Search found 224 matches

by marcopolo
Sun Oct 22, 2017 4:11 pm
Forum: Investing - Theory, News & General
Topic: Any compelling reason to not contribute to Indiana 529?
Replies: 22
Views: 887

Re: Any compelling reason to not contribute to Indiana 529?

marcopolo, So, there is only 2 possible outcome for me. A) I am fully-employed long enough and I can "cash flow" my children's college education. B) I am permanently unemployed or under-employed. Then, I need all my money to feed my family. - So, why 529 is useful to me? .... Really? Would you rath...
by marcopolo
Sun Oct 22, 2017 11:17 am
Forum: Investing - Theory, News & General
Topic: Any compelling reason to not contribute to Indiana 529?
Replies: 22
Views: 887

Re: Any compelling reason to not contribute to Indiana 529?

If they use a 401k before 59.5 they'll owe a 10% penalty, plus get it taxed at ordinary income, which is likely at a high marginal rate. This doesn't seem like an efficient use if funds. Why use the 529? Because someone able to save 60k a year can like afford and will be charged the full sticker pr...
by marcopolo
Sun Oct 22, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: Observation on Edward ones
Replies: 9
Views: 1514

Re: Observation on Edward ones

MrPotatoHead wrote:
Fri Oct 20, 2017 10:38 pm
Up until this week I had a rather positive to neutral view of Edward Jones; that view has been altered.
Curious as to what might have led you to have positive view of EJ?
by marcopolo
Tue Oct 10, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security - general question
Replies: 28
Views: 2474

Re: Social Security - general question

Eeesh. Is there a recommended book that covers the 'need to know' stuff, without getting WAY deep into the weeds? I would like to know what I need to know, so that I understand the implications of any decisions I make, but I don't necessarily need to become an expert. Will AnyPia basically cover ev...
by marcopolo
Tue Oct 10, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security - general question
Replies: 28
Views: 2474

Re: Social Security - general question

Thanks Jack. Is it really necessary for the system to be SO complicated?? Maybe its not, as I haven't even dipped my toe in the water yet, but it sure seems like most people you talk to have no clue about the calculations and rules of SS. You are not wrong, it is complicated. Wait till you read abo...
by marcopolo
Fri Oct 06, 2017 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Want to sell Roth holding and purchase CD
Replies: 7
Views: 524

Re: Want to sell Roth holding and purchase CD

Do you want to keep the funds in the Roth IRA so it still grows tax free? If so, you should do a direct (custodian to custodian) transfer. You would sell (but not withdraw the money) at your current institution. Then ask the new bank to perform the transfer. There would be no tax consequences for th...
by marcopolo
Thu Oct 05, 2017 11:05 pm
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14822

Re: Dividends vs. Capital Gains for Spending Needs?

I love freedom... In that case, wouldn't you want to be in charge of making the decisions on when and how much income to take from your investments? With dividends, you are giving up that freedom to choose, and being forced to accept your income whether you want (need) it or not. And it is really t...
by marcopolo
Thu Oct 05, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio update/advice. Also: What do you do when you feel the urge to "buy something"?
Replies: 12
Views: 1183

Re: Portfolio update/advice. Also: What do you do when you feel the urge to "buy something"?

Your expenses are a small fraction of your portfolio. One possibility might be to separate a small portion of your portfolio (maybe 5%?) and set it aside as a "trading account". Use this to buy and sell stuff when the urge hits. You could even try your hand at individual stock picking, if you are fe...
by marcopolo
Wed Oct 04, 2017 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Financial arrangement for in-laws in guest house
Replies: 13
Views: 1164

Re: Financial arrangement for in-laws in guest house

Gill wrote:
Wed Oct 04, 2017 7:52 pm
Why are you even worrying about the annual gift tax exclusions? If they exceed that, so what. Just file a gift tax return.
Gill
Fair enough. But, I really do hope their gifts are not that large.
by marcopolo
Wed Oct 04, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Financial arrangement for in-laws in guest house
Replies: 13
Views: 1164

Re: Financial arrangement for in-laws in guest house

Thanks everyone for the thoughtful replies, I love this forum! I think I was probably over thinking this. Based on suggestions here, talked it over with my wife. We will proceed as several have suggested. They live there as our guests. If they feel the need to pay us back in some way, they can gift ...
by marcopolo
Wed Oct 04, 2017 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Financial arrangement for in-laws in guest house
Replies: 13
Views: 1164

Re: Financial arrangement for in-laws in guest house

Just let them gift you money each year as they see fit. Then there are no contracts, no tax implications, and they can stop or adjust the amount over time if they want/need to. Individuals can give other individuals up to $14,000 a year tax free without having to even report it to the IRS. So the t...
by marcopolo
Wed Oct 04, 2017 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Financial arrangement for in-laws in guest house
Replies: 13
Views: 1164

Financial arrangement for in-laws in guest house

We are in the process of building a retirement home which we hope to move into about 20 months. Adjacent to the main house, we are building a semi-attached guest house (other side of garage from main portion of house) with full kitchen, living room and bedroom. The intent of this space is for my eld...
by marcopolo
Tue Oct 03, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: first time investor need advice
Replies: 9
Views: 648

Re: first time investor need advice

Sandtrap wrote:
Tue Oct 03, 2017 9:54 am

$1.3 million would marginally (at best?) sustain an annual WDR of $50k/year. That's over 5% and unrealistic to most.
I think it is about 3.8%, not over 5%. Still a bit tight at age 47, but not completely unrealistic.
I agree with the rest of the really good advice.
by marcopolo
Thu Sep 28, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Why do you LBYM? Why do you save and invest?
Replies: 204
Views: 14709

Re: Why do you LBYM? Why do you save and invest?

Grew up in a LBYM family, so I saw example of it growing up. But, in my youth, I made a lot of youthful mistakes (but had a LOT of fun). After I had a family of my own, I settled back into lessons i learned when i was younger. I think most people don't know or don't care about the impacts their beha...
by marcopolo
Tue Sep 26, 2017 3:27 pm
Forum: Investing - Theory, News & General
Topic: Retirees, what is your marginal tax rate?
Replies: 102
Views: 10361

Re: Retirees, what is your marginal tax rate?

We're in the 39.5% bracket, plus 11% or so California tax. Will be in this bracket indefinitely. Same bracket as when I retired. Have looked at all the ways to finesse this lower; not gonna happen. This largely from accumulating a large 401k, with its attendant rmd's. So how large a 401k at age 70 ...
by marcopolo
Tue Sep 26, 2017 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Is Personal Capital Wrong about 529 Plan Beneficiaries?
Replies: 15
Views: 1648

Re: Is Personal Capital Wrong about 529 Plan Beneficiaries?

It is the "deemed distribution" language that still confuses me. If it was not "deemed", but the AO actually took the distribution, and then opened a new account for a descendant in the next generation, the AO would potentially owe taxes (and 10% penalty) on the gains. So, for a transfer (change of...
by marcopolo
Tue Sep 26, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Is Personal Capital Wrong about 529 Plan Beneficiaries?
Replies: 15
Views: 1648

Re: Is Personal Capital Wrong about 529 Plan Beneficiaries?

In order to assign the tax liability to the party who has control over the account and is responsible for the change of any beneficiary, the forthcoming notice of proposed rulemaking will provide that a change of DB that results in the imposition of any tax will be treated as a deemed distribution ...
by marcopolo
Tue Sep 26, 2017 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Is Personal Capital Wrong about 529 Plan Beneficiaries?
Replies: 15
Views: 1648

Re: Is Personal Capital Wrong about 529 Plan Beneficiaries?

Sorry for the length of this post. This is one of the reasons why 529 plan tax issues are so wonderful. No apologies needed, this is very informative. Seems like at the very least one shouldn't plan to absolutely be able to reassign beneficiaries down a generation, so that's good to know. I guess I...
by marcopolo
Tue Sep 26, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Equifax Credit Freeze 100% online
Replies: 35
Views: 5210

Re: Equifax Credit Freeze 100% online

A week ago I posted that, after several earlier attempts at an Equifax freeze where their website froze or returned an error, on 9/15 my freeze attempt offered only the option to lift a freeze. That implied that I had a freeze in place, even though their site never confirmed the initial freeze or o...
by marcopolo
Tue Sep 26, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Mega-backdoor Roth Conversion. Am I doing this correctly?
Replies: 19
Views: 1595

Re: Mega-backdoor Roth Conversion. Am I doing this correctly?

I plan to convert my full after-tax account balance to Roth IRA and pay regular taxes on the earnings portion. How big of a tax hit? With a little more complexity, you might be able to continue deferring the taxes on the gains. 1) Have them issue two separate checks, one for the after-tax contribut...
by marcopolo
Mon Sep 25, 2017 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Novice doing some tax planning for 2018
Replies: 21
Views: 1860

Re: Novice doing some tax planning for 2018

Thank you all for my recent "clueless but have the luxury of 457/403b" post especially cyclingduo;s insight. I am trying to do some tax planning for 2018. We will both be making essentially the same exact teaching salary. I've never done my taxes myself but am at least trying to plan how much to co...
by marcopolo
Mon Sep 25, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Wait on 529 if you may want to liquidate before college?
Replies: 7
Views: 580

Re: Wait on 529 if you may want to liquidate before college?

My state doesn't offer a tax advantage for 529s. We're on a great path towards financial independence well before our kids enter college and have a lot of tax-advantage space. We shouldn't have a problem paying for college when the time comes and if our kids have to pay some, we're fine with that a...
by marcopolo
Sun Sep 24, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 25393

Re: Calling out the not so rich bogleheads

t And that is because you are one of the posters who has made such a post. Maybe you were being genuine, but you have to realize how bizarre and uninviting those threads come off to those whose means are more in line with the average person. I say this is as someone whose household income is nearly...
by marcopolo
Sun Sep 24, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 25393

Re: Calling out the not so rich bogleheads

If you find this board uninviting/intimidating, i would say you might need to get out more. :sharebeer Kind of hard when you're in my medical situation. I go for months when I can't get out of the apartment other than to go to medical appointments which are a miserable struggle. I might bite the bu...
by marcopolo
Sun Sep 24, 2017 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 25393

Re: Calling out the not so rich bogleheads

And maybe participating here would be of limited value to the people I have in mind. For example, suppose a new poster said the following: "I'm a 45 year old single mother of two. I work 70 hours a week split between three jobs - hotel maid and a janitorial outsourcing company earning a little abov...
by marcopolo
Thu Sep 21, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Blue Chip Growth (FBGRX) - anomaly or good investment
Replies: 24
Views: 1100

Re: Fidelity Blue Chip Growth (FBGRX) - anomaly or good investment

I owned that exact fund in the 1990s. It way underperformed. I quit Fidelity partially due to Fidelity pushing this and similar funds instead of SP500. So no I do not think it is a good fund. I suggest VTI or similar. GOOD LUCK. Thread drift warning, but I see posts like this on here from time to t...
by marcopolo
Wed Sep 20, 2017 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Going to try my hand at Mega Backdoor Roth
Replies: 16
Views: 1731

Re: Going to try my hand at Mega Backdoor Roth

I just posted this in another thread: some of my colleagues roll their after-tax contributions over every month specifically to avoid having any gains on which to pay taxes. Another option, if the plan allows, is to split to distribution from the 401K so that after-tax contributions go to Roth IRA ...
by marcopolo
Tue Sep 19, 2017 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax Credit Freeze 100% online
Replies: 35
Views: 5210

Re: Equifax Credit Freeze 100% online

The only hiccup was that at Equifax when I did my wife's and my son's they generate a PIN and show you a page with the PIN on it. When i did mine, i got a message saying i had to mail in my information. I figured i would try again a little later. When i did that I was only given the option to tempo...
by marcopolo
Mon Sep 18, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Pocket money allowance for college student
Replies: 48
Views: 2679

Re: Pocket money allowance for college student

Our oldest child started her freshman year at college yesterday. We have told each of our kids that we will pay up to 100% of the costs of a private college. The oldest is going to a relatively expensive private school in northern California, but we approved the choice because it is Jesuit, has a g...
by marcopolo
Fri Sep 15, 2017 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax Credit Freeze 100% online
Replies: 35
Views: 5210

Re: Equifax Credit Freeze 100% online

Took a couple of attempts, but i froze credit for myself, my wife, and our college age son with all 5 agencies, completely online last night. The only hiccup was that at Equifax when I did my wife's and my son's they generate a PIN and show you a page with the PIN on it. When i did mine, i got a mes...
by marcopolo
Tue Sep 12, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 9052

Re: Retirees-anyone miscalculate how much was needed?

Not retired yet. BUT...as a worker bee, I know that time off = opportunity to spend $, so I am concerned that an abundance of free time will equate to spending more money than I can possibly predict. I need to find some inexpensive hobbies in the next 5 years, I suppose. I like the idea of just pad...
by marcopolo
Tue Sep 12, 2017 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 9052

Re: Retirees-anyone miscalculate how much was needed?

So my advice for anyone in the planning phase would be to build a detailed spending budget and track what you spend in a fair amount of detail. Update it annually. This will ensure that you really know what you spend, versus using some crude assumption like you'll need 80% of your pre-retirement in...
by marcopolo
Thu Sep 07, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: For those planning early retirement....
Replies: 67
Views: 8612

Re: For those planning early retirement....

We live well below our means, but not particularly frugally. Plan to retire in less than 2 years, at age 52. We are actually planning on our expenses increasing in retirement. We are planning to move from MCOL area to HCOL. Part of the reason for the move is to be in an area where there is an abunda...
by marcopolo
Thu Sep 07, 2017 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Advice re:combined insurance and investment policy
Replies: 16
Views: 1207

Re: Advice re:combined insurance and investment policy

A "financial advisor" who ill-adviced me. It is partially my mistake as I wasn't and still not good with moey, so I am starting to pick up on things now, after 9 years!!! Just as a contrarian possibility, it might not have been that bad of advice. By your own admission you are "not good with money"...
by marcopolo
Tue Sep 05, 2017 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Protecting moms assets from nursing home expenses
Replies: 96
Views: 8557

Re: Protecting moms assets from nursing home expenses

Another way, as accurate in my opinion, is asking how to have the taxpayers fund her nursing home expenses so that her family can have and keep her funds. I completely understand the sentiment, and mostly agree with it. But, i do sometimes question whether this is really any different than say mana...
by marcopolo
Tue Sep 05, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Advice re:combined insurance and investment policy
Replies: 16
Views: 1207

Re: Advice re:combined insurance and investment policy

I like to keep insurance and investing separate.

Term Life Insurance for insurance

Low cost Index mutual funds or ETFs for investing.

Your combination appears to be a very expensive product.

You may want to do an analysis on whether it might still be beneficial to get out of it at this point.
by marcopolo
Tue Sep 05, 2017 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: One Year Later: Hmm...how would you tweak this portfolio? Can I consider early retirement?
Replies: 35
Views: 5103

Re: One Year Later: Hmm...how would you tweak this portfolio? Can I consider early retirement?

Edit: please don't take offense by "only 1.4 mil investment" that is a that is a substantial amount of money. I just meant it in relation to how much money is tied up in your home. I also thought that the relative values seemed a bit unusual, as did a $50k spending profile in area of $900k homes. B...
by marcopolo
Tue Sep 05, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple 529s?
Replies: 8
Views: 653

Re: Multiple 529s?

The two children will only be two grades apart. I would highly recommend separate accounts. You can only use account for beneficiary. Since both will likely be in college with some overlapping years, you will need separate accounts at that time anyway. Once the oldest is done, you can combine if an...
by marcopolo
Sat Sep 02, 2017 10:45 pm
Forum: Investing - Theory, News & General
Topic: OSWAN: Optimum Sleep Well At Night retirement plan
Replies: 37
Views: 3257

Re: OSWAN: Optimum Sleep Well At Night retirement plan

To comment on your described plan. It seems overly complicated to me. As someone else mentioned, it is not at all clear what it is trying to accomplish. Maybe a better explanation of your intent, and how this 5-step plan would accomplish that would be helpful. I hit what I guess I consider my "numbe...
by marcopolo
Sat Sep 02, 2017 10:26 pm
Forum: Investing - Theory, News & General
Topic: OSWAN: Optimum Sleep Well At Night retirement plan
Replies: 37
Views: 3257

Re: OSWAN: Optimum Sleep Well At Night retirement plan

TheTimeLord wrote:
Sat Sep 02, 2017 6:38 pm
If I work for 5 years beyond achieving my number I should have more money to travel or do whatever during my vacation than I would have had I retired.
This seems like an extreme case of OMY syndrome, we need a new acronym, FMY? :sharebeer
by marcopolo
Sat Aug 26, 2017 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: 529 for R&B-Off Campus Housing
Replies: 17
Views: 1445

Re: 529 for R&B-Off Campus Housing

That quote from Pub. 970 says to use the estimate for federal financial aid purposes by the institution for "a particular academic period and living arrangement of the student" so what does the institution say about the cost of the particular living arrangement? Many colleges provide estimates for ...
by marcopolo
Sat Aug 26, 2017 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: What should the savings be for an average professional
Replies: 168
Views: 16829

Re: What should the savings be for an average professional

It just dawned on me that one reason engineers do so well in retirement planning (wealth accumulation) is that their salaries start low, and progress relatively rapidly. Does that allow them to follow the advice of starting their lifestyle on the lower side, and increasing their savings rate as the...
by marcopolo
Thu Aug 24, 2017 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits
Replies: 31
Views: 2815

Re: Social Security Benefits

You just "discovered" the Social Security "bend points"
by marcopolo
Thu Aug 24, 2017 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Earning a return on house fund?
Replies: 4
Views: 403

Re: Earning a return on house fund?

Ally bank - easy as it gets - and their CDs are super simple. I have been saving for a couple of years to build our retirement home. We plan to start construction next year. We have used CDs at several different banks, Ally is very good. Most of them are in the 2.5% - 3.0% range. Our more recent co...
by marcopolo
Thu Aug 24, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Living Expenses - what's "reasonable"?
Replies: 101
Views: 9045

Re: Living Expenses - what's "reasonable"?

Makes sense that average household income and expenditure in the U.S. are very similar if you look at average net worth and similar measures. Many people live above their means. The average spending is $56,978 and the average before tax income is $69,629. If you account for taxes, then I would agre...
by marcopolo
Thu Aug 24, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Living Expenses - what's "reasonable"?
Replies: 101
Views: 9045

Re: Living Expenses - what's "reasonable"?

My current estimate for retirement spending based upon what we spend today with an additional (above what we already spend) $10K for vacations and $3K for hobbies (in today's dollars) is $93K per year which includes essentials and leisure - but I'm a number of years away so may adjust (in some of m...
by marcopolo
Wed Aug 23, 2017 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 64
Views: 6984

Re: Adjusting AA as retirement nears

50/50 is very good AA to be at near retirement. I plan to retire at 55 and I will probably be 40/40/20 stocks/bonds/cash at that point. 20% cash is 5 years of expenses (probably a 5-year CD ladder). Each year I will sell the better performing asset (stocks or bonds) to buy another years' worth of e...
by marcopolo
Wed Aug 23, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 64
Views: 6984

Re: Adjusting AA as retirement nears

50/50 is very good AA to be at near retirement. I plan to retire at 55 and I will probably be 40/40/20 stocks/bonds/cash at that point. 20% cash is 5 years of expenses (probably a 5-year CD ladder). Each year I will sell the better performing asset (stocks or bonds) to buy another years' worth of e...
by marcopolo
Mon Aug 21, 2017 10:16 am
Forum: Personal Finance (Not Investing)
Topic: KF's Worst Case Retirement Plan [KlangFool's]
Replies: 265
Views: 24052

Re: KF's Worst Case Retirement Plan [KlangFool's]

Looks like I need to study the bend points to evaluate our specific situation. There is a calculator on the SS website that allows you to put in the year you plan to stop working, and your average salary between now and then (it uses your record for past earnings). If the age you enter is below 62,...
by marcopolo
Sat Aug 19, 2017 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: ObamaCare 2018
Replies: 74
Views: 8818

Re: ObamaCare 2018

Of course self employment deductions reduce your income. My point is the subsidy is not based just on income as many believe. You can go here to play around with different variables: http://www.kff.org/interactive/subsidy-calculator/ For example: Using Zip 60126, 1 adult, single, $30k MAGI Age 21: ...