Bogleheads.org

If you do a rollover to another 529, you don't get hit by the income tax nor the 10% penalty. This is simply incorrect. I think you might be missing something. You seem to confusing the 529 account with the investments in the account. I think what Fidelity is telling you is that you can't transfer the investments from your current account to their account because that is not an investment option in their account. This is not that unusual. What you will need to do is sell the investment in your current account so the money is sitting in cash, still in that account. This will not trigger any federal taxes or penalties. Then instruct Fidelity to transfer the cash in a direct rollover from the current 529 account to a new 529 account at Fideli...

enad wrote: ↑Tue Mar 28, 2023 5:33 pm

marcopolo wrote: ↑Tue Mar 28, 2023 11:31 am

enad wrote: ↑Tue Mar 28, 2023 9:46 am

marcopolo wrote: ↑Tue Mar 28, 2023 4:23 am You are mistaken about what shows up on line 8.
The "tax due" does not show up on line 8.

Then where does it show up?

Line 8 shows the taxable income from a variety of things aggregated together as "other income". This is added to all your income from things like wages, dividends, etc. The total taxable income is then used to compute taxes due lower down in the form. Line 8 does NOT show tax due.

Glad you can admit that line 8 is where any taxes due from a 1099-Q would show up.

Do you not understand the difference between taxable income and taxes due?!?

More specifically Bernstein means reducing risk in stocks. Other sources of risk take more nuanced handling. How risky how much in stocks actually is would also be as nuanced discussion, but I think there is wisdom in the point for some investors. Yeah reducing risk in stocks is easy but maintaining purchasing power while doing so is not. The declining glidepath appears to fit the bill, although "stop playing" sounds more abrupt than the slow glidepath over years and decades. Amusingly, I have stopped playing as defined by my post at the beginning of the thread and I should end up having a rising guide path as a result of my assumption I will not be immortal. Many roads to Dublin. I have implemented a similar TIPs ladder as you d...

Are you claiming him on your taxes? EDIT: If the distribution from the 529 is made out in his name, then the 1099 goes to him, if in your name it goes to you. As long as the monies were used for qualified distributions there is a place on the tax form that reflects that and it won't be counted as income on your taxes or his taxes but still has to be reported. Scholarships that pay for qualified educational expenses at qualified educational institutions generally don't count as taxable income. Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income. Who received the 1098T and the 1099Q? This is not true. If all the 529 withdrawal is used for qualified ex...

enad wrote: ↑Tue Mar 28, 2023 9:46 am

marcopolo wrote: ↑Tue Mar 28, 2023 4:23 am You are mistaken about what shows up on line 8.
The "tax due" does not show up on line 8.

Then where does it show up?

Line 8 shows the taxable income from a variety of things aggregated together as "other income". This is added to all your income from things like wages, dividends, etc. The total taxable income is then used to compute taxes due lower down in the form. Line 8 does NOT show tax due.

Are you claiming him on your taxes? EDIT: If the distribution from the 529 is made out in his name, then the 1099 goes to him, if in your name it goes to you. As long as the monies were used for qualified distributions there is a place on the tax form that reflects that and it won't be counted as income on your taxes or his taxes but still has to be reported. Scholarships that pay for qualified educational expenses at qualified educational institutions generally don't count as taxable income. Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income. Who received the 1098T and the 1099Q? This is not true. If all the 529 withdrawal is used for qualified ex...

Perhaps the real point of saying "Stop Playing" is just another way of saying you don't need to go any higher.. Don't get rich twice Just float with the market at 50-50 and chill … Stay Neutral … Not too fearful, Not too Greedy … Just Right … When stocks go up … enjoy the growth of your 50% in stocks … … And when stock go down … take comfort in your 50% in bonds … No matter what crazy thing comes at you next..., inflation, taxes, crashes, booms, wars, et al.... Just float with the market But since it’s a basic human need to improve … Stay open to a little improvisation.... Just don't drift too far away from Neutral.. … Don't get rich twice Craig Tester Picking a asset allocation and staying with it?!? I think someone hacked your ...

Are you claiming him on your taxes? EDIT: If the distribution from the 529 is made out in his name, then the 1099 goes to him, if in your name it goes to you. As long as the monies were used for qualified distributions there is a place on the tax form that reflects that and it won't be counted as income on your taxes or his taxes but still has to be reported. Scholarships that pay for qualified educational expenses at qualified educational institutions generally don't count as taxable income. Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income. Who received the 1098T and the 1099Q? This is not true. If all the 529 withdrawal is used for qualified ex...

I think the key phrase for the OP is "I don't have to worry". Other people can worry about what-if financial disasters, but I find threads like this refreshing. At some point the bigger worry should be running out of time. This relies on a lot of assumptions I wouldn't be comfortable making for such a significant decision because the failure mode of this decision is really unpleasant. Failure mode here is going to work at McDonalds for 10 years at 56. I will let you decide how unpleasant that is. I highly doubt the McDonalds part. I've never met a former millionaire who's investments went to near nothing and is forced to work at near minimum wage for 10 years. I read a blog post once about someone FIRE'ing and had to go back to w...

Beneficiaries can be changed at any time so it really doesn't matter who the beneficiaries are as long as the successor is correct. I don't believe there would be any tax consequence as long as you are under the estate tax exemptions. What do you mean by no tax consequences? Does the basis reset a la taxable investments? If it does not, then income tax plus penalty would still be owed on any non qualified withdrawals. 529 plans are a weird beast. When a contribution is made, it is considered a completed gift to the beneficiary (even though the owner can change the beneficiary). As such, they are not included in the estate when the owner dies. They do not get step-up basis, which only comes into play if non-qualified withdrawals are made. T...

aristotelian wrote: ↑Sat Mar 25, 2023 9:26 pm

snowday2022 wrote: ↑Sat Mar 25, 2023 9:13 pm

aristotelian wrote: ↑Sat Mar 25, 2023 2:42 pm Beneficiaries can be changed at any time so it really doesn't matter who the beneficiaries are as long as the successor is correct. I don't believe there would be any tax consequence as long as you are under the estate tax exemptions.

What do you mean by no tax consequences? Does the basis reset a la taxable investments? If it does not, then income tax plus penalty would still be owed on any non qualified withdrawals.

529 isn't taxable.

They are if non-qualified withdrawals are made.

Another long-time lurker but first-time poster here. Appreciate all the advice over the years. I’ve seen a couple threads on this but not all in one place. Question: Should I use a Mega-backdoor Roth for college savings instead of a 529? Context: Our daughter is now 6 and we started a 529 plan for her when she was born. However I am cautious about building up too large of a balance there because: DW and I will turn 59.5 during her senior year of college, so we can pay for that year out of retirement accounts DW teaches in a state university system, so it’s possible we will receive discounted tuition if my daughter attends in-state My parents may leave a (likely small) inheritance and they would like it to be used for college - hopefully th...

So if you spend 54K/year in retirement at 23x, that is 1.24M. For a 25 year payout from 46 -> 70, tipsladder.com says you can buy 54K of inflation adjusted income for 1.133M. So at age 70, you will have about $110K left. Assuming you are able to obtain a reverse mortgage and purchase an SPIA as you describe, it looks like it might work. But it is cutting it awfully close. No way I would take that chance myself, but I have a spouse and kids so my risk tolerance is different than yours. If you are willing to live that close to the edge, go for it! Wrench Very good framing, and what that method of calculation will really underscore is value of not bringing income to $0. If instead of thinking about age 46-70 as $0 income years, the OP were ab...

In my case it is that it alienates my buddies, and it is far less an issue as long as I conform to their budget. It becomes isolating when you start utilizing your wealth and other either can't afford to or choose not to participate. It starts to set you apart. And I am sure this varies by the activity the group is passionate about. "In my case it is that it alienates my buddies" Rethink and/or redeploy your buddies and/or your goals. "and it is far less an issue as long as I conform to their budget" Rethink why some of your goals cannot be reconfigured to be more inclusive. (but not necessarily all inclusive) "It becomes isolating when you start utilizing your wealth and other either can't afford to or choose not ...

So if you spend 54K/year in retirement at 23x, that is 1.24M. For a 25 year payout from 46 -> 70, tipsladder.com says you can buy 54K of inflation adjusted income for 1.133M. So at age 70, you will have about $110K left. Assuming you are able to obtain a reverse mortgage and purchase an SPIA as you describe, it looks like it might work. But it is cutting it awfully close. No way I would take that chance myself, but I have a spouse and kids so my risk tolerance is different than yours. If you are willing to live that close to the edge, go for it! Wrench Very good framing, and what that method of calculation will really underscore is value of not bringing income to $0. If instead of thinking about age 46-70 as $0 income years, the OP were ab...

:happy Not just a frugal investment minded person, but add on if they are skilled, lucky or hardworking enough (it doesn't matter what combination for this purpose and it's always subjective anyway) to make a lot more money and are investment minded. To the point where it's a very serious question the purpose of working that hard if you're going to be anywhere near as $ frugal as somebody who makes a fraction as much. Not that you're trying to 'rub anyone's nose' in your wealth. You might even go a reasonable distance out of your way to show it less when you socialize with them. But your life is still basically your life, and IME that's going to put you at more of a distance with some people you were formerly close to (friends, family outs...

...In real life IME people are usually pretty sensitive to other people, otherwise presumed peers (especially same age group), having much more than they do. It's very likely to be a least an irritant or limitation on how close you can really be to somebody of greatly different means. Again this is something the ancients recognized, but it's somehow disappeared in the meantime? Statistically speaking if you do really well from a starting point in the thick part of the wealth distribution, you've probably outrun more people you've known a long time, by more, than if you hadn't done as well. The tendency will be for the wealth to isolate you, at least somewhat, I agree with you. Not that it makes you a pariah, but it's definitely not just ab...

Not just a frugal investment minded person, but add on if they are skilled, lucky or hardworking enough (it doesn't matter what combination for this purpose and it's always subjective anyway) to make a lot more money and are investment minded. To the point where it's a very serious question the purpose of working that hard if you're going to be anywhere near as $ frugal as somebody who makes a fraction as much. Not that you're trying to 'rub anyone's nose' in your wealth. You might even go a reasonable distance out of your way to show it less when you socialize with them. But your life is still basically your life, and IME that's going to put you at more of a distance with some people you were formerly close to (friends, family outside own...

...In real life IME people are usually pretty sensitive to other people, otherwise presumed peers (especially same age group), having much more than they do. It's very likely to be a least an irritant or limitation on how close you can really be to somebody of greatly different means. Again this is something the ancients recognized, but it's somehow disappeared in the meantime? Statistically speaking if you do really well from a starting point in the thick part of the wealth distribution, you've probably outrun more people you've known a long time, by more, than if you hadn't done as well. The tendency will be for the wealth to isolate you, at least somewhat, I agree with you. Not that it makes you a pariah, but it's definitely not just ab...

...In real life IME people are usually pretty sensitive to other people, otherwise presumed peers (especially same age group), having much more than they do. It's very likely to be a least an irritant or limitation on how close you can really be to somebody of greatly different means. Again this is something the ancients recognized, but it's somehow disappeared in the meantime? Statistically speaking if you do really well from a starting point in the thick part of the wealth distribution, you've probably outrun more people you've known a long time, by more, than if you hadn't done as well. The tendency will be for the wealth to isolate you, at least somewhat, I agree with you. Not that it makes you a pariah, but it's definitely not just ab...

I may retire as early as 46. Many would say I have to worry about living 50-60 years, but I don't really need to worry past 80, because at 70 I can take social security and at 80 I can take a reverse mortgage and buy a SPIA with it, which sets me up with income for life as shown below. My Income needs from age 46 to 100: https://i.imgur.com/CgcFEu4.jpg From 2014-2021, I spent an average of 22,726 per year. From 2022 until I retire I gave myself a raise and plan to spend an average of 37K/yr. In retirement, I plan to spend 48.6K/yr with a surplus of 5.4K/yr (to cover unexpected expenses) for a total of 54K/yr. Retiring at 46, my social security benefit at 70 will be 35K, which covers 65% of my spending. At 80, I could get a reverse mortgage...

Retiring at 46, my social security benefit at 70 will be 35K , which covers 65% of my spending. Where are you getting this estimate? I ask because as I remember the standard number provided by SS assumes you will continue working until FRA at your current compensation and you need to use one of the calculators for accurate early retirement estimates. Good point, but I do have it covered. Social Security's formula is public and I have gotten all my historical earnings from their website. I built out a social security calculator in excel and it gives me my Soc Sec numbers at any point in the future. I have compared my calculated results to other 3rd party calculators and my results seem accurate. Good enough, it just seemed at first glance t...

One way is sell stocks in taxable and exchange bonds for stocks in tax-advantaged. This part has never been quite clear to me... If the OP is trying to survive a hypothetical market drop (50%?), they'd need double the taxable stock investment in order to cover the drop and still be able to transition after the drop. And the transition would result in a hefty stock allocation outside of taxable, somewhere. This is a single shot....and then one has to reset it, maybe? How? FD: I use the peanut butter AA across all accounts, for several reasons, but partly because I'm not sure the single shot solution leaves one in a better or worse AA per account type stance. Anyone have a good insight on why this is suggested often, besides the obvious &quo...

Beensabu wrote: ↑Thu Mar 23, 2023 11:29 pm

marcopolo wrote: ↑Thu Mar 23, 2023 11:02 pm All i can say is that I am really glad i have a large circle of friends where this is not really an issue. We have mutual interests, different groups with different interests

This is the key, I think, of why you're perhaps not understanding where TheTimeLord is coming from.

You have a large more dynamic group of friends.

It sounds like (and maybe I'm wrong) they have a smaller more insular group of friends.

Do you see how those might be different situations? Whoever can make it is fine and fun vs. if it's not all of us, it won't feel right?

If true, I guess that makes sense.
I did not necessarily get that sense.

Sure, I get that not everyone in your social circle can take such trips. I suspect that is true for most groups. What I don't get is why you feel like you need to skip doing them to fit in? Are they really that fragile that your friendships would be affected because you took a bucket-list trip that they could not currently afford? Are you serious? It's a "buddies'" trip. Not a "solo adventure all by my own self" trip. The buddies are the essential element of the thing. It's not about fitting in. It's about needing the buddies on the trip with you. No buddies on the trip means it's not a buddies' trip. Therefore, bucket list fail. Yes. I am serious. Here is the post I was responding to, it sure sounds like its at least a...

But what if you hadn't or you were a 7 Summits guy? Would you not do them just to fit in? For health reasons, those aren’t on my list. I also don’t like standing in long lines. I guess the point I am attempting to make is a lot of us have bucket lists, and some of the items on those lists can be pricey. So do you check off the items on your bucket list knowing it might change the dynamic with your social circle or do you skip them to fit in. A lot of advice around here seems to be about stealth wealth, well you only get one life so do you skip things to keep your wealth hidden? And if you do what is the point of having it? What kind of people are in your social circle that going on a nice adventure vacation would make you not fit in?!? Our...

So would you like to hike Machu Picchu or the Milford Trek? I knocked those out in my early 30s. Might go back to South America next year. My best memories are being outdoors. It’s not an expensive hobby. But what if you hadn't or you were a 7 Summits guy? Would you not do them just to fit in? For health reasons, those aren’t on my list. I also don’t like standing in long lines. I guess the point I am attempting to make is a lot of us have bucket lists, and some of the items on those lists can be pricey. So do you check off the items on your bucket list knowing it might change the dynamic with your social circle or do you skip them to fit in. A lot of advice around here seems to be about stealth wealth, well you only get one life so do you...

LaramieWind wrote: ↑Wed Mar 22, 2023 11:18 am I thought the responses would be more positive. Not factoring in home upgrades, how does my retirement look?

Haha. You must be new here.

Unless you each have a government pension that covers all your expenses, or a sub 1% WR, PLUS paid for health insurance AND unlimited LTC insurance, you will get lots of "well what if X happens..."

There are no guarantees, but you are very much more likely to run out of time long before you run out of money.

You are fine. But, surely you already know that.
Go enjoy your retirement.

Bond yields have gone from essentially 0% to 4%. TIPs have gone from negative to about +1.7% real yield. CAPE has dropped from 38 to 28. A common "expected" real return estimate is 1/CAPE. So, from 2.6 to 3.6 real return For a 50/50 portfolio, the resulting expected real return has gone from less than 1.3% to something like 2.7%. So, believing you can have a WR that is something like 1% 1.5% higher than what was previously possible does not seem that unimaginable. I am just playing Devil's advocate here. I don't have much faith in using valuation to make such decisions. But, it seems many people do. My only point is that if you believe that, then it would be inconsistent to not think SWR has increased significantly. It's not like...

I largely agree with you. But, this just seems like the flip side of all the "3% is the new 4% because of valuations and low bond yields" threads. Many prominent posters here argue that when bond yields are low and valuations are high, one should use a lower SWR. I have often made the point that I don't often see the same logic applied when valuations drop and bond yields rise "Yoohoo we can spend more now that the markets have crashed!!" If nothing else, it us at least a least bit refreshing to see something other than a spiral to an ever-lower SWR being discussed. But, it does seem a bit odd that there is so much push back against the idea of higher SWR now that bond yields and valuations have come down, some it from ...

And yes, I do think that one year where the market was down about 19% changing the withdrawal rate from 4.5% to 5% is a big change. But if you are adjusting every year, maybe not. If I start the year with 1 million and I say my SWR is 4%, that's a $40,000 SRW If the market plunges 20% and I'm left with 800k and I say my SWR is now 5%, that's still a $40,000 SRW In a sense the SRW hasn't changed at ALL based on one year. If I kept my 4% SRW year after year without changing it, THAT would be wild swinging around in the (dollar) SRW. Either way, something changes drastically when the market goes down 20% and needs to be accounted for. That depends, right? The traditional SWR studies do something like start with 4%, adjust for inflation annual...

And yes, I do think that one year where the market was down about 19% changing the withdrawal rate from 4.5% to 5% is a big change. But if you are adjusting every year, maybe not. If I start the year with 1 million and I say my SWR is 4%, that's a $40,000 SRW If the market plunges 20% and I'm left with 800k and I say my SWR is now 5%, that's still a $40,000 SRW In a sense the SRW hasn't changed at ALL based on one year. If I kept my 4% SRW year after year without changing it, THAT would be wild swinging around in the (dollar) SRW. Either way, something changes drastically when the market goes down 20% and needs to be accounted for. That depends, right? The traditional SWR studies do something like start with 4%, adjust for inflation annual...

Here is how I look at it. After buying house, portfolio is $1.8M. Starting at age 67, you have $39,000 income from SS. From now until 67, you have $14,000. If you set aside 9 X $25,000, that means you will have $39k taken care of for life. That leaves you with $1.575M. A conservative 3% withdrawal rate would yield $47,250. $47,250 + $39,000 = total income of $86,250. That almost exactly hits your goal of $86,000. I think you are good to retire, but there's not much room for error. You still probably want somewhere around 20-30% stocks to stay ahead of inflation. https://earlyretirementnow.com/2016/12/07/the-ultimate-guide-to-safe-withdrawal-rates-part-1-intro/ I think this is a good way to look at it. But, I would say it does leave some ro...

Good to know! But not sure I understand the last sentence though. Depending on your state, if you start earning more than $100,000, it can impact the subsidies/support that you get for discounted premiums on your ACA insurance. In my state, at an income level of under $60,000 for a family of four, healthcare is essentially free. Premiums are almost nothing, and any expenses you can submit a financial aid form and get 80 to 100% off. I know a couple FIRE families who are on it and they don’t pay anything ever and they have broken bones or had surgery. So the $500/month that my family has budgeted for our family given our income level is it way overkill/padded. There are so many programs to support lower income people if you just do some loo...

Where are you getting medical insurance for a family at $500? Full time working for large corps I can’t even get it all for $500 let alone any co-pays or out of pocket. But non-working I believe that number to be extremely low. I had one year of bad luck and hit full out of pocket maximums. Which eclipsed the $6000 you have budgeted by $7500. In my state, a family of 4 making 40k/year gets a 1300/month subsidy. A silver plan with an out of pocket limit of 6000 costs about 1200/month at my age. So basically you just have to pay the deductibles. There should even be some support for paying the deductible. Now that doesn't include things like adult dentists and things like eyewear. 6k seems like a pretty reasonable guess to me. Obviously this...

I've lately seen two Vanguard Personal Advisory Services portfolios that have a very large variation from Vanguard's position of the stock allocation of 60% US and 40% international. Neither of these two account owners requested to vary from this position nor did they have significant assets outside of Vanguard PAS that warranted such a large variation. I may write about this and am soliciting any feedback from Bogleheads members who might have a PAS account opened in the last couple of years and asking for your breakdown of US vs. Int'l stock recommended by a Vanguard PAS advisor. Please let me know if you do and whether or not you requested a certain allocation between US vs. Int'l. Thanks very much! Allan What were their allocations pri...

Since this a book about people with "more than enough", I assume many will have large taxable portfolios. So I'll ask the question I'm getting know for here to Mike/Oblivious Investor: How do TIPS work for high tax bracket investors with taxable accounts? Do you recommend them at all? Do you recommend high doses of TIPS, which, in high inflation, become subject to big "taxflation". And if not TIPS for those who "won the game" then what? With TIPS, the semiannual inflation adjustments to the principal are taxed as interest (as is the interest itself, of course). This doesn't necessarily make TIPS meaningfully more tax-inefficient than other Treasuries. And as Treasuries, they have one point going for them in th...

jimmy2017 wrote: ↑Sat Mar 18, 2023 10:59 pm I'm having a second child who will be three years younger than the first who currently has a 529. I'm debating whether to open a second 529 or heavily fund the first one to use and change the beneficiary after the first one goes to college for a few years. The rationale of just having one is lower risk if one of them doesn't go to college.

Any major pro/con considerations for having a 529 per kid vs one heavily funded one?

Thanks!

You may want to consider the opposite approach, multiple accounts for each child, holding different assets.

Here is an interesting discussion of that approach.
Might not be appropriate for all situations, bit worth considering:

https://www.bogleheads.org/forum/viewt ... #p5949485

jimmy2017 wrote: ↑Sat Mar 18, 2023 10:59 pm I'm having a second child who will be three years younger than the first who currently has a 529. I'm debating whether to open a second 529 or heavily fund the first one to use and change the beneficiary after the first one goes to college for a few years. The rationale of just having one is lower risk if one of them doesn't go to college.

Any major pro/con considerations for having a 529 per kid vs one heavily funded one?

Thanks!

You may want to consider the opposite approach, multiple accounts for each child, holding different assets.

Here is an interesting discussion of that approach.
Might not be appropriate for all situations, bit worth considering l:

https://www.bogleheads.org/forum/viewt ... #p5952610

I've followed this forum for around fifteen years and have learned so much here. So thanks for that up front. Having read many early retirement threads I have a good idea what to expect in response to my questions, but thought I'd add my situation to the mix in case I'm missing something situational... Here are the basics: 45 yrs old, LCOL area, intend to stay indefinitely Single, live with partner - no kids (won't change) Paid off house worth ~250k. Partner and I split the remaining living expenses. They intend to continue working another 10 years in a well-paying job, will be pension-eligible at that point. Investments: ~1.1 mil. in total investments (~50/50 split between equities and bonds/CDs) ~450k in TSP (FERS pension ~1200/month at ...

OP, I keep 3 months of expense in the checking account for bill paying. The rest of my emergency fund is in a MMF. Would that work for you? KlangFool Klang, Do you keep this in tax deferred or taxable? Taxable. It would be pointless to be in the tax deferred. You're right. It would be pointless. Unless you wanted to pay less taxes. 8-) I'm not going down KlangFool Avenue tonight, so go ahead and just say what you need to say and I'll leave it at that. But taxes on a 4.5% MMF are meaningful. If I move my MMF to tax deferred, selling stocks there to buy it, and sell my MMF to buy more stocks in taxable, I can then do the reverse when I need cash. But you know that already. :moneybag :moneybag Charles Joseph, "It depends". A) If sel...

So after taking five years to pass through Rick Ferri's stages of indexing (and being stuck in "complexity" for about four of them), I've completed my journey to the land of 100% indexing at rock-bottom costs, at an asset allocation I can live with. I've also succeeded for the most part (I think) in tax-efficient fund placement. I'm posting my portfolio here to ask if fellow Bogleheads could take a look and see if there are any flaws they notice, and any improvements that might be suggested. This has and continues to be a wonderful journey. This really isn't just about me but about the financial well-being and general piece of mind of my wife and other heirs when I pass. I am and continue to be extremely grateful to this communit...

So after taking five years to pass through Rick Ferri's stages of indexing (and being stuck in "complexity" for about four of them), I've completed my journey to the land of 100% indexing at rock-bottom costs, at an asset allocation I can live with. I've also succeeded for the most part (I think) in tax-efficient fund placement. I'm posting my portfolio here to ask if fellow Bogleheads could take a look and see if there are any flaws they notice, and any improvements that might be suggested. This has and continues to be a wonderful journey. This really isn't just about me but about the financial well-being and general piece of mind of my wife and other heirs when I pass. I am and continue to be extremely grateful to this communit...

I got notified by my employer HR on Mar 15th that they failed ADP (actual deferral percentage) test for 2022 and I am getting a what they are calling "Corrective Distribution". Does this impact my 2022 tax return? I almost finished my 2022 tax preparation and was planning to file it this weekend; now I am holding it off :( . Which tax year should include this corrective distribution? My plan fails every year apparently. It failed in 2021 and 2022. This 2022 tax return is my first time that I’ve needed to file a 1099-r for this. To the tune of $5200 unfortunately. As far as I understand it, this will impact your 2023 return. 1. You contributed to your 401k in 2022 2. the non discrimination testing was done in 2023 and they will ma...

I got notified by my employer HR on Mar 15th that they failed ADP (actual deferral percentage) test for 2022 and I am getting a what they are calling "Corrective Distribution". Does this impact my 2022 tax return? I almost finished my 2022 tax preparation and was planning to file it this weekend; now I am holding it off :( . Which tax year should include this corrective distribution? My plan fails every year apparently. It failed in 2021 and 2022. This 2022 tax return is my first time that I’ve needed to file a 1099-r for this. To the tune of $5200 unfortunately. As far as I understand it, this will impact your 2023 return. 1. You contributed to your 401k in 2022 2. the non discrimination testing was done in 2023 and they will ma...

So after taking five years to pass through Rick Ferri's stages of indexing (and being stuck in "complexity" for about four of them), I've completed my journey to the land of 100% indexing at rock-bottom costs, at an asset allocation I can live with. I've also succeeded for the most part (I think) in tax-efficient fund placement. I'm posting my portfolio here to ask if fellow Bogleheads could take a look and see if there are any flaws they notice, and any improvements that might be suggested. This has and continues to be a wonderful journey. This really isn't just about me but about the financial well-being and general piece of mind of my wife and other heirs when I pass. I am and continue to be extremely grateful to this communit...

FYI MMM stands for Mr. Money Mustache which is a popular website based on retiring very early with a frugal lifestyle. If I recall correctly his "except for" was that his spouse was still working and he had significant income from his web site. :oops: I never understand this criticism. He retired well before his web site took off. And in either case published his annual spending. Could he have been out and out lying? Possibly, but I’ve got no particular reason to think so I don't have a huge criticism but he's living part of his life off business expenses but not accounting for that. Imagine someone that writes a travel blog and travels around the world to jet-set destinations all year long. Their personal budget could be very lo...

Yes NC's minimum is 30/60k. The FB agent also recommended increasing the prop damage to 100k and 50k/100k for A. For me to get an umbrella, I need to be at 250/500 as well and that will increase my auto 6 month premium to $726 and $189 for a 1M umbrella. Speaking to the FB agent later today. Thank you all for the quick responses! Bogleheads rocks as usual !!:) Why are you thinking about getting an umbrella policy? I suspect you are concerned about getting sued by someone for harm you have caused them. Statistically, that is most likely to happen due to an auto accident. Increasing your homeowners liability will not protect you in that situation. That is why it is so much cheaper to do that compared to getting an umbrella policy, with the r...

gt4715b wrote: ↑Wed Mar 15, 2023 2:20 pm

marcopolo wrote: ↑Wed Mar 15, 2023 2:09 pm
By the way, what is SCR, and how does it differ from SWR, this is the first time I have seem that acronym?

It stands for Safe Consumption Rate. I've only seen it in Karsten's spreadsheet. It basically allows for supplemental cash flows, income and/or expenses, to be added. This allows people to model Social Security benefits, pensions or expected increases in expenses, such as health care costs later in life.

In the absence of the cash flows SCR = SWR.

It's kind of confusing because you can't withdraw from your investment portfolio at the SCR; you can basically withdraw (SCR - cash flows).

Makes sense.

Thanks for the explanation.

Marseille07 wrote: ↑Wed Mar 15, 2023 1:57 pm

gt4715b wrote: ↑Wed Mar 15, 2023 1:36 pm I've been playing with SWR long enough to instinctively know that a 5% SWR, indexed for inflation over 60 years with small supplemental cash flows is not a safe strategy.

5% SWR is not, but 5% FWR is probably okay so long as you don't have legacy motives. The VPW works somewhat similarly.

What is FWR? We seem to have some new acronyms being thrown around....