Search found 1099 matches

by JoinToday
Sun Mar 10, 2024 12:53 am
Forum: Personal Finance (Not Investing)
Topic: Realizing Capital Gains in a Trust
Replies: 22
Views: 1802

Re: Realizing Capital Gains in a Trust

Trusts hit the cap gains max rate of 20% at 14.65k. Gains are allocated to the capital and would typically be taxed to the trust, but the document or state law may allow the trustee to allocate gain to income. Thx for reply. I see you are saying the Trust brackets are different than individual brackets in that you hit the max capital gains tax rate sooner, 14.65k. However, if the income is $0, does this allow for the 0% capital gains rate? Or does LCTG is > 14.65k trump $0 income and then the cap gains rate is taxed at 20%? You are letting your conception of taxation for individuals get in the way of understanding how trusts are taxed. Here is the direct word from the IRS: "For tax year 2023, the 20% maximum capital gain rate applies ...
by JoinToday
Thu Jan 18, 2024 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Son graduated, can I still claim him as a dependent?
Replies: 24
Views: 3292

Re: Son graduated, can I still claim him as a dependent?

okie745 wrote: Thu Jan 18, 2024 8:33 pm Hi,

My son graduated in May 2023, trying to figure out if I can still claim him as a dependent.

From Jan-May 2023, he was a full time student (18hrs). We paid for dorm/tuition/etc.
From June-Oct 2023, he had an AmeriCorps job and lived 100% on his own, he earned about $15K.
From Nov-Dec 2023, he lived back home while job hunting.

thank you
If he paid rent and paid for his living expenses when at home Nov Dec 2023, I would say yes. (5 months you paid for his schooling, 7 months he paid for his expense. But if you paid for his living expenses Nov Dec 2023, I would say no (you paid 5 months schooling + Nov Dec = 7 months, and he only supported himself for 5 months).
by JoinToday
Sun Sep 17, 2023 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving inheritance to grandchildren-Will you?
Replies: 57
Views: 6982

Re: Leaving inheritance to grandchildren-Will you?

Most of my clients do not give specific bequests to their grandchildren. I always advise them to leave assets in trust for the children. This protects them against creditors, estate taxes, divorce, and guides the assets still in trust to the next generation. What latitude do the children have in allocating the trust assets for the grandchildren? And what latitude do the grandchildren to in allocating trust assets to the following generation(s)? This is something I think about. My heirs will likely inherit some money (7 figure amount), but they will likely not spend or need it, based on their spending habits & current income (adult children, launched, self supporting, and living below their means currently). Their inheritance could grow...
by JoinToday
Sun Sep 17, 2023 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving inheritance to grandchildren-Will you?
Replies: 57
Views: 6982

Re: Leaving inheritance to grandchildren-Will you?

Most of my clients do not give specific bequests to their grandchildren. I always advise them to leave assets in trust for the children. This protects them against creditors, estate taxes, divorce, and guides the assets still in trust to the next generation. What latitude do the children have in allocating the trust assets for the grandchildren? And what latitude do the grandchildren to in allocating trust assets to the following generation(s)? This is something I think about. My heirs will likely inherit some money (7 figure amount), but they will likely not spend or need it, based on their spending habits & current income (adult children, launched, self supporting, and living below their means currently). Their inheritance could grow...
by JoinToday
Tue Aug 22, 2023 4:54 pm
Forum: Investing - Theory, News & General
Topic: submit ?s: Dr. Bernstein on 'The Four Pillars of Investing'
Replies: 30
Views: 6259

Re: submit ?s: Dr. Bernstein on 'The Four Pillars of Investing'

It sounds like you are rather favorable towards a total stock portfolio for retirees that can simply live off dividends. Bogleheads favor a total return approach which to me seems less optimal to me since it is so heavily dependent upon the sequence of returns. Would you discuss the pros and cons of the dividend approach. Are you asking about investing in high dividend stocks/funds, and living off those dividends, vs something like a total return approach of a 60:40 portfolio, where the investor has 30X yearly spending or Living off of dividends where the investor has 100x yearly spending, and the dividends are enough for living expenses, (almost) independent of the investment allocation? Seems like sequence of return risk is all but elimi...
by JoinToday
Mon Jul 24, 2023 8:10 pm
Forum: Personal Consumer Issues
Topic: HVAC Condensate Drain Line partially covered in concrete pour
Replies: 91
Views: 7133

Re: HVAC Condensate Drain Line partially covered in concrete pour

1. I can't follow all the previous messages, but why not run the condensate line over the door, and exit the house at the left side of the drawing? Is that where it is coming out now?

2. What I want to see is a picture of jplee3 in the glitter shoes! (2nd shelf of shoe rack, under hat). We can guess that he is a happenin' dude since he posts on bogleheads, but a picture would move him up to the next level. :wink:
by JoinToday
Tue Jul 18, 2023 9:11 am
Forum: Personal Investments
Topic: How are our finances doing in retirement ?
Replies: 33
Views: 4399

Re: How are our finances doing in retirement ?

1. Are you sure you are in the 24% bracket? Ordinary income (not including LTCG and qualified dividends) needs to be on the order of $200K for that to happen. Seems high to me, but I am not seeing what funds are placed in various accounts. If you are in fact in the 24% bracket, I would look at tax efficiency of your fund placement. 2. Depending on your kids tax bracket, are you gifting them shares of your funds or cash? May make sense to give them shares, and let them pay capital gains tax if they are in a lower tax bracket. 3. (somewhat controversial, some or most may disagree) I would seriously consider increasing your Roth conversions. RMDs will be subject to tax drag since it doesn't appear like you will be spending them. The tax drag c...
by JoinToday
Mon Jun 12, 2023 3:14 pm
Forum: Personal Consumer Issues
Topic: Stuck bolt on oil pan?
Replies: 137
Views: 9047

Re: Stuck bolt on oil pan?

midwest_bound wrote: Mon Jun 12, 2023 2:58 pm Are you going to at least go to the last shop that did the oil and ask about the bolt? If they really did crossthread and glue it in place - I would demand that they fix the issue.
I can't help but think that if the previous shop had to resort to something like silicon caulk (or equivalent) due to cross threaded bolt, I doubt that they are very ethical, and I am not sure I would trust them to fix it correctly, especially if it was hundreds of dollars to fix. I would fear that they would screw existing drain plug in, just get it tight enough so it doesn't leak.... and hope you don't come back for future oil changes.
by JoinToday
Tue May 02, 2023 10:30 pm
Forum: Personal Consumer Issues
Topic: AC unit - new compressor?
Replies: 17
Views: 1669

Re: AC unit - new compressor?

My AC wouldn't start either, turned out to be a circuit breaker issue (Zinsco). Check the breaker for arcing if you have Zinsco electrical panel & breakers.
by JoinToday
Tue May 02, 2023 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust for my kids: spend it on them now or wait?
Replies: 39
Views: 3402

Re: Irrevocable trust for my kids: spend it on them now or wait?

I have a few elementary school-age kids attending expensive private schools in the area. Recently, from a real estate sale, I have gifted just north of $1mm (on the advice of my CPA) to an irrevocable trust for the benefit of my children. The school tuition is quite expensive, and the trustee is wondering if it makes sense to start cutting checks to cover the tuition now via the trust, or if it makes sense to pay out of pocket and instead let the investments grow. My guess is due to the compression of tax rates on an irrevocable trust that it would make more sense for the trustee to spend the money on the kids now. My personal tax rate is similar to what the irrevocable trust would pay. Of course many other factors at play here but curious...
by JoinToday
Tue May 02, 2023 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust for my kids: spend it on them now or wait?
Replies: 39
Views: 3402

Re: Irrevocable trust for my kids: spend it on them now or wait?

I have a few elementary school-age kids attending expensive private schools in the area. Recently, from a real estate sale, I have gifted just north of $1mm (on the advice of my CPA) to an irrevocable trust for the benefit of my children. The school tuition is quite expensive, and the trustee is wondering if it makes sense to start cutting checks to cover the tuition now via the trust, or if it makes sense to pay out of pocket and instead let the investments grow. My guess is due to the compression of tax rates on an irrevocable trust that it would make more sense for the trustee to spend the money on the kids now. My personal tax rate is similar to what the irrevocable trust would pay. Of course many other factors at play here but curious...
by JoinToday
Sat Apr 08, 2023 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Tax Withhold / payment question
Replies: 16
Views: 1586

Re: RMD Tax Withhold / payment question

My Aunt would like to take her RMD, as a lump sum, early in the year, but pay for the taxes on the RMD by increasing the withholding she has from a pension annuity on a monthly basis - therefore spreading the tax liability out over the year. Is this allowed? I thought that the tax was due when one received the monies. Your thoughts, suggestions or resources? I did look at the IRS website and respective publications, but they weren't clarifying for me or my aunt. .... Other ways to pay tax, such as estimated taxes throughout the year, would not work in her situation. They are "timed" per the dates they are paid. ... RM RM: I may not be following you, but I believe estimated (quarterly) taxes can used to pay taxes on a lump sum RMD...
by JoinToday
Fri Mar 31, 2023 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Parents' financial advisor recommends my 74 year old dad convert traditional IRA to Roth?
Replies: 45
Views: 4073

Re: Parents' financial advisor recommends my 74 year old dad convert traditional IRA to Roth?

Not nearly enough information given to make a good recommendation.

It mostly boils down to two things: (1) current vs future marginal tax rates, and (2) tax drag.

If the future marginal tax rates are higher, due to tax increases, increased RMDs, beneficiary marginal tax rates, and increased tax rates after first spouse passes (filing as single vs MFJ)

Paying taxes out of current after tax account reduces future after tax dividends and interest, and thus reduces future taxes; this is the reduction in tax drag. If the RMDs are just going to accumulate in the after tax account (unspent), it may be another reason to do Roth conversions. Accumulated and invested RMDs will produce dividends, increasing future taxes.
by JoinToday
Sat Mar 04, 2023 1:03 pm
Forum: Personal Investments
Topic: Help me decide between CD, MM, TBills, TIPS
Replies: 20
Views: 3013

Re: Help me decide between CD, MM, TBills, TIPS

ebeb wrote: Sat Mar 04, 2023 12:29 pm I am little wary of bond funds due to the havoc created by fed rate rises. So am considering principal protection provided by treasuries/agencies.
Do you think treasuries/agency bonds are protected from fed rate rises? I don't think the evidence supports that idea. Bond funds and individual bonds (with the same duration) will both be affected by interest rate changes in nearly identical amounts.
by JoinToday
Fri Mar 03, 2023 8:26 pm
Forum: Personal Consumer Issues
Topic: Alumawood pergola - suggestions for covered roofing?
Replies: 5
Views: 530

Re: Alumawood pergola - suggestions for covered roofing?

Where are you located, and how are the ceiling joists connected to the house? I can't see what mechanical fasteners in the picture; hopefully the ceiling joists go into the house & are bolted to internal ceiling / floor joists.

In earthquake areas, building & safety have gotten better / more strict about the attachment. They don't want the entire pergola structure to rip off the house in an earthquake.

Watch snow & wind loads also, if applicable.
by JoinToday
Sun Feb 05, 2023 12:36 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455537

Re: Trading Treasuries (nominal and TIPS)

If I buy nominal treasuries in my after tax account, how much more complicated is my 1099 and tax preparation?
(I apologize if this was covered previously in this mammoth thread).

From what I read, if I buy a nominal treasury on the secondary market, I would need to do additional computation to account for the premium/discount purchase price.

For nominal treasuries purchased at auction, do I just download the 1099 from VG, with no additional entries on turbotax? (other than 100% is gov't bonds so they are exempt from Calif taxes).

I am thinking of starting to buy nominal treasuries for known expenses and fixed dates (estimated taxes).

Thanks in advance
(and thanks Kevin for starting this thread)
by JoinToday
Wed Feb 01, 2023 4:08 pm
Forum: Personal Consumer Issues
Topic: Dashboard magnet mount for cell phone?
Replies: 10
Views: 714

Re: Dashboard magnet mount for cell phone?

I used to have a magnetic mount for my phone in my car. I absolutely loved the ease of attaching & removing.

But when I tried the wireless charging, the metal plate on the back of my phone interfered with the charging. So I am not using the magnetic mount for my new phone. I like the fact that I can wirelessly charge my phone more than the magnetic mount.
by JoinToday
Sun Jan 29, 2023 12:52 pm
Forum: Personal Consumer Issues
Topic: Cutting Installed Bathroom Tile
Replies: 10
Views: 991

Re: Cutting Installed Bathroom Tile

Tile on green gypsum board????

I am sure more knowledgeable people will reply, but I didn't think that was acceptable. Water proof membrane in needed.


In answer to your original question, I would either use a dremel tool, or maybe drill a hole, then chip out tile with a hammer & chisel
by JoinToday
Sun Jan 15, 2023 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking someone else's budget
Replies: 11
Views: 948

Re: Tracking someone else's budget

This is what I do: Virtually every expense (outflow) comes out of my checking account. At the beginning of the year, I download all transactions from the previous year, sort by amount in Excel (lowest to highest, where the big outflows are the biggest negative number, or lowest number). I disregard the transfers from checking account to Vanguard since it is not a real "expense". I then sum up the remaining outflows (disregard the deposits or inflows). The sum of the remaining ouflows is my spending for the year. Part of my outflow is taxes. I am particularly interested in spending excluding taxes. I do Roth conversions every year, so my taxes are higher than normal. Can you reduce the number of accounts? Otherwise, if she has mult...
by JoinToday
Sun Jan 08, 2023 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Steering through the shoals of IRMAA past the SS Tax Torpedo
Replies: 196
Views: 22719

Re: Steering through the shoals of IRMAA past the SS Tax Torpedo

Here is an example of a Roth Conversion Breakeven Chart. From my perspective it helps put the Tax Savings in perspective for each target scenario. It’s generated from the Forward looking tax projection and modeling different Roth Conversion targets. At least in this case, I don’t think Tax Savings are a strong driver for Conversions. That said it’s optimized for Taxes paid as a Couple rather than for a Surviving Spouse or Beneficiaries. Different choices will significantly affect the Breakeven analysis. IMHO, this is one of the decisions that should be made before any Conversion Planning. https://lh3.googleusercontent.com/d/1hgF5tBBGf06-tFAJwcbQJEUlFQpOcpBU WoodSpinner Thank you. When I did my analysis, I also considered taxes paid by bene...
by JoinToday
Sat Jan 07, 2023 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Steering through the shoals of IRMAA past the SS Tax Torpedo
Replies: 196
Views: 22719

Re: Steering through the shoals of IRMAA past the SS Tax Torpedo

........ [*]What I haven’t seen (yet) are her Tax projections (Fed + State) . A good general metric is to try balancing taxes paid across Retirement in order to optimize one’s Finances. [*]If tax Savings are a key Conversion driver for Cheryl then she also needs to understand the Breakeven point of not doing Conversions versus other options. A breakeven point close to expected mortality is NOT a strong driver for paying taxes early to save on them later. [/list] Looking forward to seeing how this study evolves…. WoodSpinner I agree with the tax projections (Fed + State). Balancing taxes + IRMAA + other fees paid across retirement is a good general starting point/guideline. But there are lots of uncertainties. What is the break even point y...
by JoinToday
Fri Jan 06, 2023 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning young kids and when to pay out
Replies: 104
Views: 8763

Re: Estate Planning young kids and when to pay out

As for the teaching opportunity, much ink has been written on the subject. One thing I will say is that teaching from the grave is difficult and splitting up the distribution really doesn’t accomplish that. Maybe one at twenty one and a final at thirty. I still find it too inflexible. Thanks. We have selected as our trustee a family friend who is financially savvy and shares our values. And so the hope is not so much that we would be teaching from the grave as our trustee would have a period of time to teach our kids--and help correct their mistakes at 25 and 30. I'm not sure what you mean by "inflexible". Our trustee has the right to distribute money from the trust as he sees fit for the usual list of needs, in addition to the 2...
by JoinToday
Fri Jan 06, 2023 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning young kids and when to pay out
Replies: 104
Views: 8763

Re: Estate Planning young kids and when to pay out

...... You are correct. Many good lawyers, including some who post here, use different approaches. For estate tax purposes, if a trustee's power to distribute to himself/herself (or withdraw) is limited to health, maintenance, support and education, the trust won't be included in the beneficiary's estate. So some lawyers have a co-trustee, give the beneficiary/trustee the power to distribute to himself/herself for health, maintenance, support and education, and give the co-trustee the power to make additional distributions. Some have the beneficiary be the sole trustee, with the power to distribute to himself/herself limited to health, maintenance, support and education, and allow the beneficiary to add a co-trustee if he/she ever wants ad...
by JoinToday
Fri Jan 06, 2023 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning young kids and when to pay out
Replies: 104
Views: 8763

Re: Estate Planning young kids and when to pay out

Having seen the three distributions play out several times, it is my opinion that it is the estate planning equivalent of cutting the baby in half. It doesn’t really accomplish the testator’s wishes and needlessly complicates the distribution. As such, either a dynasty trust or single distribution makes the most sense in most situations. Would you recommend a dynasty trust giving the beneficiary the choice of a sole trustee or co-trustee, with HEMS standard for distribution (and give the beneficiary the power to change terms of trust for succeeding generations, in the case of a special needs grandchild, spendthrift grandchild, etc)? If the heirs are responsible, this seems like it might be a good option. Keeps assets out of heir's estate, ...
by JoinToday
Sat Dec 31, 2022 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning young kids and when to pay out
Replies: 104
Views: 8763

Re: Estate Planning young kids and when to pay out

FreddieFIRE wrote: Sat Dec 31, 2022 5:55 pm
cowdogman wrote: Sat Dec 31, 2022 11:53 am We went with the usual 25/30/35 year old distributions. Our oldest is already 25 and our plan in a few years is to either get rid of the trust concept altogether or maybe go with a 25/30 distribution.
Do you disagree with Bruce's outstanding/free guidance? That doesn't seem wise.
FreddieFIRE: I think it depends on how much money a person has (per heir). If a person has $5M-$10M with one heir, a trust is probably more important. With 10 heirs and $1M, and $100k/heir, it isn't a life changing amount.

But your point about not taking Bruce's advice is good. If I had substantial money and my heirs were going to inherit a life changing amount, I would make an appointment with Bruce, even though he is across the country.
by JoinToday
Sat Dec 31, 2022 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Big problem with rollover
Replies: 36
Views: 3730

Re: Big problem with rollover

Yes, in August of this year (2022), and March of 2021, via mobile phone app where you endorse & take a picture of both sides. March of 2021 was > 500K, August 2022 < 500K. Maybe they changed their requirements; or maybe the person you spoke to misspoke. I was a little anxious about e-depositing a big check, but both worked. Thanks, were you e-depositing to your 401K or IRA? I was attempting to do a rollover from a Vanguard IRA to Vanguard 401K. The Vanguard 401K department said that e-deposit was not possible. The amount was less than 500K. There are a few possibility. 1. The rep is wrong, this is highly probable, since i mentioned on this thread that the rep had told me that I was now liable because I did 2 indirect rollover to the 40...
by JoinToday
Sat Dec 31, 2022 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Big problem with rollover
Replies: 36
Views: 3730

Re: Big problem with rollover

Maybe the issue is that fact that you are rolling over into a 401k.

When I rolled over pretax money from VG to my 401k, I had to fill out paperwork verifying that all the money came from a qualified account / all pretax money (I forget exactly). And when I got a check from VG, I mailed it to the 401k administrator (not VG). 10 years ago or so, so maybe electronic depost wasn't an option offered or considered by me.
by JoinToday
Sat Dec 31, 2022 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Big problem with rollover
Replies: 36
Views: 3730

Re: Big problem with rollover

gavinsiu wrote: Sat Dec 31, 2022 3:02 pm
JoinToday wrote: Sat Dec 31, 2022 1:45 pm My check was an FBO check, and greater than $500K (single check, so a single trade date). Maybe the fact it was a retirement account was the difference. I honestly didn't know any restrictions, and gave it a try. It worked.
So you were able to deposit it edeposit. Vanguard had told me that it was not available.
Yes, in August of this year (2022), and March of 2021, via mobile phone app where you endorse & take a picture of both sides. March of 2021 was > 500K, August 2022 < 500K. Maybe they changed their requirements; or maybe the person you spoke to misspoke. I was a little anxious about e-depositing a big check, but both worked.
by JoinToday
Sat Dec 31, 2022 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Big problem with rollover
Replies: 36
Views: 3730

Re: Big problem with rollover

You can e-deposit in general but are you sure you can e-deposit an FBO check anywhere that allows e-deposit? I don't know; I'm just asking. Vanguard indicated that they do not offer edeposit at least for rollover I did an edeposit to a VG rollover IRA (employer 401k to VG Rollover IRA) in August of this year, and March of 2021. I never liked sending large checks in the mail, but was uncomfortable with electronic deposits (luddite). I gave it a try; it worked so well, that I switched to edeposit for both checking account and VG. The miracles of modern technology! :wink: So this was an FBO check you e-deposited, just to confirm? Vanguard does have e deposit it is called mobile deposits : https://investor.vanguard.com/investor-resources-educa...
by JoinToday
Sat Dec 31, 2022 1:37 pm
Forum: Personal Investments
Topic: Portfolio and goals review-feedback please
Replies: 12
Views: 1026

Re: Portfolio and goals review-feedback please

Could you post the unrealized gain/loss in your Morgan Stanley and Fidelity taxable accounts for the holdings? Retired@50 beat me to it, but I would consider simplifying and converting the high priced funds to a simple 2-fund equity portfolio at Fido or Schwab. But watch the cap gains and see if you can tax loss harvest to do so. These would be the first to go.. Joint Fidelity 0.35% FLCEX Fidelity Large Cap Core (0.39%) His Morgan Stanley 0.3% MDLOX BlackRock Global Allocation Fund (1.07%) 0.5% JDNAX Janus Henderson Growth and Income (1.01%) 0.3% PONAX PIMCO Income Fund A (0.91%) I don't think I would worry too much about long term capital gains. Percentages of portfolio is small, and OP is looking at 15% LTCG / 20% LTCG tax rates (plus 3....
by JoinToday
Sat Dec 24, 2022 1:08 pm
Forum: Personal Investments
Topic: Individual Bonds Now and Bond Funds Later?
Replies: 14
Views: 2069

Re: Individual Bonds Now and Bond Funds Later?

... So that's the basis for my (obvious) question, would it be smart to take advantage of today's relative high yields to lock-in these safe individual bonds now for 4.5% and then when they mature fully take Vanguard's advice and buy the funds? In my simple brain I'm thinking I'm getting that incremental yield ( +2.5%, the difference between 2% and 4.5% ) at no risk to principle is desirable and will "just" come at the cost of likely losing out on the possible growth of principle incorporated in total returns. And yes I know I'll likely need to buy those bond funds at higher prices in 3-5 years but I'd expect I can still probably get about a 2% yield (is that likely correct???). .... Maybe I missed it, but where did the 2% number...
by JoinToday
Sat Dec 24, 2022 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Big problem with rollover
Replies: 36
Views: 3730

Re: Big problem with rollover

gavinsiu wrote: Sat Dec 24, 2022 10:49 am
tibbitts wrote: Sat Dec 24, 2022 8:52 am You can e-deposit in general but are you sure you can e-deposit an FBO check anywhere that allows e-deposit? I don't know; I'm just asking.
Vanguard indicated that they do not offer edeposit at least for rollover
I did an edeposit to a VG rollover IRA (employer 401k to VG Rollover IRA) in August of this year, and March of 2021. I never liked sending large checks in the mail, but was uncomfortable with electronic deposits (luddite). I gave it a try; it worked so well, that I switched to edeposit for both checking account and VG. The miracles of modern technology! :wink:
by JoinToday
Thu Dec 22, 2022 2:17 pm
Forum: Personal Investments
Topic: $1MM Milestone - Portfolio Review
Replies: 17
Views: 4879

Re: $1MM Milestone - Portfolio Review

...... I thought Total International was beneficial in a taxable account because of the foreign tax credit. It can be beneficial. The dividends for Total Stock Market (TSM) are about 100% qualified and the dividends for Total International Stock Market (TISM) are about 70% qualified. This makes TSM better in taxable at first glance. But, when you add in the Foreign tax credit that evens things out. One year TSM may do a little better and the next year TISM may, so it's pretty much a wash which fund is better in taxable for IRS purposes. However, if there are state income taxes and the FTC is not allowed (and that's the case for most states) then TISM is at a disadvantage in taxable. But even if I moved my entire IRA to Total International,...
by JoinToday
Wed Dec 21, 2022 9:20 pm
Forum: Personal Investments
Topic: Is there software that shows Increased Spending with Roth Conversions?
Replies: 32
Views: 3134

Re: Is there software that shows Increased Spending with Roth Conversions?

........ Thank you for your response and information. Can you quantify, in your case, what "make(s) a lot of sense"? I understand each person is different and there are a lot of factors. Did the program show you can spend an additional $xx/year or yy% more of your portfolio? I just haven't found a scenario that is substantially better with Roth Conversions? Can you quantify what is a significant amount to you (in percentage of spending or increased portfolio value)? The uncertainty for the analysis is huge, and the benefit is probably relatively small. But to a large extent it boils down to tax rates when doing the Roth conversion now vs tax rates when the traditional IRA/401k money is withdrawn, plus the tax drag effect of money...
by JoinToday
Mon Dec 19, 2022 7:16 pm
Forum: Personal Investments
Topic: $1MM Milestone - Portfolio Review
Replies: 17
Views: 4879

Re: $1MM Milestone - Portfolio Review

1. In the interest of more tax efficient investing, I would make your after tax investing 100% Total US stock market index (or equivalent, as noted by Duckie). 2. Make your Roth IRA/Roth 401k 100% international stock market index 3. Use your Traditional IRA/401k to achieve the desired asset allocation (AA), selecting US/Int'l/bonds as desired. 4. Save more in tax advantaged accounts (Roth IRA, Traditional IRA, 401k); this eliminates tax drag seen in after tax accounts. Spend some time learning about tax efficient investing & the impact of taxes on returns. Tax drag is on the order of 0.38% for US equity (VTSAX), 0.87% for international equity (VTIAX), and 1.2% for money market fund (VMFXX) for someone in your tax bracket. Using low cost...
by JoinToday
Wed Dec 14, 2022 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion For High Income
Replies: 33
Views: 3744

Re: Roth Conversion For High Income

If you will be in the top tax bracket throughout retirement, then the scheduled increase in that level argues in favor of converting. Even without the tax increase, there would be a weak benefit of converting. The benefit of converting at the same marginal tax rate is that you effectively tax-defer more money. You can convert $100K of traditional IRA money and $37K of taxable money into $100K of Roth money. If you remain in the 37% tax bracket, $100K of traditional money is as good as $63K of Roth money, since the IRS will take 37% of it; the other $37K of Roth money is better than $37K of taxable money since the Roth grows tax-free. Maybe. Or somewhat. Depends on the investment. Considering that the OP is going to leave a very sizable est...
by JoinToday
Mon Dec 12, 2022 1:10 pm
Forum: Investing - Theory, News & General
Topic: Bottoms-Up approach to determining an Asset Allocation
Replies: 19
Views: 3306

Re: Bottoms-Up approach to determining an Asset Allocation

..... I am wondering if anyone else has done something similar? If so: Do you actually drive your Portfolio Investments using this approach? Do you use a different approach to determine your positions? What additional insights are you able to gather from the exercise? Thanks in Advance WoodSpinner Do you use a different approach to determine your positions? I eventually came to the conclusion that lowering my withdrawal rate will make a far greater difference than relatively minor changes in my AA. So I have an AA that's reasonable for a normal person and lowered my planned withdrawal rate to a level that is a good balance of safety and not adding an excess of (likely unnecessary) years to my working career. I am in agreement with climber2...
by JoinToday
Sun Dec 11, 2022 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable trust -- how should it terminate
Replies: 3
Views: 732

Irrevocable trust -- how should it terminate

My wife & I set up a revocable trust (California) to go to our child in an irrevocable trust (as recommended by bsteiner & others), with the amount remaining in trust after child's passing going to the grandkids.

Child is launched, and seems unlikely to need much if any of our assets; our assets might double before grandkids inherit in 40 or 50 years. Grandkids are young now (<10 yrs old). The irrevocable trust protects my child, with no protection for grandkids against creditors, spendthrift, etc. Is this typical?

Is it better to set up a dynasty trust, and giving my child power to change the terms of the trust for the grandkids, in case one needs spendthrift / special needs trust terms?
by JoinToday
Fri Dec 09, 2022 4:16 pm
Forum: Personal Investments
Topic: Vanguard report of incapacity instead of Agent Authorization enough?
Replies: 21
Views: 2871

Re: Vanguard report of incapacity instead of Agent Authorization enough?

The problem I have is I (& wife) still have all my faculties, and children are building their lives; I don't want them to know my finances right now. But I would ideally like to have something set up where I can easily give access in the future.

VG (& probably other institutions) don't have a way for this to be implemented. I trust my children, no spendthrift issues, gainfully employed, and generally pointed in the right direction. But I don't want them to see/know my asset balance at this point in time.

I have seen on more than one instance where there is some downward health issue of relatives. In addition to dealing with health, trying to get finances in order is a huge burden on (adult) children.
by JoinToday
Fri Dec 09, 2022 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Safe harbor for estimated taxes if 0 owed for previous years
Replies: 14
Views: 1261

Re: Safe harbor for estimated taxes if 0 owed for previous years

the question I have when I see $0 tax liability is why are you not doing tax gain harvesting, or Roth conversions?

Low income years are the optimal time to be doing either or both of these. Obviously, it all depends on your finances, but is it worthwhile looking into them if applicable.
by JoinToday
Mon Dec 05, 2022 1:45 am
Forum: Personal Investments
Topic: Method for consolidating all tax lots?
Replies: 11
Views: 1150

Re: Method for consolidating all tax lots?

1. Is everything at one broker? I did the manual copy & paste into an excel spreadsheet a few years ago. I have mutual funds only, but had been buying shares of different funds regularly. I had to do some manual formatting, but the number of shares and purchase price per share copied OK. I added calculation for current value & gains. Now when I download my portfolio (.csv format), copy and paste into another worksheet, the current cost per share in my tax lot worksheet is updated automatically, and the spreadsheet automatically calculates the capital gains. I do a sort based on the lowest to highest percentage capital gains, thus showing which tax lots to sell first to minimize taxes (cap gains). 2. How much money are we talking ove...
by JoinToday
Sun Dec 04, 2022 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Can a Roth conversion be reasonable at a 35% tax rate ?
Replies: 14
Views: 1738

Re: Can a Roth conversion be reasonable at a 35% tax rate ?

I believe the the stock market will recover and tax rates will go up. Would a Roth conversion be reasonable this year, and future years, at a 35% tax rate mainly due to large RMDs ? I agree with you about the stock market and interest rates. But the decision mostly rests upon current marginal tax rates vs future marginal tax rates. Part of the decision to do Roth conversions is influenced by where the money for taxes comes from. If you are paying taxes for the Roth conversion from your after tax account, this will reduce future tax drag, tilting the decision more in favor of doing larger conversions. If you don't/won't need the money for living expenses, that tilts the reason in favor of doing Roth conversions. RMDs that end up in your aft...
by JoinToday
Sat Nov 12, 2022 3:45 pm
Forum: Personal Investments
Topic: Rebalancing Question
Replies: 22
Views: 1370

Re: Rebalancing Question

I rebalanced somewhat by giving stocks to someone who could sell them at no tax cost. Otherwise I would not incur tax costs to worry about the difference between 50/50 and 60/40. But this does depend on how far along one is in life. It may not be a bad thing for stock allocation to increase in later years. I have never agreed with time based rebalancing but rather with bands based rebalancing. I understand your band preference but at 5% you can really get hurt in a big down year (like this) or lose out in a big up year. Each to his or her own. Can you explain how you can really get hurt with 5% bands in a big down year, compared to once a year rebalancing? I think the bigger the band, the bigger the benefit, but the greater the likelihood ...
by JoinToday
Wed Nov 09, 2022 1:07 pm
Forum: Personal Consumer Issues
Topic: Windows or ChromeBook?
Replies: 45
Views: 3456

Re: Windows or ChromeBook?

I have both. Desktop (windows) for spreadsheets, word doc. And I pay bills, do taxes, surf the web, etc. Chromebook for portability reasons. If you use the CD version of TurboTax, or plan to load much software on a computer, I would buy a windows computer. A chromebook will work with the online version of TurboTax. (I am not certain, but you can probably use Office365 with a chromebook.) But the really nice thing about chromebooks is that they work much more reliably. And the start up quickly (just a few seconds). Google maintains the operating system. Keep in mind that chromebooks have an AUE (Auto Update Expiration) date, after which Google will not update your operating system. Make sure you know what the AUE date is for the chromebook y...
by JoinToday
Mon Oct 31, 2022 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Year End Financial To-Do List
Replies: 19
Views: 3975

Re: Year End Financial To-Do List

JayB wrote: Sun Oct 30, 2022 8:46 am .....
2. Decide whether or not to withdraw dad's entire tIRA (smallish balance) rather than have him take just RMD, with due regard to his tax brackets vs. those of heirs
....
(You may know this already): May be better to do Roth conversion of entire tIRA rather than withdrawing entire balance. Growth will be tax free, it can stay in a Roth for 10 years after distribution to heirs, and dividends & interest have no tax drag in a Roth, but will have tax drag if withdrawn and placed in an after tax account (for your dad & heirs). Having said that, a Roth has no tax loss harvesting opportunities (perhaps this is a factor in this environment), and the amount may be small enough that a Roth conversions may not be worth the effort.
by JoinToday
Mon Sep 26, 2022 3:46 pm
Forum: Investing - Theory, News & General
Topic: Margin on long term holds
Replies: 1
Views: 272

Re: Margin on long term holds

I think it depends on the numbers: What do you pay expect to pay for margin, what do you expect as your return, what is the downside risk?

If it were easy money, everyone would already be doing it. There is a clue there. It probably isn't a good idea, but you need to post numbers.
by JoinToday
Mon Aug 15, 2022 10:24 pm
Forum: Investing - Theory, News & General
Topic: Turnover Costs = 1% of Turnover Rate?
Replies: 10
Views: 1015

Re: Turnover Costs = 1% of Turnover Rate?

It is easy enough to look up. (I picked 3 randomly). I am not sure there is a good correlation between Exp Ratio and Turnover, but it seems like there should be a correlation.

Fidelity Contrafund
Exp Ratio (Net) 0.81% (3/1/2022)
Turnover rate: 27%

Fidelity Large Cap Growth Index FSPGX
Exp Ratio Net 0.035%
Turnover: 14%

Fidelity Trend Fund FTRNX
Exp Ratio Net 0.73%
Turnover: 28%
by JoinToday
Mon Aug 15, 2022 11:35 am
Forum: Personal Consumer Issues
Topic: Master Bathroom Reno Advice
Replies: 80
Views: 9859

Re: Master Bathroom Reno Advice

1. Panasonic Panasonic FV-08VQ5 WhisperCeiling 80 CFM Ceiling Mounted Fan, https://smile.amazon.com/gp/product/B003TJAGPS/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1 *** fan located over toilet. ( absolutey not in the shower ) https://smile.amazon.com/gp/product/B00313JXBK/ref=ppx_yo_dt_b_search_asin_title?ie=UTF8&psc=1 1. Out of curiosity: why not have fan over shower? [As long as it is on a GFI circuit (for safety)]. In one of my bathrooms the shower is on an outside wall. I put a panasonic fan in years ago over the shower. My thought was to collect steam where it was generated and to minimize the run to the exterior of the house. Shower is full width of the bathroom (5 feet I think). Toilet is next to shower.
by JoinToday
Tue Aug 09, 2022 12:19 am
Forum: Personal Investments
Topic: Help to consolidate in Taxable account
Replies: 54
Views: 3633

Re: Help to consolidate in Taxable account

Really hard to make good recommendations without seeing the big picture of all your assets. There is a standard format for presenting your portfolio.

Having said that, it appears like most are a loss. Why not just sell everything except VTI (total US stock market) & put the proceeds in VTI (or VTI + VXUS (total International Stock ETF)?

I am not seeing bonds, and assume they are somewhere else.
by JoinToday
Mon Aug 08, 2022 10:41 pm
Forum: Personal Investments
Topic: How to invest generational wealth
Replies: 28
Views: 5945

Re: How to invest generational wealth

How much money does one need to have for "inter-generational wealth" to be a factor or consideration in your estate/trust plan? Especially if the current heirs are doing well, are frugal, and don't appear to need my money. I worry about dumping my assets + 30 years growth on my grandkids.