Search found 65 matches

by FXDXontherun
Thu Dec 28, 2023 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Taxing of social security, should you pay per month or at years end?
Replies: 19
Views: 3206

Taxing of social security, should you pay per month or at years end?

My wife will be filing for SS at FRA on 1.1.24, is it better to have taxes withheld monthly from her check or pay at years end, or from a financial standpoint, does it really make any difference?
I guess you could estimate your years taxes, divide by 12 and assign an approximate percentage to it and have that % amount withheld monthly on the W-4V form?

Trying to get a head start on how to handle this. Thanks for any replies.
by FXDXontherun
Sat Sep 30, 2023 10:29 am
Forum: Investing - Theory, News & General
Topic: Vanguards new "Plan for taxes in retirement tool" anyone use it yet?
Replies: 1
Views: 817

Vanguards new "Plan for taxes in retirement tool" anyone use it yet?

Vanguard is launching a new "tool" to plan for taxes in retirement for personal advisor clients, (I am one). I'm not certain it's 100% operable yet but if so has any PAS clients had VG run your portfolio data and reviewed the results? What were your thoughts? Below is some copied data off their site about it: Keep more of your income, save more on taxes, and leave more as a legacy. Our enhanced retirement planning strategy can help you do just that—and it’s available to Vanguard Personal Advisor clients at no additional cost. Your advisor enters your current information into our planning model which tests hundreds of combinations of account withdrawal order, Social Security timing, and Roth conversion strategies. Each combination ...
by FXDXontherun
Mon Jul 24, 2023 9:16 am
Forum: Personal Investments
Topic: Wife has little interest in managing the money, what if I die first?
Replies: 46
Views: 6374

Re: Wife has little interest in managing the money, what if I die first?

Thanks very much for all the replies. We are currently enrolled in the PAS at VG so yes, automated RMD's when that time comes, rebalancing the portfolio, and funding a spending account is covered. Although my wife has not done it in years, she currently has the capability to handle monthly bills, reconciling bank statements, etc on her own but this could change. We only have two credit cards and all bill pay is done electronically thru one bank. We have a daughter that has not exhibited particularly good money management skills in the past but has improved. I suspect after additional coaching on my part, she will likely be involved in helping manage things. I have looked into trusts but I thought the costs to administer was high. I may have...
by FXDXontherun
Thu Jul 20, 2023 1:44 pm
Forum: Personal Investments
Topic: Wife has little interest in managing the money, what if I die first?
Replies: 46
Views: 6374

Wife has little interest in managing the money, what if I die first?

Both I and wife are 66 y/o, retired in 2016, have not claimed SS yet, living off her USPS pension and our $2.3M portfolio, ($2M at VG) since retirement. I have always handled the finances and have been with VG since 2003, enrolling in their PAS service in 2015 shortly before retirement. My wife had brain tumor surgery in 1998 and has since been on significant pain management meds since and would have considerable difficulty in managing our portfolio if I precede her in death. There are many components to retirement especially when it comes to RMD's, taxes and other things that she would need help with. I have avoided aligning with any financial advisors as the cost of doing business with them is high but there is some comfort in them having...
by FXDXontherun
Mon May 08, 2023 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Bogle book "Guide to retirement planning" options?
Replies: 1
Views: 279

Bogle book "Guide to retirement planning" options?

I'm looking for retirement info, particularly, Social Security claiming strategies, portfolio withdrawal strategies, (especially when RMD's begin), and tax management strategies to name a few. I came across Jack Bogles book "Guide to retirement planning" and ordered it off ebay. The reviews were good but says the book is somewhat dated so some of the content, (particularly tax info) may no longer be accurate.

Is there any other books more up to date that are easy to read and comprehend that would address these issues?

Thanks
by FXDXontherun
Thu Jan 26, 2023 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Filing for SS, question about paying taxes
Replies: 4
Views: 579

Filing for SS, question about paying taxes

Mod's feel free to move if this is in the wrong place. I will reach FRA, (66.4) in April and my intention is to file for social security at that time. I understand that some of this benefit can be taxed and I have the option of paying the entire tax at the EOY, or possibly quarterly, or dictate how much I want held out and have it held out monthly. My thought is it would be correct to estimate what tax bracket I will be in at this time, (12% for now until RMD's) and have that amount withheld every month. I'd rather not have to deal with any additional paperwork that could result in paying the tax quarterly or at EOY. Is there anything I'm missing here? Is there any benefit to paying taxes in a manner other than monthly? I understand if you ...
by FXDXontherun
Thu Nov 03, 2022 9:01 am
Forum: Investing - Theory, News & General
Topic: Roth conversion question
Replies: 6
Views: 514

Roth conversion question

Is there any benefit to doing a Roth conversion either early or late in any given year? As I understand it, doing it near years end gives you a better snapshot of what your total years income will be and that can guide you in terms of how much you convert to stay in a given tax bracket.
Thanks for any replies.
by FXDXontherun
Sun Aug 28, 2022 12:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard annuity, (annuities in general)
Replies: 5
Views: 675

Vanguard annuity, (annuities in general)

I've never been a fan of annuities but as I grow older the thought of having an income stream that is reliable (providing the company doesn't go under) and will cover the potential deficit between our income and expenses is inviting. My wife and I are 66.8 and 65.5 years old and have not filed for SS yet. At FRA, (I'm there at 66.8, wife not until July of 23.), our FRA SS will be $59,904 before any taxes, plus wife's USPS pension of $944 monthly = about $71,232.00 in yearly income. Our current expenses are about $50K yearly. We live in a lower cost of living state and have lived below our means our entire life and have no debt. Right now it appears our SS if both are claimed at FRA, (one of us might wait until 70 y/o), and wife's pension wi...
by FXDXontherun
Wed Aug 03, 2022 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Correct way to decide whether to delay SSA benefits?
Replies: 47
Views: 3995

Re: Correct way to decide whether to delay SSA benefits?

heyyou wrote: Mon Aug 01, 2022 10:57 pm
Similar to the rest of life, the better choice, is often the opposite of whatever is immediately rewarding.
^^^ Some truth to that!
by FXDXontherun
Wed Aug 03, 2022 9:05 am
Forum: Investing - Theory, News & General
Topic: Using TIRA funds to bridge gap to Social Security?
Replies: 12
Views: 954

Re: Using TIRA funds to bridge gap to Social Security?

Thanks for the replies. To answer a few questions; I have previously reviewed open social security and it suggests I file now, and my wife at 70, I have also explored some options on the graph. Our incomes were very close throughout our working lives, her FRA at 66.6 is $2,518/month and mine at 66.4 is $2,496/month, (I am 66.8 now, wife is 65.5). Current AA is 38% stocks, 50% bonds, 12% cash on a $2.2M portfolio, I am in the VG PAS program. My wife retired from the USPS and has a pension but paid into SS her entire career so she is not under the GPO program. With our current cash position I can wait until 70 y/o for both of us to claim SS if necessary but I'm not certain I want both of us to defer that long. I guess what it boils down to is...
by FXDXontherun
Tue Aug 02, 2022 9:04 am
Forum: Investing - Theory, News & General
Topic: Using TIRA funds to bridge gap to Social Security?
Replies: 12
Views: 954

Using TIRA funds to bridge gap to Social Security?

My wife and I are retired, 66.7 and 65.5 years old and have not filed for SS yet. We have $887K in TIRA money and got started late in doing Roth conversions, (did one this year and last year for a total of $70K to stay in the 12% tax bracket). For now, I intend to continue doing conversions at least until we reach 72 y/o and have to take RMD's. Does is make sense to start using some of the TIRA money for general living expenses which would help us keep from filing for SS until potentially 70 y/o? I know I'd have to pay taxes on this money and it would likely reduce the amount I'd be able to Roth convert for the foreseeable future but I'm looking at this as a way to avoid filing for SS until 70 or very close to that. I guess one disadvantage...
by FXDXontherun
Sat Jul 23, 2022 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Another social security claiming strategy & Roth conversion question
Replies: 10
Views: 1235

Re: Another social security claiming strategy & Roth conversion question

Thanks for the replies, taxes are pretty complex but I'm getting a better handle on how they impact everything now. In hindsight, I should have been doing roth conversions back in 2010 when the option was available. I did one last year so 2022 will be my second. At Open SS, it suggests I claim at immediately, (I'm 65 yrs and 7 months old, why not wait until FRA which is 66.4?) and my wife claim at 70. This I've determined has some benefit as it starts an income stream to us that after the std MFJ deduction will still leave us in the 12% tax bracket. It will also allow us to continue Roth conversions at least for another 6 years in the 12% bracket as when we reach 72 and take RMD's, we will most likely be in the 22% bracket. I suspect since ...
by FXDXontherun
Thu Jul 21, 2022 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Another social security claiming strategy & Roth conversion question
Replies: 10
Views: 1235

Another social security claiming strategy & Roth conversion question

My wife and I are both 65 y/o and made about the same income throughout our working life which is indicated by our SS benefits shown below. Me; at FRA 66/4; $29,952.00 per year Her; at FRA 66/6; $30,216.00 per year As you can see there is only $264.00 difference between us. Would it be a good strategy to have either one of us, (since SS benefits are so close it could be either??), claim at FRA and the other at 70 y/o? As I understand it, if one claims at FRA and the other at 70, and the one who claims at 70 dies say at 78 y/o, the widower that claimed at FRA can now claim the higher benefit of the deceased. Am I correct on this? Another thing is, we are not working in retirement. We both have individual Traditional IRA's with about $445K in...
by FXDXontherun
Tue Jul 05, 2022 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Questions about Managing taxes, RMD's, Social Security and everything else in retirement,
Replies: 23
Views: 2847

Re: Questions about Managing taxes, RMD's, Social Security and everything else in retirement,

My wife and I retired at 60 y/o and are both now 65. I have been doing a lot of research on social security claiming strategy's, (was planning on us both taking at 66.4 FRA), Roth Conversions, ....... You did not state what tax bracket you are in. So do be aware when you start SS and you think you will only be in the 12% incremental bracket, you will find that after about $70K of income the SS Tax Hump effectively raises your incremental tax to 22%. Thus if you want to continue conversions, delaying SS will save you some tax $. If you are already in the 22% incremental bracket, it's a mute point and you can ignore. Thanks for the reply. We are currently in the 12% tax bracket but when RMD's start at 72, we will most likely be in the 22% br...
by FXDXontherun
Mon Jul 04, 2022 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Questions about Managing taxes, RMD's, Social Security and everything else in retirement,
Replies: 23
Views: 2847

Questions about Managing taxes, RMD's, Social Security and everything else in retirement,

My wife and I retired at 60 y/o and are both now 65. I have been doing a lot of research on social security claiming strategy's, (was planning on us both taking at 66.4 FRA), Roth Conversions, (did one last year and again this year), Tax, RMD and IRMAA strategy. I've been pretty much a buy and hold investor, (with 88% of a $2M portfolio at VG), for most of my adult life and have concluded that building wealth before retirement is much easier than managing it properly after retirement. Right now I think I can manage these things If I was sure what to look for but if I were to precede my wife in death I know she would need someone to manage her portfolio so going to an investment advisor may be in our future anyway. Having said that, what wou...
by FXDXontherun
Mon Jun 27, 2022 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: 2022 Tax bracket, calculating tax question
Replies: 14
Views: 1389

Re: 2022 Tax bracket, calculating tax question

Thanks everyone for the replies, good info. I have a better understanding of it now.
by FXDXontherun
Mon Jun 27, 2022 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: 2022 Tax bracket, calculating tax question
Replies: 14
Views: 1389

Re: 2022 Tax bracket, calculating tax question

OK I see my error now. So if the $108K income was a net figure, you would subtract the $25,900.00 standard couple filing jointly figure and arrive at $82,100.00 net income, then calculate as follows;

10% of $20,551.00 = $2,055.10
12% of $61,549.00 = $7,385.88
for a total tax of $9,440.98
by FXDXontherun
Mon Jun 27, 2022 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: 2022 Tax bracket, calculating tax question
Replies: 14
Views: 1389

2022 Tax bracket, calculating tax question

I want to be sure I'm figuring this right, based on the following 2022 tax brackets;

10% $0 to $10,275
12% $20,551 to $83,550
22% $83,551 to $178,150

If a couple filing jointly, made $108K in 2022, they would pay the following;

10% of $10,275 = $1,027.50
12% of $83,551 = $10,026.12
22% of $23,421 = $5.152.62
for a total of; $16,206.24

Is my logic/understanding of the current tax law correct here?
Thanks
by FXDXontherun
Mon May 16, 2022 1:39 pm
Forum: Personal Investments
Topic: When to claim Social Security, (spousal benefits) is there a program I can use?
Replies: 3
Views: 527

When to claim Social Security, (spousal benefits) is there a program I can use?

I'm 65.5 and my wife is 65, and we have been retired for 5 years. Our total incomes over the course of our working years were very close with hers being slightly less. I planned to wait until FRA, 66.4 for me, 66.6 for wife) for us both to claim SS but am considering the low wage earner, (wife) to consider filing for spousal benefits at FRA and then filing for full benefits at 70 y/o. Is there a simple program I can use to input our SS income at FRA and run various scenarios that would illustrate our SS income over a period of years, (say 5 or 10), if we both claimed at FRA, and if I did at FRA and my wife did at 70 but claimed spousal benefits when I claimed at FRA? As I understand it, If I file at FRA and wife files spousal at same time, ...
by FXDXontherun
Thu Mar 03, 2022 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Income tax question
Replies: 7
Views: 926

Re: Income tax question

Great responses all, thanks very much!
by FXDXontherun
Sat Feb 26, 2022 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Income tax question
Replies: 7
Views: 926

Income tax question

Hopefully this is the right place for this question. My wife and I have been retired 5 years. During our working years I always structured our withholdings to where we came as close to breaking even at the end of the year as possible in terms of taxes paid or refunded to us. This year, our AGI was $79K, a combo of $16K USPS pension and the balance being interest and dividends on our portfolio. We received $840.00 back from fed and had to pay state $1,979.00. I'd like to get the state number down some but don't know what needs to be done to do it since we no longer receive a paycheck, (cannot change withholding anymore) with the exception of the USPS pension. Any ideas what I may be able to do to lower the dollars owed the state in the futur...
by FXDXontherun
Wed Dec 29, 2021 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security claiming strategy, spousal benefits.
Replies: 13
Views: 1555

Re: Social Security claiming strategy, spousal benefits.

That answers my question about the spousal benefits, thanks very much. Also thanks for the openSS.com link, that's very beneficial. I do have another question. The opensocialsecurity link shows my best strategy is for my wife to claim SS when she is 65 years and 7 months old which would be on 12/22, she would get $28,369.00 per year, and for me to claim at 70 y/o and I'd get $38,738 per year. The data also says if I preceed her in death, she would get her $28,369.00 per year regular benefit and $10,368.00 in "spousal annual survivor benefits" for a total of $38,737.00 per year which is basically my total benefit. So just to be sure I understand it, If I die first, my wife would get $38,737.00 per year from SS providing I file at 7...
by FXDXontherun
Tue Dec 28, 2021 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security claiming strategy, spousal benefits.
Replies: 13
Views: 1555

Social Security claiming strategy, spousal benefits.

My wife and I have been retired for the last 5 years and for now, plan to file for SS when we turn 66 y/o which will be Jan '22 for me and June '23 for her. Our expected monthly benefits at 66 y/o is only $7.00 difference between the two of us as we made almost identical incomes over the course of our life. With this in mind does any claiming of spousal benefits by either of us make any sense? As I understand it, it does not since our incomes were so close over the years. My wife has a small USPS pension ($7,458.00 net per year) and our portfolio, (most at VG) is just under $2.3M and has returned 6.4% this year at 40% stocks 60% bonds AA. This return, which I'm happy with, more than covered our 2021 living expenses but of course you can't c...
by FXDXontherun
Tue Nov 23, 2021 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Switched from BCBS FEHB Standard to Basic, reimbursement question
Replies: 8
Views: 883

Switched from BCBS FEHB Standard to Basic, reimbursement question

My wife and I switched from BCBS FEHB Standard to Basic last week. There is an $800 per person reimbursement for the Basic plan. We are retired and will not file for SS for another 1.5 years so we will paying the premiums quarterly out of pocket. I have reviewed all the MRA, Medicare Reimbursement Account claim forms and instructions that are accessed at fepblue.org. My question is, do I file the MRA claim form quarterly? If so do I receive 25%, ($200.00) back in reimbursement per quarter? I've talked to four different people at two different numbers and none of them could do more than read the claim form instructions back to me. I finally got one person on the line that stated when paying quarterly, ($170.00 per month in 2022 x 3 = $510.00...
by FXDXontherun
Wed Nov 17, 2021 10:15 am
Forum: Personal Finance (Not Investing)
Topic: FEHB With Medicare--It's In The Details
Replies: 133
Views: 17544

Re: FEHB With Medicare--It's In The Details

Bethany, Yes, after all my research I believe I am going to move to the BCBS Basic plan and file for A & B. My wife, (who retired from the USPS) will be 65 in May of '22 and she we do the same. This is very exhausting to research all this and I'm not 100% certain BS Basic is the best move but we can always re-evaluate every year and tweak our choice of coverages.

Thanks for all the replies.
by FXDXontherun
Thu Nov 04, 2021 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: FEHB With Medicare--It's In The Details
Replies: 133
Views: 17544

Re: FEHB With Medicare--It's In The Details

nclion wrote: Thu Nov 04, 2021 10:27 pm Thanks for starting this thread, I hope others who have done the research and made their choice to enroll in Part B or not will post their lessons learned and which FEHB plan they ultimately selected in both scenarios.

My wife turns 65 this month and I just recently retired so we are in the process of making this decision ourselves.

I have been with GEHA for several years and the most recent years have been in their HD plan with HSA.
Yes I agree, I'd like to see some examples of USPS employees/annuitants who recently turned 65 and what choices they made in terms of filing for part B & D, and what if any federal plan they still have intact. I know everyone's situation is different but this would be good info.

Thanks!
by FXDXontherun
Thu Nov 04, 2021 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: FEHB With Medicare--It's In The Details
Replies: 133
Views: 17544

Re: FEHB With Medicare--It's In The Details

Victoria/Tallguy, I am in a similar situation as I will be 65 in late December. My wife retired after 30 years at the USPS and we have had the FEHB BCBS insurance in effect since she started. I would like to keep the FEHB insurance in effect and just file for part A, and NOT file for B & D but I am getting conflicting info from Medicare and Social Security stating that when you retire from the USPS, the FEHB insurance is no longer considered "creditable" so you must file for B&D or an Advantage plan. My question is, if you are both retired, (separated from Fed employment) and still have your FEHB plan in place, did you elect to also have a Medicare Plan A, B and D in place? Our self +1 FEHB plan is I believe $608.43 per mo...
by FXDXontherun
Thu Nov 04, 2021 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: USPS retirement / insurance / Medicare question
Replies: 5
Views: 1029

Re: USPS retirement / insurance / Medicare question

The issue is, since my wife is no longer working for the USPS, some info I find online, and some reps with SS & Medicare say, her insurance is no longer creditable, (meaning I have to file for part B & D) even though the plan has not changed since she retired. I have found one person at Medicare say her insurance IS still creditable even in retirement. What I'm trying to avoid is, potentially paying a penality which increases every year if I chose not to take parts B and D at 65 but elect to take it say 3 or 4 years in the future. I don't really want to have to have a Medicare B and D plan in place and the FEHB plan too as it gets expensive although many people have told me to keep the FEHB plan in place. Our FEHB self + 1 plan is $...
by FXDXontherun
Wed Nov 03, 2021 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: USPS retirement / insurance / Medicare question
Replies: 5
Views: 1029

USPS retirement / insurance / Medicare question

My wife retired from the USPS 5 years ago after a 30 year career. I retired from a private business (not federal), about the same time. We elected to keep her BCBS federal employee program health insurance in effect that she had during her working years. I am preparing to file for Medicare, (will be 65 in late December, wife will be 65 in May of '22), and would like to file for only part A, and not file for B & D at this time as I have a doc from the USPS stating the insurance we currently have is considered "creditable insurance", (meaning its coverage is at least as good as Medicare). I am finding much conflicting info at the Medicare & Social Security office not to mention on various sites on the web defining "cred...
by FXDXontherun
Sat Jan 23, 2021 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Signing up for Medicare for first time, a couple of questions
Replies: 3
Views: 820

Signing up for Medicare for first time, a couple of questions

I'll be 65 in December of this year and am starting to explore signing up for Medicare and the various parts A, B, C and D. Both I and my wife are retired and she worked for the USPS for 30 years. We kept her USPS BCBS family plan in effect with the intention of phasing it out as we move to Medicare. Wife will be 65 in May of 2022 so I will be enrolling about 7 months prior to her. I have been looking at the sites below to begin my research. https://www.medicare.gov/ https://www.medicareinteractive.org/ Does anyone have any other websites that may be of value, (and not try and sell me something) or have any thoughts on this process. I've concluded that researching and choosing Medicare options is much more challenging than building wealth! ...
by FXDXontherun
Mon Sep 07, 2020 9:32 am
Forum: Personal Investments
Topic: Trad/Roth IRA conversion question
Replies: 5
Views: 433

Trad/Roth IRA conversion question

A couple IRA questions; As I understand it, one of the positives of the Roth is you pay the taxes up front, and when/if you make withdrawals, they are tax free, and, you don't have to take RMD's at 70.5 like a traditional IRA. If for instance, you are 63 y/o and can forecast that you will in fact need to take withdrawals from your traditional IRA at 70.5 for needed living expenses, does it still make sense to convert $$ to a Roth since having the option to not withdraw $ at 70.5 may not be of value to you? Also, I believe money converted to a Roth must show as income on your taxes, thus, If you had a taxable income at 2020 year end of $35K, (AGI $58K), and wanted to stay in the 12% tax bracket which I believe has a max of $80,250.00, I woul...
by FXDXontherun
Wed Aug 12, 2020 3:24 pm
Forum: Personal Investments
Topic: Taking profit, discouraged by VG PAS, opinions
Replies: 34
Views: 2558

Re: Taking profit, discouraged by VG PAS, opinions

I What I would recommend is that you follow the PAS recommendations. You hired them and are paying for their service. It defeats the purpose of the whole thing if you want to constantly buck their recommendations. Just let them do their job. You are well set, I just wouldn't obsess over your portfolio. If you know more than they do, why not do it yourself? I think you need to re-examine the reasons you went with Vanguard Portfolio Advisory Service in the first place. Either take back the reigns and run the portfolio yourself or stop being a backseat driver. This is the only time in the 20+ years I've been with VG that I've ever even considered taking $ from the portfolio. I even moved about $100K from another MF company to VG about 6 month...
by FXDXontherun
Wed Aug 12, 2020 10:00 am
Forum: Personal Investments
Topic: Taking profit, discouraged by VG PAS, opinions
Replies: 34
Views: 2558

Re: Taking profit, discouraged by VG PAS, opinions

Thanks very much for all the replies, some very good info here. Again, my thought process is, flawed as it may be, if a guy is 63 y/o, has $10M in assets and his expenses are $100K a year, he could probably exit the market all together and invest in treasury notes/bills, ladder CD's, hide it under his mattress, etc , and eliminate the market risk and still not run out of money. While I am far from this scenario in terms of total portfolio value, from my simplistic view, (not considering taxes), it would appear I could take $50K, 100K, 200K, for whatever reason, (donate it, buy a nicer house, travel the world for a few years, etc), from the portfolio and be fine. My wife and I have always lived a frugal lifestyle, worked hard, didn't take va...
by FXDXontherun
Tue Aug 11, 2020 10:06 am
Forum: Personal Investments
Topic: Taking profit, discouraged by VG PAS, opinions
Replies: 34
Views: 2558

Taking profit, discouraged by VG PAS, opinions

I've been with VG for 20 years and enrolled in the PAS right after retiring about 5 years ago and wife and I are currently 63 y/o. We have a $2.3M portfolio invested at 35% stocks 55% bonds and about 10% fixed in laddered CD's. My question is, using the VG "what if" scenario builder, I can increase our expenses 10%, show a life expectancy of 100, which probably isn't gonna happen, leave my daughter $500K when we pass, and take $250K in profit from the portfolio and still show a >99% of success rate in meeting our retirement needs. In order to get to a point where I have a less than 100% success rate, (>98% success rate), the program shows I could leave my daughter $1.8M and have a "one time expense" (or take this as prof...
by FXDXontherun
Mon Jul 20, 2020 2:31 pm
Forum: Personal Investments
Topic: Does it make sense to convert Trad to Roth at this point?
Replies: 14
Views: 1338

Does it make sense to convert Trad to Roth at this point?

I'm just starting to research this in depth and thought you folks might be able to give me some insight.

My wife and I are both 63, retired for 4 years, currently have a $2.250M portfolio, 35% stocks, 47% bonds, 18% fixed, (CD's), wife has a small USPS pension. We are currently living off the pension and CD's and intend to take SS probably at 66 or 66.6 y/o which is FRA for us. We have a total of $981K in Traditional IRA dollars that was moved to VG when we retired. We have $184K in Roth IRA $ at VG as well.

My question is, does it make financial sense to convert the $981K in traditional dollars to the Roth IRA's over a period of time?

Thanks.
by FXDXontherun
Thu Jul 09, 2020 2:27 pm
Forum: Personal Investments
Topic: Should I move this Dodge & Cox $$ to Vanguard?
Replies: 11
Views: 1738

Re: Should I move this Dodge & Cox $$ to Vanguard?

Thanks for the replies all, This D&C is a taxable account. My discussion with VG and your responses tell me the in kind transfer would have no tax/income liabilities but, I would be just moving the D&C $$ and fund to VG and would have the D&C .53% exp ratio and now an additional .30% PAS fee on top of that which I don't like. If I wasn't filing for Medicare in 2022 I wouldn't be as concerned but as I understand it, my income in 2020 will directly impact my Medicare costs in 2022 so I want to keep my income as low as possible in 2020. I guess I'll sit tight for now. I need to do more research on the Medicare cost issue as I'd really like to get out of the D&C and get the money into my current VG portfolio but don't want to sh...
by FXDXontherun
Wed Jul 08, 2020 12:25 pm
Forum: Personal Investments
Topic: Should I move this Dodge & Cox $$ to Vanguard?
Replies: 11
Views: 1738

Should I move this Dodge & Cox $$ to Vanguard?

I have about $125K in a Dodge and Cox account, (DODBX) I have had for years. I have the bulk of my money at Vanguard and have been thinking about moving the D&C to VG just to simplify things a bit. I would move this money via an "in kind" transfer which my understanding there would be no tax liability as nothing is being sold, just transferred. I am currently in the PAS program and pay a small fee for this management. My question is does it make sense to move it to VG and pay the small mgmt fee or leave it at D&C and pay the sales loads as shown below? https://www.morningstar.com/funds/xnas/dodbx/price https://fundresearch.fidelity.com/mutual-funds/fundfactsheet/256201104 I will be filing for Medicare in 2022 so I don't wa...
by FXDXontherun
Wed Jun 17, 2020 11:42 am
Forum: Personal Investments
Topic: Transferring $$ to Vanguard question
Replies: 4
Views: 434

Transferring $$ to Vanguard question

I have about $130K at another mutual fund company and to simplify things I'd like to transfer $100K of it to my current VG account, the other $30K come to me and close the account. At this point I would show a $35K gain on this account since over the course of 15 years I've owned it. Can I transfer $100K direct to my VG account and not pay any taxes since it will be reinvested immediately? I have IRA's at VG this could be dumped into. My thought is to avoid paying taxes on the $100K but I'm aware I'd pay taxes on the $30K coming to me. I'm sure the folks at VG can help orchestrate this but thought I'd get your opinions.

Thanks for any thoughts on this. :happy
by FXDXontherun
Mon May 25, 2020 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: would you keep this life ins policy?
Replies: 8
Views: 910

Re: would you keep this life ins policy?

I agree in allocating the $$ for the events and cancelling the policies. Thanks all.
by FXDXontherun
Sun May 24, 2020 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: would you keep this life ins policy?
Replies: 8
Views: 910

Re: would you keep this life ins policy?

It has no cash value at this point. Thanks for the reply.
by FXDXontherun
Sun May 24, 2020 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: would you keep this life ins policy?
Replies: 8
Views: 910

would you keep this life ins policy?

Wife and I are both 63 y/o, recently retired, financially solid and both have a $25k life ins policy which I bought back when we got married to basically cover burial costs. Currently her cost is $21.41 monthly and mine is $27.31 a month. I have already bought the plots and vaults and would just need to pay for casket/burial/service, I would just have a grave side service. Financially I have the $$ to cover this and was thinking about dropping the policies. If we both live another 20 years that would be $11,520.00 based on todays costs. If you had say, $30K you could set aside for burial purposes and not touch until it was needed would you keep these policies?
Thanks.
by FXDXontherun
Sun Mar 29, 2020 10:58 am
Forum: Personal Investments
Topic: question about selling stocks/taking profit at various times
Replies: 1
Views: 194

question about selling stocks/taking profit at various times

On the Outlook tab on the VG site there are illustrations regarding my annual spending model, showing projected ranges of balances based on my current portfolio total, and various annual spending numbers. The lowest annual spending total is $46,900.00 which is about $7K more than we spend now, and the highest annual spending total is $122,900 yearly which is 126% higher. I guess the VG graph is basically a Monte Carlo simulation based on your current $ balance and best and worst markets. The graph shows my wife and I can spend up to the highest $122,900 yearly number, (it doesn't go any higher and I doubt we'd ever spend that much per year), and still have a more than 99% chance of having just below $3M dollars at age 100. Well, neither of ...
by FXDXontherun
Mon Mar 23, 2020 11:38 am
Forum: Personal Investments
Topic: Recently retired, should I protect equity and sell?
Replies: 21
Views: 2921

Re: Recently retired, should I protect equity and sell?

My wife and I both retired, (her because of health reasons), three years ago. We currently have a little over $1.5M at VG invested at 40% stock, 60% bond. We also have a bit over $400K in CD's that we have used as living expenses over the last three years. I ladder these CD's according to expected need. My wife has a small USPS pension, (about $7,800.00 yr). We are both 63 y/o and plan to take Social Security at FRA which is 66.6 y/o for us. At FRA, SS is estimated to pay us both about $2200 monthly x 12 = $52K/yr before taxes. Our expenses right now are about $50K yearly and we have no debt. Our VG account has grown 22% from 4-2017 to 12-2019. With the recent downturn, from 4-2017 to 3-20-2020, our VG account is now up 7 percent. I will t...
by FXDXontherun
Mon Mar 23, 2020 11:23 am
Forum: Personal Investments
Topic: Recently retired, should I protect equity and sell?
Replies: 21
Views: 2921

Re: Recently retired, should I protect equity and sell?

Thanks very much for all the replies, it makes me feel a bit better about our position. Our expenses were actually $42,394.XX last year so I doubt they will be $50K this year as I listed. I often rough calculate things on a "worst case" scenario. All my life I have been a buy and hold guy. I remember in '08 when I was working, I knew the market was dropping significantly but even though I kept an eye on it, I was so busy I just didn't focus on it. Now in retirement, I have time to watch and fret over it! Thanks to the reply that suggested a review of my 60% bond portion and consider tilting towards treasuries. I'll discuss that with the advisor. And yes, I am in the VPAS program and I'm certain that she will suggest I stay the cou...
by FXDXontherun
Sun Mar 22, 2020 4:59 pm
Forum: Personal Investments
Topic: Recently retired, should I protect equity and sell?
Replies: 21
Views: 2921

Recently retired, should I protect equity and sell?

My wife and I both retired, (her because of health reasons), three years ago. We currently have a little over $1.5M at VG invested at 40% stock, 60% bond. We also have a bit over $400K in CD's that we have used as living expenses over the last three years. I ladder these CD's according to expected need. My wife has a small USPS pension, (about $7,800.00 yr). We are both 63 y/o and plan to take Social Security at FRA which is 66.6 y/o for us. At FRA, SS is estimated to pay us both about $2200 monthly x 12 = $52K/yr before taxes. Our expenses right now are about $50K yearly and we have no debt. Our VG account has grown 22% from 4-2017 to 12-2019. With the recent downturn, from 4-2017 to 3-20-2020, our VG account is now up 7 percent. I will ta...
by FXDXontherun
Sun Dec 02, 2018 8:03 pm
Forum: Personal Investments
Topic: Hi yield savings yield question
Replies: 11
Views: 1312

Re: Hi yield savings yield question

Thanks all, some good info here. :D
by FXDXontherun
Sun Dec 02, 2018 7:57 pm
Forum: Personal Consumer Issues
Topic: Retired in your late 40s or early 50s?
Replies: 87
Views: 17398

Re: Retired in your late 40s or early 50s?

I'm a bit older but, my wife and I both retired 2.5 years ago within 30 days of each other, I'm 62 now, her 61-1/2. We worked hard, lived below our means and was able to financially do it. Looking back I miss some of the people I worked with and being involved with the various projects on a daily basis, but due to business politics, lack or work/life balance, and the company I worked for always wanting you to do more with less, I made the right decision to leave, my wife was in the same situation. I have lots of hobbies and can be as busy as I want to be so I'm good. My wife has no hobbies to speak of but we have three grand kids so that keeps us both busy. After 2.5 years of retirement, I have concluded the following; If you are in good he...
by FXDXontherun
Sun Dec 02, 2018 12:36 pm
Forum: Personal Investments
Topic: Hi yield savings yield question
Replies: 11
Views: 1312

Hi yield savings yield question

There are a number of high yield savings options out there. just using Barclay for example, they offer a 2.03% return with no min balance and no monthly fees. I see the rates can change at any time. I'd like a place to park $50K and draw off of it for retirement for the time being, have some liquidity and FDIC insurance. Do these HYSA's typically get you signed up at a good rate then 6 months later reduce your rate of return significantly? I can ladder CD's like I have in the past but like the liquidity of the HYSA. Any thoughts would be appreciated. Thanks all! Barclays Online Savings Annual Percentage Yield (APY) is valid as of 10/30/2018. No minimum opening balance or deposit required to open. Fees could reduce the earnings on the accoun...