Bogleheads.org

Printing the ERs on a Boglehead newsboard is like waving a red flag. But it's not relevant to the ACA problem. The ER is the ER. Stop thinking about it. A more important question is what other income does this person have besides the TIAA dividends? Social Security? When do they go on Medicare? That AGI makes me wonder if they qualify for Medicaid in their state? I agree. This is an ACA problem and not an ER problem. OP: But the way, the ERs are not good, but not horrible either as these are not index funds. So the ACA issue is more important. Thank you for sharing this perspective as I'm trying to understand which takes the priority and if there is anyway to balance both. There is a long time horizon for the need for ACA and to minimize f...

ResearchMed wrote: ↑Fri Mar 17, 2023 12:57 pm

crefwatch wrote: ↑Fri Mar 17, 2023 12:10 pm There seems to be no doubt that the account is taxable, although I've never met someone with a taxable TIAA account. Did they work at the company?

We've got a taxable brokerage account at TIAA. We opened that a bit more than a year ago, when we first had access to some of the 403b money.

Most of the withdrawals go to the Roth, but RMDs can't go there, so... the new taxable brokerage.
Then, from either of those accounts, we can move money to our regular checking account/etc., elsewhere, the one we've had for <mumble> years.

Or is what you are describing something different than just "a regular brokerage account", one not in 403b/TIRA/Roth/etc.?

RM

This was a TIAA UTMA account, regular brokerage account.

There seems to be no doubt that the account is taxable, although I've never met someone with a taxable TIAA account. Did they work at the company? I don't see how it's relevant whether the dividends are invested or not. They are taxed in the year declared. Has anyone kept track of the basis of the account? (It's actually easier to do that if you don't reinvest, but it's a good strategy earlier in life to reinvest ... ) With no information about the actual capital gains, it's hard to formulate a plan. Turning off reinvestment makes tax filing slightly easier after a year passes-only LTCG to count. You have not given the relative's age, health, or need for this income. Printing the ERs on a Boglehead newsboard is like waving a red flag. But ...

Thank you for the suggestions.

Correct, that the $60k was a one time event in 2021. Same funds resulted in $26k of cap gains/dividends in 2022.

Charitable giving from this account at this stage wouldn't be an option (there maybe an opportunity in the future).

I am helping a relative to understand their options with the following situation: They have a TIAA-CREF taxable account with ~$500k invested in: Symbol /% of portfolio / ER TIIRX (Growth & Income) / 67% / .69% TIRTX (Large Cap Growth) / 13% / .71% TCMGX (Mid Cap Growth) / 10% / .78% TCSEX (Quant Small Cap Equity) / 10% / .72% This account is decades old, likely with low cost basis (I'm waiting to see the actual cost basis) Dividends have been and continue to be reinvested The growth and income fund throws off a lot of capital gains In 2021 these funds generated over $60k in cap gains/dividends, causing the family member to repay all tax credits they received The family member has insurance through the marketplace and receives a premium ...

Thank you for all of the replies, I clearly understand the implications now.

Posting here to see if I am misunderstanding anything - I have a 3 year MYGA with Oxford Life (purchased through Blue Print); Oxford Life has it titled as a multi-year guarantee deferred 3 year annuity - this is a TAXABLE account. The policy comes due this July and I am under 59.5 years of age. I read the entire policy and called Oxford Life on what the process is and if there are any penalties if I withdraw all of my funds at the end of the 3 year term. Their response was there is a 30 day window at the policy maturity date to complete a full withdrawal and there would be no penalties. I asked what happens if I'm under 59.5, they said there is no age related penalty. Who assesses the 10% withdrawal penalty (or how is it assessed) I keep re...

Just got the email that the $500 bonus was deposited!

One item to be aware of, certain sectors recently went on strike in France (protesting pension reform) causing some transportation disruptions. Who knows how long this may drag on, but good to be aware and potential impact.

In late 2019 - we experienced when metro/train drivers were on strike. Very disruptive and quite the pain!

What difference does it make what someone else is doing? How is this a actionable? These threads always come down to what individuals can afford and how much stock they hold in the phrase "skin in the game." It is actionable because I have a teenager and I want to see what others see as reasonable since husband and I disagree on what we should provide. We came from different backgrounds and has different experience, yet the one who had the harder time and sacrifice learned more discipline and ended up with more wealth. This is the same as someone else asking for opinions on what kind of vacation or car to get. Planner01, Please answer the following question for us. During summer, A) You paid for your kid's high school summer camp...

What difference does it make what someone else is doing? How is this a actionable? These threads always come down to what individuals can afford and how much stock they hold in the phrase "skin in the game." It is actionable because I have a teenager and I want to see what others see as reasonable since husband and I disagree on what we should provide. We came from different backgrounds and has different experience, yet the one who had the harder time and sacrifice learned more discipline and ended up with more wealth. This is the same as someone else asking for opinions on what kind of vacation or car to get. Planner01, Please answer the following question for us. During summer, A) You paid for your kid's high school summer camp...

I believe it is usually a percentage of gross pay.

It certainly piques one’s curiosity why there still isn’t an answer to who is the second car for? Also, certainly not an inexpensive one at that - as it appears the $60k Lexus is for someone else to drive.

As comparison for a mass market option - TurboTax offers a "full service" option where a tax professional does your taxes for you, for a self-employed return, it runs $359 for just federal.

... DD graduated from a R1 state flagship school (top 20 of public schools) with majors in Pure (theoretical) Math, Poly Sci, Global Security and 2 minors. This was all completed in 4 years. She received multiple merit based scholarships. She is a Fulbright Scholar. She is a strong writer and has received awards for her papers. She is multi-lingual (5+ languages, level 3 – 5 proficiency), including one of the “in demand languages” noted by the DOD. Her GPA was 3.65. She isn’t in an underrepresented group. --- • If she doesn’t get into a T14, is it really a moot cause to get into the field of transnational arbitration and dispute settlement? --- Former BigLaw partner here, and one with an international bent -- to wit, I lived in London for ...

I am a graduate of a school just outside the T14, and my wife is a graduate from one of the very top law schools. I agree with much of the advice listed here. I'm a little of decade out of law school and half a decade out of DC Big Law, so I don't know how much things have changed, especially with more and more law schools removing grading. Honestly, my initial reaction to reading your post is that your daughter should not go to law school. The majority of lawyers are unhappy, even those with well paying jobs (I was unhappy until taking a ~60-70%+ paycut to work in government), and the fact that your daughter is fixated on a rather narrow niche of law is quite worrying, as it seems she is more attracted to the prestigious concept of being ...

Like many posters, I graduated from one of those schools and worked in BigLaw. FWIW, Columbia used to "discount" GPA for applicants who were 3 or more years out of college. In other words, it still mattered, but less than it did for recent grads. Others factors -- including, of course, LSAT -- mattered more. Not sure if Columbia still follows that practice. If so, and if she can get her LSAT into the upper 170s, that would help. My brother graduated from a local school and in his school's case, the most prestigious BigLaw firm in the area would only interview applicants from his school who were in the top 10% of their class. He just made barely the 10% cutoff, aced the interview, and has gone on to have a great career. My and my ...

When I was starting out, international commercial arbitration sounded really appealing. I envisioned lots of luxury travel surrounding high-profile work. In school I even took a class on international commercial arbitration from one of the greats. After clerking and joining a fancy firm's litigation practice, I had the chance to sit next to a partner at a dinner who was handling some major arbitrations. Asking how to break into that work, he advised just becoming a great litigator. Though disappointed I didn't manage to talk my way on to one of his cases, I'm sure that advice is exactly right. You shouldn't set out to be a horse lawyer. See https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=2147&a...

I’m a long-time attorney. I don’t have a source to cite, but throughout my career I’ve seen multiple studies where approximately 70% of practicing attorneys wish they had done a different career. But perhaps other fields are similar these days. I certainly wouldn’t take on a bunch of debt to go to law school. I have heard of this as well and we've discussed it. Hindsight is always 20/20, not sure what the answer is on how to best provide guidance when you have a child who is very mature, hard working, disciplined and they say that's what they want to do. She will not have any debt from law school. Other thing to be aware of is lots of people will say a J.D. is a versatile degree and it also opens doors to lots of careers not requiring a la...

I am a nonequity partner at a large international firm, based out of a U.S. office, and have been in BigLaw for 10+ years. The work can be extremely interesting, the compensation is good, and working with lots of smart colleagues and interesting clients every day can be very fulfilling. But, to answer your question, the pandemic has made work/life balance worse, not better. Clients have come to expect constant responsiveness at all hours. Out of office messages are routinely ignored. The pandemic established that we can all work from anywhere at any time, unfortunately. If work/life balance is a priority, BigLaw is not the answer. The work/life balance is is something she will have to figure out as she matures. She has grown up in a family...

I went to a T1 law school (not T14), then did another year at a T14 law school (LLM). I honestly really enjoyed law school. If she thinks she will enjoy it, I'd say go. She sounds like she's going to be able to make whatever money she needs to. If she is just doing this purely to get into big law and thinks she will hate law school, I'd say skip it. It's not worth going through a terrible experience to end up in another terrible experience. I don't know anyone who didn't enjoy law school at least a little bit that lasted in big law for more than 2 years (a couple lasted about 6 months and had a slow departure). She can still keep the dream of that practice area if she wants, but I'd say it's very unlikely she will end up doing that. Not be...

... • Her GPA is low • Her LSAT score is “ok” and isn’t high enough to offset her GPA • She’s unsure whether to take the LSAT again and is going back and forth on the decision • She thinks the best case scenario is she will get waitlisted at T14 schools • If she doesn’t get into a T14, she will have to reevaluate her career options because firms that offer the field she wants to practice in only hire from T14 • She said in last year’s cohort, 2 people with her profile (GPA + LSAT) got into a T14 ... I currently attend a T14 with a ~3.5 and 173 LSAT and a scholarship covering a third of my tuition. I am by no means "diverse." I worked for ~4 years between graduating from college and applying to law school. She should consider reta...

- GPA+LSAT are nearly 90% of top law school admissions and that is bcos those two numbers are part of USNews ranking system. Only the cumulative undergrad GPA matters. Choosing a rigorous major like engineering/hard science does get some bonus points in admissions, as those folks are usually easier to hire (and hiring rate is a factor in USNews). - Soft factors count more at the schools with small classes (Yale, Stanford, Chicago). OTOH, Harvard and Columbia are extremely numbers-based. - Not everyone has the acumen for Big Tech. In fact, I'd argue most do not. Moreover, tech is a different animal as the industry is (was?) growing so fast that they didn't' care about pedigree. For example, the school with the largest penetration at Apple i...

Given her interest in international relations (more or less), has she considered government work? I would think she'd be pretty attractive to the Department of State and/or other branches. $$$ would likely not be as big, but might be more satisfying work for her. Or a big corporation with a heavy overseas presence. McDonald's, or a defense contractor or something like that... This is how this whole going to law school idea started. She went through multiple interviews (including fly outs) for one of the agencies you mention and then COVID happened - and everything was cancelled. She has met with current State Department employees and has their nuggests of advice. Her language skills would make her an attractive candidate, especially since ...

She took the LSAT (self-study with a book, no prep classes) Standardized test taking is a learned skill as much as a measure of knowledge and ability. To not take an LSAT test prep puts one at a disadvantage. I have taken innumerable standardized tests, all the way through Internal Medicine Boards and subspecialty board exams. I've only once felt the need to take a preparatory course along the way and that was for the MCAT (medical equivalent of the LSAT). IMO, not taking a preparatory course for the LSAT is penny wise and pound foolish. The fact that DD has an expertise in both highly quantitative (theoretical math) and real world (Poly Sci, Global Security) areas is impressive. The world is her oyster. Thanks for this feedback. I will as...

- GPA+LSAT are nearly 90% of top law school admissions and that is bcos those two numbers are part of USNews ranking system. Only the cumulative undergrad GPA matters. Choosing a rigorous major like engineering/hard science does get some bonus points in admissions, as those folks are usually easier to hire (and hiring rate is a factor in USNews). - Soft factors count more at the schools with small classes (Yale, Stanford, Chicago). OTOH, Harvard and Columbia are extremely numbers-based. - Not everyone has the acumen for Big Tech. In fact, I'd argue most do not. Moreover, tech is a different animal as the industry is (was?) growing so fast that they didn't' care about pedigree. For example, the school with the largest penetration at Apple i...

A recent post https://www.bogleheads.org/forum/viewtopic.php?t=394288#top , especially @chazas response has led me to create my own post. *** Here are my questions: Law School: • Do T14 schools really only focus on GPA and LSAT? - Will her diverse undergraduate background, achievements and skill set have any bearing on admission? • If she doesn’t get into a T14, is it really a moot cause to get into the field of transnational arbitration and dispute settlement? • How common is it to get a scholarship for law school? If she is able to get into a T14, what is the real work culture in Biglaw? • Yes, I have read many of the posts on Bogleheads about the long hours, no life, etc. - Are things still the same post-pandemic? I feel in other indust...

- GPA+LSAT are nearly 90% of top law school admissions and that is bcos those two numbers are part of USNews ranking system. Only the cumulative undergrad GPA matters. Choosing a rigorous major like engineering/hard science does get some bonus points in admissions, as those folks are usually easier to hire (and hiring rate is a factor in USNews). - Soft factors count more at the schools with small classes (Yale, Stanford, Chicago). OTOH, Harvard and Columbia are extremely numbers-based. - Not everyone has the acumen for Big Tech. In fact, I'd argue most do not. Moreover, tech is a different animal as the industry is (was?) growing so fast that they didn't' care about pedigree. For example, the school with the largest penetration at Apple i...

"This is unusual. How did this come to pass? Pretty much everyone takes a prep course; not doing so is generally disadvantageous." Actually, it's not anymore. The LSAT is a learnable test and to improve one must put in the work, and that is all on the individual. (That said, Prep courses can be good for those procrastinators.) OP: yes, admissions is primarily GPA+LSAT, and URM status. After you have the numbers, other things come into play, but only after you have the numbers. Son is in BL after graduating from a T14 with scholarship. If you want to make the big bucks you work all of the time. It is NOT an industry for work-life balance. The only thing covid brought was greater flexibility to work from home. (This year's bonus is...

I’m not a lawyer but I am one of the only non-lawyers in my family. Don’t get stuck on T14 law schools. You want law schools that have great alumni networks. There are a ton of super successful lawyers in NJ who went to Seton Hall and Fordham. It’s not just partners at Cravath who make the big bucks. Probably the most successful lawyer of all time went to New York Law School (Judge Judy). If you can’t get into Harvard and its ilk consider someplace that will give you a full ride. I agree with this as well. Since I work in Tech, I've always pointed out to my children that once you get your foot in the door, it isn't the school you went to that matters anymore, but your work ethic, personality as well as being willing to "play the game....

Firemenot wrote: ↑Mon Jan 09, 2023 8:17 pm I’m a long-time attorney. I don’t have a source to cite, but throughout my career I’ve seen multiple studies where approximately 70% of practicing attorneys wish they had done a different career. But perhaps other fields are similar these days.

I certainly wouldn’t take on a bunch of debt to go to law school.

I have heard of this as well and we've discussed it. Hindsight is always 20/20, not sure what the answer is on how to best provide guidance when you have a child who is very mature, hard working, disciplined and they say that's what they want to do.

She will not have any debt from law school.

She took the LSAT (self-study with a book, no prep classes)... This is unusual. How did this come to pass? Pretty much everyone takes a prep course; not doing so is generally disadvantageous. For someone who spent four years at a top school, it would be interesting to know why she chose not to follow the well-trodden, proven path re test-taking. (That said, the main advantage of the prep courses is being forced to take a whole bunch of practice tests, which is unpleasant and boring but does make you a better test taker. If she had the discipline to do the required repetitive practicing without taking the course, then she may have reached her maximum score. In any case, 170 is a 97th or 98th percentile score, which is very good.) She has ex...

I am a T14 grad and a former biglaw associate. A few thoughts: 1. The specific practice area that your DD is considering is lucrative and likely enjoyable work. It is unlikely that she could be qualified to engage in that practice without a very significant (decades) investment in litigation practice. In my experience, lawyers just don't trust arbitrators/mediators who haven't spent a great deal of time as an advocate in disputes. 2. If she cannot get into a T14, that's not the end of the world. In fact, if she knows the state in which she certainly wants to practice, she should consider attending the premier state university law school instead of a higher-ranked out of state alternative. I know lots and lots of succesful lawyers who did n...

When did she graduate? (Dec '22, May '22, etc.)? If she's been out for a while, what has she been doing? Is she aiming for the cycle that matriculates ~August of 2023, or later? (and if 2023, have the key deadlines already passed?) And, curiousity - 3 majors *AND* 2 minors, in 4 years? Wow... Was she taking 20+ hours/semester, doing summer terms, or what? Where did the Fulbright fit into the picture? She graduated May '21. Did a post graduate internship (since all her internships in 2020 were cancelled due to COVID) in the legal department of a corporation. She'll be a Fulbright Scholar for 2 years. Applying for Fall 2024. Yes, she took full loads and summer classes, plus working the entire time. She is a hard work, focused and committed t...

I can't speak for law school but she would be an excellent candidate for a top business school. She has much that top business schools value - specifically, languages and math. This would open her up to a career on wall street or in international consulting (McKinsey, Bain, etc.). MBA programs were, at least in my day, 70% male so women were admitted as an 'underrepresented' group. (My graduate computer science program was 90% male as well). By all means, she should apply to law school and try her luck. But only after doing serious study prep like a course from Manhattan. Not a cheap course, a good one! Since she is not from an underrepresented group, she likely will have to score above school average on the GMAT. Study prep courses should...

A recent post https://www.bogleheads.org/forum/viewtopic.php?t=394288#top , especially @chazas response has led me to create my own post. My DD is planning to apply to law school and has expressed interest in Biglaw. We don’t have any family members who are lawyers (immediate family backgrounds are Academia/Tech/Medicine), so we’re not familiar with the process and I would like to understand how things work from those who are either recent graduates and/or partners. Background: DD graduated from a R1 state flagship school (top 20 of public schools) with majors in Pure (theoretical) Math, Poly Sci, Global Security and 2 minors. This was all completed in 4 years. She received multiple merit based scholarships. She is a Fulbright Scholar. She ...

I'll share my recent experience, I have frequent flyer status (thought not the highest level) with an airline. On a domestic flight (~2 hours) this weekend, I was upgraded to first class 24 hours in advance. My child was also on the flight with me, but on a different itinerary, had a different seat (didn't expect them to be upgraded, since we weren't on the same itinerary, but if they were, they also would've been upgraded). Our flight had major delays on our outbound and many people rebooked. We stayed with the same flight, which eventually left. Since there were half as many people on the flight now and I saw several of the people in first class leave, I asked the counter agent (politely) if there was a possibility to have my my child upg...

Club Med Cancun - it is a family resort and what sets them apart is that a lot of activities are included (kayak, paddle board, tennis, snorkeling, sailing, archery, circus trapeze, etc.) . They have kids "clubs" by different age groups that even teenagers enjoy. The G.O.'s (like counselors) themselves are young (early 20s) and they make it quite fun. Kids can come and go as they want to join the various activities - providing a lot of autonomy.

OP - I saw your updated NW post - congrats! Given, as you are quite close to the estate exemption, would you share how you have structured your estate plans? Are you taking advantage of the higher exemption before they come down in 2026?

I think my spouse will keep working regardless, and we can live off that income (130-200K depending on the year) for at least the next n years (maybe not after we have expensive kids). So I think I will just invest the 15M funds and let them grow for the next 3-10 years without planning more than 1 or 2 withdrawals. In the longer-term future, though, I can see us living off the distributions alone. It sounds like living off the salary rather than dividends minimizes our opportunities to change how the investments would be taxed...? Maybe? Though we could take advantage of better tax strategies if we ever end up living off the assets themselves? Hello OP - would you be willing to give an update on actions you've taken in the past 2 1/2 year...

Hello OP - if you would be willing, would you please share what estate planning steps you've taken with your NW?

Hope the retirement plans have come to fruition. Happy New Year!

Hi all! I just spent several hours going through your advice. There are a few things I still need to review. However, I already have a much better understanding of my situation. Below are answers to questions that were directed to me, and my working plan based on your advice so far. A little more about me: I should have explained that my wife and I used to live in San Francisco before moving abroad for her work. We’re aware that Cali is an expensive place to live in, and, to be honest, have mixed feelings about returning given the current political climate and the many problems in SF. After much consideration, we have decided to return because 1) this will boost my wife’s career path, and 2) we’d like to become US citizens and have childre...

I would be interested in hearing more about the impact of the ups/downs in the past one year of your retirement: Have you changed your spending at all and/or are there plans to change? You are in your late 40s - how are you handling medical insurance? How involved is your spouse in the planning/managing of the investment strategy? If your spouse isn’t that involved, what is their reaction to the large fluctuation and dependency on one stock? As you mentioned, you have a high tolerance for risk, has this caused any stress? Or do you go with the flow, since you’re still up significantly from your initial investment? Thank you for taking the time to provide updates and respond to questions. I’ve been following since you originally posted and I...

OP - I don’t normally keep up with the TSLA stock price, but once in awhile a headline will catch my eye and when it does, I think about you!

I appreciate the update you posted in June and am curious if you’d share your current position and if you made any changes to your portfolio as you were planning to in 2023.

Does your employer automatically stop your contributions when you hit the max? If yes, max out your contributions each paycheck. I setup a spreadsheet and estimate my deductions (taxes plus insurance), from the remaining amount, I max out the percentage for each bucket, per paycheck. For my employer it is: pre-tax 401k, max $22,500 pre-tax 401k catch-up (for over 50), max $7,500 after-tax 401k, max $33,500 employer match, $10,000 For 2023 the total of all of the above will be $73.5k My employer stops contributions when I hit the max in each bucket, which according to my spreadsheet will be around Sept. 2023 If your employer doesn't monitor your contribution limits, you will need to track it on a spreadsheet and fine tune as you start hittin...

Double check what different institutions are offering, there are some good rates on CDs available at Credit Unions right now.

https://www.depositaccounts.com/blog/

Many thanks for the replies. We will be visiting from Northern California, a week to 10 days during summer would be been doable, but looks like it's better to visit during school year, have done that with few UCs. I wasn't aware of that there is an option to meet faculty and even attend a class. Primarily was looking forward to guided tours. If summer is not the best time, what are other best times to visit colleges? The best way to see some Big ten midwestern universities is to visit them between Nov. 1st. to April 1st. Be sure to check out living conditions for freshman students. I know at Madison they are awful, that said 60% to 70% of the students seem to survive. This is the best time for your child to interact with students and possi...

arf1410 wrote: ↑Sun May 15, 2022 5:53 pm Understand this may be the only time you have available, but visiting when a school is in session is preferred.

I second this. Your daughter will get a feel for the town and what the campus looks like, but that might be the extent of it.

Faculty might not be readily available to meet with students, fewer classes to sit in on.

Campus will look deserted.

+.10% if you're an AARP member!

+1000 to all of the above.

Thankfully spouse (who grew up with dogs) doesn’t want one. Kids, however, do “hound” us. I tell them when they have their own place, they can do whatever they want.