Search found 452 matches

by cresive
Sun Jul 05, 2020 8:24 pm
Forum: Personal Investments
Topic: Quick IRA Question before tax deadline
Replies: 10
Views: 681

Re: Quick IRA Question before tax deadline

Thanks for the great, albeit disappointing, information You do not get any deduction when doing a direct Roth contribution. Why disappointed no deduction on a backdoor contribution? I may have spoken incorrectly. The way I was reading the rules, I had a limit to the amount I could contribute to my ...
by cresive
Wed Jul 01, 2020 8:54 am
Forum: Personal Investments
Topic: Quick IRA Question before tax deadline
Replies: 10
Views: 681

Re: Quick IRA Question before tax deadline

Thanks for the great, albeit disappointing, information
by cresive
Mon Jun 29, 2020 8:24 pm
Forum: Personal Investments
Topic: Quick IRA Question before tax deadline
Replies: 10
Views: 681

Re: Quick IRA Question before tax deadline

mhalley wrote:
Mon Jun 29, 2020 7:54 pm
You could contribute, but it would be non deductible. In general, contributing to a non deductible ira is not recommended unless doing a backdoor Roth. If you have no trad ira, just do a backdoor Roth for the entire amount.
Why would it be non-deductible?
by cresive
Mon Jun 29, 2020 7:31 pm
Forum: Personal Investments
Topic: Quick IRA Question before tax deadline
Replies: 10
Views: 681

Quick IRA Question before tax deadline

Thank you for helping me with this issue. I have a two-part question concerning IRA limits for the 2019 tax year. Scenario: Status: Single with workplace 401K Age: 58 MAGI: 130,000 I have run some calculations and have determined that I am eligible to contribute to a Roth IRA, but at a reduced level...
by cresive
Fri May 29, 2020 11:33 am
Forum: Personal Finance (Not Investing)
Topic: FL Snowbirds with Second Homes - Give Me Pros/Cons of Owning Our Own vs Renting Seasonal
Replies: 80
Views: 7811

Re: FL Snowbirds with Second Homes - Give Me Pros/Cons of Owning Our Own vs Renting Seasonal

Hi all, We are a 60 year old couple retired Govt. We have a home in Illinois paid off @ approx $300k value. We have assets of around 2 mil, approx 1.5 of that being in TSP and Roth, the rest mutual funds and about 200k liquid assets. Our combined pension take home is approx $8,500 a month which we ...
by cresive
Thu May 07, 2020 11:30 am
Forum: Personal Investments
Topic: How are ETF's more tax efficient
Replies: 2
Views: 257

Re: How are ETF's more tax efficient

Regarding Tax efficiency: Vanguard Mutual Funds and Vanguard ETFs have the same tax-efficiency. Our wiki explains: https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds#Vanguard_funds For non-Vanguard mutual funds vs. ETFs see here for the answer to your question: https://www.bogleheads.org/wiki/Exc...
by cresive
Thu May 07, 2020 7:37 am
Forum: Personal Investments
Topic: How are ETF's more tax efficient
Replies: 2
Views: 257

How are ETF's more tax efficient

Hello, I recently opened a brokerage account to build some savings outside of my tax-deferrred accounts. I have been told that ETF's are better than mutual funds, in general, due to being more tax efficient. I realize that mutual funds have improved, but how are ETF's generally more tax efficient if...
by cresive
Tue May 05, 2020 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Moving from High taxed state to no income tax state
Replies: 44
Views: 3162

Re: Moving from High taxed state to no income tax state

tetractys wrote:
Mon May 04, 2020 11:59 pm
Check the sales tax where you’ll be moving to. That could possibly be worse than the income tax where you’re at, depending.
But dont' forget, you can write off sales taxes in states that do not impose income taxes
by cresive
Sun May 03, 2020 3:41 pm
Forum: Investing - Theory, News & General
Topic: Is G-fund safer today than previously?
Replies: 38
Views: 2588

Re: Is G-fund safer today than previously?

My apologies if I don't phrase this the right way, but . . . From what I've been reading, new investment dollars in bonds today are not predicted to do well, based on low yields and a low projections for the next 10 years. I still have a lot of money in Total Bond Market and in munis (in taxable), ...
by cresive
Sun May 03, 2020 8:28 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

OP, I think your plan is reasonable but perhaps a bit more complex than necessary. The built-in complexity makes it easier for me to ration my spending. I have found that I have to move my savings to another bank or else I wind up counting it into my assets to spend. That, and higher interest rates...
by cresive
Sun May 03, 2020 8:07 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

To simplify, you might try monthly instead of every two weeks. This matches the receipt of pension and Social Security. I was a fed and was accustomed to payday every two weeks. We managed the transition to monthly fairly smoothly. Many bills come monthly; none of mine come every two weeks. I think...
by cresive
Sat May 02, 2020 12:25 pm
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

You cannot transfer cheap shares out for an RMD, but you can sell cheap shares in your tax-advantaged accounts, get the money, and then buy the same cheap shares with the money in any other account(s) that you have. You can withdraw in-kind but at Vanguard that requires sending in a paper form. We ...
by cresive
Sat May 02, 2020 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Help with 401K question
Replies: 4
Views: 311

Re: Help with 401K question

If you leave your money in the "former" employer's retirement plan, you can tap into the money, penalty-free, after you are 54.5 years old and separated from the company. If you move the money out of the 401K and into an IRA, you have to wait until you are 59.5 years old. Since you are retiring (i.e...
by cresive
Sat May 02, 2020 11:50 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

https://www.irahelp.com/slottreport/taking-non-cash-required-distributions-your-ira "When individuals take withdrawals from their IRAs, it's usually a cash withdrawal. By cash, we don't mean dollar bills; instead it's usually done by issuing a check. But it's possible to take a non-cash withdrawal ...
by cresive
Sat May 02, 2020 11:47 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

JPH wrote:
Sat May 02, 2020 9:32 am
Do you plan on receiving Social Security? That's the biggest chunk of my spending money.
Yes, but that isn't included in the calculations for this exercise
by cresive
Sat May 02, 2020 11:47 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Re: Question on how RMDs affect a spending plan in retirement.

Daily spending: I plan to have a checking and savings account in a brick and mortar bank to utilize as “pass-through” accounts. I will keep a small balance in each for daily spending and overdraft protection. This is similar as I am doing now. First Years Salary: I plan to keep about a years’ worth...
by cresive
Sat May 02, 2020 7:50 am
Forum: Personal Investments
Topic: Question on how RMDs affect a spending plan in retirement.
Replies: 16
Views: 1219

Question on how RMDs affect a spending plan in retirement.

I have a few years before I retire, 5-10 depending on my attitude, but I am in the process of developing spending plans to help me navigate any sequence of returns risks, etc. for immediately after I retire. Right now, I am working on my version of a “bucket system” to see if it works for my needs. ...
by cresive
Fri May 01, 2020 12:27 pm
Forum: Investing - Theory, News & General
Topic: Even if today was not Friday, it would not be a bona fide RBD.
Replies: 25
Views: 2496

Re: Even if today was not Friday, it would not be a bona fide RBD.

Atticus wrote:
Fri May 01, 2020 12:23 pm
For those of us who haven't been around the forum as long as you, how do you define a RBD?

(Also, are you referring to a Really Bad Day or a Rebalancing Day?)
Really Bad Day
by cresive
Fri May 01, 2020 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Self-Directed 401k
Replies: 6
Views: 355

Re: Self-Directed 401k

Medsaver, I would recommend either Charles Schwabb, Vanguard (you will get a lot of recommendations for this one) or Fidelity. Vanguard is the reason the other two have discounted funds, but Fidelity has a lot more experience with work-place funds. I don't think you will go wrong with either of thes...
by cresive
Fri May 01, 2020 12:08 pm
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

I would like to point out to other readers that my scenarios had nothing to do with "market trends" and no market timing was suggested at all. Is the intention to decrease risk of one lump sum purchased at an unfavorable intra-day price, or is there other motive? The intention of my post was to get...
by cresive
Fri May 01, 2020 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Property Inheritance
Replies: 17
Views: 2079

Re: Property Inheritance

Looking for advice for MIL. She recently inherited a house from the passing of her father (her mother passed 4 years ago). She has 4 other siblings that were not included with this part of the inheritance. All 5 of them split the rest of the estate. All, but one other, of her siblings live out of s...
by cresive
Fri Apr 24, 2020 3:19 pm
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

livesoft wrote:
Fri Apr 24, 2020 10:31 am
Thanks for the update, but don't let $11 go to your head. :) Just kidding!
I didn’t, I waited til the close of trading when I was ahead $124! Thanks for your help getting me up and running!
by cresive
Fri Apr 24, 2020 10:29 am
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

I would like to point out to other readers that my scenarios had nothing to do with "market trends" and no market timing was suggested at all. Is the intention to decrease risk of one lump sum purchased at an unfavorable intra-day price, or is there other motive? The intention of my post was to get...
by cresive
Tue Apr 21, 2020 6:56 am
Forum: Personal Investments
Topic: Taxable acct: How build portfolio for needs in 3, 7 or 9 years?
Replies: 7
Views: 971

Re: Taxable acct: How build portfolio for needs in 3, 7 or 9 years?

Any other opinions or advice here? Thank you. It is hard to understand where you are going with this. I think the first response was suggesting that we need more information to offer any erudite opinions. From what I can glean from your original post, I would suggest that this is not a binary situa...
by cresive
Mon Apr 20, 2020 3:43 pm
Forum: Personal Investments
Topic: Issue linking an online bank to brokerage account
Replies: 6
Views: 268

Re: Issue linking an online bank to brokerage account

There should be no problem linking Ally with Fidelity. I wonder if the account is waiting to be verified. I believe I have seen that greyed out type listing when the account has been added but not verified. Do you check on whether or not there is still a step that needs completed? thank you. I am s...
by cresive
Mon Apr 20, 2020 3:35 pm
Forum: Personal Investments
Topic: Issue linking an online bank to brokerage account
Replies: 6
Views: 268

Re: Issue linking an online bank to brokerage account

UpperNwGuy wrote:
Mon Apr 20, 2020 3:34 pm
What did Fidelity say when you called them?
I just emailed the person who helped me open the account. I am waiting on a reply. I will let you know what they say.

Ben
by cresive
Mon Apr 20, 2020 3:32 pm
Forum: Personal Investments
Topic: Issue linking an online bank to brokerage account
Replies: 6
Views: 268

Issue linking an online bank to brokerage account

Hello, I have recently opened a brokerage account with Fidelity that I hoped to fund with cash in my Ally Bank savings account. I was able to get the account open last week, but I can’t get the funds transferred. The account is listed in my brokerage page, but it is grayed out and the link isn't wor...
by cresive
Sun Apr 19, 2020 7:58 pm
Forum: Investing - Theory, News & General
Topic: 1-month T- Bills
Replies: 12
Views: 867

1-month T- Bills

Are T-bills really paying 0.12% right now? I think I must be reading something wrong. I was going to buy some, but my savings account at Ally is paying 1.5% and it looks like it isn't worth the effort to buy T-bills right now.
by cresive
Sat Apr 18, 2020 8:39 am
Forum: Personal Investments
Topic: Use stimulus check for Roth
Replies: 6
Views: 563

Re: Use stimulus check for Roth

I'm retired with income from Social Security and RMDs only. Having received a stimulus check for C-19, do you think I can use this for investing into my Roth. I have sufficient income and emergency funds, so the stimulus check is not needed for current expenses. I think you have to demonstrate actu...
by cresive
Fri Apr 17, 2020 7:52 am
Forum: Investing - Theory, News & General
Topic: Cons of i bonds?
Replies: 70
Views: 6233

Re: Cons of i bonds?

I have been looking recently into i bonds and they seem like a decent deal at the moment. Higher interest than savings accounts plus inflation protection. What am I missing? Is paper or electronic better to own? I haven't seen this listed yet, but I didn't read all your responses. The two big issue...
by cresive
Fri Apr 17, 2020 7:47 am
Forum: Personal Consumer Issues
Topic: Advise what to do after receiving email from Hacker trying to extort money
Replies: 58
Views: 5003

Re: Advise what to do after receiving email from Hacker trying to extort money

BHs. Last evening DW received an email from Hacker threatening her to transfer $1000 in BTC, else they will turn her life upside down by sharing sensitive information about her to public. This email subject line contains the list of her current passwords and in the text, they mentioned they have in...
by cresive
Thu Apr 16, 2020 10:26 am
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

I would like to point out to other readers that my scenarios had nothing to do with "market trends" and no market timing was suggested at all. Is the intention to decrease risk of one lump sum purchased at an unfavorable intra-day price, or is there other motive? The intention of my post was to get...
by cresive
Thu Apr 16, 2020 7:58 am
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

I used to use limit orders.... but for heavily traded ETFs like the ones you are buying..... the bid/ ask spread is so narrow it's pretty irrelevant. I've been using market orders and typically getting filled right in the middle. Even with thinly traded ETFs like NTSX... market orders have worked w...
by cresive
Thu Apr 16, 2020 7:57 am
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

Your definition of "a lot of work" is ridiculous. C'mon, admit it: Typing this response was more "work" than submitting various ETF orders. Yes, you are correct. As I reread your steps, I started to get excited to enact it. I am still waiting for Fidelity to open my account--I have a delay as I am ...
by cresive
Thu Apr 16, 2020 7:49 am
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

Re: some hand-holding on ETFs

I recommend several things for your first forays: 1. Don't worry about it. It is not going to matter. 2. Try several things even all on the same day to see how things work. Since there are no commissions anymore, the more things you try the more fun you will have. 3. There is a LOT of misinformatio...
by cresive
Thu Apr 16, 2020 7:27 am
Forum: Personal Finance (Not Investing)
Topic: FIT Withheld (Paycheck)
Replies: 4
Views: 290

Re: FIT Withheld (Paycheck)

Guwop, You are lowering your taxable income by contributing to a tax-deferred savings account. Your federal and any state income taxes should decrease commensurately. I haven't found this situation to be unbalanced and cause me to owe taxes at the end of the year. However, you may want to run the nu...
by cresive
Thu Apr 16, 2020 7:21 am
Forum: Investing - Theory, News & General
Topic: some hand-holding on ETFs
Replies: 18
Views: 785

some hand-holding on ETFs

Good morning, I am making my first foray into ETF trading. I am opening a taxable brokerage account and have learned that ETFs are more tax efficient than mutual funds in such a circumstance. Since this is my first foray, I am trying to learn the nuances of ETF trading versus mutual funds where you ...
by cresive
Wed Apr 15, 2020 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

How will SSA benefits be taxed? If taxable income is < $34,000, then only half SSA benefits are taxed. This is not correct. The amount of your SSA that is taxed does NOT depend on your taxable income. Taxable income depends on many factors that are quite irrelevant/orthogonal to the income concept ...
by cresive
Tue Apr 14, 2020 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

kaneohe wrote:
Tue Apr 14, 2020 9:17 am
22% (1 + 0.85) = 40.7%. 1 is the extra dollar of ordinary income added; 0.85 is the extra SS taxed.
Thanks. Funny how this works
by cresive
Tue Apr 14, 2020 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

The correct formula [for determining how much of SS benefits are taxable] is in Taxation of Social Security benefits on the wiki. This Wiki article is well worth reading. I modified its table of a single tax return for the original poster's case of $25,000 in SS benefits. I also added two columns s...
by cresive
Tue Apr 14, 2020 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

The correct formula [for determining how much of SS benefits are taxable] is in Taxation of Social Security benefits on the wiki. This Wiki article is well worth reading. I modified its table of a single tax return for the original poster's case of $25,000 in SS benefits. I also added two columns s...
by cresive
Tue Apr 14, 2020 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

The correct formula [for determining how much of SS benefits are taxable] is in Taxation of Social Security benefits on the wiki. This Wiki article is well worth reading. I modified its table of a single tax return for the original poster's case of $25,000 in SS benefits. I also added two columns s...
by cresive
Tue Apr 14, 2020 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

How will SSA benefits be taxed? If taxable income is < $34,000, then only half SSA benefits are taxed. This is a common but incorrect characterization of the rule. If half of SS plus other income is less than $34,000, "up to 50%" the benefit is taxable, and if it is more than that, "up to 85%" may ...
by cresive
Tue Apr 14, 2020 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

How will SSA benefits be taxed? If taxable income is < $34,000, then only half SSA benefits are taxed. This is a common but incorrect characterization of the rule. If half of SS plus other income is less than $34,000, "up to 50%" the benefit is taxable, and if it is more than that, "up to 85%" may ...
by cresive
Tue Apr 14, 2020 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

kaneohe wrote:
Mon Apr 13, 2020 8:31 pm
You can use a calculator like this https://www.mortgagecalculator.org/calc ... ulator.php
to calculate the taxable part of SS.
This is a fun tool. Thanks for the link!!
by cresive
Tue Apr 14, 2020 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

How will SSA benefits be taxed? If taxable income is < $34,000, then only half SSA benefits are taxed. This is not correct. The amount of your SSA that is taxed does NOT depend on your taxable income. Taxable income depends on many factors that are quite irrelevant/orthogonal to the income concept ...
by cresive
Tue Apr 14, 2020 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

Flobes wrote:
Mon Apr 13, 2020 8:09 pm
cresive wrote:
Mon Apr 13, 2020 7:40 pm
Standard Deduction $12,000
Standard deduction is increased by $1650 for those 65+ in 2020.
Even Better, Thanks!!
by cresive
Mon Apr 13, 2020 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Re: Fun with Progressive Taxes--can you check my math?

I am not an expert to look at the calculations but I have a question. What will be the RMDs that you need to take - Was this considered in your calculation? No, I haven't factored in any RMDs. I am just trying to get a grasp on the tax implications. This scenario will be for year 1 of retirement an...
by cresive
Mon Apr 13, 2020 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Fun with Progressive Taxes--can you check my math?
Replies: 30
Views: 1730

Fun with Progressive Taxes--can you check my math?

I hope I have posted this in the correct section. I have been trying to learn tax-friendly withdrawal strategies for when I reach retirement. I am just learning this, so I wanted to see if I am off base, or actually doing the math correctly. I have created a real-life scenario, using today's tax bra...
by cresive
Mon Apr 13, 2020 3:07 pm
Forum: Personal Investments
Topic: Help with opening a brokerage account
Replies: 10
Views: 515

Re: Help with opening a brokerage account

I had to use the paper route due to putting the brokerage account into a trust. You can't open a brokerage account in the name of a trust online at Fidelity. Interesting you had to use paper. The contrasts to my recent conversion of a singly owned account I changed to a Trust account for DW and I. ...