Search found 1401 matches

by marcopolo
Thu Jan 17, 2019 10:13 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 78
Views: 3533

Re: How much house can I afford (really)?

CPA_RIA wrote:
Wed Jan 16, 2019 4:32 pm

It's just one 401k - we're phased out of IRA's. Still a good question...but not as dire as you make it. Again, the future value of a $50k annuity invested at a 4-5% modest return for 27 years, assuming retirement at 67, will meet our Retirement goal.
Search for the term "backdoor Roth"
by marcopolo
Thu Jan 17, 2019 10:09 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 78
Views: 3533

Re: How much house can I afford (really)?

CPA_RIA Don't take the comments as an attack on you, remember they are only trying to help. People on here are older and have seen or lived thru things that you have not. Some would call it a black swan event I call it life. My apologies if I came across as defensive! Trust that I don't feel this w...
by marcopolo
Wed Jan 16, 2019 10:35 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 780
Views: 35793

Re: John Bogle has died at age 89

Thanks for all you have done.
RIP
by marcopolo
Wed Jan 16, 2019 10:25 pm
Forum: Investing - Theory, News & General
Topic: Single Income Family Max All Tax-Advantaged Space
Replies: 13
Views: 950

Re: Single Income Family Max All Tax-Advantaged Space

401k limit is 56k.

I suspect many on this forum do max all of that.
by marcopolo
Wed Jan 16, 2019 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: 401k After Tax contributions to Roth-IRA Tax questions.
Replies: 11
Views: 877

Re: 401k After Tax contributions to Roth-IRA Tax questions.

If you haven't done the rollover yet, then definitely get two checks. 15k is a lot. Send one check to the Roth IRA and the other to a Rollover IRA. Then get the latter rolled back into the plan. You don't need to wait for anything, but you should try to get the rollover back into the 401(k) before ...
by marcopolo
Wed Jan 16, 2019 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 540
Views: 56989

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Since my wife and I only have the no-penalty CD's and no other accounts, does that mean we have to keep the CD's open another month to receive the bonus dollars? If I withdraw the money tomorrow, where would they send the bonus? You must have an open account to receive the bonus. You could open a o...
by marcopolo
Wed Jan 16, 2019 12:40 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1446
Views: 237060

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Yeah. My 401k is administered by Fidelity. I would have preferred to roll over into fidelity IRA, but they will not give bonus for their own administered 401k rollovers. I guess i will just send to Etrade, then back to fidelity (maybe with a visit through TDA as well). Marcopolo, I did precisely th...
by marcopolo
Wed Jan 16, 2019 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Help me decide how to be paid (bonus structure)
Replies: 9
Views: 857

Re: Help me decide how to be paid (bonus structure)

Maybe I am missing something. If the total comp would be the same in both cases, why would anyone ever choose less base pay? At best, you are giving the employer an interest free loan until the "bonus" is paid. In situations i have been familiar with (not medicine), bonuses were variable, and tied t...
by marcopolo
Wed Jan 16, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Brother in law had a stroke (health ins options?)
Replies: 10
Views: 1112

Re: Brother in law had a stroke (health ins options?)

Sorry to hear about your BIL. If his COBRA is reasonably priced, the COBRA regulations allow an extension of an additional 11 months based on disability. So, that would be a total of 29 months to bridge to early Medicare eligibility. So, if he gets his SSA disability approved within 5 months of star...
by marcopolo
Wed Jan 16, 2019 8:28 am
Forum: Personal Finance (Not Investing)
Topic: 401k After Tax contributions to Roth-IRA Tax questions.
Replies: 11
Views: 877

Re: 401k After Tax contributions to Roth-IRA Tax questions.

Regarding the $85,000 after-tax, and $15,000 earnings: IF it is possible, you could rollover the $85k after-tax into a Roth IRA, and the $15k earnings into a tIRA. Bear in mind the potential downside of the pro-rata rule once you have a tIRA. As mentioned above, if the plan allows, the tIRA can the...
by marcopolo
Mon Jan 14, 2019 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: 401k After Tax contributions to Roth-IRA Tax questions.
Replies: 11
Views: 877

Re: 401k After Tax contributions to Roth-IRA Tax questions.

You may have done it by accident, but it is actually a very beneficial strategy. A lot of people do it intentionally. The best tax advantage is to transfer the after-tax contributions to a Roth as soon as possible ( some do it with every bi-weekly contribution). This allows any future growth to be t...
by marcopolo
Mon Jan 14, 2019 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Help me pick a retirement date. Or enough is enough?
Replies: 33
Views: 3957

Re: Help me pick a retirement date. Or enough is enough?

sambb wrote:
Mon Jan 14, 2019 8:33 pm
You seem happy working. Keep at it
Curious as to what led you to believe that?

OP said he wanted to escape from megacorp (Emphasis mine). OP might be ok with having to work longer, I did not get the sense he would be happy about it.
by marcopolo
Mon Jan 14, 2019 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Help me pick a retirement date. Or enough is enough?
Replies: 33
Views: 3957

Re: Help me pick a retirement date. Or enough is enough?

OP here PugetSoundGuy- thanks for the kind words and encouragement. marcopolo- If I were to retire now, my pension would be significantly smaller- maybe covering 30% of expenses- and that stretches me further than I want right now. If I had to retire now, we likely we be ok financially but I don't ...
by marcopolo
Mon Jan 14, 2019 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Help me pick a retirement date. Or enough is enough?
Replies: 33
Views: 3957

Re: Help me pick a retirement date. Or enough is enough?

I'm starting to think seriously about setting a retirement date. I'm 60 and my general plan is to retire in 2-5 years. Delaying would increase my pension and social security by about $2200/yr of delay and would require less withdrawals early on but it seems like I have "enough" regardless of date. ...
by marcopolo
Mon Jan 14, 2019 5:15 pm
Forum: Investing - Theory, News & General
Topic: Taxable vs Nontaxable retirement savings: is there an ideal ratio?
Replies: 10
Views: 1500

Re: Taxable vs Nontaxable retirement savings: is there an ideal ratio?

1) Tax-Free: Roth IRA, Roth401k, HSA, 529 plans 2) Tax-deferred: Trad IRA, Trad 401k, 403B. 3) Taxable: Brokerage, Saving. I re-order by potential tax liability and delineate a little further: Potentially Tax-Free Tax-Free (Roth IRA and Roth 401k) Tax-deferred/likely Tax-Free (HSA and 529) Potentia...
by marcopolo
Mon Jan 14, 2019 9:14 am
Forum: Investing - Theory, News & General
Topic: Taxable vs Nontaxable retirement savings: is there an ideal ratio?
Replies: 10
Views: 1500

Re: Taxable vs Nontaxable retirement savings: is there an ideal ratio?

This might be a dumb question, but is there an ideal ratio of taxable to nontaxable retirement savings to shoot for or is it not something to worry about? For example, in my case (spouse and I are both 51 and working - I plan on retiring before 55, spouse not until 65+). Our savings is 38% taxable ...
by marcopolo
Sat Jan 12, 2019 11:24 am
Forum: Personal Finance (Not Investing)
Topic: 529s, tax breaks, and plan options
Replies: 2
Views: 183

Re: 529s, tax breaks, and plan options

Wife/I have a 1 year old at home. We moved to Philly (Pennsylvania) a few months ago. Her parents (living in Massachusetts) would like to make a sizable seed donation (~$10k) to a 529 for my son, but I've been dragging my feet on opening this (we haven't been able to max out our retirement savings ...
by marcopolo
Sat Jan 12, 2019 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion
Replies: 31
Views: 2405

Re: Roth conversion

An increase in income could cause disqualification for a ACA health insurance premium tax credit or trigger medicare IRMAA (Income related monthly adjustment amount). The ACA premium tax credit could be substantial (>10-20K depending on age). When I ran numbers on the KFF calculator, a couple age 6...
by marcopolo
Fri Jan 11, 2019 2:41 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Historical Data Can Comfort
Replies: 6
Views: 770

Re: Larry Swedroe: Historical Data Can Comfort

As always, I appreciate you posting these! From what I know of history, if truly catastrophic losses (worse than the Great Depression) are about to occur, the cause will be obvious . The US will be about to lose a world war (like Germany or Japan in World War II). The Federal Reserve will be in the...
by marcopolo
Fri Jan 11, 2019 12:28 am
Forum: Personal Finance (Not Investing)
Topic: How did you solve the pre-medicare healthcare riddle?
Replies: 81
Views: 5585

Re: How did you solve the pre-medicare healthcare riddle?

BH: I would really like to hear some real-life examples of anyone who retired or semi-retired PRE MEDICARE and how they funded healthcare. This assumes you do not have a healthcare agreement with a prior employer. The most obvious solution is one of two spouses taking a job FT or PT primarily for t...
by marcopolo
Thu Jan 10, 2019 10:05 pm
Forum: Investing - Theory, News & General
Topic: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?
Replies: 21
Views: 1567

Re: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?

If I were you, I would empty the TIRA by doing Roth conversion. You have about 8 years to empty that $1 Million, if you don’t count on any increase, which is unlikely. So about $125K per year approximately. You may pay about $150k of taxes on that $1 million, which is very good deal. Edit to add, I...
by marcopolo
Thu Jan 10, 2019 8:48 pm
Forum: Investing - Theory, News & General
Topic: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?
Replies: 21
Views: 1567

Re: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?

If I were you, I would empty the TIRA by doing Roth conversion. You have about 8 years to empty that $1 Million, if you don’t count on any increase, which is unlikely. So about $125K per year approximately. You may pay about $150k of taxes on that $1 million, which is very good deal. Edit to add, I...
by marcopolo
Thu Jan 10, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?
Replies: 21
Views: 1567

Re: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?

If I were you, I would empty the TIRA by doing Roth conversion. You have about 8 years to empty that $1 Million, if you don’t count on any increase, which is unlikely. So about $125K per year approximately. You may pay about $150k of taxes on that $1 million, which is very good deal. Edit to add, I...
by marcopolo
Thu Jan 10, 2019 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: How did you solve the pre-medicare healthcare riddle?
Replies: 81
Views: 5585

Re: How did you solve the pre-medicare healthcare riddle?

Your general idea is right. But, you can't subtract the $24k standard deduction when figuring amount for ACA cliff. Well you just ruined my day. :-). Seriously, I was not aware of this. Bummer. This significantly reduces the amount of Roth conversions I was thinking I'd be able to do when the time ...
by marcopolo
Thu Jan 10, 2019 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: How did you solve the pre-medicare healthcare riddle?
Replies: 81
Views: 5585

Re: How did you solve the pre-medicare healthcare riddle?

Is there a description somewhere of these income management techniques that people keep talking about? Roughly speaking, if you're single and have $1M+ in taxable, or married with $1.3M+ in taxable, you already exceed the max income just with dividends/interest. Are we talking about people who are ...
by marcopolo
Thu Jan 10, 2019 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: How did you solve the pre-medicare healthcare riddle?
Replies: 81
Views: 5585

Re: How did you solve the pre-medicare healthcare riddle?

Is there a description somewhere of these income management techniques that people keep talking about? Roughly speaking, if you're single and have $1M+ in taxable, or married with $1.3M+ in taxable, you already exceed the max income just with dividends/interest. Are we talking about people who are ...
by marcopolo
Thu Jan 10, 2019 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: How did you solve the pre-medicare healthcare riddle?
Replies: 81
Views: 5585

Re: How did you solve the pre-medicare healthcare riddle?

Is there a description somewhere of these income management techniques that people keep talking about? Roughly speaking, if you're single and have $1M+ in taxable, or married with $1.3M+ in taxable, you already exceed the max income just with dividends/interest. Are we talking about people who are ...
by marcopolo
Thu Jan 10, 2019 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: How did you solve the pre-medicare healthcare riddle?
Replies: 81
Views: 5585

Re: How did you solve the pre-medicare healthcare riddle?

Retired early last year at age 51. On company paid COBRA through the end of 2018. Now on ACA plan. Living off taxable accounts. With normal spending, income will be well below ACA cliff. Still evaluating trade-off between doing Roth Conversions (which generates taxable income that is not needed for ...
by marcopolo
Thu Jan 10, 2019 3:27 pm
Forum: Investing - Theory, News & General
Topic: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?
Replies: 21
Views: 1567

Re: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?

It's unclear how much you spend, but it sounds like you don't need any IRA distributions to live off. If you leave the IRA alone and it grows at 5% a year for 9 years, you'll have around $1.55MM when you are 70.5 and have to start taking RMDs. Based on today's calculators, that means your RMD will ...
by marcopolo
Thu Jan 10, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: AQR Cuts Staff After a Bad Year (39 out of 41 funds down)
Replies: 31
Views: 2614

Re: AQR Cuts Staff After a Bad Year

AQR’s U.S. mutual funds had outflows of $5 billion in the first 11 months of 2018, according to data from Morningstar Inc. Must be people who missed the part about sticking with a factor or alternative strategy through 10 or 20 years of under-performance. Probably thought they could make a quick bu...
by marcopolo
Thu Jan 10, 2019 12:21 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Unlimited 2% Cash back
Replies: 38
Views: 2371

Re: Fidelity Unlimited 2% Cash back

getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending. :oops: :annoyed :confused commercial banks. obviously a retail bank can make good money charging you 18-22% interest on your credit card once your pro...
by marcopolo
Tue Jan 08, 2019 5:45 pm
Forum: Investing - Theory, News & General
Topic: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?
Replies: 21
Views: 1567

Re: Should I take $70K LTCG at 0% tax rate or transfer $70K from IRA to Roth @ 12%?

It's unclear how much you spend, but it sounds like you don't need any IRA distributions to live off. If you leave the IRA alone and it grows at 5% a year for 9 years, you'll have around $1.55MM when you are 70.5 and have to start taking RMDs. Based on today's calculators, that means your RMD will ...
by marcopolo
Tue Jan 08, 2019 8:10 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11483

Re: Ray Dalio’s latest fearmongering round

Another alpha-less, fear-mongering, snake oil salesperson trying to remain relevant. Bridgewater’s Pure Alpha fund posts nearly 15 percent gain in 2018 https://www.cnbc.com/2019/01/07/bridgewaters-pure-alpha-fund-posts-nearly-15-percent-gain-in-2018.html Bridgewater, founded by Ray Dalio, has about...
by marcopolo
Mon Jan 07, 2019 12:11 pm
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 5937

Re: How do you view a savings surplus in retirement?

The S&P just went down 20% in three months. 25% is definitely just a cushion. When you get over 40-50% you start gaining the ability to meaningfully increase your lifestyle. I sense someone is about to say that since bonds went up in the recession, I shouldn't just use the S&P, but remember that th...
by marcopolo
Mon Jan 07, 2019 11:22 am
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 5937

Re: How do you view a savings surplus in retirement?

It would have never dawned on me to consider 25% a relatively small cushion, maybe 5%-10%, but I would view 25% as substantial so can you help me to understand your perspective. It's small because it could disappear quickly or returns could be less than expected. If stocks, the market could decline...
by marcopolo
Sun Jan 06, 2019 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: What do you think are (some of) the best states to live in?
Replies: 81
Views: 6242

Re: What do you think are (some of) the best states to live in?

Much of the above might change at various stages of career and life. So true. I never minded the cold until recently. Now I'm ready to live in Phoenix in the winter. Agree. Although, I always disliked the cold. Of the 5 criteria listed by OP, the first two (good job market and good schools) were th...
by marcopolo
Sun Jan 06, 2019 11:26 pm
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 5937

Re: How do you view a savings surplus in retirement?

So nobody would view it as a lump sum spendable pool of money to be dipped into at will? No, not all. It’s a cushion against recession, depression, and regression. Shouldn't one's plan already address the possibilities of those? One of the ways a plan addresses those things is by not spending all t...
by marcopolo
Sun Jan 06, 2019 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: What do you think are (some of) the best states to live in?
Replies: 81
Views: 6242

Re: What do you think are (some of) the best states to live in?

visualguy wrote:
Sun Jan 06, 2019 8:24 pm
Your "favorable climate" requirement pretty much limits you to California.
Hawaii
by marcopolo
Sun Jan 06, 2019 3:51 pm
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 5937

Re: How do you view a savings surplus in retirement?

Earl Lemongrab wrote:
Sun Jan 06, 2019 3:37 pm

I would not be surprised if the vast majority of my money went to my heirs. That's okay. They're family. I like them.
+1 :beer
by marcopolo
Sun Jan 06, 2019 3:44 pm
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 5937

Re: How do you view a savings surplus in retirement?

I am not really sure how to think about the "surplus". I guess that has to assume some baseline that is the "right" amount? While I worked, we never really thought too much about a budget. We tracked spending and looked at it at the end of the year as a retrospective, but never really worried about ...
by marcopolo
Sun Jan 06, 2019 3:36 pm
Forum: Investing - Theory, News & General
Topic: For those retired a few years
Replies: 58
Views: 4750

Re: For those retired a few years

Retired about a year ago. Our expenses went up quite a bit in retirement. I don't consider it going wild, as it was planned. We have lots more free time. The main reason we retired early was to be able to take advantage of that free time and do more of the things we love to do. Some of which does co...
by marcopolo
Sat Jan 05, 2019 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement - Roth Conversions, Tax Gain Harvest, or Other?
Replies: 11
Views: 551

Re: Early Retirement - Roth Conversions, Tax Gain Harvest, or Other?

Good advice above. I just retired last year at age 51. There are way too many moving pieces to create anything resembling a definitive plan 8 years out. I think the best you can do is identify the various strategies and think through which ones makes sense in which scenarios. Then keep track of chan...
by marcopolo
Sat Jan 05, 2019 11:37 am
Forum: Personal Finance (Not Investing)
Topic: [Tax Help] Post-employment payment: W2 or 1099?
Replies: 14
Views: 537

Re: [Tax Help] Post-employment payment: W2 or 1099?

I would add that Non-Qualified Deferred Compensation plans are some of the most complex parts of the employee benefits rules, regulations and tax code. So anything is possible, but for the dollars involved it is certainly worth proactively finding out. Sorry, I had another thought. If it turns out ...
by marcopolo
Sat Jan 05, 2019 10:01 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 714
Views: 92080

Re: How much money do you want to retire?

I don't see how it's possible that anyone middle aged or older is going to face a Social Security cut. Those people vote and 80% of them will have Social Security as their dominant income source the minute they can't work. Nobody in Congress would risk the recall election. A couple of thoughts on h...
by marcopolo
Fri Jan 04, 2019 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 714
Views: 92080

Re: How much money do you want to retire?

I'm happy with our current lifestyle. Our expenses are between 120k and 130k. That includes two kids in the house. When they move out (both middle school age right now), I envision the same level of expenses which should give us a small lifestyle bump. I think 4.5 million will pay for that over a 4...
by marcopolo
Fri Jan 04, 2019 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 714
Views: 92080

Re: How much money do you want to retire?

I'm happy with our current lifestyle. Our expenses are between 120k and 130k. That includes two kids in the house. When they move out (both middle school age right now), I envision the same level of expenses which should give us a small lifestyle bump. I think 4.5 million will pay for that over a 4...
by marcopolo
Fri Jan 04, 2019 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 714
Views: 92080

Re: How much money do you want to retire?

I'm happy with our current lifestyle. Our expenses are between 120k and 130k. That includes two kids in the house. When they move out (both middle school age right now), I envision the same level of expenses which should give us a small lifestyle bump. I think 4.5 million will pay for that over a 4...
by marcopolo
Fri Jan 04, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question hindsight
Replies: 65
Views: 4891

Re: Social Security question hindsight

I watched a youtube video over the holidays that made a really good point. Each time the FRA age increases, those affected by a higher age receive a smaller percentage of their FRA number at 62. A point the youtuber makes is that every year, it makes the SS trust fund just a little more robust, esp...
by marcopolo
Fri Jan 04, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Maryland 529 College Investment Plans
Replies: 20
Views: 2647

Re: Maryland 529 College Investment Plans

Not to hijack this thread, but a related question please. I know there is a penalty on the earnings for non-qualified withdrawals. If you only withdraw some of the contributions (not the earnings), is there a penalty related to the MD state tax deduction you took for the contribution? Thanks All wi...
by marcopolo
Fri Jan 04, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: [Tax Help] Post-employment payment: W2 or 1099?
Replies: 14
Views: 537

Re: [Tax Help] Post-employment payment: W2 or 1099?

The IRS considers Phantom Stock Plans as a Non-Qualified Deferred Compensation (NQDC) arrangement subject to Section 409A and not a stock arrangement. The IRS General Instructions for Forms W-2 and W-3 are very explicit for NQDCs. The only times NQDC is mentioned in the Form 1099-MISC Instructions ...