Search found 6739 matches

by celia
Tue Sep 26, 2017 12:31 am
Forum: Investing - Help with Personal Investments
Topic: Struggling with tax implications
Replies: 22
Views: 2243

Re: Struggling with tax implications

Uh oh. Another new concept. So why might I want to recharacterize? Everything you need to know about Roth conversions: https://www.bogleheads.org/wiki/Roth_IRA_conversion and recharacterizations: https://www.bogleheads.org/wiki/IRA_recharacterization A recharacterization of a Roth conversion is an ...
by celia
Mon Sep 25, 2017 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor roth question
Replies: 5
Views: 427

Re: Backdoor roth question

The next time you do a conversion, convert 100% of the account, rather than a dollar amount. That should pick up loose change that ends up there. But be warned: You will have to pay taxes on those cents. Oh, wait, the IRS rounds to the closest dollar! :oops: You could also contribute to a money mark...
by celia
Mon Sep 25, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Struggling with tax implications
Replies: 22
Views: 2243

Re: Struggling with tax implications

Current Roth IRA = $47K Current Traditional IRA--no 401(k) account to roll it into = $41K Backdoor Roth contribution = $5.5K Taxes? = (tax rate * $5.5K) + [tax rate * ($41K/$93.5K) * $5.5K] = 1.44 * tax rate * $5.5K I wouldn't put the tax rate in the formula since it is possible you could span two ...
by celia
Mon Sep 25, 2017 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Simplifying portfolio
Replies: 10
Views: 876

Re: Simplifying portfolio

Question: Once you are retired and are definitely not going back to work, is it OK to combine your 401k's and traditional (deductible) IRA's? For the sake of simplicity. Yes, but simplicity shouldn't be your top goal. For example, if you are going to do multiple Roth conversions and recharacterizat...
by celia
Mon Sep 25, 2017 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring IRA as Beneficiary While Avoiding Financial Adviser
Replies: 34
Views: 1976

Re: Transferring IRA as Beneficiary While Avoiding Financial Adviser

When I started my above post, I meant to say something I completely forgot about. It was about signing something you are uncomfortable with. 1. Never sign papers that haven't already been filled out completely. If some space or question is irrelevant to you, write "n/a" next to it. 2. If you have si...
by celia
Mon Sep 25, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse Money Management
Replies: 94
Views: 5389

Re: Spouse Money Management

She doesn't just use her income, she uses mine too. I subsidize her essential expenses and even give her $20 a month for discretionary spending. She saves nothing that's left over. She doesn't save anything because there's nothing "left over" when her income is so small. Give her $1,000 a week and ...
by celia
Mon Sep 25, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1309

Re: pre-tax money in a nondeductible IRA

FYI, Alan (or any other member you want to return) won't know that you want a return visit unless you quote that person or send him/her a Private Messaage. Using @Alan does nothing in this forum. It is just another 5-letter word you created. Even if this was twitter and you were trying to get his at...
by celia
Mon Sep 25, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: IRA or SS First
Replies: 8
Views: 737

Re: IRA or SS First

I am in the 15% federal tax bracket. You may be in the 15% federal tax bracket now, but what tax bracket will you be in when you are 71 and your tax-deferred accounts have grown, making bigger RMDs along with collecting SS? Open up your latest tax software and do a dummy return for age 71. That wil...
by celia
Mon Sep 25, 2017 2:46 pm
Forum: Personal Consumer Issues
Topic: High school scholarships
Replies: 9
Views: 810

Re: High school scholarships

Do they matter? I mean, does it look good on their cv when they eventually apply for college. I don't think high school scholarships matter as far as getting into college, but the student feels good from their hard work being acknowledged. The parents benefit by having to pay less. However, I knew ...
by celia
Mon Sep 25, 2017 2:32 pm
Forum: Personal Consumer Issues
Topic: High school scholarships
Replies: 9
Views: 810

Re: High school scholarships

I think it was a waste of time except need base. In applying for college scholarships, I had my kids weigh how many applicants there likely would be vs how many scholarships were awarded. For example, if there was a nation-wide competition for 1 4-year scholarship, don't waste your time on it. But ...
by celia
Mon Sep 25, 2017 1:53 pm
Forum: Personal Consumer Issues
Topic: Do you avoid risky adventures once you have the money?
Replies: 64
Views: 2548

Re: Do you avoid risky adventures once you have the money?

I agree with those who think the physical aspects (injury, pain, recovery) impact one's level of risk and most of us can learn from our past experiences. But, heck, I can trip on my own property. So maybe I should stay indoors. Or I can burn myself while cooking. So am I supposed to stay in bed all ...
by celia
Mon Sep 25, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Simplifying portfolio
Replies: 10
Views: 876

Re: Simplifying portfolio

First, the tax-sheltered old 401k and IRAs can all be merged into one rollover IRA (note: not if you want to do back door IRA, research separately if that is an issue and see if you can instead move old 401k into new 401k). Although old 401Ks and traditional IRAs can be merged, I strongly suggest k...
by celia
Mon Sep 25, 2017 3:51 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard charged me $140 in service fees
Replies: 29
Views: 3997

Re: Vanguard charged me $140 in service fees

It is possible that these fees started when your account was migrated to the new platform and the settings didn't carry over (some don't). If that's the case, a simple phone call to Vanguard should fix it.
by celia
Mon Sep 25, 2017 3:40 am
Forum: Personal Consumer Issues
Topic: High school scholarships
Replies: 9
Views: 810

Re: High school scholarships

My kids won partial scholarships for high school. They didn't even have to apply for them. They were granted by their feeder school, parish organizations, and by the high schools themselves as part of honors at entrance (high scores on the high school entrance test). I doubt that they impact college...
by celia
Mon Sep 25, 2017 3:16 am
Forum: Investing - Help with Personal Investments
Topic: Transferring IRA as Beneficiary While Avoiding Financial Adviser
Replies: 34
Views: 1976

Re: Transferring IRA as Beneficiary While Avoiding Financial Adviser

I am not sure why he is pushing a new custodian. You should be able to do the first step just by re-titling the accounts at the current custodians. The threatening agent is pushing Oppenheimer to be the custodian so he can benefit from the commissions, fees, loads, account closing fees, and any oth...
by celia
Sun Sep 24, 2017 3:22 pm
Forum: Investing - Theory, News & General
Topic: a really beginner question [Why are the fund prices different?]
Replies: 11
Views: 1247

Re: a really beginner question [Why are the fund prices different?]

Is a cookie crumb like a dividend? :happy Yep and if you get enough fractional cookies that separate from the original cookies over time, they eventually add up to the weight of current cookies, so you get another cookie (share). To make the original cookie increase in value (of course, you can't e...
by celia
Sun Sep 24, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Large inheritance -questions to ask potential advisors
Replies: 27
Views: 2439

Re: Large inheritance -questions to ask potential advisors

OP, Did YOU inherit this or your wife or both of you? (It seems like we're leaving the beneficiary out of this discussion.) After receiving this inheritance, if either of you now own $5M or more, I think you should start with your own estate planning. See an estate planning lawyer. This is too big f...
by celia
Sun Sep 24, 2017 10:44 am
Forum: Investing - Theory, News & General
Topic: "Fidelity and Vanguard Online Fraud Policies"
Replies: 11
Views: 1668

Re: "Fidelity and Vanguard Online Fraud Policies"

For me, the most important thing that I can do to minimize fraud involves my password. Using pkcrafter's https://personal.vanguard.com/us/help/SecurityOnlineFraudPledgeContent.jsp link, it says: * Make sure your user name, password, and answers to your security questions are unique and strong. * Nev...
by celia
Sun Sep 24, 2017 3:05 am
Forum: Investing - Theory, News & General
Topic: a really beginner question [Why are the fund prices different?]
Replies: 11
Views: 1247

Re: a really beginner question [Why are the fund prices different?]

My cookies are 3" wide (definition of one ETF share) but my friend's cookies are 5" wide (definition of one mutual fund share). The customers will pay 35 cents for each small cookie (ETF share) or 50 cents for each big cookie (mutual fund share). If the cookies are the same thickness, I would say t...
by celia
Sun Sep 24, 2017 2:42 am
Forum: Investing - Help with Personal Investments
Topic: Struggling with tax implications
Replies: 22
Views: 2243

Re: Struggling with tax implications

My wife received an inheritance which I wish to keep in fixed income, it currently resides in our joint taxable account. But this placement isn't tax-efficient so I wish to move it to one of our tax-deferred (tIRA) accounts. So I will sell the bonds in taxable and buy stocks there, then exchange an...
by celia
Sun Sep 24, 2017 2:27 am
Forum: Investing - Help with Personal Investments
Topic: Struggling with tax implications
Replies: 22
Views: 2243

Re: Struggling with tax implications

Yes, I have heard of a backdoor Roth. Problem is that about 40% ($270K) of the holdings are in traditional and rollover IRAs. So, I understand that we'll pay taxes twice on about 67% of an $11K ($5.5K each my wife and me) contribution. Am I correct in that understanding? No. You are misunderstandin...
by celia
Sat Sep 23, 2017 8:37 pm
Forum: Investing - Theory, News & General
Topic: a really beginner question [Why are the fund prices different?]
Replies: 11
Views: 1247

Re: a really beginner question [Why are the fund prices different?]

A very simple example: Suppose my friend comes over and we bake chocolate chip cookies for a bake sale. We share the same bowl of batter (ingredients=stocks). My cookies are 3" wide (definition of one ETF share) but my friend's cookies are 5" wide (definition of one mutual fund share). The customer...
by celia
Sat Sep 23, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Need $$$; tap my taxable acct or my IRA?
Replies: 12
Views: 584

Re: Need $$$; tap my taxable acct or my IRA?

What percent of your assets are in a tax-deferred account? If under 20% I wouldn't worry about huge RMDs, but if 50% or more of your assets are in tax-deferred, those RMDs are going to surprise you when you are 70.5. In the latter case, it may be better to start bringing down the value of the tax-d...
by celia
Sat Sep 23, 2017 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Need $$$; tap my taxable acct or my IRA?
Replies: 12
Views: 584

Re: Need $$$; tap my taxable acct or my IRA?

Unless I am missing something, I believe harvesting capital gains is the better deal. I disagree since you will forever lose this chance to convert "this money" (and then withdraw the car money from the Roth) in the 15% bracket, assuming you are waiting to start collect SS. [Taxwise, this is the sa...
by celia
Sat Sep 23, 2017 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Need $$$; tap my taxable acct or my IRA?
Replies: 12
Views: 584

Re: Need $$$; tap my taxable acct or my IRA?

What percent of your assets are in a tax-deferred account? If under 20% I wouldn't worry about huge RMDs, but if 50% or more of your assets are in tax-deferred, those RMDs are going to surprise you when you are 70.5. In the latter case, it may be better to start bringing down the value of the tax-de...
by celia
Sat Sep 23, 2017 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Merging inheritance with different asset allocation
Replies: 17
Views: 1255

Re: Merging inheritance with different asset allocation

Currently, using a three-fund portfolio, we have about $1.3 million invested with an AA of 75/25 (mix of taxable, Roth, 401k). It was previously 80/20, but became 75/25 with addition of some inherited taxable assets (already stepped-up basis, now with significant additional gains so can't be easily...
by celia
Sat Sep 23, 2017 3:49 am
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 23701

Re: Calling out the not so rich bogleheads

It is rare for anyone to start out rich. Most bogleheads, I assume, had to work their way up the old-fashioned way. But it may seem like many of them are wealthy. I think what we are really seeing is that those who are wealthy enough to no longer have to work will spend more time posting here than s...
by celia
Sat Sep 23, 2017 3:05 am
Forum: Personal Finance (Not Investing)
Topic: california homeowners - do you have earthquake insurance?
Replies: 70
Views: 5197

Re: california homeowners - do you have earthquake insurance?

Can California / Bay Area folks comment on how much their earthquake insurance costs them? It doesn't make sense to compare your rates against anyone else's, except maybe your next door neighbor who bought the same kind and size of house that you did. Your rates will be higher if you have more risk...
by celia
Fri Sep 22, 2017 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Wills, Trusts, estate planning, POA's, Advanced Directives... what first??
Replies: 6
Views: 541

Re: Wills, Trusts, estate planning, POA's, Advanced Directives... what first??

It is usually a package price. But the hardest part is making some decisions: Who do you want as executor/trustee? What if they pre-decease you? Then who do you want? What if a future child becomes disabled and needs more of your assets spent on them after your death than the others? What if one ben...
by celia
Fri Sep 22, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: No down payment for home purchase: what is worst-case scenario?
Replies: 39
Views: 2098

Re: No down payment for home purchase: what is worst-case scenario?

My worst case scenario: You find a house that someone needs to get rid of quickly (their company is moving them) even though it seems good for you (good location, schools, whatever your criteria are). You don't have money for a home inspection but you get the loan somehow and escrow closes. While y...
by celia
Fri Sep 22, 2017 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Division of trust assets after death
Replies: 10
Views: 687

Re: Division of trust assets after death

Would the brokerage house where the 400k trust account is located have a problem with that, or would they want the 50/50 split of the trust adhered to, if for nothing else than to cover themselves legally? The brokerage house should not have anything to do with the division of trust assets. They pr...
by celia
Fri Sep 22, 2017 2:39 pm
Forum: Personal Consumer Issues
Topic: Uplifted Driveway = No Home Owners Policy ?!
Replies: 79
Views: 4185

Re: Uplifted Driveway = No Home Owners Policy ?!

Forget neighbors tripping on my uplifted walkways. I trip on them myself (then fix them)! I trip on them on public property! I trip on them while on vacation! And yes, I have broken my ankle in three different planes from tripping. I was out of work for about 3 months and it was about 6 months befor...
by celia
Fri Sep 22, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid promissory note & senior citizen hell
Replies: 24
Views: 1844

Re: Medicaid promissory note & senior citizen hell

All of the other assets are in his name. As a result, only his assets are being spent to care for her leaving him with 1/3rd of what her asset is worth. Is this the problem? Are the non-house assets community property or his alone? His SS should be used for his care as should her SS. But where did ...
by celia
Fri Sep 22, 2017 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Policy to "shelter" money from Financial Aid calculations
Replies: 23
Views: 1160

Re: Life Insurance Policy to "shelter" money from Financial Aid calculations

Even though your child is eyeing a particular college or two, there is no guarantee he/she will be accepted. The more "elite" a college is, the more students that will apply. The top colleges can build their incoming class however they wish and there are often 3 or 4 non-overlapping groups of studen...
by celia
Fri Sep 22, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid promissory note & senior citizen hell
Replies: 24
Views: 1844

Re: Medicaid promissory note & senior citizen hell

Is the same attorney representing your father, step-mother, step-siblings, and you? That does not seem ethical. If so, I think it might be a good time to break this all up. Assuming your dad paid the whole legal bill, he can fire them and tell them to do nothing else for this family. Then get anothe...
by celia
Fri Sep 22, 2017 1:37 am
Forum: Personal Consumer Issues
Topic: Foreign Currency Conversion Accepted, then Rejected
Replies: 14
Views: 805

Re: Foreign Currency Conversion Accepted, then Rejected

How do you get local currency? When you get to the foreign country, go to an ATM that accepts your bank's ATM card (mine uses the STAR system). Your cash withdrawal will come out in local currency. Know what your maximum home withdrawal limit is and convert it to local currency so you don't spend t...
by celia
Fri Sep 22, 2017 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Medicaid promissory note & senior citizen hell
Replies: 24
Views: 1844

Re: Medicaid promissory note & senior citizen hell

I don't understand the situation very well, but if you need money, borrow it from a bank or credit union. Don't get financially involved with this potentially complex situation. Once you start helping them out, can't the state expect more of the same from you? As far as the lawyer, (s)he seems like ...
by celia
Thu Sep 21, 2017 11:45 pm
Forum: Personal Consumer Issues
Topic: Credit card price protection, does it work for after sale coupon?
Replies: 4
Views: 292

Re: Credit card price protection, does it work for after sale coupon?

Why don't you ask the credit card company? That will be a better answer than our opinions.
by celia
Thu Sep 21, 2017 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Policy to "shelter" money from Financial Aid calculations
Replies: 23
Views: 1160

Re: Life Insurance Policy to "shelter" money from Financial Aid calculations

My biggest concern is to refinance and cash out of the equity in my home to shelter it from these calculations. The math dose work if the home equity is part of the "available" funds (inclusive of policy fees and commissions). If home equity is not considered it makes it a much less stressful event...
by celia
Thu Sep 21, 2017 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 204
Views: 19245

Re: I won the Lottery. Need sound advice.

I wanted to remind you about a couple of points that have not yet been discussed very much: * Can you estimate how much you have spent over the years in lottery tickets and gambling to get to this pay-out? As others have mentioned, it likely wasn't a single ticket you purchased one day or a single t...
by celia
Thu Sep 21, 2017 4:11 am
Forum: Personal Finance (Not Investing)
Topic: Funding parent IRA
Replies: 10
Views: 749

Re: Funding parent IRA

Yes, just give her money monthly because she is not eligible to contribute to an IRA if she doesn't have any earnings. Is there a reason she can't earn money? Those who contribute to their children's Roths likely have teenagers or young adults who can babysit or work at a fast food restaurant or mow...
by celia
Thu Sep 21, 2017 1:54 am
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 204
Views: 19245

Re: I won the Lottery. Need sound advice.

I disagree with most of the advice given so far. I DO NOT think the OP should pay off any debt until he figures out why he still is in debt (except for the mortgage). If he paid everything off, what will keep him from going right back where he is now? Really. :oops: What lessons has he learned? Did ...
by celia
Wed Sep 20, 2017 7:42 pm
Forum: Personal Consumer Issues
Topic: Should I even bother with buying a school picture?
Replies: 39
Views: 2783

Re: Should I even bother with buying a school picture?

Are you SURE they don't take EVERYONE's photo, even in a group shot? The administration usually holds onto these for identification purposes. They also put them in the school "yearbook" at graduation time. Why don't the parents get together and find another photographer and all take their kids there...
by celia
Wed Sep 20, 2017 7:20 pm
Forum: Forum Issues and Administration
Topic: Why so many 'negative' responses?
Replies: 20
Views: 1755

Re: Why so many 'negative' responses?

heybro , Do you mean posts like this (from something I posted earlier today--click on the arrow if you want to see the whole post): Wife is retired, I am part-time considering full retirement but am the type who is always concerned about running out of money, so I can't seem to pull the trigger. Fi...
by celia
Wed Sep 20, 2017 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Funding parent IRA
Replies: 10
Views: 749

Re: Funding parent IRA

You would be giving your a mom a gift which you may not get back when she dies, if that is what you are trying to achieve. She may need that money for herself in her old age or before she qualifies for Medicaid. The tax implications are that it is lowering the value of your estate and increasing her...
by celia
Wed Sep 20, 2017 6:20 pm
Forum: Forum Issues and Administration
Topic: Why so many 'negative' responses?
Replies: 20
Views: 1755

Re: Why so many 'negative' responses?

I don't see this negativity. What I see is a reminder of all the "and"s, "if"s, or "but"s. Often there are alternative ways of reaching the same goal. And there are often IRS rules that have pitfalls attached. Wouldn't you want to be aware of them before you made the "big move"? Or would you rather ...
by celia
Wed Sep 20, 2017 3:10 pm
Forum: Personal Consumer Issues
Topic: Uplifted Driveway = No Home Owners Policy ?!
Replies: 79
Views: 4185

Re: Uplifted Driveway = No Home Owners Policy ?!

I appreciate the responses. However, I don't agree they are trying to 'help us'. They are trying to reduce their risk and increase their profit margin. The chances of me being sued is extremely minuscule. If I am, I have a $1M umbrella. It is not in my financial interest to spend $5-10K getting fix...
by celia
Wed Sep 20, 2017 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 2680

Re: Roth Conversions and taxes

Wife is retired, I am part-time considering full retirement but am the type who is always concerned about running out of money, so I can't seem to pull the trigger. First, the more you continue to work, the more you fall into the "deep tax hole" you are digging for yourself. So stop it. :oops: Why ...
by celia
Wed Sep 20, 2017 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Paying premiums for life insurance policy in Irrevocable Trust
Replies: 8
Views: 384

Re: Paying premiums for life insurance policy in Irrevocable Trust

Does the checking account pay for anything that is not required or implied by the trust? Maybe the checking account should be moved to the trust too. Note that if you keep the same checking account number, you don't have to have the checks reprinted. Also note that one account, usually a checking ac...
by celia
Wed Sep 20, 2017 1:57 am
Forum: Investing - Theory, News & General
Topic: Multiple sources of income - fact or fiction?
Replies: 12
Views: 1854

Re: Multiple sources of income - fact or fiction?

I think of "multiple sources of income" as being from different payers. Even if one source should disappear, you want to be able to rely on the others. For example,: you might get dividends and capital gains from different companies or mutual funds you might take RMDs you might spend taxable assets ...