Search found 44 matches

by rts58
Sun Mar 29, 2020 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Corona Virus Stimulus Package Waives RMD
Replies: 17
Views: 1890

Re: Corona Virus Stimulus Package Waives RMD

Thanks for the wisdom! I try to practice "income smoothing"... I've been doing the income smoothing as well with Roth conversions. I may take it further this year because of lower values and my expectations on future tax rates and room to the top of the 24% bracket. If one is in a low tax bracket th...
by rts58
Sat Mar 28, 2020 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Corona Virus Stimulus Package Waives RMD
Replies: 17
Views: 1890

Re: Corona Virus Stimulus Package Waives RMD

I guess it would defeat the purpose of the IRA to take out now while the market is down because you lose the possible future tax free growth. I was just thinking I benefit by doing my Roth rollover now and was wondering if there were some other benefits of the waiver that might apply. I'm doing Roth...
by rts58
Sat Mar 28, 2020 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Corona Virus Stimulus Package Waives RMD
Replies: 17
Views: 1890

Corona Virus Stimulus Package Waives RMD

So I've just read that RMD's can be postponed this year. I'm wondering if there are situations where someone would decide to go ahead and take the RMD even if they don't need it.

Thanks.
by rts58
Thu May 16, 2019 7:01 am
Forum: Personal Investments
Topic: Income stream post retirement.
Replies: 35
Views: 3529

Re: Income stream post retirement.

I had to recognize some capital gains this year to get sufficient allocation to bonds and short term treasuries. I wanted to get enough in bonds, treasuries and cash to cover spending needs until I begin to pull my pension. Once or twice a year I sell treasuries and or money market funds to keep eno...
by rts58
Thu May 02, 2019 8:39 am
Forum: Personal Investments
Topic: Do any Roth "5-year rules" still apply after age 59 1/2?
Replies: 3
Views: 970

Re: Do any Roth "5-year rules" still apply after age 59 1/2?

Yes, the 5-year rule still applies for any earnings. This link explains it pretty clearly: https://www.rothira.com/roth-ira-withdrawal-rules 2) Roth IRA Five-Year Rule Withdrawals from your Roth IRA will only be classified as qualified distributions if it has been at least five years since you first...
by rts58
Wed May 01, 2019 2:29 pm
Forum: Personal Investments
Topic: Where to park cash in Schwab?
Replies: 11
Views: 2053

Re: Where to park cash in Schwab?

I use SWVXX - SCHWAB VALUE ADVANTAGE MONEY FUND, says the 7 day yield is 2.29% and SCHO - SCHWAB SHORT TERM US TREASURY ETF which shows a 30 day SEC yield of 2.38%. I think SCHO would be state tax free?
by rts58
Sat Apr 06, 2019 12:06 pm
Forum: Personal Consumer Issues
Topic: Huge AirBNB Cancellation Charge
Replies: 123
Views: 8905

Re: Huge AIrBNB Cancellation Charge

Did you try reaching out to the host directly? They may be willing to accept the cancellation, if you explain to them what happened. If not, it's worth putting it in the review of the property.
by rts58
Fri Apr 05, 2019 4:20 pm
Forum: Personal Investments
Topic: Can't view Schwab portfolio performance in Chrome on Windows
Replies: 7
Views: 832

Re: Can't view Schwab portfolio performance in Chrome on Windows

I am having the same issue under the Rate of Return tab and all of it's sub tabs. Windows 10 & Chrome. I've had problem with charts in the past under Chrome as well. Just tried it with an incognito window and having the same issue.
by rts58
Sun Mar 31, 2019 1:30 pm
Forum: Personal Investments
Topic: 100k to Invest, Skeptical of Equities
Replies: 25
Views: 3156

Re: 100k to Invest, Skeptical of Equities

I've done both and usually wished I'd done the other, but so far never after a year. If you are nervous about it, just commit to a time period like 6 months and get it all in. You could put it all in bonds now and move it the final allocation over the next 6 months.
by rts58
Sun Mar 31, 2019 1:09 pm
Forum: Personal Investments
Topic: How often do you check your accounts?
Replies: 53
Views: 3493

Re: How often do you check your accounts?

I check too much, apps make it too easy. Personal capital sends me a weekly summary, Sigfig, and Schwab apps shows me portfolio performance through the day. I've become used to the daily swings. I adjust asset allocation quarterly if needed.
by rts58
Fri Mar 29, 2019 10:40 am
Forum: Personal Investments
Topic: When are Roth Conversion Taxes Due?
Replies: 12
Views: 1406

Re: When are Roth Conversion Taxes Due?

Not a tax expert by any means but looked into this LY, it is my understanding that if you do not meet the safe harbor floor as Ketawa mentions, then you should include an April tax event into your June 15 estimated tax payment. Don't forget state. :(
by rts58
Fri Mar 29, 2019 9:29 am
Forum: Personal Investments
Topic: Should I sign up with a brokerage with a local branch?
Replies: 34
Views: 1592

Re: Should I sign up with a brokerage with a local branch?

I wish my local office was a little closer. I'm investing through Schwab and get invited occasionally to small seminars they offer on different investment topics. Also, like being able to see my advisor face to face and have someone to provide feedback.
by rts58
Fri Mar 22, 2019 4:04 pm
Forum: Personal Investments
Topic: Pre-Retirement Checklist
Replies: 13
Views: 1428

Re: Pre-Retirement Checklist

I highly recommend you read Hot to Retire Happy, Wild, and Free.
by rts58
Fri Mar 22, 2019 9:53 am
Forum: Personal Investments
Topic: Role of Pensions and Social Security in Asset Allocation
Replies: 147
Views: 7738

Re: Role of Pensions and Social Security in Asset Allocation

Plenty of great responses to the question already. For me, I first assess how much required costs/cash flow is covered by pension & SS, then determine my required AA to cover any remaining gap - eg: if my costs are fully covered by pension & SS, then I target a mixed basket of equities & no fixed i...
by rts58
Thu Mar 21, 2019 6:35 pm
Forum: Personal Investments
Topic: Role of Pensions and Social Security in Asset Allocation
Replies: 147
Views: 7738

Re: Role of Pensions and Social Security in Asset Allocation

Then you would be changing your AA. I believe the correct spirit is that bonds make your total portfolio value not drop as fast as if it were 100% stocks, but if you need to sell (outside of rebalancing) you still sell in a way to maintain your AA constant. Maybe not, if the market is down, and I h...
by rts58
Thu Mar 21, 2019 5:51 pm
Forum: Personal Investments
Topic: Role of Pensions and Social Security in Asset Allocation
Replies: 147
Views: 7738

Re: Role of Pensions and Social Security in Asset Allocation

To me the bond portion of the portfolio supplies coverage for the sequence of returns risk in the stock market. I need to be able to sell those bonds off to cover cash requirements if the market is down. If you consider the NPV of pensions and SS as covering your fixed income allocation, you are inc...
by rts58
Tue Mar 19, 2019 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

Some light reading might help: http://www.moneychimp.com/features/tax_brackets.htm https://www.kitces.com/blog/understanding-the-mechanics-of-the-0-long-term-capital-gains-tax-rate-how-to-harvest-capital-gains-for-a-free-step-up-in-basis/ For 2017 TY I found that a portion of LTCG was being taxed a...
by rts58
Tue Mar 19, 2019 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

You could confirm using the tax calculations (see Calculations tab) in the same spreadsheet tool mentioned in this post . Yes, thanks to you, that is what I was getting it from. I kept going over it, comparing different scenarios, looking at the marginal rate chart, thinking I messed it up somehow....
by rts58
Mon Mar 18, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

I think this is a perfect example of how it is not always necessarily better to do traditional (vs Roth) while working and then doing Roth conversions in retirement. For me, I really didn't have a choice. The IRA balances are from 401k rollovers. I was able to do some non-deductible IRA backdoor Ro...
by rts58
Mon Mar 18, 2019 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

What is working for me is to tax gain harvest in one year, paying the 0% LTCG tax rate and hopefully raising enough funds to get through the following two years. Year 2 and 3, I Roth convert up to the top of the 22% bracket and try to avoid taking any LTCG. I do try to harvest any losses in the 22%...
by rts58
Mon Mar 18, 2019 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

Basically, yes. For some of us, divs push the stack and there is no way to control the location on the curve. I have stopped converting because my pension started and I can't easily get out of the 27% range. Thanks this has been really helpful. It's hard to believe that my marginal rate could actua...
by rts58
Mon Mar 18, 2019 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

jebmke wrote:
Mon Mar 18, 2019 4:41 pm
You have to know where you are on the curve.
So my approach should be to understand level of CG I want to take, target my conversion so that it does not consume the amount taxed at zero?
by rts58
Mon Mar 18, 2019 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Re: Marginal tax rates, Roth vs LT capital gains

Very interesting thread. Help me please understand the "1.1" in the calculation. Thanks. Hi thanks,the 1.1 was because the medical exemption is 10%, so while I increased conversion by 10k, it caused 1k of medical to be disallowed. So a factor of 1.1. Of course eventually my deduction will be driven...
by rts58
Mon Mar 18, 2019 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rates, Roth vs LT capital gains
Replies: 19
Views: 1016

Marginal tax rates, Roth vs LT capital gains

:shock: I've been looking at my marginal federal tax rate, trying to come up with the right balance of Roth conversion and recognizing LT capital gains. I have no earned income, MFJ and itemize. My general approach was to convert up to match my expected marginal rate after I start collecting pension...
by rts58
Sat Mar 09, 2019 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

Here is my retirement cash flow approach that may work for other Bogleheads, based on my insight gained from running multiple scenarios in RPM. Regardless of my annual cash flow needs, pre-Pension and pre-Social Security, I max out my Roth Conversions as it allows my to pay the lowest marginal tax ...
by rts58
Fri Mar 08, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

The model doesn't do a detailed calculation of LT gains and taxation of them, but rather has a somewhat crude adjustment to taxable earnings to approximate the benefit of lower LT gains and capital gains rates. I would suggest you use RPM for the broad conversion picture, then do a detailed calcula...
by rts58
Fri Mar 08, 2019 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

Hi, I'm trying to use the model to help me understand the trade off between taking LT capital gains in my trading account versus rolling IRA to Roth. I've retired early and am funding that through my taxable trading account until I start receiving a pension at 65 and SS at 70. The model has helped m...
by rts58
Fri Mar 01, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

Can you please explain further? If you change the inputs, don't they change both the base and detail tabs? What did you change that affected the base plan but not the Roth conversion plan? Sorry for not being clear. I was referring to the fix to a formula having to do with state taxable pensions. I...
by rts58
Thu Feb 28, 2019 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

I have reviewed your finding and agree! Thank you very much. The correction will be included in 19.1 to be released tomorrow. No, thank you, this worksheet is sooo helpful. BTW, I made the change and saw my Base plan was much better than the Roth Conv plan. Then realized I had to make the change to...
by rts58
Thu Feb 28, 2019 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

Actually it's saying if your state move age is in the future, use the current state taxable pension rate, and once the state move age is no longer greater than your age that year, start using the new state's pension taxable rate. I see I was looking at the move age comparison wrong. However, I stil...
by rts58
Thu Feb 28, 2019 1:46 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 889
Views: 295212

Re: Retiree Portfolio Model

I think there may be an error in the calculation of state taxable income for pensions. I live in MA and noticed that my pension income in the future was not being included in state taxable income. Here is the formula for cell j207: =ROUND(IF(AND(State_Move_Age>J$4,State_Move_Age<>0),Pen_Tax_State*J$...
by rts58
Fri Mar 09, 2018 10:21 am
Forum: Personal Investments
Topic: Roth IRA w/ Schwab
Replies: 3
Views: 827

Re: Roth IRA w/ Schwab

Another alternative you may want to consider is the Schwab intelligent portfolio:
https://intelligent.schwab.com/public/i ... /home.html?
https://www.barrons.com/articles/as-rob ... 1517509393
by rts58
Thu Mar 08, 2018 5:15 pm
Forum: Personal Investments
Topic: Roth IRA all in cash: Strategies, thoughts, concerns, etc.
Replies: 6
Views: 696

Re: Roth IRA all in cash: Strategies, thoughts, concerns, etc.

Take a look at the wiki article
https://www.bogleheads.org/wiki/Tax-eff ... _placement

Put your highest growth assets in the Roth and cash in your trading account.
by rts58
Thu Mar 08, 2018 5:10 pm
Forum: Personal Investments
Topic: Having 2nd thoughts about Roth conversion, please check my logic
Replies: 10
Views: 1376

Re: Having 2nd thoughts about Roth conversion, please check my logic

Congrats on retirement!! I retired 2 years ago in a similar situation. I used the retirement planning model available on the wiki, to try to come up with the best solution. I ended up deciding to convert to match my future expected marginal tax rate (after 70). I also decided not to hold bonds in th...
by rts58
Wed Mar 07, 2018 10:46 am
Forum: Personal Investments
Topic: Roth conversions now less meaningful?
Replies: 6
Views: 1543

Re: Roth conversions now less meaningful?

One advantage you had, is that you converted earlier so you were you paid tax on a smaller base. I would expect that your Roth balance has grown more than the incremental tax you had to pay.
by rts58
Tue Mar 06, 2018 2:54 pm
Forum: Personal Investments
Topic: Short term capital gains tax dilemma
Replies: 12
Views: 1546

Re: Short term capital gains tax dilemma

I think most here would tell you not to try to time the market. You know you will lose the differential in LT and ST tax rates on the sale, maybe 10% depending on your marginal tax rate. What do you think the probability is the price will drop more than 10%? Look at your overall portfolio asset allo...
by rts58
Tue Sep 12, 2017 11:36 pm
Forum: Personal Investments
Topic: Sanity Check: Roth IRA Asset Allocation w/ Schwab
Replies: 10
Views: 1963

Re: Sanity Check: Roth IRA Asset Allocation w/ Schwab

My choices at Schwab are not too different from yours (allocation is, I'm retired). I went with ITOT instead of SCHB, and have not gone into international small cap. For international bonds I looked at:​ Vanguard Emerging Mkts Govt Bd ETF - VWOB PowerShares Emerging Markets Sov Dbt ETF - PCY iShares...
by rts58
Tue Aug 15, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Setting up a LLC for side gig: 401(k)/IRA & Tax Management Question
Replies: 10
Views: 1654

Re: Setting up a LLC for side gig: 401(k)/IRA & Tax Management Question

The real advantage of the LLC is separate your liability, so that if for some reason you are sued for your business/hobby, they would not have access to your personal wealth. "If you form an LLC, you will remain personally liable for any wrongdoing you commit during the course of your LLC business....
by rts58
Mon Aug 14, 2017 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a LLC for side gig: 401(k)/IRA & Tax Management Question
Replies: 10
Views: 1654

Re: Setting up a LLC for side gig: 401(k)/IRA & Tax Management Question

I considered setting up an LLC a couple years ago. The real advantage of the LLC is separate your liability, so that if for some reason you are sued for your business/hobby, they would not have access to your personal wealth. I considered the risk extremely small to being sued, and there were on goi...
by rts58
Sat Aug 05, 2017 6:58 pm
Forum: Personal Investments
Topic: Eaton Vance TABS 5-15 year CA Muni Ladder
Replies: 8
Views: 944

Re: Eaton Vance TABS 5-15 year CA Muni Ladder

Hi, I had a similar discussion with my Schwab consultant last month (not in CA). I'm not really interested at this point. But, one of the advantages he had mentioned to me was that EV buys these bonds in a different market than we have access to and get a better price for the bonds. This somewhat of...
by rts58
Thu Jul 20, 2017 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: RPM - Marginal tax rate vs portfolio ending balance
Replies: 9
Views: 1528

Re: RPM - Marginal tax rate vs portfolio ending balance

One suggestion is that you take the time to run your current year, before doing the Conversion through some kind of Tax Program (TurboTax is my choice) to make sure you have a good understanding of any unexpected implications (e.g. Alternative Minimum Tax, Medicare Premiums, State Taxes). I would a...
by rts58
Thu Jul 20, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: RPM - Marginal tax rate vs portfolio ending balance
Replies: 9
Views: 1528

Re: RPM - Marginal tax rate vs portfolio ending balance

Thanks for the responses. Sorry, RPM = Retirement Portfolio Model. Although been using it enough revolutions per minute may be appropriate! It's not just marginal rate to be concerned about. I would consider levelling your taxable income or AGI so that it goes up a few percent each year before and a...
by rts58
Wed Jul 19, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: RPM - Marginal tax rate vs portfolio ending balance
Replies: 9
Views: 1528

RPM - Marginal tax rate vs portfolio ending balance

Hi, I've been using RPM to help me decide on the amounts for Roth conversion. I have retired early, am now 59 1/2. I'll have between now and 65 before I receive my pension. It looks like I can maximize the ending balance of my portfolio, by converting about 100k - 120k per year until 65 and then 20k...