Bogleheads.org

Under current tax law, your heir would receive the equities in your brokerage account at a stepped-up cost basis at the time of your death. Why not designate the account as a transfer-on-death account, and be done with it? You say this person will not be spending out of this account anyway. Your heir would have access to the cost-basis information in the account when you die (which could get lost in an ETF transfer now). This thread is odd. First you said you want to gift it to someone, and asked how it would be treated for taxes if they sold some of the ETFs. Then you checked with them, and they are not going to be selling anything. Now you are asking about capital losses. You only need that information if the equities are going to be sold...

TinyHouse, you're nowhere near the point of stopping investing in stocks. In fact, it sounds as if you're relatively young so this is the very best time to be investing in equities. Make a plan you can live with and stick with it. Those of us living through the 2008-2009 meltdown and varying levels of comfort and missteps. The best course of action was to continue buying equities as they slid to keep your asset allocation where you wanted it to be--the plunge was severe enough that many of us sold fixed income to do that because new money was not sufficient to keep the AA at goal. The second best action was to contribute new money to equities but not sell fixed income as your asset allocation became significant out of whack. The third best...

We used a trust & estate attorney to close out our mother's estate, a top attorney in their state. (She was a CFP and both she and my father worked with this attorney. He was also my dad's best friend.) There were two trusts involved. Mineral rights had to be divided for multiple parcels and new deeds/titles issued. The cost was around $5,000. (And that was five years ago.) I didn't question it. My sister, who is an attorney, said it was reasonable.

(P.S. I'm not rich. The mineral rights earn perhaps $1,000 a year on a good year. )

I took a survey today from NORC at the University of Chicago about California Health Survey, and I am going to be receiving a $10 Amazon gift card for doing the survey.

It make me think that this might be something to pursue, taking surveys for gift cards.

I am retired, but could use a bit of extra since I am helping an ill adult child right now.

Does anyone know of legitimate survey sites where I could explore doing this more? I don't really want to drive and sit in a room for marketing research. I'd like to do surveys from my home computer.

I understand there are a lot of scams in this area, so of course I want to avoid any of that.

quantAndHold wrote: ↑Wed Mar 15, 2023 12:15 am Living in a Tiny Home with four people, not working, on $40k per year, for the next 60 years. Never mind he probability of success or failure of the financial plan. If I were your wife, I would be balking right about now. Is your wife really, truly on board with this? Or are you headed for an expensive divorce?

This did happen to Mr. Money Mustache, who retired in his 30s, and who is rather obsessed with being frugal.

I had no idea in my 30s, what my life in my 50s would look like.

I'm not sure I'd want to leave my children a big inheritance if they quit working in their 30s. Doesn't quite seem fair, as I live quite frugally, and I've worked hard for most of my life.

I have been very lazy about investing my loose cash, and it's not a huge amount anyway. So a one-week lag wouldn't really bother me.

I know the standard advice is to withdraw from taxable accounts first in retirement. But if one wants to leave their taxable account for heirs (for the stepped-up basis), how damaging is it to withdraw from tax-deferred first and leave taxable alone as long as possible? Is there a way to calculate this? There's no pat answer to this question, and I've never heard the advice you're citing as "standard." Personally, I plan to withdraw from my tax-deferred as soon as I retire, well before RMDs, in order not to have huge RMDs (and tax consequences) when I'm forced to pull the money at 73. At age 63, my portfolio is 73% per-tax. Under current tax law, my taxable account would have a stepped-up cost basis at my death, so my tentative p...

If you auto roll then there are significant liquidity advantages to having the bills in a separate account. Can you further explain? When Fidelity autorolls treasuries your "funds available to trade/withdraw" is reduced by the par value of the maturing treasury from the day before the auction of the new security and the current treasury maturity date (so a few days). This could impact your ability to buy other securities or withdraw funds. For this reason I have a separate Fidelity brokerage where I just autoroll T-Bills. Schwab doesn't have this issue because there is a lag between the maturity of the previous t-bill and the purchase of the new t-bill. Some bogleheads probably won't like money sitting inside Schwab low yield cas...

Look for a small, calm unicorn. They are real.

I found one on Amazon.

No barking. No shedding. No jumping. No farting. No drooling. No bad breath. No pooping in the house.

Zero vet bills.

Verrrrrry cuddly.

dknightd wrote: ↑Sun Mar 05, 2023 7:59 pm I walked to work nearly every day for 31 years. I thought I’d walk about the same amount when retired. But it turns out I do not walking when it is very hot or very cold.
Then last summer I started suffering from plantar fasciitis So walking less than I’d like

I don't like walking outside in hot or cold weather, either.

Last summer, on the hottest days, I would put on a TV show that I liked in my air-conditioned home, and move my body around in various ways, rather than sit on the couch. It worked, but I love being outside in nice weather for walks. I live in a gated condo community, so in summer, it's easy and safe after sunset to put on a podcast and walk around the development.

Money saved is money earned. The scenario outlined in post 1 sounds like a form of choice-supportive bias to me. Cars are boring as possessions and dangerous as modes of transportation. I spend as little on them as possible and get into them as seldom as possible. Driving with other human beings on the road also always shows me sides of humanity that I'd prefer to forget about. People with attention deficit disorders, anger management issues, impulsivity, narcissism, thrill seeking addictions: all of these and more are allowed to get a driver's license, and it shows. Stay alive: don't drive. I have not ever loved driving. Now that I'm in my 60s with arthritis in my back that is irritated by driving, I like it even less. People in my hometo...

I live in a condo development in California with about 140 units. Garages are not connected to the condos, and the electricity used in the garages is billed communally, while individual owners pay the electric bill for their own condos. About two years ago, a neighbor had to run conduit from their garage to their condo unit so the rest of the condo owners would not be paying for their vehicles's charging. Now, evidently the HOA is getting grant money from the state to install chargers in some of the non-assigned parking spaces. I don't know how they will manage usage. What if residents forget to move their car, and other residents then cannot charge their cars? I drive a hybrid. It is much easier to install a large capacity electrical charg...

I don't doubt that most people here are rational about the decision, regardless of what age they decide on. Individual circumstances, individual choices. I'll bet they are generally rational in their choices. We're not all running actuarial analyses based on national averages. We are individuals. With different assumptions on our individual lifespans, those of our dependents, personal weighting of the value of having more funds when we have the vitality to enjoy them, cash flow needs that differ across stages of retirement, and more. It's not just math. Rationale people can make completely different decisions on claiming age and still be rational in the context of their own lives. Ignore experts, particularly vocal ones who like getting qu...

Yes, I had hung around on this forum for a while and when I moved my first conversion from the 401k into a Roth 401k (as a retiree), I assumed it would be in one sub-account and I would be able to invest it. (I had learned here that it is best to invest in more aggressive investments in a Roth.) Instead, it sort of "floats" in the 401k. I can see the portion in dollars that is classified as the Roth, funded by post-tax dollars. It goes up or down based on the market, as an aggregate number from all the investments in the 401k. The website at Fidelity only allows me to electronically request a withdrawal in a proportional amount of the three funds that I hold. In order to withdraw from a specific fund (ie, the stable value fund whe...

Funerals are for the living. Funerals have become the family reunion event for us during the last few decades. Everyone who can come tries to make it. The most recent was my father's funeral almost two years ago. Someone in the family hosts a family and friends potluck with way too much food at their house after the services are complete. People laugh and cry and talk and share pictures and gossip and kids do what kids do until people need to go home. There may be new tractors or whatever that need looking at. It's good to be outside if the weather is decent. We don't really do the full wake experience before the funeral because most of us don't drink that much and we are ready to go to bed much earlier than that. It's OK to be sad and hap...

Make sure the wheels on your suitcases are in good working order! Lots of cobblestones and stairs up and down the bridges.

I went with my son who had just graduated from college. I think he enjoyed it much more as a young adult than he would have as a youngster. The history is fascinating (we took a walking tour), and a highlight was the Vivaldi concert with musicians in period attire. I wish we would have gone to the Peggy Guggenheim; she was one of Pollock's first collectors.

We splurged on an Airbnb with air conditioning, and that was a welcome respite at the end of the day.

https://www.tripadvisor.com/AttractionP ... eneto.html

jebmke wrote: ↑Tue Feb 28, 2023 10:33 am Many posts here are focusing only on how to get rid of stuff. Good suggestions but equally important is to stem the inward flow.

If you find water in your basement, before installing a sump pump you need to understand where it is coming from. Often simply stopping or diverting the flow solves the problem in the long run and a sump pump may not solve the problem if the source of the water doesn't get addressed.

I agree. Get the dopamine hit through an activity that isn't shopping.

I actually enjoy decluttering and throwing things away. A few times a year we involve the whole family in the activity. It goes like this - each evening after dinner we tackle two rooms. We have two trash bags - one for trash, the other for donation. We go through closets, drawers, storage containers, cabinets, etc. The whole process takes less than 15 minutes per room (the kitchen is a bit longer) once you make it a routine. It's amazing how much stuff accumulates despite everyone's best intentions. We're really good about not having clutter out in plain view but things tend to build up in drawers/cabinets/closets. If your storage containers and organization pieces are constantly full then you're likely holding on to things you don't need...

I’d aim for $900. That’s cutting it in half. See how you do and then try for $500. $500 seems like too big of a cut. I'll find out, you might be right! I'm really gonna aim for $0 if I can.. The challenge will almost be like a hobby in itself. I do get great pleasure seeing my net worth build up and interest compound in money market. Not because I love money, but because I want some financial security since I have such a low net worth as is. I wouldn’t sweat it. Your net worth will go up as you get older. I spend almost $300 a year on trail runners each year. That’s why your $500 seemed really low to me. My outdoor clothes last much longer. But eventually they’ll need replacing. Nothing last forever. National Park passes aren’t cheap eithe...

I’d aim for $900. That’s cutting it in half. See how you do and then try for $500. $500 seems like too big of a cut. I'll find out, you might be right! I'm really gonna aim for $0 if I can.. The challenge will almost be like a hobby in itself. I do get great pleasure seeing my net worth build up and interest compound in money market. Not because I love money, but because I want some financial security since I have such a low net worth as is. I wouldn’t sweat it. Your net worth will go up as you get older. I spend almost $300 a year on trail runners each year. That’s why your $500 seemed really low to me. My outdoor clothes last much longer. But eventually they’ll need replacing. Nothing last forever. National Park passes aren’t cheap eithe...

I applaud your efforts but have to say I have no personal interest in such a goal. I try to do the big things right (e.g. reasonable house, car, savings rate) and thereby don't feel the need to sweat the small stuff. I realize "small stuff" can be relative. Good luck to you. Yes, %$!% happens. The OP is disabled. If you haven't experienced adverse, expensive circumstances that were simply the luck of the draw, it's hard to imagine. Empathy is a good quality to cultivate. I would even call it one of the "big things" in life. I had a travel budget until one of my adult children was diagnosed with a very serious illness. They had to move in with me, and I am supporting them both emotionally and financially right now and ho...

CoAndy wrote: ↑Fri Feb 24, 2023 3:37 pm

JenniferW wrote: ↑Fri Feb 24, 2023 2:09 pm

SmileyFace wrote: ↑Fri Feb 24, 2023 2:01 pm

quantAndHold wrote: ↑Fri Feb 24, 2023 1:55 pm If you drank better coffee, you wouldn’t need to dump a bunch of expensive heavy cream into it.

I was about to reply with similar. I can't drink instant coffee but if forced to I will add cream and sugar to make it tolerable.
At home I drink my coffee black - but I am buying higher quality coffee. (I don't need the fat and calories of heavy cream)

Nope, that's wrong.. even the best coffee is too hard on our stomachs. Need the heavy cream.

Have you tried half & half instead of heavy cream? I use that and a pinch of cinnamon and really like it.

Heavy cream has fewer carbs, and it's thicker. So I use a much smaller amount of it and let my coffee dilute it.

If you hold munis, you are most likely earning a high income and need munis for the tax advantage. Worrying about dividends sitting uninvested for two weeks seems unnecessary. It's difficult to answer your question about if it is "worth the energy" without knowing the relative value of your yearly income, the value of your portfolio, and the total of your yearly dividends. Some streamlining of your accounts/funds/financial institutions could make your life easier. Then it would be quite easy to manually plug the fund totals into an aggregate spreadsheet each quarter, check your asset allocation, and then adjust course if needed. I check my portfolio about once a month (I do not include my checking account). I just do a "Save ...

I checked out the obituaries for my city for 2023. The age at death ranged from 98 to 29.

I live in a California coastal condo, and even with our temperate weather, the three main rooms do not have consistent temperatures. In my mind, that is part of the value of minisplits--you can address different zones in the home. I have an indoor unit in each bedroom and in the living/dining/kitchen. My bedroom tends to stay much warmer than the main room. I rarely run the heat in there, but in the summer I run the AC all night long. Minisplits can help you deal with different temperatures in different rooms. Note: It rarely if ever gets lower than 32 degrees here, so I cannot address that part of your concern. By the way, for my minisplits, indoor units tied to one external unit have to all be running AC, or all on heat. The system won't ...

I'm almost embarrassed to admit that most of my portfolio was due to growth from a single company stock.

The financial rule of thumb to contribute to your 401k at least enough to get the match, worked for me.

After retiring early, I found this forum and diversified before the stock took a big dive.

Whew!

Slept in. Made my pour-over coffee (a mix of coffee beans from Trader Joe's and Costco). Toasted a small handful of pecans for brunch. Will join my virtual painting friends in a few minutes, and we'll paint for a few hours on Google meeting.

My city provides a lot of this through the senior center. The transportation seems to be a very popular service.

Brian and Charles.
Quirky, sweet, fun. A hit at Sundance.
You could watch it with your grandkids. The expletives are words like "Fiddlesticks!"
Sort of reminded me a bit of the Detectorists, that sort of oddball, understated British comedy.
I watched it on Prime.

https://www.rottentomatoes.com/m/brian_and_charles

You can get 4.5% in a 3 or 5 year CD so why go into BND for 3.9%? Using your original logic why take the risk with BND now when you can get more interest without it? This is of course assuming there is money in an account that can buy CDs. Money is fungible. That's the rub. It's in a 401K so my fixed income choices are Total Bond or Stable Value. Left to my own devices, I'd prefer the 4.5% I can earn in my Vanguard settlement fund, but that's not on the table. I'm in the same situation. I'm considering rolling over my Stable Value allocation from the 401k to an IRA where I could invest in T-bills. I left half of my fixed income in Total Bond in 2020 and put half into the Stable Value fund, in my 401k. Consider the long term impact of losin...

Outer Marker wrote: ↑Sun Feb 12, 2023 11:12 am

michaeljc70 wrote: ↑Sun Feb 12, 2023 10:57 am You can get 4.5% in a 3 or 5 year CD so why go into BND for 3.9%? Using your original logic why take the risk with BND now when you can get more interest without it? This is of course assuming there is money in an account that can buy CDs. Money is fungible.

That's the rub. It's in a 401K so my fixed income choices are Total Bond or Stable Value. Left to my own devices, I'd prefer the 4.5% I can earn in my Vanguard settlement fund, but that's not on the table.

I'm in the same situation. I'm considering rolling over my Stable Value allocation from the 401k to an IRA where I could invest in T-bills. I left half of my fixed income in Total Bond in 2020 and put half into the Stable Value fund, in my 401k.

YoungSisyphus wrote: ↑Sat Feb 18, 2023 11:46 am I own a crappy starter home. It gets relatively poor light and the can lights they installed I find hideous. Plus because of their size I think they cast the wrong light in the house (too strong, not diffused).

Has anyone went on a quest to re-do lighting? Is that an interior designer type thing or how have you went about getting a consult on something like this? Obviously hits multiple trades: electric, drywall, design

As a start, can you put dimmers on the cannister lights? All of mine have dimmer switches.

Exchme wrote: ↑Thu Feb 16, 2023 7:33 pm Folks are onto the right idea, get alignment with the sister and say something like:

"Dad, we really appreciate it, but if something should happen to you and you need care, you'll need that money! God forbid that would happen, but If it did, using it for your care would be tax deductible, so there's a chance that no one would have to pay taxes on it. So let's just leave it alone as a rainy fund, OK?"

I agree with this.

Likely you can only make a small dent, but that's better than no improvement at all. Take a hard look at your taxes when those RMD hit, and (even worse, God forbid but ....) if you have that IRA with a single survivor. Then convert as much money as you can now to the top of whatever bracket you will be in - at least the top of the 24%. Yes, you will get hit with a higher IRMAA but that's a relatively small surcharge tax. Pay the taxes out of the cash (most people recommend) to maximize the value of the conversion. If you and your heirs will perpetually be in the 32% bracket.... well, maybe bite that off now also. Taxes not likely to drop and your SS will add to your taxable income. The goal would be to level your tax hit starting now. Yes,...

I am sorry if I am hijacking, but I am attempting to move $50,000 from my credit union checking account to my brokerage account held elsewhere. The maximum daily ACH amount allowed by the credit union is $5,000. If I move the $50,000 over ten days in the amount of %5,000 per day, is that going to get me in trouble? The money is legit, it went into the checking account last year electronically from my 401k. I don't want to pay to do a wire transfer. The ACH is free. Why ACH, I understand you say its free, but each transfer is not instant and takes a couple days to settle. So in your $50k example I would estimate it will take 13+ business days to complete. Why not just get a check, personal or teller issued check, and send it to your brokera...

If you do a T-bill ladder in taxable, the dividends are taxable at the regular income tax rate for federal, but not taxed at the state level. Not sure if that helps or not.

I am sorry if I am hijacking, but I am attempting to move $50,000 from my credit union checking account to my brokerage account held elsewhere. The maximum daily ACH amount allowed by the credit union is $5,000. If I move the $50,000 over ten days in the amount of %5,000 per day, is that going to get me in trouble? The money is legit, it went into the checking account last year electronically from my 401k. I don't want to pay to do a wire transfer. The ACH is free. Why ACH, I understand you say its free, but each transfer is not instant and takes a couple days to settle. So in your $50k example I would estimate it will take 13+ business days to complete. Why not just get a check, personal or teller issued check, and send it to your brokera...

I am sorry if I am hijacking, but I am attempting to move $50,000 from my credit union checking account to my brokerage account held elsewhere. The maximum daily ACH amount allowed by the credit union is $5,000. If I move the $50,000 over ten days in the amount of %5,000 per day, is that going to get me in trouble? The money is legit, it went into the checking account last year electronically from my 401k. I don't want to pay to do a wire transfer. The ACH is free.

CletusCaddy wrote: ↑Tue Feb 14, 2023 6:13 pm What city are you talking about that the prices are so low?

Good question! $35,000 barely buys a bathroom where I live.

Sadly there is no "very simple" formula for knowing which is better, at least financially. One of the intangibles, however, is relative price stability over time. Owning offers a fixed payment for the mortgage term. Renting does not. (Maintenance and taxes can be estimated for owning, but increases in those prices are passed along in the form of higher rents as well.) For many people, housing is their highest monthly cost. Therefore, having predictability over long periods is useful. Other benefits are clear and pretty obvious, at least to me: 1) Owning builds equity, renting is a straight expense. Whether you ultimately make a profit is unknown. But you are highly likely to recover much of what you've spent. 2) Owning is an infl...

IMHO, longevity is hard to predict. It's like guessing what the weather will be 10 days from today instead of 3 days from today if it's not California in the summer. At 10 days from today, you might as well use the magic 8-ball. At 7 days from today, you might get rain or snow on a day that was supposed to be partly sunny. Yes, actual age of death is hard to predict. But you still want to use the right statistical distribution of it to plan. And in a big diverse country, the actuarial table for the whole country is not a good tool. Again, who uses the longevity table for the whole world to plan their retirement savings? At that level everyone realizes that's mixing in too many people in too different circumstances to give a good answer. I ...

The concept of having your last check to the mortician bounce is still floating around out there but no one's going to time it that perfectly. You're usually going to have money left over. Annuities can help smooth things out if you feel things are too tight. Relying on your kids may or may not work, and a lot of that depends on your specific culture--but at least have a frank conversation about it (if you're going to rely on family if you run short of funds, you really shouldn't be tight-lipped about it). I’m clearly in the minority, but I’m just not interested in living as long as I possibly can. I’m completely fine with my checks bouncing before I get to the undertaker. I don’t want to be 90……. Pretty sure my money will last indefinitel...

It's good to have a variety of types of retirement accounts. Then you can determine a long-term strategy. Tax planning is an important part of it. There is an additional cost for Medicare called "IRMAA" which has different cliffs. It is determined by your income two years before. So, this year I am 63, and my income this year will determine my Medicare cost for the year I turn 65. If you have different income sources, you can strategize whether or not--or what years in particular--you will pay the extra IRMAA cost.

I'm not sure what insulation Honda is using on their electrical bundles these days, but squirrels have caused $1000s of damage to 2 Hondas in my family which are parked outdoors. If you have squirrels in your neighborhood, you could ask the dealer to put some of their wonderful hot pepper oil infused electrical tape over the bundles in various places. It seems to have done the trick for us. You could buy some extra for any other plastic items you keep outside. We live in Mass and had this problem several years ago with a Toyota SUV that was always parked outside but it was due to mice rather than squirrels. They were nesting under the hood and chewing on the wires. We no longer have that SUV but a couple of years ago my husband found a nes...

Create an irrevocable trust and contribute money to it. You can absolutely have the funds "walled off" depending on how the trust is structured and keep them from being co-mingled. Regarding the IRA idea, I just had a good friend go through a divorce and even though he started his IRA before getting married and had contributed to it over the years, she was entitled to the parts of it. They came up with a formula pre and post marriage. He basically ended up just about splitting it because of the fighting and it just wasn't worth litigating further. So it's really not much different than any other asset in any other account in that regard. I can't stress enough, get a prenup. I'll see people advocate all kinds of crazy umbrella pol...

Not sure how old the children are. Will you be subject to the kiddie tax if the children have too much unearned income and on your tax return? You lose control over what your children do with that money. Assets acquired prior to the marriage may be exempt from equitable distribution upon a divorce. As an example, however, if contributions were made to your 401k or IRA plan during the marriage, then those marital contributions, plus any growth on those contributions, would become a marital asset and would be subject to equitable distribution upon a divorce. The premarital contributions and any growth on those contributions would continue to be exempt from equitable distribution. In my divorce, my parents had kept documentation of an asset t...

The concept of having your last check to the mortician bounce is still floating around out there but no one's going to time it that perfectly. You're usually going to have money left over. Annuities can help smooth things out if you feel things are too tight. Relying on your kids may or may not work, and a lot of that depends on your specific culture--but at least have a frank conversation about it (if you're going to rely on family if you run short of funds, you really shouldn't be tight-lipped about it). I’m clearly in the minority, but I’m just not interested in living as long as I possibly can. I’m completely fine with my checks bouncing before I get to the undertaker. I don’t want to be 90……. Pretty sure my money will last indefinitel...

tc101 wrote: ↑Sat Feb 11, 2023 9:30 am

Is this good news? I see soaring rates of dementia and disease. If quality of life is so low, is a longer life just prolonging the suffering? Each situation is different, but I have heard horror stories from people who work in nursing homes who say that their pets are treated more humanely.

I agree 100%. I have seen those horror stories in nursing homes.

Yet we consistently see people posting about how to shield their parents' savings from the government so that they can put their parents in Medicaid nursing homes, rather than a decent private-pay home.

If there is a chance you will need medical care from the doctor in your community, perhaps it would be good to meet with them, get to know them and let them get to know you and your particular health issues, so that if you had to see them in the future with an acute problem, you would already have a relationship. Office staff is important. Sometimes, though, I view them as a challenge if they are a bit prickly. Being nice and friendly and supportive will only help you . I remember a particularly unfriendly office person. She dyed her hair in different colors. I began complimenting her on her hair colors, and she warmed up. It might be difficult working in the front office of a doctor at a retirement community. You may not have memory issues...

Garco wrote: ↑Thu Feb 09, 2023 10:04 am I've been long retired (since 2014) and well retired (a few million invested). Portfolio swings are bigger in dollar terms now than they were when I was still mid-career. But I am a lot less concerned now than I was back then. The reason is simple: I have all the bases covered, invested money dispersed and diversified, real property fully paid for and owned, kids doing well in their careers, health care well-covered by my former employer and Medicare, Social Security providing a nice monthly supplement to my bank account.

These two, kids and health care, are huge wild cards in retirement. Congratulations!