Search found 134 matches

by kate1234
Fri Dec 08, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 4
Views: 530

Re: Trying to understand Roth five-year rule

Alan S. wrote:
Fri Dec 08, 2017 12:50 pm
However, you better be aware of the pending tax legislation as soon as it passes because it will probably eliminate your "fine tuning" opportunity.
Thanks, I had missed this.
by kate1234
Fri Dec 08, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 4
Views: 530

Re: Trying to understand Roth five-year rule

Thanks, that helps and is a relief (since I recently made a withdrawal from the Roth then doubted myself). In spite of your warning though, the reason we have accumulated these tIRAs and rIRAs is to spend them! My understanding is the way one chooses whether to spend first from tIRA or rIRA is based...
by kate1234
Fri Dec 08, 2017 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Help with Inherited IRA
Replies: 14
Views: 977

Re: Help with Inherited IRA

We transferred ours over to Vanguard so that nearly all of our accounts are in the same place. Helps with simplicity, which is one of our goals.
by kate1234
Fri Dec 08, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 4
Views: 530

Trying to understand Roth five-year rule

This is a hypothetical to help me understand better how the five-year rule works for a Roth: Suppose a Roth was opened in 2010 with a regular contribution of $6,000. Then in 2017 came a second regular contribution of $6,500, plus a taxable conversion of $10,000. And assume the taxpayer is over 59.5 ...
by kate1234
Fri Nov 24, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Building credit
Replies: 2
Views: 264

Re: Building credit

As for the impact on his credit score, I would recommend he get his credit report to see if the Visa card is even reporting for him. If not, it isn't doing much good for him I think in terms of building his credit score. That was exactly the right advice. He is home for Thanksgiving so he ran a cre...
by kate1234
Fri Nov 24, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Building credit
Replies: 2
Views: 264

Building credit

I opened a joint Visa card when my son was 16. It gets robust use and of course the balance is paid off every month. Someone told me this was not adequate to build credit in his name - that a card had to be in his name alone to build the credit and so I should open one of those cards designed for co...
by kate1234
Tue Nov 07, 2017 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Disposable income... how?
Replies: 106
Views: 9843

Re: Disposable income... how?

If you end up with kids you will have a lifetime of explaining why their friend gets a motorized ride-on toy but they don't. While at the same time reminding them and yourselves that you have both a refrigerator and flush toilets, so yes you are rich. It is totally worth it to clarify in your mind w...
by kate1234
Tue Nov 07, 2017 6:22 am
Forum: Investing - Help with Personal Investments
Topic: SIPC
Replies: 3
Views: 334

SIPC

Vanguard's website says: "Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC." Does this give me a reason to ...
by kate1234
Mon Oct 23, 2017 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Calculators
Replies: 9
Views: 853

Re: Social Security Benefits Calculators

Thanks. This one https://socialsecurity.tools/app.html worked better for me because the one at SSA required a download that isn't compatible with my Mac.

I do have some believable numbers now.
by kate1234
Mon Oct 23, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Calculators
Replies: 9
Views: 853

Re: Social Security Benefits Calculators

I have used MaximizeMySocialSecurity in the past, back when claiming strategies were more interesting. And I intend to use them again in the year I turn 62 to confirm my conclusion that claiming at 62 really is the best strategy. This is just keeping tabs on things in the meantime.
by kate1234
Mon Oct 23, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Calculators
Replies: 9
Views: 853

Social Security Benefits Calculators

When one logs onto one's account on the SSA website, they happily give you the estimated monthly benefit at age 62, your FRA, and age 70. However, they assume that you will continue to earn the amount you made last year (in this case 2016). I don't plan to earn any more salary so those numbers are i...
by kate1234
Thu Jul 06, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: What is a "sleeve"?
Replies: 34
Views: 3698

Re: What is a "sleeve"?

Thanks for the responses and the laughter! The good news is that my friend took the leap last Friday, went to Fidelity and asked them to move all the assets from the financial advisor and to set up what is basically a three-fund portfolio using the index funds that Fidelity used to call "Spartan." S...
by kate1234
Thu Jul 06, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: What is a "sleeve"?
Replies: 34
Views: 3698

What is a "sleeve"?

My friend's financial advisor is encouraging her to go with an "end sleeve" and to avoid index funds at all costs :D [pun intended]

What is an "end sleeve"? I don't find anything on the wiki about it.
by kate1234
Wed Jul 05, 2017 7:28 am
Forum: Investing - Help with Personal Investments
Topic: PIMIX? [PIMCO Income Institutional]
Replies: 3
Views: 789

Re: PIMIX? [PIMCO Income Institutional]

Thanks folks, I've passed this on.

Personally I value simplicity over just about everything else so I wouldn't keep it. But if I were to keep some, I'd mentally assign half to my bond allocation and half to stock.
by kate1234
Tue Jul 04, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: PIMIX? [PIMCO Income Institutional]
Replies: 3
Views: 789

PIMIX? [PIMCO Income Institutional]

I have a friend who is just this week making the leap from having her assets under management with an advisor, to taking the IRA over to Fidelity and managing it herself. She will start with 50%/50% stocks & bonds, with 25% international: FSTVX Fidelity Total Market Index Premium FSIVX Fidelity Inte...
by kate1234
Wed Jun 07, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Young adults and gifts versus support
Replies: 5
Views: 1049

Re: Young adults and gifts versus support

Our 20-year-old is in college and we claim him as a dependent on our taxes. We pay all of his tuition, room & board, expenses, and fun stuff, as he earns virtually no money . This arrangement works well for all of us. I am trying to understand the IRS's distinctions between gifts and support for hi...
by kate1234
Wed Jun 07, 2017 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Young adults and gifts versus support
Replies: 5
Views: 1049

Young adults and gifts versus support

Our 20-year-old is in college and we claim him as a dependent on our taxes. We pay all of his tuition, room & board, expenses, and fun stuff, as he earns virtually no money. This arrangement works well for all of us. I am trying to understand the IRS's distinctions between gifts and support for him....
by kate1234
Sun Apr 30, 2017 6:25 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2596

Re: If I delay SS to age 70, could spousal benefit start earlier?

If you voluntarily suspend your retirement benefit and you have others who receive benefits on your record, they will not be able to receive benefits for the same period that your benefits are suspended. Please note that there is one exception; divorced spouse’s will be able to continue receiving be...
by kate1234
Thu Apr 27, 2017 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Lifecycle Funds/G Fund Too Conservative?
Replies: 140
Views: 9815

Re: TSP Lifecycle Funds/G Fund Too Conservative?

Make sure your beneficiary knows to get the money out of the TSP after you pass on, because the rules say that the beneficiary cannot leave an inherited IRA after they pass on. Their beneficiary will have to take the money in a lump sum in one tax year, taking a huge tax bite out of all of that mon...
by kate1234
Wed Apr 26, 2017 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Lifecycle Funds/G Fund Too Conservative?
Replies: 140
Views: 9815

Re: TSP Lifecycle Funds/G Fund Too Conservative?

I notice two things about his article: He seems to be a believer in timing the market: "All of which leads me to believe that we remain in the Mid/Growth/Performing stage of the business cycle and so I am going to continue to allocate all of my balances and contributions to the TSP C Fund." I don't ...
by kate1234
Wed Apr 05, 2017 5:38 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit in Virginia
Replies: 6
Views: 663

Foreign Tax Credit in Virginia

I have just been told that the Foreign Tax Credit is not available in Virginia on dividend income. TurboTax includes it on the Virginia tax return, but the state of Virginia has disallowed it. Has anybody else run into this? If true, then that might argue for keeping one's international stocks in a ...
by kate1234
Wed Feb 01, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1348

Re: Where does cash from odd jobs go on a 1040?

Anyone who wouldn't report income like this, when the earner is quite young and in a very low tax bracket, is missing a very big benefit (apart from complying with the law) of declaring it. One can park up to $6000 of it in a Roth! And aren't we all advocating getting those Roths fully maxed out sta...
by kate1234
Wed Feb 01, 2017 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1348

Re: Where does cash from odd jobs go on a 1040?

So it sounds like the consensus is Schedule C and pay FICA on it, and not Line 21 "Other Income," which wouldn't be subject to FICA. Intuitively it makes sense to pay FICA on it since this was "labor."
by kate1234
Wed Feb 01, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1348

Re: Where does cash from odd jobs go on a 1040?

And on Social Security credits, from the SS website:

In the year 2016, you must earn $1,260 in covered earnings to get one Social Security or Medicare work credit and $5,040 to get the maximum four credits for the year.
by kate1234
Wed Feb 01, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Where does cash from odd jobs go on a 1040?
Replies: 11
Views: 1348

Where does cash from odd jobs go on a 1040?

My son did odd jobs and was handed cash and checks by friends and family. Helping to clean a garage, mowing a lawn, babysitting, tutoring. Just earning bits and pieces, nothing from any one person that would require a tax form from them. I know many would just pocket the money without paying taxes b...
by kate1234
Mon Jan 23, 2017 1:26 pm
Forum: Personal Consumer Issues
Topic: Subaru + Mazda
Replies: 44
Views: 5065

Re: Subaru + Mazda

I bought a 2017 Subaru Outback 3.6 this year, although not the new Touring because I wanted ivory-colored seats, not brown, and that wasn't a choice in the Touring. I did my driving and car-examining at one local dealer and never spoke to him about price. When I was ready I called five other regiona...
by kate1234
Tue Jan 17, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterizing a Roth Conversion
Replies: 4
Views: 361

Recharacterizing a Roth Conversion

Some have advised making a Roth conversion in one year then waiting until October of the following year to determine whether, and how much, to recharacterize. Partly this is based on the technique that if the assets declined in value by October it might be advantageous to recharacterize the whole th...
by kate1234
Thu Nov 17, 2016 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1300

Re: Help me make a spreadsheet?

You could use 5% for VTSAX and 3% for VBTLX as "not unreasonable guesses" but.... Wouldn't those percentages include both the annual income and the hoped-for increase in net asset value? I think I need to separate out those two things for my spreadsheet since they will be taxed differentl...
by kate1234
Wed Nov 16, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1300

Re: Help me make a spreadsheet?

Actually figuring out the taxes isn't the problem - it is figuring out what the likely income is going to be for each of the next fifteen years in this account.
by kate1234
Wed Nov 16, 2016 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1300

Help me make a spreadsheet?

I want to see what the tax load would be over a 15-year period in a taxable account and want to look at both VTSAX and VBTLX. The assumption is that each year a sum will be added to the account, then the entire accumulated savings will be spent in the fifteenth year. Here are the columns I have figu...
by kate1234
Sat Oct 08, 2016 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement 2030? Something else?
Replies: 16
Views: 1774

Re: Target Retirement 2030? Something else?

Thanks for the responses; lots of interesting ideas in here. And sorry that I wasn’t more clear – I’m the mom, this is my son’s money that I am managing for him for the time being. That’s why I know my own risk tolerance and ability to set an asset allocation and rebalance, but ideally I would make ...
by kate1234
Fri Oct 07, 2016 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement 2030? Something else?
Replies: 16
Views: 1774

Target Retirement 2030? Something else?

I want to establish a new taxable account that will be used to accumulate savings over the next fifteen years, then will be spent for something like a downpayment on a house. So all withdrawn in one fell swoop. The investor is 19 if that makes any difference. Simplicity and ease of management would ...
by kate1234
Sun Sep 25, 2016 6:58 am
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3825

Re: Contribution to satisfy RMD

Great conversation everybody. I checked with Vanguard and the one thing they had to add was a recommendation that the charity check be mailed to your home address so that you can make a photocopy of it for your records before sending it on to the charity. That also means you have to leave enough tim...
by kate1234
Wed Sep 21, 2016 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3825

Contribution to satisfy RMD

Let's say the RMD from a Vanguard Traditional IRA would be $10,000 and I want to donate $4,000 of that to charity, and send the rest to the IRS. The IRA is all Vanguard Total Stock Market. One approach is to open a brokerage account for the IRA, swap $4,000 of the mutual fund for an ETF, and transfe...
by kate1234
Mon Sep 19, 2016 6:01 pm
Forum: Personal Consumer Issues
Topic: The Bogleheads' "100 Things Worth Every Penny" List
Replies: 275
Views: 42772

Re: The Bogleheads' "100 Things Worth Every Penny" List

Flush toilets.

I have spent brief periods in places where there were none and I am regularly grateful for modern plumbing.
by kate1234
Mon Sep 19, 2016 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax & 529 contributions
Replies: 1
Views: 358

Gift tax & 529 contributions

The instructions on Form 709, the gift tax form say: "If in 2015, you contributed more than $14,000 to a Qualified Tuition Plan (QTP) on behalf of any one person, you may elect to treat up to $70,000 of the contribution for that person as if you had made it ratably over a 5-year period. The ele...
by kate1234
Fri Sep 16, 2016 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Maximum Room & Board - Calendar vs School year
Replies: 1
Views: 455

529 Maximum Room & Board - Calendar vs School year

I am tallying my son's off-campus room and board and will compare it to the cost of attendance at his school. For the school year 2015-16 the school's stated cost of attendance for room and board was $10,400, but for 2016-17 it has risen to $10,726. But my 529 withdrawals are for a calendar year not...
by kate1234
Thu Feb 25, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Hazards in this Roth conversion?
Replies: 5
Views: 674

Re: Hazards in this Roth conversion?

This was so helpful, thanks. For my Roths I currently have four accounts: one for the contributions/conversions done before 2015, one for the conversion done in 2015 that is waiting to see whether any of it needs to be recharacterized, one for the 2016 conversion, and one currently empty. I love the...
by kate1234
Wed Feb 24, 2016 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Hazards in this Roth conversion?
Replies: 5
Views: 674

Hazards in this Roth conversion?

I am slowly converting my tIRA to a rIRA. At the beginning of 2016 I made a conversion. The market has dropped and I have the ability to do a second conversion now at a lower price. I am thinking of making the second conversion of the same dollar amount (into a separate, currently empty, Roth accoun...
by kate1234
Sat Jan 09, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Include 529 in net worth?
Replies: 32
Views: 3249

Re: Include 529 in net worth?

Now I wouldn't include them in retirement calculations because the intent is to spend the account BEFORE retirement. Well that depends. We have been retired for five years and are well into RMD-land, but our child is in his first year of college. Yes it is included in our net worth and we even incl...
by kate1234
Sat Jan 02, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Engaged...So how do we handle finances now?
Replies: 40
Views: 4989

Re: Engaged...So how do we handle finances now?

There isn't a right or wrong answer; all that you can do is consider what other people have done, how their situation is similar to or different from yours, and think about how well it might work for you. I'd advise getting your respective credit scores which will help you understand each other bett...
by kate1234
Fri Jan 01, 2016 6:54 pm
Forum: Personal Consumer Issues
Topic: Maid for organizing
Replies: 3
Views: 867

Re: Maid for organizing

A "service" probably would not, but an individual might. I know of a lady who will fold clean clothes but would not think of putting them away because bedroom drawers are "private." However she will regularly clean and organize the Tupperware drawer in the kitchen.
by kate1234
Fri Oct 30, 2015 4:10 pm
Forum: Investing - Theory, News & General
Topic: Question on SS handout TOM distributed at Bogleheads conf
Replies: 1
Views: 443

Question on SS handout TOM distributed at Bogleheads conf

Given the new SS rules I am recalculating my SS spreadsheet. I am looking at the handout TOM passed out at the Bogleheads conference in the session on SS and don't understand something. In question 9 he quotes the SS rules (this quote here is actually from SS but is the same in essence): A spousal b...
by kate1234
Thu Oct 29, 2015 11:02 am
Forum: Investing - Theory, News & General
Topic: Tax Gain Harvesting vs Roth Conversion
Replies: 15
Views: 1357

Re: Tax Gain Harvesting vs Roth Conversion

Are you married, and is your taxable account co-owned by both of you? If so, remember after you pass on the 15% tax bracket shrinks significantly for your spouse. If he/she needs to take some LTCGs in the future the amount that can be realized without bumping into the next bracket is correspondingl...
by kate1234
Thu Oct 29, 2015 9:35 am
Forum: Investing - Theory, News & General
Topic: Tax Gain Harvesting vs Roth Conversion
Replies: 15
Views: 1357

Tax Gain Harvesting vs Roth Conversion

I have a recurring note to myself to review accounts each year to see whether Tax Gain Harvesting is appropriate--taking advantage of the zero capital gains tax up to the top of the 15% bracket. But I am also working on doing Roth Conversions each year. Are there reasons I should do one versus the o...
by kate1234
Thu Oct 29, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Asset allocation and taxes
Replies: 1
Views: 335

Asset allocation and taxes

One of the great questions that was asked of panelists at the Boglehead conference was, "What is your asset allocation and why?" I got to thinking that each person might answer that question in multiple ways, depending on whether they included taxes in their calculation. For instance if th...
by kate1234
Fri Oct 02, 2015 9:32 am
Forum: Investing - Theory, News & General
Topic: Northwest FCU 3-year 3.04% Add-On CD
Replies: 330
Views: 33325

Re: Northwest FCU 3-year 3.04% Add-On CD

From NWFCU website: Early Withdrawal Penalty: We may impose a penalty if you withdraw any of the principal in your account before the maturity date. For Certificates having a term of six (6) months or less, the penalty will be equal to all dividends on the amount withdrawn since the date of issuance...
by kate1234
Fri Oct 02, 2015 8:50 am
Forum: Personal Consumer Issues
Topic: Vanguard, E-Mail Concern [clicking on links]
Replies: 35
Views: 2934

Re: Vanguard, E-Mail Concern

A number of the password management applications help with this uncertainty by only entering your user name and password on sites where it recognizes the underlying IP address. My understanding is the bad guys can create a site that looks identical in every way, possibly including the words and lett...
by kate1234
Thu Jul 30, 2015 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 3
Views: 391

Re: Tax loss harvesting

If we assume it is is going to fall into the "fine" category, then do I do it immediately or do I need to wait? Planning for the future.
by kate1234
Thu Jul 30, 2015 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 3
Views: 391

Tax loss harvesting

When the market really tanks and the price drops below my purchase price, if I own Vanguard Emerging Markets and Vanguard Developed Markets, can I sell them both, buy Vanguard Total International and claim a tax loss? Would I have to wait 30 days or is that different enough for me to make an exchang...