Bogleheads.org

I think you are getting good advice and would strongly consider the advice. If it were someone younger like yourself, it might possibly be worth investigating carefully and negotiating, but as someone older I would not want the concern or stress about all the "what if's" that could come up. Yes, a bargain sounds great (if it is a bargain), but we don't need the extra worry in our old age. (I wonder if there are some older folks stressing out about whether their bank is safe these days, and that would probably be a pretty minor concern compared to the things that could go wrong here.) I can easily think of at least three totally different types of sales of $xxx to $x,xxx where we were not paid; so it does happen, even in a communit...

If you do look at what they would have made at EJ, be sure to consider the annual cost for the advisor which would be subtracted from their gains.

Recent market declines are not usual, but must be expected at unpredictable intervals. Agree that if this money may be needed at any time on short notice, it should be in something less volatile: eg., money markets (Vanguard's settlement fund currently has good interest/dividend rates), Treasury bills have been even better and can be bought from 4 weeks to 52 weeks, their bank CDs have been competitive, etc. Fidelity and Schwab have similar offerings.

The best investment could be to invest in yourself. Whether this is college, specific training, white or blue collar jobs that suit you and pay reasonably well could be your solution.

I found this link to be very helpful for its detail in purchasing at 3 good brokerages:
https://thefinancebuff.com/treasury-bil ... c-vanguard

I believe this link is for purchasing at auction, but you are directed to the same location for purchasing secondary treasuries.

Eight days to get federal refund in bank account. No state yet. Waiting for some I-Bonds now.

I wouldn't think it would make sense to use them for this purpose only. Vanguard will calculate RMDs for each year. I simply checked on that, did what QCDs I wanted (online, choose check, and gave the charity and amount so they could send a check to charity in care of me), and if I had any left I could request the remaining RMD to be sent to my joint brokerage account or checking account. (I expect that could be automated.) I went through the earlier annual government decision on QCDs which was a pain since they couldn't seem to decide until about the end of the year. Then for a while I had to call in and give a person the name and amount for the charity. Now you can do it all online. Before QCDs, we did some Roth conversions to nearly the ...

I’ll reiterate what I said earlier. This is an expensive hobby. Once she graduates and starts looking for a job and realizes she can’t get one with her preferred schedule then she’ll just be a better educated SAHM. This 100% fine if you can afford it. I think it's difficult for Bogleheads to relate to someone who's 37 years old and either has no goals or bounces from one goal to another on a whim. It's just not a concept they can relate to. I can relate completely and some of these comments are unnecessarily harsh about the spouse. I didn't read the situation as her having "no goals." One of her primary goals is to raise her children in what she considers an optimal way with significant parental time investment and daycare-free s...

I believe Mike Piper's little book on Social Security would be a handy reference to keep this straight. He kept us informed when big changes happened a few years ago:

Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less)
| by Mike Piper | Jan 9, 2022
Paperback $14.67 Kindle $4.99

Also keep in mind that Survivor's Benefits have very different rules than spouse's benefits.

Edit: I see the above book was just mentioned.
What in the world happened to the clock here? It says it is after 8 P.M.

Please note the age of applicant in the quote from S Critic. Rules really changed a few years ago.

Lots of good ideas/suggestions here. I have to admit that a for-profit institution has many negatives. I don't want you to miss the idea that getting an education as an adult can be an inspiration to your kids that education is good and worthwhile, and that they can admire a mother who has made the effort to get further education as an older adult. There is really no way to put a number to it, but I have observed this benefit personally. It really can have a positive effect in your family. I believe there is merit in choosing a community college with transfer arrangements to start working toward a certificate or two-year degree in an area that might be satisfying for working at least in the short term as well as determine whether this area ...

Perhaps you could go to
https://www.bogleheads.org/wiki/Book_re ... Retirement
in the Wiki and select Retirement to get some books on retirement.
This one is a bit newer and a good reference to have on hand:
Jane Bryant Quinn. How to Make Your Money Last: The Indispensable Retirement Guide.

Without digging too deeply, it looks like you have things covered quite well for the near future. Pension and two SS payments covering your expenses allow you to leave investments to continue growing. Some things to consider: Social Security: there is a program to get suggested ages to claim SS for each of you. Often, it would be age 70 (or perhaps FRA-full retirement age) for higher income person to give the highest lifetime SS income for either that person or the survivor. The lower income person could begin anytime from age 62 to perhaps FRA or 70, but would still be covered by higher amount if a future survivor. (Mike Piper's updated book on SS can give you more specific details.) Remember that taxes on up to 85% of your SS depend on a ...

The limit for QCDs is $100,000/year, so RMD is not the limit. Some folks with heirs in higher tax brackets give extra beyond RMD so heirs won't have a large inherited IRA to empty in 10 years.

I suggest you read those parts of Mike Piper's book which may apply, since there are many changes and misunderstandings:
Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less (Financial Topics in 100 Pages or Less) Paperback – January 9, 2022
by Mike Piper (Author)
Kindle
$4.99
Read with Our Free App

Paperback
$14.67

I believe he is the author of the program linked above as well and his comments can be searched on Bogleheads as well.

deleted.

My "new" brokerage accounts say the tax forms will be out 2/23/23 (about).
Right after the year I switched, we received two 1099 forms: the earlier one in January for the former accounts, and the later one in February for the new brokerage accounts we switched to.
Now there is just one consolidated 1099 which comes out in February.

Most folks on Bogleheads seem to use Vanguard, Fidelity, or Schwab for buying treasuries and only buy I-Bonds here.

I believe she could do a QCD from her IRA up to 100,000/year after she turns 70.5 years old. She can give her usual amount of charitable contributions from the IRA each year to reduce IRA and RMD in the future and not pay tax on that amount. QCDs can count as RMDs when that is required.

Dividends and capital gains from unwanted funds should not be reinvested. Cash can be used for whatever: tax-efficient funds, bonds and cash-equivalents, or checking account.

Similar question to my uncle who has a traditional IRA but its only 9k or so. I have no idea how he has it. It’s such a small amount, should he convert that to anything either? He has a $5M nest egg, has no debt and is retired recently as a of a few years ago. He has a brokerage and Roth which make up most of his net worth. If I had $5M and one $9k IRA I would either convert the IRA to Roth (if I already had an existing Roth IRA) or cash out the IRA and pay the tax. I would do this simply to get rid of a "nuisance" account. The tax will have to be paid eventually anyway. :D Absolutely agree; it would be a win just to not have to deal with the $9k account. I had a small trad. IRA and used QCD to give to charities to get rid of the...

Similar question to my uncle who has a traditional IRA but its only 9k or so. I have no idea how he has it. It’s such a small amount, should he convert that to anything either? He has a $5M nest egg, has no debt and is retired recently as a of a few years ago. He has a brokerage and Roth which make up most of his net worth. If I had $5M and one $9k IRA I would either convert the IRA to Roth (if I already had an existing Roth IRA) or cash out the IRA and pay the tax. I would do this simply to get rid of a "nuisance" account. The tax will have to be paid eventually anyway. :D Absolutely agree; it would be a win just to not have to deal with the $9k account. I had a small trad. IRA and used QCD to give to charities to get rid of the...

2. Yes, the default is 0, but some people might go searching for the lowest value in the 80's and 90's and use that, keeping their documented findings in case they get audited. Default of zero is certainly simpler and doesn't need to be defended.

Our retirement annuity seems to have the easiest way to change withholding up and down so that is what we use. Went into their website and had them add an extra amount, then after 2 months changed it back again to what it used to be. That should be plenty to cover costs and perhaps have a chance to buy more I-Bonds.

I probably missed it, but be sure to let the brokerage know that you want to set up a traditional IRA, not just a brokerage account (also called taxable or ??). It would be a shame to accidentally owe a large tax charge when transferring from TSP because the conversation was not clear as to the type of account you wanted.

Hi all, I have >$6,500 in TLH from the past 1-2 years in my taxable account. Come 1/1/2023, I was considering: - Selling $6,500 in Taxable (VTI/VXUS) - Purchasing lump-sum $6,500 in Roth IRA (VT) If I understand correctly, the TLH will prevent me from having any capital gains taxes since I have >losses than the sale in Taxable. This also comes with a benefit of shielding it from issues with lower cost basis as it will be in Roth IRA. Research I've been made aware of states a lump sum more-often-than-not outperforms DCAing. Am I neglecting to consider anything here on this decision (assuming VTI/VXUS and VT are not "substantially similar" --> different indexes)? As far as I can tell, these two events are unrelated, but should be d...

How about a SPIA? Of course, if you are selling them, there is not so much profit so the customer may get a better deal than the salesperson.

Thank you for sharing about Sheepdog's passing. He will be missed. Thank you for respecting his privacy, as that is expected in this forum. He was definitely one of the "good guys" from way back. RIP, Sheepdog.

I would definitely not cash in bonds at the cost of 3 months at 9+% rate. Wait another 3 months so you would forfeit 6+% rate instead, then do what you want.

Since the good advice here doesn't seem to be effective, may I suggest Gamblers Anonymous to help you start thinking straight and understand the urge to keep on gambling for the thrill of it.

You are not only gambling you own future, you are gambling your spouse's future as well. This could also destroy your marriage if you continue on the path you are on. What will you be like if you lose it all? This could also seriously affect your children as well.

Right now you have a good story to tell and you can sit back and enjoy it. Continuing on this path could turn it into a very sad story.

I really believe you are capable of doing this. Best wishes.

As far as I know, there is usually a few months allowed where they can be returned. However, this sounds like something the audiologist can take care of.

Has she/he removed and re-inserted the battery? (both of them?)
Is it placed in the ear correctly?

It sounds like a warning that something needs adjusting. The audiologist should be able to determine this. Does wearing just the good one help until then?

I do hope they can take care of it. Best wishes.

Good suggestions above. Yes, try calling today in case someone is in the office.

Hopefully someone can advise. This is the first time I have purchased T bills on auction. I placed a trade today on Vanguard for the T-bill auction for monday 11/21. That went fine and was easy. Emboldened, I then did the same thing on the Schwab site. I received a CUSIP of 912796T33. However, after examining it a little later I realized that it wasn't for a new issue. The auction date was for Feb 22, 2022 and the original issue date was feb 24, 2022. I googled it and it appears to be a 52 week bill. So apparently I goofed. I was unable to cancel it online and called Schwab. They told me that I had to reach the fixed income department on monday morning. The problem is that the auction is set for monday morning (Nov 21) and I'm on the west ...

The Vanguard settlement fund (federal money market fund) is now paying over 3.5% annual interest, so I would consider leaving it there, at least while interest rates are competitive. She could just as easily lose money in investments as grow money in the few years she may have left (she is even older than I am!) Other brokerages may have similar funds. I just bought a 5-month treasury bill for an extra 1% rate. They automatically return to the settlement fund when matured.

A SPIA would yield $678/month in my state for an 87-yr-old female. There would be no return of principle without buying something extra. Not sure if it would be worthwhile, but thought I would toss in that option. I checked on ImmediateAnnuities.com

The 1040 tax returns have a separate category for non-covered funds as you deal with reporting sales. As far as I know, brokers simply report the average cost to you and that is the simplest way to report it on the 1040. You report the covered funds on your 1040 based on the basis method you have; average cost is often the default unless you have changed it to Specific Id, for example. So your broker separates them out on the 1099-B to go onto the proper place on the 1040 form; there should not be any problem with keeping the same fund if you wish to add to it as they will be reported separately. When I check my Vanguard cost basis, the non-covered shares are lumped together into one lot , and the separate lots of the rest are shown with th...

Trying to look at this from her perspective, at least age-wise, I would caution you to consider things but act slowly on those things that don't require immediate attention. She has had enough stress this year so that it would benefit both her health and state of mind to not have unnecessary changes happen nor many decisions to make. It is not always easy to think clearly after the death of a spouse, so don't make quick judgements on mental capacity just yet. I see it recommended that waiting a full year before making optional decisions is better for both health and state of mind. Since this is the final year of MFJ in taxes, you might consider what income should be in this tax year rather than next year. I agree that combining all the IRAs...

I was desperate, and this was my final try to cut un-lined pills before begging for different pills:

The EQUADOSE Pill Cutter V2. A New Kind of Pill Splitter with Double Stainless Steel Blades and a Centering Device. Great for Cutting Tablets for You and Your Pet.

$17 at Amazon. Never thought I would spend that much on a cheap pill splitter! Finally I have half-pills instead of multi-parts of various sizes. Typical cheap plastic, but it works.

You can't convert a RMD directly into a Roth. The IRS prohibits it. And if you don't have earned income, which is often the case for someone taking RMDs, you can't contribute to a Roth at all, so you're "stuck" with the RMD proceeds. I didn’t say anything about the RMD or a contribution. i said: But why not put that unneeded excess distribution into a Roth IRA instead of Taxable? You would pay the same taxes in either case, but if you convert the unneeded excess distribution (after the RMD has been completed), the Roth will allow the money to continue growing tax-free. The “unneeded excess distribution” is the amount over and above the RMD that you don’t need for current spending. And you must FIRST complete your RMD: Just do the...

I tell ya... I'm having flash backs to when the limit was 30K/ssn, they had actual fixed rates AND you could buy on credit cards and get the cash back.... Today me is scalding past me for not maxing them out... past me is making lame excuses about not having the cash and sticking to the asset allocation and having stock more than made up for this.... Today me is currently winning cause he is using now dollars to imagine past purchases and his voice is louder... past me is currently pouting after today me told him about this hitting the front page of CNN :D :annoyed 😅😂 +1 Ditto on the lame excuses. Believe the Diehards were passing out info on this great opportunity. I could say the same for SS. Woulda, coulda, shoulda. Nevertheless, most o...

Chuck wrote: ↑Thu Oct 27, 2022 10:36 am Month-by-month values and rates for all I-Bonds ever issued: https://eyebonds.info/ibonds/index.html

Thank you so much. I have seen it before, but mostly do it on my own. This is so great! I see $480 earned on $10k for the 6 months that the annual rates are 9.6%, which is amazing (not so for the inflation we otherwise deal with every day, but one small but impressive benefit!) All of our $10k '21-'22 purchases just happen to be at that rate today.

Yes, help her get an account started so you can deliver her first gift in 2022 and a second in Jan for 2023, so that takes care of $20k in 3 months. She can not also buy for herself in any year you gift her the max, but she could buy a gift for you (at 9.6+% if bought by Oct 28, 2022). Be sure to write down any ID, password, answers to questions, so you do not lose track of them. Also follow rules carefully, and don't use back button or double tap a key.

They can be cashed in after being owned 1 year total, but lose last 3 months interest if bought less than 5 years ago. Allow a good week after gifting to cash in a year+ old gift.

The money has been earning great interest during this time, so it wasn't a mistake.

Depending on what information is given on the W-4, she may very well have had tax withheld as if she were the only person earning money in the family, which would be a much lower tax rate than the 2 of you now have. The same would be true for you, so both were paying at too low a rate.

I urge you both to add as much of the extra needed tax payments to the W-4 as possible to lower penalties and tax due in April. You are going to have to come up with the money in 6 months anyway, so you may as well figure out how you will pay for it now rather than pay much more later. All of you may have to do some short-term belt-tightening, and you both should get the withholding figured out and changed early next year.

I believe you can change a W-4 at least once a year. Just fill in a new correct one and submit it. I believe you could also just have them add extra withholding dollar amount to your existing one, but you may have to change it by next year, anyway.

There are some tax estimators online that I have seen mentioned on Bogleheads. If you look at last year's tax return you might get some idea of the total tax you paid to give you some idea of amount of tax needed to pay this year.

Here is a turbotax link that might explain tax things:
https://turbotax.intuit.com/tax-tips/fa ... /L6VM4IzTQ

My guess is that you are young and not too experienced in investing, but I could easily be wrong. You have received some good advice, especially for parking it in a brokerage money market fund (2.85% annual interest rate today) while you give yourself time. Best advice is to do only what is required and preferably not make costly permanent decisions. Having said that, the 28th of Oct. is the last day you can buy up to $10,000 in I-bonds that have 9.6% annual rate for 6 months, before it goes down to 6+% in November. You would give them your permanent checking account information that you expect to still have when you cash them in. You would get the 2 rates to cover the next year, and since the last 3 months interest would be forfeited, you ...

At one time they had good CD rates. My last one is due to mature and the check mailed to me, as they can not currently compete with low-cost brokerages with treasuries. I will probably leave the membership alone, in case I/they change again in the future. They may have decent insurance, credit cards, etc.

I was also able to purchase gift I-Bonds this evening. The warnings made me nervous, so I went back to the Finance Buff's link mentioned above, and followed them carefully. It worked great for me to get the second gift purchased and it will be ready for delivery January '24. This is most likely the last month for purchasing at great rates.

You may want to get a book like Jane Bryant Quinn's "How to make your money last" to have on hand to get an opinion on quite a few money decisions as you approach retirement. I believe there is a review in the Wiki.

I agree that you are looking for a "fee-only" or advice-only person, if indeed more than a handful of good ones exist.

I have learned a lot over the years from this website with its Wiki and advice from seasoned investors, as well as from books reviewed in the Wiki and Jane Bryant Quinn's articles and books.

Your portfolio is strikingly like the one recommended in this great little free pdf by Dr. William Bernstein:
https://www.etf.com/docs/IfYouCan.pdf
You can read reviews in the Wiki, and buy cheap Kindle or paperback on Amazon.com. There is a lot of good info for new investors here in about 16 pages.


This portfolio is recommended for beginners, and after experiencing a real-life downturn, some will decide to change allocations to suit their ability, need, and willingness to have a more aggressive portfolio.

Not many go with foreign bonds, although Vanguard PAS always does.

I also suggest using a Roth IRA instead of a traditional IRA, unless you are getting tax credits for low income, etc. Do you also have a 401k or similar retirement account available at work? You could put some/all of your $7,000 contributions into a low/no equity fund such as a money market fund, which pays 2.77% interest (Vanguard federal money market fund) the last time I looked, or a Target Date Income Fund which may have about 30% equities (stock funds) and 70% fixed income (bonds, money market, etc.) This could be used as a back-up emergency fund if absolutely needed, with no (10%) penalty on contribution dollars, only profits. I think buying an I-Bond is a great idea (max is $10,000/year). After one year, you could cash it in if neces...

I might do a test run with 1-10k, but not a huge amount like you. I saw a recent thread about someone who thought it likely to be called if rates change, and something I saw makes me think they have frequent recall date possibilities, not just the one I first saw.

Yes, it is closed today AFAIK. Only new auctions are available at Vanguard today. If ME doesn't do auctions, then you may have to wait until tomorrow. I don't worry about whether they are new or at auction: I just care about the yield, maturity date, and whether I can buy the amount I have cash for. By the way, the units, at least at V., are "1" for $1,000, so wouldn't want to put in 1,000 in a box where you meant 1 unit (unless it states $1,000), otherwise you would be buying $1,000,000 and might not have that much available! I started a few practice ones of $1,000 each to be sure I had it right before using larger amounts. At V. I made sure that one unit could be purchased, (or 10 if (10,000). Sometimes I could click on more inf...

viewer0 wrote: ↑Wed Oct 05, 2022 11:48 am Thanks for the advice.
So can I offset short-term gains incurred in future years to offset the loss taken ($1M) this year?

Not only can you, but I believe you MUST use the losses to offset any capital gains until the losses are used up. You would also use it to offset 3k of regular income each year.

I would ask at the center about whether they send out an annual statement on what amount is medical deductible. This could be used when doing taxes. An estimate would be nice now for your estimating.

Why are you buying equities (target date fund) if you think you have too much in equities? Buying all fixed income seems like the best idea. (Ok, I understand you are near max contributing.) Yes, traditional instead of Roth in your tax bracket. I would look at cost reduction in every area. Is your IRA managed and with multiple funds? You could save some money by managing it yourself and exchanging some of the expensive or non-index funds with the simpler low-cost index funds you yourself suggested. This could happen whether or not you decide to lower equities. If you are planning to move when you retire, perhaps wait until then to consider buying a house. You may have options now/soon to decide whether lower cost housing is possible now so ...