Search found 143 matches

by kate1234
Sun Jun 10, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: How much rent can one afford?
Replies: 4
Views: 492

How much rent can one afford?

My friend is 65 and is divorcing and selling the house after a long marriage. She has owned every house she has lived in for many decades but this new chapter of life requires more temporary living arrangements until she can get her bearings and start to craft whatever is next. She just got a new jo...
by kate1234
Sat Feb 24, 2018 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 657

Re: Social Security question under old rules

Thanks. This discussion has given several quite useful points I can pass on to my friend. Restricted app when she turns 66. And don't worry about the timing as to whether she is still married. And in five years, if they are still married and if I have any contact with him (and the laws haven't chang...
by kate1234
Sat Feb 24, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 657

Re: Social Security question under old rules

Actually, whether she would wait until age 70 to claim on her own record isn't in question. She clearly intends to. But what is new very helpful information here is that even under the new rules, she can get spousal from age 66 to 70 by filing a restricted application. I do not know what either of t...
by kate1234
Sat Feb 24, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 657

Re: Social Security question under old rules

Okay so let me be sure I understand: he would continue to collect under his own retirement record for the time being. I know that she wants to wait until age 70 and I believe that while she is waiting, he cannot collect spousal (because of the new rules). But in theory, after she claims at age 70, h...
by kate1234
Sat Feb 24, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 657

Re: Social Security question under old rules

Let me restate the question: He was born in 1950, she was born in 1953. He has filed for retirement benefits under his own record. Can he switch to spousal benefits after she reaches full retirement age?
by kate1234
Sat Feb 24, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 657

Re: Social Security question under old rules

You are correct; I was mistaken; and that changes the question - but only by a year, right?
by kate1234
Sat Feb 24, 2018 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 657

Social Security question under old rules

H and W were both over age 62 when the rules about file and suspend changed, so the old rules will apply to them. H waited to age 68 to claim retirement benefits, and has claimed under his own record, about three months ago. He is still age 68. W has just reached 65 and FRA and has not yet claimed a...
by kate1234
Tue Dec 19, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan withdrawal question.
Replies: 10
Views: 1002

Re: 529 plan withdrawal question.

Also, since our income is low enough to qualify for the American Opportunity Credit Act, I always reimburse $4000 less from the 529 than I spent on tuition and other qualified expenses.
by kate1234
Tue Dec 19, 2017 8:01 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan withdrawal question.
Replies: 10
Views: 1002

Re: 529 plan withdrawal question.

B. Food and housing are limited by what is listed in the cost of attendance, but other expenses are what you actually incurred. To calculate the limit for 2017 I take half the limit for the 2016-17 school year, plus half the limit for 2017-18. And of course if you spent less than those limits, you w...
by kate1234
Fri Dec 08, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3535

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: 25
Views: 3535

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: 1297

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: 25
Views: 3535

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: 309

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: 309

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: 11382

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: 396

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: 1298

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: 1298

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: 1298

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: 4258

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: 4258

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: 1152

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: 1152

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: 1204

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: 1204

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: 2752

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: 11559

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: 11559

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: 843

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: 1476

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: 1476

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: 1476

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: 1476

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: 5494

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: 401

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: 1376

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 differently. Maybe i...
by kate1234
Wed Nov 16, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Help me make a spreadsheet?
Replies: 8
Views: 1376

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: 1376

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: 1849

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: 1849

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: 4109

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: 4109

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: 45032

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: 388

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 election...
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: 473

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: 731

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: 731

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: 3455

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: 5091

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...