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mnnice

[quote=Tamalak 6) Ignore the widespread sentiment on this thread and elsewhere that REAL men work themselves into the grave :sharebeer [/quote] +1000 My only other comment as a semi-retired human with children still at home is that unless you homeschool, school schedules can severely limit travel ev...

mnnice

Vacations are nowhere near the top of the list when it comes to expenses in an early retirement. You can get there, but the timing seems like it would be terrible. As mentioned, two kids in college, no access to medical coverage in early retirement, etc...... You need to do a lot more reading here ...

mnnice

Roughly 3.75% of the balance needs to be taxed at 70 1/2. The amount increases as you age.

You might be okay as you could retire early and pay taxes on the 457 money much sooner. Just part of the big picture

mnnice

Slightly OT, but what kind of RMDs are the OP going to have?

mnnice

Don't forget to also figure out the impact on your state taxes since they may tax capital gains much differently. The long term capital gains may be taxed at zero percent but the income can also impact other things like getting a healthcare subsidy, or having such low income that you would be under...

mnnice

Just a couple of comments. I think there are tax advantages to part-time (more so if you have dependents). We are nearly four years into semi retirement and have avoided SEPP route so far. It seems less flexible than our present “system” of Roth conversion, spending down taxable, and part time work....

mnnice

We did something similar the past two years. Fidelity is the custodian. DS picked the investment and he chose Nvidia. Not sure if this is good or bad. The good news is that his Roth balance exceeds his lifetime w-2 earnings. The bad news is he could think he is a great stock picker.

mnnice

Anyone that is suggesting loans here is missing the forest for the trees. This is not a short term cash flow issue but a fundamental cash flow issue. There is a reason that lenders will not lend to you if Requires half of your take home pay going to housing. They have teams of statistical data sayi...

mnnice

Shikoku wrote: ↑
Sun Apr 01, 2018 9:32 pm

mnnice wrote: ↑
Sat Mar 31, 2018 10:02 pm
As it is written that we would have a testimary trust with a corporate trustee til 25 at which point each kid would get full control of his share.
It seems you mean testamentary trust.

Yes I am an awful speller. I tried a couple spellings. I think they were all wrong.

mnnice

I realized about 5 years ago that no one in my house ever used a hand towels at all. I also realize that I like cheap thin washcloths better than fancier one. Last time I bought towels I bought ~8 nice bath towels ~18 cheap washcloths (at Target at the same time the colors match well) and zero hand ...

mnnice

I have thought about this a bit for my own situation. When the will my DH and I had written 16 years ago our potential estate was much smaller than it would be now. As it is written that we would have a testimary trust with a corporate trustee til 25 at which point each kid would get full control of...

mnnice

Would your SO quit very late in 2018 or 2019?

I would think it might give you more flexibility to have fewer tax deferred contributions for 2018 in case you need more in 2019.

mnnice

As someone that is semi retired brfore Medicare eligibility it can doable. Having health insurance doesn’t have to be cost prohibitive if you can engineer your life and finances give you an ACA AGI under 400% of poverty.

mnnice

(PS: I read that people should save a minimum of 3 months in an emergency fund!! That'd be $15,000! Is that usually done by making that a number for the monthly budget too? : / yuck Yep and if your income is self-employment it probably should be more than three months. I have listened to lots of Dav...

mnnice

1. What does your spouse think of your plan? Remember that it will impact your entire family. 2. Cut your living expenses to $50K + taxes and actually live on that much for one year. If you can do that, you are ready. (I selected a number lower than others have since you already own your home.) May...

mnnice

I think the plan is to have prime only deals at Whole Foods. At Thanksgiving the had a prime deal that was an extra discount on turkey that was only for prime members. This doesn’t require people to have the prime card (yet).

mnnice

I don't know of any advantage of having one of you on the title and not both of you, but I'd certainly like to hear about such an advantage if it exists. Easier to sell in a private party sale. DH and I each sold the car we owned at the time we got married that way. We did not have to have the othe...

mnnice

I would be tempted to do some of each as a tax diversification strategy (unless you already have lots of Roth $). Also just because both your current and previous home states are state tax free you could end up elsewhere at some point.

mnnice

I would look super hard at buying travel health insurance and bugging out of the US for some longer periods of 2018. I suspect that travel insurance combined with self pay on cheap routine stuff like teeth cleanings might be both cheaper and less hassle than your currently arrangement.

mnnice

^my wife and I already did the maximum 5,500 each for last year. If I overpaid for my ACA last year I am assuming that turbotax is taking that into account and fixing it for me? is there any way we could possibly pay less taxes if we filed seperately? IIRC Married filing separately are not eligible...

mnnice

I would be curious what the state tax liabilities would be in various states?

For 2017 as part of a MFJ couple with two dependents we had no federal liability. We had $5500 of state liability.

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mnnice

I am of the opinion that it is a poor idea to ever buy a house if everything has to work perfectly (no layoffs, no disabilities, no decreases in home values). Life is going to happen. Exactly, how conservative to be is a question I have never quite figured out. We have bought three houses. The first...

mnnice

There are people in this country running businesses grossing in the high six figures and netting in six figures too with no computers or smartphones... I find this hard to believe in 2018. Do you have a verifiable list of these people? Farmers and ranchers. The average farmer in this country is pus...

mnnice

There are people in this country running businesses grossing in the high six figures and netting in six figures too with no computers or smartphones.

The ones I know have complicated returns that they should tackle themselves anyway.

mnnice

We want to see Yellowstone and am looking for advice. This is an adults only for 2-4. Always try and miss the peak season when we travel. Would like to go in early May. Good month or bad? How long should we plan to be in the park? Bad month-- overcast, cold, and rainy, snow possible, and there lik...

mnnice

I'm still working, but a few years ago did some serious research into moving to Costa Rica. International Living (the magazine) sponsors living abroad seminars, which you may want to look into. In our case, I saw the seminar for Costa Rica, but found a free two day seminar that was held monthly in ...

mnnice

I'm still working, but a few years ago did some serious research into moving to Costa Rica. International Living (the magazine) sponsors living abroad seminars, which you may want to look into. In our case, I saw the seminar for Costa Rica, but found a free two day seminar that was held monthly in ...

mnnice

If your home is 12% of your net worth and it burns down, then you lost 12% AND you have to spend another 12% to replace it (ignoring land value). So really you're down 24% to get the same quality of life. Not the way I do the math (I get 12%): BEFORE: total net worth $1,000,000 including home value...

mnnice

Anyone on here that doesn't have a home insurance policy? What's your experience? My home is paid for and worth about 12% of my net worth and I'm thinking about canceling the homeowners policy and keeping the umbrella policy. If I cancelled and the house burned down, it would just be like a 12% mar...

mnnice

I guess I'll be the odd man out and so no, I don't always. There are many times when I get home and look at a receipt and notice I didn't get the sale price or was charged for two items when I only bought one and it is too much trouble to go back to the store. So when they make a mistake the other ...

mnnice

Anyone else have a large portfolio and mange it themselves? How do you handle the quarterly taxes on dividends, muni bond (national, not my state) interest, etc without getting overwhelmed? I am dumber than a sack of hammers, but I can manage a portfolio that’s a multiple of yours in size. I do use...

mnnice

So what about the whole idea of them selling it privately to us to avoid tax liability? I mean, even if they sell it at current market value and we take a loan against them where they gift the money back, the money is being kept within the family no? If the sell it to you privately then you parents...

mnnice

So what about the whole idea of them selling it privately to us to avoid tax liability? I mean, even if they sell it at current market value and we take a loan against them where they gift the money back, the money is being kept within the family no? If the sell it to you privately then you parents...

mnnice

Lots of unknowns, but my plan has a Roth option so I could see the OP’s idea making sense for many in that situation.

mnnice

Can someone explain to me Obamacare vs. Medicare for someone like the OP who is seventy and does not have enough credits for Social Security? Are both Obamacare and Medicare (paying more than usual) possible? I know that as someone who has Medicare with enough credits, I believe I am prevented from...

mnnice

Sorry if I sounded snotty in the other thread. :? Anyway I suspect that most early retirement oriented folks are in little danger of being left out in the cold on Medicare unless they either did the bulk of her/his accumulation outside of the US or the accumulated was inheritance based :) The one pe...

mnnice

Why is OP ineligible for normal Medicare if OP is over 70? he or she does not have enough Social Security credits. It’s in the first sentence. Also, can OP roll inheritance into an IRA to avoid paying immediate taxes on the lump sum The OP has no earned income. I can see taxes being tricky the year...

mnnice

To put some numbers on that: In my city a brand new 2-BR condo downtown would cost you about $350,000, plus about $700 a month in taxes and $200 in condo association dues, or about $900 a month total. The same condo would rent for $2,200 a month. [/quote] You know this is about a wash? The safe with...

mnnice

Just a couple random thoughts. -why doesn’t DW have her own 457 and/or 403b? -Are you HSA eligible? -Are you both Social Security eligible and will either of you be impacted by WEP? -Not sure why you are carrying any debt? I actually don’t think your equity position is that crazy high given your sit...

mnnice

A pair of running shoes is all you need :beer Maybe a few dumbbells. Depends on where you live, your lifestyle and many other factors. With 70% of adults in the US overweight or obese, I applaud anyone who exercises regularly, no matter how they manage to do it. But we’re talking about being frugal...

mnnice

Was public school part of your plan? Would a house or condo in the 180k-200k range in place you in public schools of similar quality? If the answer is yes to both I would seriously consider it. DH and I have owned three homes in the last 20 years. The current one is the smallest and cheapest while o...

mnnice

Maybe the conversation should be to present to the child that if she is not willing to be responsible to maintain health insurance that it places the parent in the position of choosing between bankruptcy and abandoning the child in a time of extreme need. I don't know what can be done if the child ...

mnnice

Match will be pretax dollars.

mnnice

Is this a straightforward one or the other?

I think in your shoes I would want about 50% annuity vs. 50% lump sum.

mnnice

If you are going to game the system, it is important to understand both the game and the system, which is something OP needs quite a bit of work on. And any first year MBA student could tell you about the error of sub-optimization. Optimizing for lower taxes or lower tuition costs or greater aid, i...

mnnice

I am not sure how much of a milestone it is in this market. My 15 year old has more in his Roth than his lifetime w-2 earnings Very impressive if the money in the Roth IRA came from his w-2 income itself! On the other hand, if you put the money in his Roth, then it is meaningless. The money in the ...

mnnice

I am not sure how much of a milestone it is in this market. My 15 year old has more in his Roth than his lifetime w-2 earnings

mnnice

Berkshire Hathaway is the classic example for this. But it's not as diversified as an index fund. Active funds are bad for managing income levels, because the churn of stocks can create cap gains without much warning. Straight index funds have dividends but usually don't generate cap gains. Unless ...

mnnice

You are denying reality. A college grad is not remotely the same things as a 45-50 year old person who hasn't worked in their field for 5 years. Why is it that if people disagree with others on the internet they love to say things like you are denying reality! Rather than they simply disagree. A co...

mnnice

Neither figures take into account SS, but those retiring very early are generally not going to get much from SS anyway. If I retire at 47 instead of 62, my benefits are reduced by 1/3rd because it uses the average wage for 35 years of your highest earnings. Start adding a bunch of zeros in (or just...

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