Search found 590 matches

by MP123
Fri May 25, 2018 4:45 pm
Forum: Investing - Theory, News & General
Topic: Is backdoor Roth IRA eliminated in 2018?
Replies: 8
Views: 905

Re: Is backdoor Roth IRA eliminated in 2018?

There is language in the Tax Cuts and Jobs Act that some feel explicitly allows the Backdoor Roth. There's a thread on it somewhere here.

In any case it was not eliminated.
by MP123
Fri May 25, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone having trouble with Quicken today?
Replies: 1
Views: 120

Re: Anyone having trouble with Quicken today?

I've had no issues today including transaction downloads. But that's with Q Deluxe 2017.
by MP123
Thu May 24, 2018 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: medicaid as early retirement medical insurance (or maybe Obamacare)
Replies: 11
Views: 883

Re: medicaid as early retirement medical insurance (or maybe Obamacare)

delamar, thanks for the link. i saw that but was skeptical. the income limit seems high to me. also, i did not see anything about assets limits. Read the next line " You must also be either pregnant, a parent or relative caretaker of a dependent child(ren) under age 19, blind, have a disability or ...
by MP123
Mon May 21, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Can I transfer brokerage Acct without speaking to FA?
Replies: 20
Views: 1164

Re: Can I transfer brokerage Acct without speaking to FA?

I am in the 33% tax bracket and filing married joint. Don’t have any losses to put against the gains. 15k is the net gains on the stocks in that brokerage account. Not sure about selling them gradually because that would involve speculation and I don’t have a crystal ball. We’re you referring to se...
by MP123
Mon May 21, 2018 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: When should we stop contributing to our 529?
Replies: 18
Views: 1748

Re: When should we stop contributing to our 529?

The recent tax bill that passed allows 529s to be used for K-12 expenses as well as college although I'm not sure if all state's 529 plans have adopted that yet.

So depending on your plans for the child's future you may want additional funds in there to use before college.
by MP123
Mon May 21, 2018 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Can I transfer brokerage Acct without speaking to FA?
Replies: 20
Views: 1164

Re: Can I transfer brokerage Acct without speaking to FA?

Wow, $64K in 50 individual stocks is just nuts. Your former FA must have been paid per transaction or something like that. Assuming you want to continue to hold the three funds you should probably just move them over in kind. Best strategy for the individual stocks is harder to say. What tax bracket...
by MP123
Sun May 20, 2018 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire? Input and advice is welcome!
Replies: 29
Views: 3631

Re: Can I retire? Input and advice is welcome!

My Financial Journey wrote:
Sun May 20, 2018 5:26 pm

I live in South East Asia and plan on remaining here after retirement
My monthly expenses are $1,600
Your monthly expenses are about what our health insurance alone costs.

I'd say you're all set. Assuming you plan to stay in SEA.
by MP123
Sun May 20, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: child turning 18 - stop filing as dependent?
Replies: 23
Views: 1946

Re: child turning 18 - stop filing as dependent?

Does she (or will she in '19) provide more than half of her support? This includes tuition. How much of her support will be paid through the 529? My understanding is that this is a vague area and that 529 distributions may be interpreted to be the child's contribution to her own support since they a...
by MP123
Sun May 20, 2018 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2530

Re: Having trouble figuring out expected expenses in retirement

bertilak wrote:
Sat May 19, 2018 4:08 pm
"A straight flush beats a full house every time!"
:D Nothing like a little septic tank humor...
by MP123
Sun May 20, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: HSA account using later
Replies: 6
Views: 537

Re: HSA account using later

Once you turn 65 you can use the HSA funds for anything without penalty. For things other than medical expenses you'll owe tax though. Sort of like another IRA. As mentioned above you can use the HSA for a dependent's medical expenses but once they aren't dependents you can't use the funds for them....
by MP123
Sat May 19, 2018 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 20
Views: 969

Re: Should Tax-Free Munis Be Part of Roth IRA?

There's a good section on fund placement in the Wiki here: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement You might get a better return from non-muni bonds even though you'd owe tax on it so consider that. The general advice is to to put your securities with the highest growth potentia...
by MP123
Sat May 19, 2018 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 20
Views: 969

Re: Should Tax-Free Munis Be Part of Roth IRA?

I misspoke. or mis-typed...I do max out the $5500 limit each year or each 16 months... So place the munis into the Roth IRA and pay the $5500 between US Stocks/Int'l Stocks/Munis/REIT? You should not buy tax-exempt municipal bonds in a tax-advantaged account. This. No point in tax exempt bonds in a...
by MP123
Fri May 18, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help: Early Retirement, ACA Subsidies, Asset Location
Replies: 18
Views: 921

Re: Need Help: Early Retirement, ACA Subsidies, Asset Location

A lot depends on portfolio size and amount of tax advantaged space too. An extreme example: If your tax advantaged space was big enough to hold your entire bond allocation and you held nothing but individual non-dividend paying stocks in taxable (so you could manage the CG) then you'd potentially ha...
by MP123
Fri May 18, 2018 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help: Early Retirement, ACA Subsidies, Asset Location
Replies: 18
Views: 921

Re: Need Help: Early Retirement, ACA Subsidies, Asset Location

Tax exempt muni income gets added back in to calculate MAGI for ACA purposes. Unfortunately. Oh no. Well that is a huge bummer and definitely requires some re-organization. Thanks! Yes. SS also gets added in (if you take it early before Medicare) Tax efficiency of a portfolio is important but I thi...
by MP123
Fri May 18, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help: Early Retirement, ACA Subsidies, Asset Location
Replies: 18
Views: 921

Re: Need Help: Early Retirement, ACA Subsidies, Asset Location

Has anyone considered doing TSM and SCV in taxable and TISM in tax-advantaged as an asset location strategy for ACA subsidy reasons? Or even more dramatically, doing tax-exempt bonds in taxable and stocks in tax-advantaged? Tax exempt muni income gets added back in to calculate MAGI for ACA purpose...
by MP123
Fri May 18, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Qualify for Obama care for a part of the year.
Replies: 24
Views: 718

Re: Qualify for Obama care for a part of the year.

What state does he live in? WA WA has Apple Health Medicaid, he might be able to get coverage through them. It is one of the expansion states. I don't think having ACA insurance would directly affect his mortgage application but making his income low enough to qualify for Medicaid likely would.
by MP123
Fri May 18, 2018 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Qualify for Obama care for a part of the year.
Replies: 24
Views: 718

Re: Qualify for Obama care for a part of the year.

What state does he live in?
by MP123
Fri May 18, 2018 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Qualify for Obama care for a part of the year.
Replies: 24
Views: 718

Re: Qualify for Obama care for a part of the year.

He can get an ACA plan for 2019 during open enrollment in November 2018. Outside of that he can get a plan if he's had a "Qualifying Life Event". See here: https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/ "Important: Losing individual coverage doesn’t qualify f...
by MP123
Fri May 18, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Qualify for Obama care for a part of the year.
Replies: 24
Views: 718

Re: Qualify for Obama care for a part of the year.

He can get an ACA plan for 2019 during open enrollment in November 2018. Outside of that he can get a plan if he's had a "Qualifying Life Event". See here: https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/ "Important: Losing individual coverage doesn’t qualify fo...
by MP123
Thu May 17, 2018 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3447

Re: Are there any experienced real-estate people here?

Is the house occupied? You'd be better off spending the $15k on a vacation for them and you clean out and paint (inside) the house. Get everything out. The new buyer will want to change everything anyway and if you're in Seattle I'm sure it will sell before they get back.
by MP123
Thu May 17, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Roth convert 401k? (and other retirement acct questions)
Replies: 10
Views: 814

Re: Can I Roth convert 401k? (and other retirement acct questions)

On the other hand if I contribute to a 401k, then can I Roth convert those funds into an external Roth IRA in the same way? I think not. Am I correct? If so, it seems like the tIRA has this as an advantage over 401k. If your 401k allows after tax contributions you may be able to do a "Mega Backdoor...
by MP123
Thu May 17, 2018 10:23 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 456
Views: 23172

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Another important factor to take into consideration when deciding on taxable vs. IRA is that IRA money when withdrawn would be taxed as ordinary income, but the gain in taxable will be taxed as long term capital gain or 15% for most people. The 15% tax rate is very attractive. TravelforFun This mis...
by MP123
Thu May 17, 2018 9:07 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 456
Views: 23172

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

It's illogical to leave the future tax rate "wildcard" in play, if you can completely take it out of play with a Roth, or Roth 401(k). What are we, some 20 trillion or thereabouts in debt? I don't recall the exact numbers, but in the early 20th century, didn't tax brackets get higher than 50%? So m...
by MP123
Thu May 17, 2018 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Lucrative careers?
Replies: 318
Views: 22531

Re: Lucrative careers?

CedarWaxWing wrote:
Thu May 17, 2018 7:37 pm
Mega church television evangelist! I sat next to one (two actually) on a plane flight once, and for some reason they opened up to me about how lucrative that is.
One on each side? Must have been quite a flight! :D
by MP123
Thu May 17, 2018 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: How do I solve my SEP/solo-401(k)/tIRA (with basis)/backdoor Roth conundrum?
Replies: 12
Views: 526

Re: How do I solve my SEP/solo-401(k)/tIRA (with basis)/backdoor Roth conundrum?

Silly question perhaps but since it's still 2018 could you not have them refund your SEP contribution and then start an i401k effective 1/1/18? There are certainly ways to deal with excess contributions for example. I agree that the Schwab prototype SEP (not 5305) is compatible with 401k. Of course ...
by MP123
Thu May 17, 2018 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2530

Re: Having trouble figuring out expected expenses in retirement

FWIW, our total cost of medical insurance premiums for 1 year on ACA (2017), plus medical and dental out of pocket was $18,000 and that was with no life threatening illnesses but a few minor health problems. My estimate was $15,000. Being off by $3,000 was humbling, but I have enough room in my wit...
by MP123
Thu May 17, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Pull money out of HSA for non-approved items?
Replies: 6
Views: 463

Re: Pull money out of HSA for non-approved items?

There's a 20% penalty plus the withdrawal is taxed as regular income . You would almost certainly be better off getting the money elsewhere. The penalty is waived if you're over 65. I thought it was only 10% The penalty on HSA early withdrawals is 20%. Yes, according to Pub. 969. I think they raise...
by MP123
Thu May 17, 2018 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Pull money out of HSA for non-approved items?
Replies: 6
Views: 463

Re: Pull money out of HSA for non-approved items?

There's a 20% penalty plus the withdrawal is taxed as regular income. You would almost certainly be better off getting the money elsewhere.

The penalty is waived if you're over 65.
by MP123
Wed May 16, 2018 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Recast mortgage?
Replies: 9
Views: 785

Re: Recast mortgage?

I can see their interest in having you recast back to the original term but I don't see how it would help you. Will they recast to a 15 at a better rate?

I suppose it might give you some breathing room if things take a downturn but it sounds like you're well positioned to pay it off early.
by MP123
Wed May 16, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 456
Views: 23172

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Spend down most of your 401K in your 60's, after you retire but before RMD's or social security. Take out enough that will keep you in a lower tax bracket than your working years when you put it in. This could be subsidized by investments in a taxable account with only long term capital gain tax ra...
by MP123
Wed May 16, 2018 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford to retire now?
Replies: 45
Views: 6271

Re: Can I afford to retire now?

Do you have a plan for healthcare insurance until both you and your spouse qualify for Medicare? If at all possible it would be important to keep your income below the "ACA cliff" so that you can get subsidies and not have to pay the full premiums which can be very high. That's another issue with ke...
by MP123
Tue May 15, 2018 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford to retire now?
Replies: 45
Views: 6271

Re: Can I afford to retire now?

Yes, I think you can retire. Your stock position is concentrated in BRK. I'm not sure about the managed payout fund but more diversity would be good. Add some bonds. 3 fund approach might be good for you. Would downsizing even reduce your fixed expenses (other than p&i) considering Prop. 13? Where's...
by MP123
Tue May 15, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Short Term Health Insurance, HSA eligibility
Replies: 11
Views: 518

Re: Short Term Health Insurance, HSA eligibility

I was just thinking about the pre-existing thing. Short of being in an accident, couldn't any number of things be deemed pre-existing? Cancers, heart problems, etc... Yes, along with chronic and costly but not life threatening things too. One good thing about ACA plans is they can't exclude coverag...
by MP123
Tue May 15, 2018 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Short Term Health Insurance, HSA eligibility
Replies: 11
Views: 518

Re: Short Term Health Insurance, HSA eligibility

DeerRunner wrote:
Tue May 15, 2018 2:22 pm
In my mind, the biggest risk with these is if you need more than $1mil of coverage.
Also consider that you won't be covered for things that the insurer decides are pre-exisiting conditions. And since each policy is only good for 90 days there's a lot of opportunity for that to occur.
by MP123
Tue May 15, 2018 1:48 pm
Forum: Investing - Theory, News & General
Topic: can someone explain me AMT in dummy terms?
Replies: 15
Views: 2449

Re: can someone explain me AMT in dummy terms?

"Fewer deductions in general is another reason why you won’t see as many people bumping up against the AMT next year." thanks for that piece of info, I was wondering when reading around why it said fewer people next year will be hit with AMT... makes sense now I think the main reason why fewer peop...
by MP123
Mon May 14, 2018 7:03 pm
Forum: Personal Consumer Issues
Topic: Is there a boglehead muscle car?
Replies: 138
Views: 7111

Re: Is there a boglehead muscle car?

True muscle cars were built in Detroit in the 60s and 70s. Anything else is just a modern reinterpretation at best. No import can ever be a muscle car although they will outperform them easily of course. It's not just about speed, and certainly not about handling. More about the sounds and vibration...
by MP123
Mon May 14, 2018 1:53 pm
Forum: Personal Consumer Issues
Topic: Car Insurance Named Driver Exlusion Options
Replies: 8
Views: 623

Re: Car Insurance Named Driver Exlusion Options

Did any of the incidents involve a DUI? She may be required to carry SR-22 insurance as a high risk driver. I'd check to see if it's just that your current insurer won't cover her anymore or if you need to get her special SR-22 insurance.
by MP123
Mon May 14, 2018 1:42 pm
Forum: Personal Consumer Issues
Topic: Is there a boglehead muscle car?
Replies: 138
Views: 7111

Re: Is there a boglehead muscle car?

1967 Camaro SS with a big block.

A little expensive but you'll make money over the long run so it's Bogleheaded. They just don't make them like that anymore. It would definitely take care of the performance/noise you're chasing after. Or at least the noise! :twisted:
by MP123
Sun May 13, 2018 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Buying land in central FL
Replies: 55
Views: 5160

Re: Buying land in central FL

Sounds like Oceanfront property in Arizona.

The fact that they're trying to sell it to you is a red flag. There's lots of ways they could defraud you or sell you unbuildable land. Not sure that's the case here but I'd be very careful.

Have you seen any compareble lots?
by MP123
Fri May 11, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: TLH questions
Replies: 12
Views: 654

Re: TLH questions

Ok I've asked this on at least one other thread and got no response. The common wisdom around here is that a transaction in a 401k can not create a wash. But based on this language: A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale y...
by MP123
Fri May 11, 2018 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Can I fund my solo 401k with mutual fund shares I already own?
Replies: 31
Views: 1177

Re: Can I fund my solo 401k with mutual fund shares I already own?

I was defaulting to Vanguard just because that is where I have my other stuff, but now I am cautioned that that Admiral shares are inexplicably not available in a solo 401k. I am looking to index within the 401k at minimum cost. I'm a fan of Vanguard's funds but their i401k plans are the least flex...
by MP123
Thu May 10, 2018 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Need Input on My Early Retirement Plan.....
Replies: 45
Views: 5344

Re: Need Input on My Early Retirement Plan.....

Why not pay cash for the house? It would only take about 10% of your assets and it would reduce your expenses. Your remaining assets would probably throw off enough income to cover your annual expenses (assuming around $60K). Good idea. There's no point in generating income to pay a mortgage if tha...
by MP123
Thu May 10, 2018 5:26 pm
Forum: Personal Consumer Issues
Topic: Amazon package that can't be traced
Replies: 72
Views: 3855

Re: Amazon package that can't be traced

It was a surprise gift, and you are welcome. To prove that you are authorized to respond with "you are welcome," please name the items. Victoria My reply was a joke. Now that I have read the article nisiprius linked, I am speechless. I assumed they were gifts from someone you had not seen in awhile...
by MP123
Thu May 10, 2018 5:05 pm
Forum: Personal Consumer Issues
Topic: Amazon package that can't be traced
Replies: 72
Views: 3855

Re: Amazon package that can't be traced

Yes, as mentioned above it's "brushing".

Some think it's a way for companies (in China) to boost their apparent sales.
by MP123
Thu May 10, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: How Much may I contribute as a Sole Proprietor to my solo 401K?
Replies: 13
Views: 1019

Re: How Much may I contribute as a Sole Proprietor to my solo 401K?

It sounds like the question boils down to whether the SE Health Insurance Deduction reduces the amount of Net Business Income available for i401k contributions (both employer and employee parts). I think it does for a regular i401k in a roundabout way because line 27 + line 28 + line 29 can't exceed...
by MP123
Thu May 10, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Can I fund my solo 401k with mutual fund shares I already own?
Replies: 31
Views: 1177

Re: Can I fund my solo 401k with mutual fund shares I already own?

Thank you very much for this. So do you know if I can use mutual fund shares already owned in a taxable account to fund these 401k contributions? Several people have already answered. Contributions to all tax-advantaged accounts (retirement, HSA, etc...) MUST be in cash. It's just that I have seen ...
by MP123
Wed May 09, 2018 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Can I fund my solo 401k with mutual fund shares I already own?
Replies: 31
Views: 1177

Re: Can I fund my solo 401k with mutual fund shares I already own?

You can roll shares into an i401k from an IRA or SEP in kind (but not at Vanguard) but I think contributions need to be in cash.
by MP123
Wed May 09, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Retire Internationally for FIRE
Replies: 78
Views: 8882

Re: Retire Internationally for FIRE

HongKonger wrote:
Wed May 09, 2018 2:34 pm
Deep in the Balkans :D
Just how deep does one need to go to get those prices? :happy

You could multiply those by at least 100 for prices in the US...
by MP123
Wed May 09, 2018 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-B reporting long term gain with wash
Replies: 7
Views: 493

Re: 1099-B reporting long term gain with wash

It seems like your tax due would likely be the same whether the $2 in gains was LT or ST once you factor in rounding. But maybe not. Reporting what's on the 1099B is probably the safest and most defensible approach I would think. To be sure I understand: the 1099B reports a LTCG but the date acquire...
by MP123
Wed May 09, 2018 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-B reporting long term gain with wash
Replies: 7
Views: 493

Re: 1099-B reporting long term gain with wash

If this is really LTCG vs STCG on $2.42 you're probably talking about less than $1 in taxes, right?