Search found 176 matches

by jj
Fri Apr 20, 2018 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone invest in I Bonds and why?
Replies: 44
Views: 5748

Re: Anyone invest in I Bonds and why?

For those of you who use I-bonds as part of your fixed-income allocation. How do you manage them within the portfolio? I see several options: 1. Let them float as a percentage of portfolio. Do you just hold to maturity here? If not, how do you know when to sell? 2. Set an upper max percentage of po...
by jj
Fri Apr 20, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone invest in I Bonds and why?
Replies: 44
Views: 5748

Re: Anyone invest in I Bonds and why?

I invest in them for my family because: - they are backed by the US govt - therefore very safe - they give me $20k extra tax-deferred space per year - as early retirees with no earned income this is valuable to me, we have small IRAs - they protect against inflation - I remember the 70's and 80's, b...
by jj
Wed Apr 18, 2018 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: need advice on retired mom's ira account
Replies: 10
Views: 725

Re: need advice on retired mom's ira account

Mom may need this Traditional IRA to pay for long-term care or medical expenses, don't assume she won't need it just because her regular expenses are covered by SS and her pension.
by jj
Fri Apr 06, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct is a waste of time
Replies: 80
Views: 19257

Re: Treasury Direct is NOT a waste of time

I have used Treasury Direct for many years, with no problems at all. I have done it all with them: buying and selling savings bonds, buying and selling individual treasury bonds, doing conversions of paper to electronic savings bonds, getting locked out and having to call customer service. In every...
by jj
Mon Mar 26, 2018 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 6871

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

the grandparent would have to report the stock sale and when it was acquired. So the IRS would see a recurring pattern of stock gifted (preserving your basis) and sold. I'm in a different situation here with us funding gifts to a child's UGMA account with appreciated stock, then taking advantage of...
by jj
Thu Mar 08, 2018 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: HSA family max contribution lowered to $6850 for 2018 [and changed to $6900 again]
Replies: 128
Views: 13676

Re: HSA family max contribution lowered to $6850 for 2018

I absolutely have to give a shout out to Health Savings Administrators (healthsavings.com) they have dealt with my excess contribution immediately and efficiently - all within an hour this afternoon. We are a couple both 55+ with a family HDHP for 2018, I contributed the full amount $8900 last month...
by jj
Sat Mar 03, 2018 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me help my recently divorced sister
Replies: 27
Views: 2551

Re: Please help me help my recently divorced sister

Toad,

Thank you for the update. So good to hear such a positive story!
by jj
Sun Feb 11, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Can’t decide if we’re getting close to FIRE without knowing health care costs
Replies: 30
Views: 2455

Re: Can’t decide if we’re getting close to FIRE without knowing health care costs

KlangFool It is B. $20k pa is low, unless that is for a single person. For a couple in their 60's pre-Medicare $35k would be closer to the mark. btenny I do have that record and will have to spend some time going through MSMoney to pull it all out separately. I have used Money and then the sunset ve...
by jj
Sun Feb 11, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Can’t decide if we’re getting close to FIRE without knowing health care costs
Replies: 30
Views: 2455

Re: Can’t decide if we’re getting close to FIRE without knowing health care costs

You do. It is your insurance premium plus your out of pocket maximum. In many cases, it is about 20K per year. That is your worst case number. That is just not true. The premiums go up with age. At age 64 on an ACA plan, I have done some quotes, and we could hit $30k for 2, and in fact would, given...
by jj
Fri Jan 26, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bonds - 100% When All You Need is the Income
Replies: 55
Views: 5458

Re: Municipal Bonds - 100% When All You Need is the Income

...why take so much risk? What if there is some Muni black swan event causing a wave of cities to default? Why not put some in Treasuries and TIPS with much lower credit risk? I think it is worth paying some tax to sleep at night. For what it's worth, I have 5% of my portfolio in munis and don't wa...
by jj
Wed Jan 17, 2018 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Plans As Estate Planning Tool
Replies: 1
Views: 344

Re: 529 Plans As Estate Planning Tool

I realize that, at least until 2025, an even smaller group of people will be subject to Federal Estate Tax. And after that, under the recently enacted current law, it will still be a small group. That being said, it seems that 529 Plans could be a really good way to legally hedge Federal Estate Tax...
by jj
Mon Jan 15, 2018 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on managing healthcare costs
Replies: 27
Views: 1405

Re: Advice on managing healthcare costs

Also, is there any difference between opening the account on my own, and just claiming the out of pocket expenses on my tax return? For example, last year I had 3,900 in out of pocket expensive from an ER visit. I plan to claim that on taxes, but I am assuming that claiming on taxes would not yield...
by jj
Fri Jan 12, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Investing in my HSA although insurance is through my spouse. Will this work?
Replies: 2
Views: 260

Re: Investing in my HSA although insurance is through my spouse. Will this work?

FiveK wrote:
Thu Jan 11, 2018 9:53 pm
As long as it is ok with her, then yes.

See Publication 969:
the contribution limit is split equally between the spouses unless you agree on a different division.
Agreed - only if she is 55+ and can make the extra $1000 contribution does she 'need' to have her own HSA account
by jj
Mon Jan 01, 2018 2:59 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversions without ability to Recharacterize
Replies: 45
Views: 2652

Re: Roth Conversions without ability to Recharacterize

I completed my first Roth Conversion in 2017 and had a few questions given the inevitability of the new tax bill being signed into law and recharacterizations going away. 1. Without the ability to recharacterize is the concept of the Roth Horse race no longer viable? Does it make sense to wait unti...
by jj
Sat Dec 30, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: How to financially assist DD to help continue her Obamacare
Replies: 54
Views: 4178

Re: How to financially assist DD to help continue her Obamacare

JJ posted If she has unrealized capital gain in her taxable account, whether it's long term or short term it would not matter, do that today to give her income for 2017. Income level needs to be at 100% of federal poverty level for 2016 when looking at ACA for 2017. When my son was in this position...
by jj
Sat Dec 30, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Estate planning for green card parents who are citizens of India
Replies: 29
Views: 2290

Re: Estate planning for green card parents who are citizens of India

IngognitoUSA wrote:
Fri Dec 29, 2017 9:41 pm
Green card holders do not have the same level of Estate tax exemption as US citizens.
I believe they do - you might be thinking of non-resident aliens who have a much reduced exemption about $60k, instead of the current $5.49M for US citizens and permanent residents (green card holders).
by jj
Fri Dec 29, 2017 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: How to financially assist DD to help continue her Obamacare
Replies: 54
Views: 4178

Re: How to financially assist DD to help continue her Obamacare

To have 2017 income she needs to sell today! I don't want that to get overlooked in the rest of the discussion. Not having any 2017 income might not appear to matter for 2017 but it will for sure affect 2018 and you are to late to do any 2018 plan changes so getting kicked off Aca for lack of incom...
by jj
Sun Dec 17, 2017 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Worth it financially to trade my Tesla Model S for a Model 3? Got my configuration invite
Replies: 34
Views: 2765

Re: Worth it financially to trade my Tesla Model S for a Model 3? Got my configuration invite

This is what we did. We have an S85 from October 2014 (with auto-pilot) which now has 55k miles on it. We love the car and decided as we reached the 50k mile point last July to take out the extra 2 yr/25k mile warranty for $2100 and continue with our S85. The car still looks close to brand new. All ...
by jj
Sat Dec 02, 2017 10:40 am
Forum: Investing - Help with Personal Investments
Topic: How much to convert to Roth without raising tax bracket
Replies: 12
Views: 1730

Re: How much to convert to Roth without raising tax bracket

As TurboTax insists on your filling out all kinds of unnecessary forms to input a Roth conversion, I just 'pretend' that the Roth conversion is taxable interest to work out the amount I can convert. For estimation purposes it produces the same effect and allows me an accurate figure for the Roth con...
by jj
Sat May 27, 2017 9:23 pm
Forum: Personal Consumer Issues
Topic: Second report on my bike ride from Amsterdam to Passau
Replies: 2
Views: 794

Re: Second report on my bike ride from Amsterdam to Passau

I look forward to more reports - thank you!
by jj
Mon May 08, 2017 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Retired - How much can I afford to pay for house
Replies: 12
Views: 2116

Re: Retired - How much can I afford to pay for house

Rules of thumb, like no more than 10% of NW being spent on a home are just that... some kind of false metric. The home you have is measured on a different scale - how it suits you and your family's lifestyle. Tempered, of course, by what you can afford. It seems that you spend very frugally, expendi...
by jj
Sat Feb 04, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: giving stock to adult child
Replies: 6
Views: 958

Re: giving stock to adult child

You will need to consider more than taxes. You are describing someone who is low income with a child. If you give her stock that she sells, it will increase her income. This may disqualify her for important benefits like health insurance or housing aid. In some cases, even cash gifts need reported,...
by jj
Sat Feb 04, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: All investments with Vanguard - Should I diversify
Replies: 19
Views: 2492

Re: All investments with Vanguard - Should I diversify

Our brokerage/mutual funds are only with Vanguard. I do not feel that further diversification is necessary for this part of our assets. We have further accounts with one credit union for certificates, Treasury Direct for government bonds, an HSA provider, and one on-line and one bricks-and-mortar ba...
by jj
Fri Dec 02, 2016 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: seeking advice, in retirement now
Replies: 63
Views: 14495

Re: seeking advice, in retirement now

As the effective tax rate for this extra $20,000 IRA withdrawal is only 16% it makes sense to me to make this a Roth conversion, if she has decided against gifting it. Next year, filing single, she will be in the 25% marginal bracket, barring health issues increasing the medical deduction. It's unsu...
by jj
Thu Nov 03, 2016 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: where to put withdrawals from Reg IRA
Replies: 7
Views: 1237

Re: where to put withdrawals from Reg IRA

If you don't need to spend the money now a better way to do this would be to 'convert' to a Roth IRA. This would retain the tax-deferred nature of the IRA and allow you to spend these dollars later in retirement or bequeath them to heirs with tax already paid, as you wish. Look up Roth conversion fo...
by jj
Sat Oct 08, 2016 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Guidance needed on IRAs/RMDs/Roths - Plan of Action
Replies: 23
Views: 2633

Re: Guidance needed on IRAs/RMDs/Roths - Plan of Action

canon_shooter wrote:
I'm also curious as to whether there is a limit on how much money can be converted from a TIRA to RIRA in a year.
Cheers
There is no limit, except a self-imposed one of not wanting to pay too much in taxes in one year.
by jj
Thu Jun 09, 2016 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: What does "Self Insure" mean?
Replies: 43
Views: 5863

Re: What does "Self Insure" mean?

2 Tasty wrote:
The distinction between self-insured and uninsured (using the example of two individuals without life insurance):

Person A has no assets, a stay-at-home wife, and five kids. He is uninsured.

Person B has a billion dollars in the bank. He is self-insured.
THIS!
by jj
Sun Jun 05, 2016 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: list of companies that support mega backdoor roths?
Replies: 4
Views: 1197

Re: list of companies that support mega backdoor roths?

No replies so far but my interest was piqued by this question.

I know of no lists. But after chatting with a friend who works for Microsoft, I believe he has access to a mega backdoor Roth.

jj
by jj
Sun May 01, 2016 9:14 am
Forum: Investing - Help with Personal Investments
Topic: No Income - Convert some Traditional IRA money to Roth IRA?
Replies: 21
Views: 2431

Re: No Income - Convert some Traditional IRA money to Roth IRA?

I have experienced this ability to convert with no income tax to pay and was as surprised as you about it. In early retirement in the first year of no W2 income I was noodling with our income in Turbotax toward the end of the year to see what our taxes would be. Knock me down with a feather when I d...
by jj
Thu Apr 14, 2016 4:41 pm
Forum: Personal Consumer Issues
Topic: Tesla X
Replies: 260
Views: 48372

Re: Tesla X

just frank wrote: Elon wants to 'change the world'....solar power, space exploration, vehicle electrification are his three big 'ideas'.

The goal is not (just) to make a profit on these technologies, but he also has a 'Ford-ian' goal to make them all affordable to a mass market.
Don't forget the Hyperloop!
by jj
Sun Mar 20, 2016 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Does this plan make sense?
Replies: 12
Views: 1440

Re: Does this plan make sense?

[quote="kxpatel" So I didn't get invest all of it, only about 35% of what I wanted to invest and in three chunks while the market was going down. While I did not loose money, I lost money based on the opportunity cost. The 65% of the money that is not invested is still in cash. If I had invested all...
by jj
Sat Feb 27, 2016 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Capital loss on house - not personal residence
Replies: 1
Views: 281

Capital loss on house - not personal residence

We have engaged in a contract for a house to be built. We already owned the land. We are very unhappy with the builder and do not wish to live in this house, such bad feeling has been created. We have paid cash for this so there are no loans. We do not want to sue. We do not intend to live in the pr...
by jj
Fri Jan 01, 2016 11:21 pm
Forum: Investing - Theory, News & General
Topic: REGISTRATION FOR THE 2016 BOGLEHEAD CONTEST
Replies: 667
Views: 39964

Re: REGISTRATION FOR THE 2016 BOGLEHEAD CONTEST

2107.77

Happy New Year! jj
by jj
Fri Dec 11, 2015 3:59 am
Forum: Investing - Help with Personal Investments
Topic: Convert to Roth if you have a lot to convert?
Replies: 31
Views: 4327

Re: Convert to Roth if you have a lot to convert?

65/68. I figure that if I am going to pay the tax on removing money out of tIRA s, that I would move some of the proceeds to taxable funds to take advantage of losses against income at time of withdrawal (future). We are in your similar situation. I am bearish on markets in the short to medium term...
by jj
Thu Dec 03, 2015 6:13 pm
Forum: Personal Consumer Issues
Topic: Married couple - separate plans bronze hsa + silver -any downsides?
Replies: 2
Views: 533

Re: Married couple - separate plans bronze hsa + silver -any downsides?

I don't see any downside. If it works out badly you can do something different next year. We took a bronze HSA policy for 2015, our first foray into private HI. We had been using non-subsidized Company retiree HI since retiring early a few years ago. For a family of three this was costing almost $20...
by jj
Tue Dec 01, 2015 10:17 am
Forum: Personal Finance (Not Investing)
Topic: 2016 Obamacare-> What happens if make less than poverty level ($11800) in a state that didnt expand Medicaid?
Replies: 16
Views: 3369

Re: 2016 Obamacare-> What happens if make less than poverty level ($11800) in a state that didnt expand Medicaid?

To add They did offer him some kind of exemption from getting health insurance so that he would not have to pay the penalty for not having it. But I do not want him to be without health insurance so I will help him by paying the premium for him. As I would not see him unable to get care if needed it...
by jj
Tue Dec 01, 2015 10:04 am
Forum: Personal Finance (Not Investing)
Topic: 2016 Obamacare-> What happens if make less than poverty level ($11800) in a state that didnt expand Medicaid?
Replies: 16
Views: 3369

Re: 2016 Obamacare-> What happens if make less than poverty level ($11800) in a state that didnt expand Medicaid?

My family has experience with this. Our son, just turned 26 and with only a part time job and having filed taxes for the first time last year, could not prove to Healthcare.gov's satisfaction that he has enough income for 2015. They took away his subsidy credit and he will have to claim his subsidy ...
by jj
Sun Jul 12, 2015 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: 27 Year Old Medical School Graduate With Financial Questions
Replies: 19
Views: 4662

Re: 27 Year Old Medical School Graduate With Financial Questions

Edit: I do have a theoretical question. If I'm at the point at the end of the year that I'm not maxed out with my Roth, should I 1. Cash out bonds I was given at birth to max it out? 2. Cash out stock to max it out? 3. Do nothing and let it sit? I'm putting in no less than 300 per month, so if I'm ...
by jj
Sun Jul 05, 2015 8:54 am
Forum: Investing - Theory, News & General
Topic: Emergdoc on Mr. Money Mustache
Replies: 186
Views: 32711

Re: Emergdoc on Mr. Money Mustache

Passions certainly run high around MMM! Apparently myself included since this discussion caused me to de-lurk at BH to comment*. I discovered both MMM and BH around the same time and have found both to be entertaining, thought-provoking, and educational. The discussion at BH is better informed, mor...
by jj
Fri Jul 03, 2015 3:09 am
Forum: Personal Finance (Not Investing)
Topic: financial adviser told me not to invest too much in 401k
Replies: 92
Views: 14693

Re: financial adviser told me not to invest too much in 401k

2. Based on what you've written here, I too don't think your 25% tax rate is correct. [I agree with heyyou 's calcs.] I think the OP would be in the 25% marginal tax bracket if they didn't contribute to their 401k. By contributing at a rate of 20% they have brought themselves into the top of the 15...
by jj
Sun Jun 28, 2015 7:17 am
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 278
Views: 39920

Re: What ratio are you stocks/bonds and how old are you?

Retired - negligible pension or SS expected 60/56 ages 40-45% stock - 55-60% fixed income At the moment we are at the top of our 45% stock rebalancing bands and take our income from mutual fund distributions, CD interest and nibbling at our stock allocation to bring it under 45%. When the stock mark...
by jj
Thu Jun 04, 2015 7:19 am
Forum: Investing - Help with Personal Investments
Topic: Taxable holdings crowding out sheltered
Replies: 5
Views: 1125

Re: Taxable holdings crowding out sheltered

8% - Total Bond Market 8% - High-Yield Corporate 8% - Inflation Protected Securities 6% - REIT Index I wouldn't be holding any of these in a taxable account if you care about taxes. As already said, hold diversified index stock funds with low expense ratios in taxable, and plan on holding them for ...
by jj
Fri May 29, 2015 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: Home Equity as part of your Net Worth?
Replies: 25
Views: 3734

Re: Home Equity as part of your Net Worth?

Personally, our IPS states that our home should not be more than 15% of our net worth. Admittedly this is a fairly arbitrary figure and our current percentage is around 9%. I would like to pass on a cautionary tale from acquaintances of ours. They traded up to a property twice the value of their pre...
by jj
Tue May 26, 2015 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Multiple Accounts Asset Allocation
Replies: 12
Views: 1682

Re: Multiple Accounts Asset Allocation

To comment on this: My wife does have 401k and the only funds available are American funds - fees there look horrifying to me (1.1, 1.5, 1.6 etc). W e are not doing anything with that since it is the only way for her to max out $18,000 (she can only contribute $5,500 to backdoor Roth IRA if she stop...
by jj
Sat May 23, 2015 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Investing after Retirement
Replies: 10
Views: 1654

Re: Investing after Retirement

Firstly, unless you have a number of issues squared away in your own mind changing the investments in your 401k and taxable savings is ‘moving the deckchairs on the Titanic’. The questions to think about are: - How safe is my pension? Is there a cost of living adjustment (COLA)? - How much do we ‘ne...
by jj
Sun May 03, 2015 7:50 pm
Forum: Investing - Theory, News & General
Topic: Who's Buying I Bonds Now?
Replies: 43
Views: 7227

Re: New I bond rates out - not good news

We still might buy our full I bonds this year (I already bought $5k from my tax refund) because it's not inflation this year I'm worried about: it's inflation in 20 years. And once I don't buy this year's I bonds, I can never buy them again. Am I thinking about this clearly? Yes. This is my plan i....
by jj
Fri May 01, 2015 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Assett Allocation in Semi-Retirement
Replies: 10
Views: 1190

Re: Help with Assett Allocation in Semi-Retirement

We are definitely counting on taking 4% or so a year from these funds, hopefully lasting for 20+ years. Our yearly expenses are less that our yearly income now, so our strategy now should be more about preservation of our assets. The first sentence is from your initial post and suggests you are pla...
by jj
Sat Apr 25, 2015 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA options when you can't contribute to it anymore
Replies: 12
Views: 2091

Re: Roth IRA options when you can't contribute to it anymore

Name/Inception Date Asset Class Category Gross Expense Ratio** Shareholder Fees SPTN TOT MKT IDX INS (FSKTX) 11/05/1997 Stock Investments Large Cap 0.07% SPTN EXT MKT IDX ADV (FSEVX) 11/05/1997 Stock Investments Mid-Cap 0.07% VANG TOT BD MKT INST (VBTIX) 12/11/1986 Bond Investments Income 0.07% You...
by jj
Sat Apr 04, 2015 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Taxable savings to Roth IRAs?
Replies: 8
Views: 1411

Re: Taxable savings to Roth IRAs?

If you are worried about realizing too much gain in one tax year you could fill up the 2014 Roth IRA'S now, before April 15th. Then, next year max out your 2015 Roth IRA s before April 15th 2016. That will spread out the tax consequences over two years. It depends on your tax bracket whether this is...