Search found 307 matches

by NoHeat
Tue Mar 05, 2019 4:14 pm
Forum: Personal Investments
Topic: Convert existing nondeductible IRA to Roth?
Replies: 18
Views: 1111

Re: Convert existing nondeductible IRA to Roth?

I don’t believe you need the complication of rolling over to the retirement plan, as an intermediate step. You can convert it all now, and figure out the taxes next February when you receive the Form 1099 (that’s when you need answers to the question deductible vs not, for the original contribution...
by NoHeat
Mon Mar 04, 2019 11:44 pm
Forum: Personal Investments
Topic: Roth IRA for Minor - Delaying Change of Ownership
Replies: 26
Views: 1281

Re: Roth IRA for Minor - Delaying Change of Ownership

SECTION 20. TERMINATION OF CUSTODIANSHIP. The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of: (1) the minor's attainment of 21 years of age with respect to custodial property transferred under Section 4 or 5; (2) th...
by NoHeat
Mon Mar 04, 2019 9:58 pm
Forum: Personal Investments
Topic: Convert existing nondeductible IRA to Roth?
Replies: 18
Views: 1111

Re: Convert existing nondeductible IRA to Roth?

I’'m trying to get the history of contributions to ensure that it is all nondeductible. Does your spouse have copies of form 8606, as part of a form 1040 filing? If some of the IRA is deductible my plan would be transfer the deductible portion to his TSP (he's a gov't employee) and then do the conv...
by NoHeat
Mon Mar 04, 2019 8:58 pm
Forum: Personal Investments
Topic: Roth IRA for Minor - Delaying Change of Ownership
Replies: 26
Views: 1281

Re: Roth IRA for Minor - Delaying Change of Ownership

I want to try to delay the change of ownership until age 21. Is it possible to delay the change of ownership by withdrawing the Roth IRA funds on his behalf and putting into a trust I'm assuming we're talking about a brokerage account, and not a bank account. For a delay in the change of ownership,...
by NoHeat
Mon Mar 04, 2019 4:30 pm
Forum: Personal Consumer Issues
Topic: Has any retiree taken classes at 4-year college - for interest - e.g. Spanish
Replies: 108
Views: 6119

Re: Has any retiree taken classes at 4-year college - for interest - e.g. Spanish

One-on-one instruction is always best, if you can afford it. Many of the instructional problems identified by the OP, for the community college class, are driven by the inherent compromises of classroom-instruction. To become fluent you need to speak a lot, with someone who is really good, and that’...
by NoHeat
Mon Mar 04, 2019 9:56 am
Forum: Investing - Theory, News & General
Topic: BIL, puzzling T-bill ETF: why have people put $7.9 billion into it?
Replies: 24
Views: 3659

Re: BIL, puzzling T-bill ETF: why have people put $7.9 billion into it?

Owning T-Bills directly, without any expenses, is certainly possible not only at Treasury Direct, but also a couple of brokerages. That approach obviously will have a better return than owning a T-bill ETF, like BIL. However, if someone wants convenience approaching that of a money-market sweep fund...
by NoHeat
Mon Mar 04, 2019 9:13 am
Forum: Personal Consumer Issues
Topic: Picking a VPN -- 2019
Replies: 9
Views: 1752

Re: Picking a VPN -- 2019

Hide My Ass -- I used to use it. It has lots of servers around the world, which is handy for travel, but the promotional materials on its web site give many hints that it's intended to cater to law breakers. Trust is the key word in the article cited by the OP. It's hard to know what goes on behind ...
by NoHeat
Sun Mar 03, 2019 3:50 pm
Forum: Personal Consumer Issues
Topic: Where to find inexpensive unlocked phone
Replies: 56
Views: 3633

Re: Where to find inexpensive unlocked phone

Costco.com has several unlocked phones, the cheapest are LG K30 16GB at $169.99 and Moto G6 32 GB at $239.99. As usual, Costco may not have the cheapest price for electronics, but they offer tech support.

https://www.costco.com/CatalogSearch?de ... cked+phone
by NoHeat
Sun Mar 03, 2019 2:19 pm
Forum: Personal Investments
Topic: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?
Replies: 21
Views: 2398

Re: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?

I used to make the comparison of I Bonds with duct tape for their versatility. I've found in practice a more apt comparison might be with a knickknack shelf- purchases that seemed like a good idea at the time, which become just another item needing maintenance, time and trouble. There are no taxes ...
by NoHeat
Sun Mar 03, 2019 2:08 pm
Forum: Investing - Theory, News & General
Topic: Optimal approaches when you've "won the game"
Replies: 38
Views: 3308

Re: Optimal approaches when you've "won the game"

To be clear, the goal wouldn't be to become as wealthy as possible given acceptable risks; it would simply be to reduce the likelihood of a shortfall as much as possible. Given this goal, and assets that exceed needs, lots of approaches will work, including the OP’s. Interestingly, the goal that th...
by NoHeat
Sun Mar 03, 2019 11:31 am
Forum: Investing - Theory, News & General
Topic: BIL, puzzling T-bill ETF: why have people put $7.9 billion into it?
Replies: 24
Views: 3659

Re: BIL, puzzling T-bill ETF: why have people put $7.9 billion into it?

it is the best money market proxy I can find that's available at Merrill Edge. This is exactly why I use BIL, and SHV which is very similar. I do this at Merrill Edge, and I have my adult children do it at E*trade and TD Ameritrade. I previously used MINT, but its pricing seemed to be less stable, ...
by NoHeat
Sun Mar 03, 2019 9:07 am
Forum: Personal Investments
Topic: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?
Replies: 21
Views: 2398

Re: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?

Another solution might be to redeem the electronic I-bonds and use the proceeds to buy paper I-bonds. The paper kind can later be redeemed by just taking them to a bank branch, which should make things easier for the surviving spouse. The way to buy the paper bonds is during the tax return. https://...
by NoHeat
Sat Mar 02, 2019 2:48 pm
Forum: Investing - Theory, News & General
Topic: I Bonds and rebalancing?
Replies: 8
Views: 748

Re: I Bonds and rebalancing?

If you make your purchases throughout the year, rather than "lump sum", you could rebalance continuously by purchasing more of the category that was below "target" and less of the category that was above. I don't believe this approach will work when stocks go up, as the OP specified a $20k annual c...
by NoHeat
Sat Mar 02, 2019 10:02 am
Forum: Investing - Theory, News & General
Topic: I Bonds and rebalancing?
Replies: 8
Views: 748

Re: I Bonds and rebalancing?

I-bonds don't trade like most bonds, so by themselves as fixed income investment, they would be a bit limited, for periodic rebalancing. Purchases are limited to $10k per person per year. If you're already buying the max, you can't buy more just because the SP500 went up. You could only sell I-bonds...
by NoHeat
Thu Feb 28, 2019 6:39 pm
Forum: Personal Consumer Issues
Topic: Starting a travel blog/youtube channel and deducting travel expenses?
Replies: 16
Views: 731

Re: Starting a travel blog/youtube channel and deducting travel expenses?

Maybe while you're at it, you could start a YouTube channel on the theme of paying rent, and another one on shopping at the supermarket, and another on driving a car, and so on. Then your whole life is a business expense to be deducted, from the couple of dollars that YouTube might pay you. How's th...
by NoHeat
Thu Feb 28, 2019 8:38 am
Forum: Investing - Theory, News & General
Topic: After-Tax Alternative to TIAA Real Estate Account
Replies: 13
Views: 919

Re: After-Tax Alternative to TIAA Real Estate Account

I don't believe that QREARX is available with TIAA IRAs .... Actually, it is available in IRAs. To verify my claim, before posting I found a TIAA web page that said so explicitly . It wasn't easy to find that page, so I pasted a direct link to it into my post, at first. However, it is a turned out ...
by NoHeat
Wed Feb 27, 2019 9:18 pm
Forum: Investing - Theory, News & General
Topic: After-Tax Alternative to TIAA Real Estate Account
Replies: 13
Views: 919

Re: After-Tax Alternative to TIAA Real Estate Account

Can anyone suggest an alternative, after-tax investment that mimics the composition, characteristics, and returns of QREARX? If it weren't for the age limit for IRA contributions, you could open an IRA at TIAA and contribute there. Then, invest in the Real Estate fund QREARX within the IRA. But if ...
by NoHeat
Wed Feb 27, 2019 8:19 pm
Forum: Personal Investments
Topic: $500 small balance withdrawal from 403b - just pay penalty?
Replies: 10
Views: 638

Re: $500 small balance withdrawal from 403b - just pay penalty?

GammaPoint wrote:
Wed Feb 27, 2019 3:40 pm
Normally we'd roll this over to my wife's new employer, except she's a sole proprietor now and has a solo 401k at Vanguard and they don't allow incoming rollovers apparently.
Is it possible to create a second solo 401k, possibly at another broker, and rollover the funds to that new account?
by NoHeat
Mon Feb 25, 2019 9:11 pm
Forum: Personal Investments
Topic: Tiaa Cref 403b Portfolio Asset allocation
Replies: 21
Views: 2034

Re: Tiaa Cref 403b Portfolio Asset allocation

you might want to shift your TIAA holdings to TIAA traditional serve as a bond substitute It's important to know that some TIAA Traditional contracts are illiquid and therefore are not a bond substitute; Traditional is illiquid in so-called RA contracts. It is fully liquid in SRA and GSRA are fully...
by NoHeat
Mon Feb 25, 2019 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Nervous about locking up money in SPIA
Replies: 101
Views: 6531

Re: Nervous about locking up money in SPIA

I will start social security next year when I turn 70. It will pay for about half of my basic living expenses. I could put about 25% of my liquid assets in an SPIA and that would cover the other half of my basic living expenses. Social security is inflation adjusted, but an SPIA is not, so realisti...
by NoHeat
Sun Feb 24, 2019 11:18 am
Forum: Personal Finance (Not Investing)
Topic: TurboTax first timer: do I need any info from prior Accountant?
Replies: 18
Views: 614

Re: TurboTax first timer: do I need any info from prior Accountant?

To be sure of one transaction per year, one could use the card for the annual renewal for membership in something.
by NoHeat
Sun Feb 24, 2019 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Close my AT&T Universal Card?
Replies: 43
Views: 2851

Re: Close my AT&T Universal Card?

Length of credit history determines 15% of your score at Equifax. So I keep my Universal Card, since I've had it more than 25 years. When I allowed a couple of years to pass without using the card, citi phoned me and told me they wanted to cancel it, and that's when I started using it again, at leas...
by NoHeat
Sun Feb 24, 2019 10:04 am
Forum: Personal Finance (Not Investing)
Topic: move from accountant to turbotax?
Replies: 12
Views: 825

Re: move from accountant to turbotax?

Personally, I would use the accountant for one more year but also use turbotax myself to compare. That's a good suggestion, to do the TurboTax "for fun" one year, as a learning experience, comparing to an already-prepared tax return from the accountant. A further advantage of doing this is that Tur...
by NoHeat
Sun Feb 24, 2019 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Best Practices for Managing Credit Freezes
Replies: 15
Views: 1521

Re: Best Practices for Managing Credit Freezes

Before applying for a credit card, one dilemma is deciding at which of the bureaus should one lift a freeze. Most recently, I just lifted all three online for two days, then submitted my credit card application. Another time, I chose one bureau. Here's some info: https://www.doctorofcredit.com/credi...
by NoHeat
Thu Feb 21, 2019 5:19 pm
Forum: Personal Investments
Topic: Proper savings fund for deferred Social Security
Replies: 4
Views: 583

Re: Proper savings fund for deferred Social Security

IWhat conservative MF would guard against inflation for 10 years while maintaining the principal? I-bonds, purchased from TreasuryDirect. You can cash them in at any time, after 12 months. They yield just slightly higher than the current inflation rate, so if inflation rates unexpectedly increase, ...
by NoHeat
Sun Feb 17, 2019 8:38 pm
Forum: Personal Investments
Topic: Life Advice... Employer 401K
Replies: 13
Views: 879

Re: Life Advice... Employer 401K

Those are good low-fee index funds. The 2050 target-date fund is 15% bonds, and the glidepath for years thereafter is fairly conventional. If you like the allocation, it’s a good simple choice. https://www.retirement.prudential.com/RSO/web/fundsheets/UPSB50.pdf You probably don’t want a stable value...
by NoHeat
Thu Feb 14, 2019 8:47 pm
Forum: Personal Investments
Topic: glide-path in a declining market?
Replies: 13
Views: 1504

Re: glide-path in a declining market?

Somehow selling at a gain is easier than at a loss. I'm curious what other people told themselves to get over this hump. Tell yourself that's anchoring. Because it is. Anchoring is a very common problem, in the psychology of investing. Instead of looking at the current value of an investment and yo...
by NoHeat
Wed Feb 13, 2019 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: first freelance gig, do I need an LLC?
Replies: 21
Views: 1373

Re: first freelance gig, do I need an LLC?

The work would ideally be data analysis for social science research (cleaning/processing data sets, running statistics, creating tables and maps) and would make use of statistical software, python programming, and/or GIS software. ... Everything would be done on my home computer with deliverables s...
by NoHeat
Wed Feb 13, 2019 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Fast turnaround on Federal Tax
Replies: 40
Views: 3698

Re: Fast turnaround on Federal Tax

joe8d wrote:
Wed Feb 13, 2019 8:49 pm
True Bogleheads do not get Tax Refunds.
So, do true Bogleheads deprive themselves of tax-loss harvesting during a December market swoon?

After all of one's careful tax planning, that can still happen, and result in a tax refund.
by NoHeat
Wed Feb 13, 2019 7:56 pm
Forum: Personal Investments
Topic: What are the situations in which it does not make sense to hold bonds in retirement acct?
Replies: 5
Views: 566

Re: What are the situations in which it does not make sense to hold bonds in retirement acct?

2. If your retirement account has other fixed-income assets, such as a stable-value fund (e.g., the liquid variant of TIAA Traditional). 3. you have such a large pension that you won't need your retirement account -- in that case you can put all its assets at risk in stocks. 4. I-Bonds, you might as...
by NoHeat
Wed Feb 13, 2019 7:30 pm
Forum: Personal Investments
Topic: Implications of rolling a 529 to another state?
Replies: 5
Views: 298

Re: Implications of rolling a 529 to another state?

I have rolled over 529s from one state to another several times. One gotcha, as mentioned above, is to avoid the penalty paid to your state, for withdrawing from your own state's fund, if you've previously taken a tax deduction for a contribution. The other gotcha I can mention is to avoid a penalty...
by NoHeat
Wed Feb 13, 2019 7:17 pm
Forum: Personal Investments
Topic: Problems living off prior investments to max out a retirement account.
Replies: 11
Views: 1274

Re: Problems living off prior investments to max out a retirement account.

I have an taxable investment account of >500k but a salary of roughly 35k. I have decided that this year I can max out my TSP contributions by drawing off of the taxable account ... I think that's a fine thing to do, for someone with your ratio of big taxable account vs smaller salary. Living off y...
by NoHeat
Mon Feb 11, 2019 1:56 pm
Forum: Investing - Theory, News & General
Topic: Schwab Target Index 2060 (SWYNX) vs Vanguard Target Retirement 2060 (VTTSX)
Replies: 13
Views: 861

Re: Schwab Target Index 2060 (SWYNX) vs Vanguard Target Retirement 2060 (VTTSX)

I liked Schwab's 95/5, which probably means I should just go with them! The Schwab fund also has a lower expense ratio, 0.08% vs 0.15%. Over 30 years, that could make a 2% difference in your final balance, if all other things were equal. Since you're splitting hairs to choose, that's another hair t...
by NoHeat
Fri Feb 08, 2019 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Should we get the Mutual of Omaha LTC Policy?
Replies: 12
Views: 1091

Re: Should we get the Mutual of Omaha LTC Policy?

I have a policy from Mutual of Omaha, which I compare to the OP's, below. I chose the Omaha policy over bids from MassMutual, Genworth, and Transamerica, when I bought it a few years ago, when I got a small discount for being a member of IEEE (a professional society for engineers). He: 61/Her: 59 ME...
by NoHeat
Thu Feb 07, 2019 5:54 pm
Forum: Personal Investments
Topic: Merrill Edge or Fidelity
Replies: 42
Views: 2883

Re: Merrill Edge or Fidelity

Normally I would recommend Edge because of their bonus program. However, I don't know that assets currently at Lynch would eligible. You could ask. In making the OP's decision, I would suggest ignoring bonuses paid by brokers for opening an account, because they are smaller (typically about 0.1% of...
by NoHeat
Mon Feb 04, 2019 9:13 am
Forum: Investing - Theory, News & General
Topic: converting minor's account at age 21 - what's your customer-service experience?
Replies: 12
Views: 892

Re: converting minor's account at age 21 - what's your customer-service experience?

However, I wouldn't have handed over 529 plan accounts if they were/would be eligible for financial aid as FA would expect a lot more of it to be spent if the student was the owner than if the parent was the owner. After the student finished college, I would have then changed the 529 beneficiary to...
by NoHeat
Mon Feb 04, 2019 12:21 am
Forum: Investing - Theory, News & General
Topic: converting minor's account at age 21 - what's your customer-service experience?
Replies: 12
Views: 892

converting minor's account at age 21 - what's your customer-service experience?

When my kids turned 21, I handed over three kinds of accounts to them: - taxable brokerage accounts that are UTMA (Uniform Transfers to Minors Act), at E*trade and TD Ameritrade - brokerage accounts that are "minor Roth IRA", at E*trade and TD Ameritrade - 529 account that's UTMA. I naively expected...
by NoHeat
Thu Jan 31, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: Historical SPIA annuity data
Replies: 1
Views: 213

Historical SPIA annuity data

Does a public database exist, for various historical start dates, for the payout rates of lifetime single-premium immediate annuities? If no extensive database exists, even some scattered examples (in historical magazine articles, research papers, etc) would be helpful — but I’m not sure where to st...
by NoHeat
Sun Jan 27, 2019 9:46 pm
Forum: Personal Investments
Topic: Investment Planning - Kiddo #2
Replies: 4
Views: 425

Re: Investment Planning - Kiddo #2

1. Grandparents want to contribute to something for kiddos future and I'm not sure what is the best option. Would a 529 be best here for family to contribute to? We would not be contributing until we can max our 401k, though Arizona does offer tax deduction. Two ways for grandparents to pitch in: c...
by NoHeat
Sat Jan 26, 2019 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.
Replies: 177
Views: 16142

Re: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.

Cardiologist has two kids with wife #1, then divorces. Remarries and then he and stay-at-home wife #2 have a special-needs child (autism), who is a teen when the cardiologist dies. The will gave everything to wife #2 and a trust for the special-needs child. Nothing was bequeathed to the older adult ...
by NoHeat
Sat Jan 26, 2019 6:12 pm
Forum: Investing - Theory, News & General
Topic: What was your first Vanguard fund or ETF?
Replies: 72
Views: 4750

Re: What was your first Vanguard fund or ETF?

Prime Money Market, about 20 or 25 years ago — I’m not sure if they used symbols for funds back then
by NoHeat
Fri Jan 25, 2019 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Need Advice - quit 6-figure job to do coding school?
Replies: 118
Views: 9580

Re: Need Advice - quit 6-figure job to do coding school?

The OP fits the profile for code camp to a tee: well educated professional, mid-to-late 20s, wants a career change. Besides a career path in coding, this training would set the OP up for a different career path: management, in a technology division of a software company. This would work well because...
by NoHeat
Thu Jan 24, 2019 11:13 pm
Forum: Investing - Theory, News & General
Topic: Combination of "Safety First" and "Probability Based" withdrawal strategies
Replies: 54
Views: 3576

Re: Combination of "Safety First" and "Probability Based" withdrawal strategies

Yes, TIPS and SS alone could pay the $100k real income from age 55 to 100 -- and that reflects the fact that the assets are ample, in the OP's assumption of $3 million, to generate that income very safely starting at age 55. Some would say that if you can live on TIPS alone, you should do exactly th...
by NoHeat
Thu Jan 24, 2019 9:20 pm
Forum: Investing - Theory, News & General
Topic: IRA - Target Date fund - too much International equity
Replies: 17
Views: 1710

Re: IRA - Target Date fund - too much International equity

The efficient frontier says the domestic:international ratio should be somewhere around 70:30, to maximize return while minimizing volatility. So I think Vanguard's allocation of 60:40 is pretty close, and that's okay. The efficient frontier data in the wiki is based on 39 years of data, not just wh...
by NoHeat
Thu Jan 24, 2019 9:06 pm
Forum: Investing - Theory, News & General
Topic: Combination of "Safety First" and "Probability Based" withdrawal strategies
Replies: 54
Views: 3576

Re: Combination of "Safety First" and "Probability Based" withdrawal strategies

Create a TIPS ladder to finance your planned consumption needs from now till age 100: $100K per year from age 55-70 and $60K from age 71-100. At a real interest rate of 1%, this will cost about $1.6 million. How did you get $1.6 million? I get $2.7 million, if the $100k and $60k are real, not nomin...
by NoHeat
Thu Jan 24, 2019 9:40 am
Forum: Investing - Theory, News & General
Topic: Combination of "Safety First" and "Probability Based" withdrawal strategies
Replies: 54
Views: 3576

Re: Combination of "Safety First" and "Probability Based" withdrawal strategies

I'm not comfortable with a 4% withdrawal which would give you $60K a year from age 70 on. I'm more comfortable with 3% or $45K. Can you live on that plus your $40K SS? TravelforFun You're assuming that his 60/40 portfolio will experience 0% real growth over the course of the next 15 years and that ...
by NoHeat
Wed Jan 23, 2019 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Any regrets not funding a 529?
Replies: 27
Views: 3698

Re: Any regrets not funding a 529?

H-Town wrote:
Wed Jan 23, 2019 9:59 pm
Can you fund 529 if you haven't had your first kid yet?
Yes. Name yourself as the beneficiary. Or another qualified relative. After junior is born, change the beneficiary.
by NoHeat
Wed Jan 23, 2019 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Any regrets not funding a 529?
Replies: 27
Views: 3698

Re: Any regrets not funding a 529?

Could you clarify how this works? I live in NY and have contributed, deducted $10k every year....isn't it the max regardless if you're contributing to multiple accounts, beneficiaries..? Get a state income tax deduction If you're a new York State taxpayer and an account owner, you may be able to de...
by NoHeat
Wed Jan 23, 2019 9:48 pm
Forum: Investing - Theory, News & General
Topic: Combination of "Safety First" and "Probability Based" withdrawal strategies
Replies: 54
Views: 3576

Re: Combination of "Safety First" and "Probability Based" withdrawal strategies

I wonder what the taxes would be like from 55 to 70. Must be very low.