level that either of us could do without consultation
- Set aside a specific sum of mad money that either of us could spend in addition.
Hope this helps!
WoodSpinner
What worked for my wife and I was:
- We worked together to prioritize a list of our goals
- We decided on a purchase/spending level that either of us could do without consultation
- Set aside a specific sum of mad money that either of us could spend in addition.
Hope this helps!
WoodSpinner
- Sun Feb 25, 2024 9:49 am
- Forum: Personal Consumer Issues
- Topic: Any woodturners here?
- Replies: 3
- Views: 464
Re: Any woodturners here?
Well, hello !!
I am a Woodturner and an Instructor at our turning school …..
Unless others are interested in this amazing hobby, we might be better off taking it to PM for more detailed discussion.
FWIW, I rough turn the bowl, seal it, let it dry, then return it.
How long depends on your location and shop.
I am a strong advocate for in person classes vs. YouTube, it’s a hobby that requires a lot of body mechanics and muscle memory.
WoodSpinner
PS - You made my morning!
I am a Woodturner and an Instructor at our turning school …..
Unless others are interested in this amazing hobby, we might be better off taking it to PM for more detailed discussion.
FWIW, I rough turn the bowl, seal it, let it dry, then return it.
How long depends on your location and shop.
I am a strong advocate for in person classes vs. YouTube, it’s a hobby that requires a lot of body mechanics and muscle memory.
WoodSpinner
PS - You made my morning!
- Fri Feb 23, 2024 2:39 pm
- Forum: Investing - Theory, News & General
- Topic: If you hate paying taxes, you'll love learning about them. Episode 67, "Bogleheads on Investing" guest, Kaye Thomas.
- Replies: 26
- Views: 5177
Re: If you hate paying taxes, you'll love learning about them. Episode 67, "Bogleheads on Investing" guest, Kaye Thomas.
Rick,
Currently listening to the episode and was a bit surprised by the discussion around appealing the IRMAA surcharge (Around the 17:00 mark).
His suggestion was actually misleading in that having a substantial income change alone is NOT a Life changing event and an appeal will not be granted.
The 8 events that are acceptable include:
Death of Spouse.
Marriage.
Divorce or Annulment.
Work Reduction.
Work Stoppage.
Loss of Income Producing Property.
Loss or Reduction of Pension Income.
Receipt of Employer Settlement Payment
A nite in the transcript might be appropriate to avoid confusion.
OTW, I am enjoying the Podcast and have found his writing very helpful!
WoodSpinner
Currently listening to the episode and was a bit surprised by the discussion around appealing the IRMAA surcharge (Around the 17:00 mark).
His suggestion was actually misleading in that having a substantial income change alone is NOT a Life changing event and an appeal will not be granted.
The 8 events that are acceptable include:
Death of Spouse.
Marriage.
Divorce or Annulment.
Work Reduction.
Work Stoppage.
Loss of Income Producing Property.
Loss or Reduction of Pension Income.
Receipt of Employer Settlement Payment
A nite in the transcript might be appropriate to avoid confusion.
OTW, I am enjoying the Podcast and have found his writing very helpful!
WoodSpinner
- Thu Feb 22, 2024 11:55 am
- Forum: Personal Finance (Not Investing)
- Topic: In the event of an untimely death, what is the best way for family members to have immediate access to funds?
- Replies: 53
- Views: 5158
Re: In the event of an untimely death, what is the best way for family members to have immediate access to funds?
I am in my 50's and in good health, but it occurred to me recently that if I were to be hit by the proverbial bus and killed today, my sister and brother-in-law would end up having to do a lot of work to settle my affairs. (I am single with one minor child and both of my parents are deceased). What is the best way for my sister to have immediate access to, say, $5,000.00? If I open a separate HYSA at Ally with her named as the beneficiary, would it be quick and easy for her to access that money? My son is currently named as the beneficiary of all of my accounts. When you designate 'beneficiary', then the transfer should be quick and easy. You just need to let the beneficiaries know that they are the beneficiaries, so they know to contact t...
- Thu Feb 22, 2024 11:51 am
- Forum: Personal Finance (Not Investing)
- Topic: super charging my roth contribution ... knowing I have a mulligan
- Replies: 30
- Views: 2209
Re: super charging my roth contribution ... knowing I have a mulligan
Step 3b doesn’t work that way at all. If you have losses, tough luck. WoodSpinner Well from the Wiki ... https://www.bogleheads.org/wiki/IRA_recharacterization The amount which is recharacterized will be adjusted by them for any earnings or losses on the IRA since the contribution; your custodian computes the earnings for you and transfers the proper amount to the other type of IRA. However, for tax purposes, it is treated as if the original amount was contributed; So maybe I got it all wrong ... I'll have to find the IRS info. :oops: But if I'm reading the wiki correctly ... there is an advantage. The WIKI needs an update — The rules were changed in 2018. See https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras
- Wed Feb 21, 2024 6:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: super charging my roth contribution ... knowing I have a mulligan
- Replies: 30
- Views: 2209
Re: super charging my roth contribution ... knowing I have a mulligan
I was thinking about throwing my entire 2024 Roth contribution into UPRO (aka 3x SPY). If things go well ... great. If things go poorly, I believe that I can recharacterize the contribution and the losses back to my tIRA, and still get the full income reduction tax benefit. I hadn't realized that the IRS gave me such a mulligan. To be more clear ... 1) I take 16k out of my tax deferred accounts (withdrawal) <and pay taxes> 2) I put the 16k into my Roth ... supercharged at high risk SPY 3x (UPRO) 3a) Things go well and in April 2025 I move the UPRO back to SPY 3b) Thing go poorly and in April 2025 I recharacterize the 16k (and losses) as tIRA and <take the tax deduction> I could also hold an extra 2x (32k) cash in my tIRA to keep my total r...
- Wed Feb 21, 2024 11:24 am
- Forum: Personal Consumer Issues
- Topic: Nikon Z autofocus question
- Replies: 6
- Views: 725
Re: Nikon Z autofocus question
The Z8 autofocus is flawless. Does anyone have any experience as to the Z7II and how improved its autofocus is over the Z7? Same question for Zf. These specific question(s) have been asked many,many times over at both dpreview.com and fredmiranda.com and are the subject of great amount of spilled ink. Suggest you visit those photography centric sites if you haven't already. To specifically answer part of your question: Z7ii vs Z7 AF improvement, the consensus is 'not much'. I was more looking to see the tracking auto focus on the Z7ii versus the Z8. I did not find anything on that. The specific question is not tracking and moving subject, but using tracking to recompose. I haven’t been able to find anything like that. Simply use single poi...
- Sun Feb 18, 2024 9:40 am
- Forum: Personal Finance (Not Investing)
- Topic: For an irrevocable trust, can each beneficiary within the trust be gifted the annual maximum?
- Replies: 15
- Views: 1289
Re: For an irrevocable trust, can each beneficiary within the trust be gifted the annual maximum?
That should work just fine ….illumination wrote: ↑Sun Feb 18, 2024 9:35 am My parents set up an irrevocable trust for their grandkids. The named beneficiaries are two individuals (my children). They wanted to transfer some appreciated stock to their grandkids into the trust. The trust is an IDGT. Can they simply transfer $18k x 2 (each grandparent maximum annual gift) x 2 (each grandkid) for a total of $72,000?
Is there any pitfalls in doing this? Can it just be a single transaction from their joint brokerage account? Does anything need to be documented in any unique way?
They could transfer a great deal more and only need to file form 709 which reduces their Lifetime Estate/Gift exclusion (currently around $13MM).
WoodSpinner
- Sun Feb 18, 2024 8:23 am
- Forum: Personal Finance (Not Investing)
- Topic: Open a second IRA for different beneficiaries?
- Replies: 26
- Views: 2596
Re: Open a second IRA for different beneficiaries?
3 are traditional and 2 are Roth (actually have 5 at Fidelity).NearMountains wrote: ↑Thu Feb 15, 2024 10:16 amAre they all the same type, i.e. traditional or Roth or some other type?WoodSpinner wrote: ↑Thu Feb 15, 2024 9:59 am
This is simply not true ….
I have 4 separate IRAs at Fidelity with different beneficiaries on each. No issues at all ….
- Thu Feb 15, 2024 9:59 am
- Forum: Personal Finance (Not Investing)
- Topic: Open a second IRA for different beneficiaries?
- Replies: 26
- Views: 2596
Re: Open a second IRA for different beneficiaries?
This is simply not true ….NearMountains wrote: ↑Wed Feb 14, 2024 5:56 pm I know this is an old thread but I just had the same question today and came across this thread. According to Vanguard the SECURE Act of 2019 requires an IRA custodian to apply the same beneficiary designations to all IRA accounts of the same type and owner they are the custodians for. So when Vanguard or Fidelity, or whoever, does not allow you to have different beneficiary designations for a second IRA account it's not their policy, it's the IRS policy.
I did not come across any info that says you can't have different beneficiaries for accounts held by different custodians.
I have 4 separate IRAs at Fidelity with different beneficiaries on each. No issues at all ….
- Wed Feb 14, 2024 8:41 am
- Forum: Personal Investments
- Topic: What I just learned from the BH's - What about you?
- Replies: 25
- Views: 2870
Re: What I just learned from the BH's - What about you?
Yes, wash sales apply to all accounts (plus your spouses if MFJ)….Morse Code wrote: ↑Wed Feb 14, 2024 8:24 amWhy couldn't you buy the exact ETF in your IRA? Do wash sale rules apply to all your accounts collectively?
- Mon Feb 12, 2024 8:57 am
- Forum: Personal Investments
- Topic: Roth Allocation
- Replies: 4
- Views: 401
Re: Roth Allocation
That is unlikely to be a good strategy. See the Wiki on Asset Location Strategy:
https://www.bogleheads.org/wiki/Tax-eff ... _placement
WoodSpinner
- Sun Jan 28, 2024 8:38 pm
- Forum: Personal Finance (Not Investing)
- Topic: Pension Choices with a Number of Options -- sorting through them
- Replies: 8
- Views: 1421
Re: Pension Choices with a Number of Options -- sorting through them
OP, Here are a few things to consider ….. 1. Are you planning fairly aggressive Roth Conversions during Retirement? If so, how would a Lump Sum affect your Conversion strategy. This was a key decision factor when I faced a similar question when I started my Retirement Planning. I had planned a fairly aggressive Conversion strategy for a number of reasons but the Lump Sum would have just made the tax hit so much worse. 2. I am a believer in using Guaranteed Secure Income (SS, Pensions, Annuities )to cover at least our Minimum Lifestyle Expenses. This aligns to the Safety First quadrant of the Retirement Income Style Awareness , see https://retirementresearcher.com/retirement-income-style-awareness-profile-risa-and-its-accuracy/ - How are you...
- Sun Jan 28, 2024 5:39 pm
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24676
Re: Is paying off a 2.99% mortgage always a bad idea?
OP,
I think it’s not the best Financial move in today’s environment.
That said, it’s not always about finances — only you can evaluate the psychological side….
Lastly, things change, it might make more sense in the future if rates drop again.
WoodSpinner
I think it’s not the best Financial move in today’s environment.
That said, it’s not always about finances — only you can evaluate the psychological side….
Lastly, things change, it might make more sense in the future if rates drop again.
WoodSpinner
- Sun Jan 28, 2024 5:34 pm
- Forum: Investing - Theory, News & General
- Topic: Risky Business: Evaluating Risk in our portfolio
- Replies: 78
- Views: 12422
Re: Risky Business: Evaluating Risk in our portfolio
I am a bit confused by this analysis….. Social Security (or any other Annuity/Pension) should have NO IMPACT on the SWR % since it is not an asset that is subject to SORR….. SS will impact your Cashflow and available spending but I see that as a distinct difference from the risk of depleting a portfolio. Am I not viewing this analysis and definition of risk correctly? WoodSpinner A portfolio can fail if only a portion of it's future expenses are covered by social security. The future income stream helps the portfolio to survive 30 years, allowing a larger spend rate the closer we are to getting social security and the larger the social security payments are relative to our expenses. I am defining SWR as what percentage of existing investme...
- Sat Jan 27, 2024 8:45 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth conversions in the 22 & 24% tax brackets.
- Replies: 144
- Views: 14415
Re: Roth conversions in the 22 & 24% tax brackets.
Impossible to answer without a great deal more information.scooter101 wrote: ↑Thu Jan 25, 2024 9:10 pm In 2024 I plan on doing Roth conversions to the top of the 22% tax bracket. My question is should I go ahead and pay 2% more and convert in the 24% bracket as I have about 120,000 in cash I could use to pay the taxes. My understanding is that the tax bracket will be reverting back in 2026 from 22% to 25% and 24% to 28%. Is this a good idea or not?
- Why are you planning conversions
- Who are you optimizing for ( Couple, Survivor, Heirs)
- What tax bracket will you be in if you do no conversions once RMDs start?
- Age
- Amounts in Pre-Tax, Roth, AfterTax
Finding a Roth Conversion target is not going to be a precise answer given all of the variables.
WoodSpinner
- Thu Jan 25, 2024 10:41 am
- Forum: Investing - Theory, News & General
- Topic: Favorite features on your spreadsheets
- Replies: 82
- Views: 10285
Re: Favorite features on your spreadsheets
Assuming there is a meaningful row and/or column names - recommend giving XLOOKUP a try! For example, let's say you have a table (or could use a "range") named Portfolio_History with columns of Year and Value (G). =XLOOKUP(year(today()),Portfolio_History[Year],Portfolio_History[Value],NA(),0) This will "lookup" 2024 [year(today())] in the "Year" column of the Portfolio_History table and return the matching [row] cell from the "Value" column. This works even if you add rows, columns, rearrange things, etc. IIRC XLOOKUP is "new" and might require a paid version, so if you have an older version of Excel, you can use a more complicated approach using VLOOKUP with MATCH. =VLOOKUP(year(today()),P...
- Wed Jan 24, 2024 11:49 am
- Forum: Investing - Theory, News & General
- Topic: Favorite features on your spreadsheets
- Replies: 82
- Views: 10285
Re: Favorite features on your spreadsheets
- I build a bit of Automation that helps summarize data based on the current Year which requires the use of the Excel Indirect Function to identify the appropriate Column of data (each year is a different column. Couple this with a specific Row number that has the type of data I am interested in. For instance, Column G contains, 2023 data and Row 40 contains the Portfolio Value for the year. So the Indirect Function is used to retrieve G40 for the 2023 Portfolio Value . This works great until I add new rows before Row 40 — the Indirect Function doesn’t automatically update the Row Number. To get around this I add a Hidden Formula (in A40 ) and name that cell PortfolioValue . The formula returns the Row Number of the Cell Named PortfolioVal...
- Tue Jan 23, 2024 12:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: Most popular boglehead withdrawal strategy
- Replies: 117
- Views: 12899
Re: Most popular boglehead withdrawal strategy
OP,
My personal approach uses an Amortization Based Withdrawal approach rather than the ones you mentioned. I believe it’s a much better fit for our Retirement Spending Needs (we are in the GoGo years and plan to spend more now rather than in other phases). Plus I am much more comfortable with a Mathematically driven answer than the results of Backtesting/DatatMining where there are no assurances that Past Performance will repeat.
- Variable Portfolio Withdrawal (great resource base, lots of discussion, backtesting and tools)
- Amortization Based Withdrawal (my primary approach)
- Total Portfolio Allocation and Withdrawal
You can find details by searching the Wiki for VPW, ABW, and TPAW…
WoodSpinner
My personal approach uses an Amortization Based Withdrawal approach rather than the ones you mentioned. I believe it’s a much better fit for our Retirement Spending Needs (we are in the GoGo years and plan to spend more now rather than in other phases). Plus I am much more comfortable with a Mathematically driven answer than the results of Backtesting/DatatMining where there are no assurances that Past Performance will repeat.
- Variable Portfolio Withdrawal (great resource base, lots of discussion, backtesting and tools)
- Amortization Based Withdrawal (my primary approach)
- Total Portfolio Allocation and Withdrawal
You can find details by searching the Wiki for VPW, ABW, and TPAW…
WoodSpinner
- Tue Jan 23, 2024 12:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: Pension or lump sum pay out
- Replies: 37
- Views: 4242
Re: Pension or lump sum pay out
$2600/month after 62, lump sum=$460,000 in 2022 when interest rate was 0.25%, lump sum reduced to $300,000 now when inerest is 5.25%. Big loss of cash value of pension. I think I will wait and see. I might DCA my pension into VTI if I choose pension option when I retire. I decided to adopt a Safety First approach to Retirement Planing and set a goal to cover my Minimum Life’s Expenses with Secure Income (SS, Pension, Annuity). This helped me make a more informed decision between the Lumpsum and the Pension (I took the Pension). A secondary consideration was that I had 95%+ of my assets in a Traditional IRA and was already facing a but of a Tax Bomb — taking the LimpSum would have exacerbated the problem. Lastly, my pension was about 4% lar...
- Sun Jan 21, 2024 9:34 am
- Forum: Personal Consumer Issues
- Topic: Shatter my Van Life Dreams
- Replies: 65
- Views: 8429
Re: Shatter my Van Life Dreams
OP, We bought a PleasureWay Van (on the Mercedes platform) when we retired in 2018 and have been very happy with the decision. Things to consider: - Type of camping that you do (RV Parks, Boondocking, National/State Parks). Do you move around frequently or just want to be mostly stationary. We do a lot of Boondocking and we rarely stay in the same spot for more than a few days. Having Solar, Lithium Batteries, an Inverter, and multiple charging options works well for our needs. - The size of your Freshwater, Black and Grey Tanks makes a big difference in how long you can stay out without dumping or refilling - Paved roads or more off the beaten track. If you are planning to be on dirt roads quite a bit a shorter, van with a beefier suspensi...
- Sat Jan 20, 2024 11:02 am
- Forum: Investing - Theory, News & General
- Topic: Risky Business: Evaluating Risk in our portfolio
- Replies: 78
- Views: 12422
Re: Risky Business: Evaluating Risk in our portfolio
The first of the Monte Carlo withdrawal series with Social Security is in: 30 year retirement, 15 year gap to social security, 30% of expenses provided by Social Security. https://i.imgur.com/RBi8RPc.png Comparing with the prior results without social security, we see that for all AA's the SWR is 0.5% bigger at the 1% failure rate and 0.5 to 0.6% bigger at the 5% failure rate with 30% of expenses covered by social security for the last 15 of the 30 years. The lowest AA supported on a pure risk basis by history-like returns and deviation is 50/50. I will hold off on too many conclusions until all 12 runs are finished: I am a bit confused by this analysis….. Social Security (or any other Annuity/Pension) should have NO IMPACT on the SWR % si...
- Thu Jan 18, 2024 7:14 pm
- Forum: Personal Investments
- Topic: Feedback on my Cashflow Plan Wanted
- Replies: 10
- Views: 1440
Re: Feedback on my Cashflow Plan Wanted
OP, Welcome! I hope you find this forum educational, inviting and helpful! Thanks, hopefully I can contribute a bit as well! Have you reviewed the WIKI article in Tax Efficient Fund placement? You might find this helpful… https://www.bogleheads.org/wiki/Tax-efficient_fund_placement If you are interested, you can post a more detailed look at how your portfolio is allocated across different accounts using this format: https://www.bogleheads.org/wiki/Asking_portfolio_questions Thanks for the links, I'll check them out. Query—why are you spending down Taxable assets rather than spending from your IRA? Have you done the analysis to indicate this is a wise strategy given your goals? Short answer, taxes (current and future) and down the road flex...
- Thu Jan 18, 2024 10:34 am
- Forum: Personal Investments
- Topic: Feedback on my Cashflow Plan Wanted
- Replies: 10
- Views: 1440
Re: Feedback on my Cashflow Plan Wanted
OP,
Welcome! I hope you find this forum educational, inviting and helpful!
Have you reviewed the WIKI article in Tax Efficient Fund placement? You might find this helpful…
https://www.bogleheads.org/wiki/Tax-eff ... _placement
If you are interested, you can post a more detailed look at how your portfolio is allocated across different accounts using this format:
https://www.bogleheads.org/wiki/Asking_ ... _questions
Query—why are you spending down Taxable assets rather than spending from your IRA? Have you done the analysis to indicate this is a wise strategy given your goals?
How does your tax planning guide your decisions around how you obtain your Cashflow?
WoodSpinner
Welcome! I hope you find this forum educational, inviting and helpful!
Have you reviewed the WIKI article in Tax Efficient Fund placement? You might find this helpful…
https://www.bogleheads.org/wiki/Tax-eff ... _placement
If you are interested, you can post a more detailed look at how your portfolio is allocated across different accounts using this format:
https://www.bogleheads.org/wiki/Asking_ ... _questions
Query—why are you spending down Taxable assets rather than spending from your IRA? Have you done the analysis to indicate this is a wise strategy given your goals?
How does your tax planning guide your decisions around how you obtain your Cashflow?
WoodSpinner
- Wed Jan 17, 2024 4:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Who is right???
- Replies: 33
- Views: 4476
Re: Who is right???
OP,
Is there a 3rd option — use a better tool to figure out your withdrawal rate?
Check out the WIKI for:
- VPW
- ABW
- TPAW
WoodSpinner
Is there a 3rd option — use a better tool to figure out your withdrawal rate?
Check out the WIKI for:
- VPW
- ABW
- TPAW
WoodSpinner
- Wed Jan 17, 2024 9:27 am
- Forum: Investing - Theory, News & General
- Topic: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
- Replies: 455
- Views: 26235
Re: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
Speaking as one of those dissatisfied investors in BND (to be technical, VBTIX in my 401(k)), No. I invested in bond funds because they were sold as "ballast to your portfolio", which implies little change in the NAV. Prior to 2022, BND in the past did have negative years, but less than 2% loss. I was expecting a loss not much more in magnitude than that. I signed up to VBTIX for such stability. If it can't deliver that, chuck it. I signed up for volatility too, but on equities side. I wanted something in my portfolio that would remain stable in a storm. Hence after my 2022 misadventure, newly gained appreciation for Series I savings bonds, T bills that I know I will hold until maturity, CDs with no risk to principal etc. So you ...
- Tue Jan 16, 2024 7:08 pm
- Forum: Investing - Theory, News & General
- Topic: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
- Replies: 455
- Views: 26235
Re: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
Because of 2022 type scenarios. Hard to rebalance if both your asset classes take double digit hits. Huh? It was trivial to rebalance given it’s a simple mathematical calculation with a known AA target. It doesn’t matter a bit if both asset classes are down — what matters is the target AA. FWIW, I did hit a rebalancing band in 2022 (and in 2023) and simply executed per my IPS. What wasn’t trivial (and is being missed by this thread) is that there was no certainty the a Fed Move would shift Intermediate or Long Rates as significantly as it did. After all, the Fed does not set these rates, the market does. Couple that with the speed and magnitude of the Fed change (this was surprising to me as well as many others) and my bonds got hit harder...
- Tue Jan 16, 2024 7:06 pm
- Forum: Personal Investments
- Topic: Choosing between DIY and Financial Advisor
- Replies: 67
- Views: 6743
Re: Choosing between DIY and Financial Advisor
Let’s step back a second … Building and managing a portfolio is relatively easy (especially a Boglehead style portfolio) and there isn’t much value add an advisor can bring. The real value is in Retirement, Cashflow, Tax and Estate Planing and this is where advisors can really make a big difference. Unfortunately, many AUM advisors focus on Portfolio Management and not planning. Consider this a key differentiator when you start interviewing. It’s important to think about the Advisor Fees in terms of actual Dollars for specific services. A 1.35% AUM few could be a bargain if you have a small portfolio but need Planning Services. OTOH, it could be outrageously expensive if your portfolio is larger. Plus, thinking of it in Dollars makes it mu...
- Tue Jan 16, 2024 6:58 pm
- Forum: Personal Finance (Not Investing)
- Topic: Disabled Father Financials
- Replies: 17
- Views: 1963
Re: Disabled Father Financials
You said that you transferred assets to "us". Who is "us"? You and your spouse? You and your father (joint account with him)? You may run afoul of Medicaid's 5 year look back if you transferred dad's assets to your accounts. I'm hoping that's not what you did. Us is “you and your spouse” But we have no plan to utilize medicaid Did the Power of Attorney your Dad signed permit gifting of his assets to you ? Mine certainly doesn’t! Did you also file Form 709 to the IRS on behalf of your Dad ? I would make sure this transaction is legal and above board. Roth Conversions may make a great deal of sense especially if your Tax bracket is higher than his. Before converting, I would run a mock Tax Return to get a sense of how muc...
- Tue Jan 16, 2024 6:29 pm
- Forum: Investing - Theory, News & General
- Topic: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
- Replies: 455
- Views: 26235
Re: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
You're already taking risk on the equity side. You don't need to take 6-7 years of duration risk, too, if you plan to rebalance frequently. Why not? It’s different risk. If you are looking at your portfolio as a whole, different types of risks are a good thing. Because of 2022 type scenarios. Hard to rebalance if both your asset classes take double digit hits. Huh? It was trivial to rebalance given it’s a simple mathematical calculation with a known AA target. It doesn’t matter a bit if both asset classes are down — what matters is the target AA. FWIW, I did hit a rebalancing band in 2022 (and in 2023) and simply executed per my IPS. What wasn’t trivial (and is being missed by this thread) is that there was no certainty the a Fed Move woul...
- Tue Jan 16, 2024 6:25 pm
- Forum: Personal Investments
- Topic: Choosing between DIY and Financial Advisor
- Replies: 67
- Views: 6743
Re: Choosing between DIY and Financial Advisor
I’ve been considering the advisor route because as I move up the investment learning curve I start to grasp how much I don’t know. A few issues on my plate are as follows: Understanding my taxes in retirement. My situation is not out of the ordinary but issues of tax efficiency are beyond me at this point. When to take social security, at full retirement age or spend down and wait until 70 for the additional 24% Consolidating accumulated IRA trad and Roth accounts at different brokerages into an easier system Which accounts to draw from first to supplement SS and pension One question answered seems to bring up three more. I appreciate the comments here. Thank you Let’s step back a second … Building and managing a portfolio is relatively ea...