Search found 367 matches
- Wed Dec 15, 2021 4:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRMAA and Part B premium
- Replies: 20
- Views: 1717
Re: IRMAA and Part B premium
Yes. Just think of it as an additional 2% tax, and plan your income for the higher end of each range if you can to have the lowest tax bite. The premiums are monthly and per person. The effective rate can be as low as 4.2% in the first bracket -- if you are able to maximize the bracket. (2.1% is for one person's IRMAA penalty if MFJ.) The next two brackets are 5.2%. Note that the brackets are based on Medicare MAGI from two years prior. The first IRMAA bracket starts about $20k before the top of the 22% tax bracket. Sad that it is not included as a simple percentage within the current year tax return. The step scale approach means that for the first dollar into the bracket, the IRMAA penalty jumps as much as $2922 -- a marginal tax rate of...
- Sat Dec 11, 2021 11:48 am
- Forum: Personal Finance (Not Investing)
- Topic: Harvesting Gains and Qualified Divs. vs. Roth Conversions
- Replies: 58
- Views: 4799
Re: Harvesting Gains and Qualified Divs. vs. Roth Conversions
As Celia noted, aggressive Roth conversions are likely needed. Start in 2021. If your deferred balance is $3mm, convert to the top of the 24% bracket for several years. It is beneficial to pay the tax from your after tax accounts, because it effectively moves those funds into the Roth account. But you will have other considerations due to the potential realized capital gains. Also keep in mind your overall plan for utilizing the funds -- a) tax rates of heirs b) tax rate of surviving spouse c) satisfying RMD using QCD d) low tax rate in years of high medical costs e) the risk of converting too much -- 24% vs 22% is not concerning Now for some math. Consider the overall marginal rate. If you see that the marginal rate will be 32%+, conversio...
- Mon Dec 06, 2021 1:26 pm
- Forum: Personal Consumer Issues
- Topic: Looking for a settop DVR for a non cable TV
- Replies: 59
- Views: 5213
Re: Looking for a settop DVR for a non cable TV
My TiVo Roamio is a cable card version with 4 tuners, to which I added a 3TB hard drive. Also have 4 TiVo Minis. So anything recorded is available to watch on any TV. The newer Mini has a remote with a Netflix button -- streaming is much improved (...get the newer Mini). There is an option to use the cable TiVo for OTA, should I decide to drop cable. I seldom watch anything live. And many prime time programs have commercial skip button enabled. Two Minis are connected with built in Moca; two with Ethernet. Once devices are connected, I reserved the IP addresses in the router. A Moca adapter was needed to inject Ethernet signal into the TV coax, and a coax filter to keep it from leaking to the neighbors. If I added another TiVo to record OTA...
- Sun Nov 28, 2021 11:51 am
- Forum: Personal Finance (Not Investing)
- Topic: Buying House for Adult Child
- Replies: 84
- Views: 9648
Re: Buying House for Adult Child
Instead of the 'is it a good idea' approach, here is 'how it might be done'. Without the resources for daughter to purchase and the associated ongoing expenses, there is little question of the need for your continued help. You might cosider that you could finance the house. She would be obligated for the monthly payment to you, and you would show the interest income on your tax return. The AFR minimum rate for interest is set monthly. 1.88% Long term rate for December 2021 https://resources.evans-legal.com/?p=2591 250,000 x 1.88 / 12 = 392/month (interest only) -- or -- 30-year payoff = 909/month Set the payment to include insurance and taxes, so you can avoid the questions regarding whether those payments were made. Include a provision in ...
- Tue Nov 16, 2021 6:16 pm
- Forum: Personal Investments
- Topic: PSA: Read your 401k Summary Plan Document (rule of 55)
- Replies: 8
- Views: 1620
Re: PSA: Read your 401k Summary Plan Document (rule of 55)
Also understand the rules for NUA tax treatment if you have low cost basis company stock in 401k. You pay ordinary tax rates on the cost basis. Capital gains tax on profit when sold. Balance of 401k would need to roll to IRA in the same tax year.
If you want to do NUA, don't take any withdrawals until you figure it out. Very strict rules.
If you want to do NUA, don't take any withdrawals until you figure it out. Very strict rules.
- Thu Nov 04, 2021 8:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth Conversion? Which Option should FIL choose?
- Replies: 5
- Views: 807
Re: Roth Conversion? Which Option should FIL choose?
ditto
Note that IRMAA starts before the top of the 22% tax bracket. Consider a plan to avoid paying IRMAA as long as possible.
- Sun Oct 17, 2021 11:12 pm
- Forum: Personal Consumer Issues
- Topic: LED lighting options for existing recessed cans
- Replies: 16
- Views: 2026
Re: LED lighting options for existing recessed cans
When I was hunting for replacements, I kept finding 925 lumen ratings -- 75 watt equivalent, and just not bright enough for the sparse placements and high ceilings.
These are the ones I installed -- difficult to even find the part number. Note the 2000 lumens is much brighter than many you will find.
High Brightness 2000 lumens; 3000K ..Retrofit -- option B.
These are the ones I installed -- difficult to even find the part number. Note the 2000 lumens is much brighter than many you will find.
High Brightness 2000 lumens; 3000K ..Retrofit -- option B.
- Sun Sep 19, 2021 1:50 am
- Forum: Personal Consumer Issues
- Topic: Broken Garbage Can Drawer and Slider
- Replies: 4
- Views: 1700
Re: Broken Garbage Can Drawer and Slider
If you are trying to install a screw, such as the one in this picture, you might be able to get a longer screw and/or drill a hole for an extra screw a bit further inside the cabinet. If you have trouble getting it to hold, you could use a machine screw with a nut inside the adjacent cabinet. Sometimes a spacer is needed to fill a gap between the slide bracket and the side of the cabinet -- a few 3/16ths washers could work, or cut strips from some of the plastic in your recycle bin.
Be careful to avoid splitting the face frame -- perhaps a small diameter screw and pre-drill the hole.
Be careful to avoid splitting the face frame -- perhaps a small diameter screw and pre-drill the hole.
- Sat Sep 11, 2021 12:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retire at 55?
- Replies: 11
- Views: 3519
Re: Retire at 55?
Retiring at 55 is good. Or perhaps 58 or 60. You might even find a different employer in the corporate/private sector until wife retires. Relax and understand that you can do what you want. You may want to fully understand how some teacher pension schemes work. If eligible for one of the legacy tiers with rule of 80, pension might start upon retirement or perhaps later when rule of 80 is met. This means that each year worked is two years closer to pension eligibility. The example below shows how working 8 more years might result in a significantly higher pension -- effectively adding more to total pension value than annual earnings. How one feels about their job might be different if they understand that they are earning more. And don't for...
- Sun Aug 22, 2021 8:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: Social Security retirement benefits increases for delaying aren't 8% a year
- Replies: 24
- Views: 5409
Re: Social Security retirement benefits increases for delaying aren't 8% a year
(For men with an average life expectancy, the expectation is maximized by claiming at 69. You might still wait until 70, either because most people making this decision have an above-average life expectancy, or because you want to decrease risk by having more money if you have a longer life in which you will need that money.) Married couples have an additional benefit from delaying at least the higher of the two benefits until age 70 ... The surviving spouse might want to maximize their benefit once they lose their partner's SS payments. This is correct, and I intended to include "single" in the example above. The higher-earning spouse almost always comes out ahead waiting until 70, since the increased benefit lasts as long as ei...
- Wed Aug 18, 2021 3:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I stay or should I go? (return to office)
- Replies: 26
- Views: 4382
Re: Should I stay or should I go? (return to office)
When evaluating the state teacher pension, did you also consider the offset to your social security benefit? You might be subject to the social security Windfall Elimination Provision. https://www.ssa.gov/pubs/EN-05-10045.pdf Other ideas: - Retirement age vs. the age you start drawing retirement. In some cases, a person can stop working, but wait to draw retirement at a later date, avoiding an early retirement penalty (other than fewer years of service). (Don't know if this is an option for your plan.) - In a state plan, there are other jobs that you might do which could help meet the years of service requirement. Might be significantly shorter commute. Wouldn't have to pay as much, since your retirement calculation should be based on high ...
- Fri Aug 06, 2021 6:07 pm
- Forum: Personal Consumer Issues
- Topic: RAM 1500 - Model Year 2019 or newer, Thoughts
- Replies: 56
- Views: 4158
Re: RAM 1500 - Model Year 2019 or newer, Thoughts
Research fully before you buy. I don't want cylinder shutoff or engine stop-start.
Some GM trucks manufactured after June 7, might not have the engine stop-start due to chip shortage. But cylinder shutoff is still a problem for me.
Test drive various 4Runner models. Limited AWD is quite different from SR5 and TRD Pro. Not a truck, but since friends have trucks...
Ford Maverick might be considered. Low price. Less depreciation. Better mileage.
The backup generator option on some F150/250 interests me.
Some GM trucks manufactured after June 7, might not have the engine stop-start due to chip shortage. But cylinder shutoff is still a problem for me.
Test drive various 4Runner models. Limited AWD is quite different from SR5 and TRD Pro. Not a truck, but since friends have trucks...
Ford Maverick might be considered. Low price. Less depreciation. Better mileage.
The backup generator option on some F150/250 interests me.
- Thu Aug 05, 2021 1:31 am
- Forum: Personal Consumer Issues
- Topic: Which 7 seater SUV?
- Replies: 89
- Views: 13774
Re: Which 7 seater SUV?
My preference is for reliability and value. Very satisfied with 2019 4Runner Limited AWD. 3rd row is an option/afterthought, but comes in handy for a 6th/7th child if rarely needs to be used. If you think about who will need a car in 5-7 years, there will be more interest in the 4Runner. I'm not sure I'd buy a tow vehicle today if I didn't need it for 5-7 years. Had a Suburban for 18 years. Four captains chairs. Great for trips. But current pricing and undesireable new 'features' are not for me. I do not want cylinder shut off or automatic stop-start -- neighbor already had their 2021 Suburban engine rebuilt after less than 6 months. And not just GM with the undesireable 'features'. It can be difficult to find cars without them. Buyer bewar...
- Thu Jul 29, 2021 4:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Parents having trouble getting home loan
- Replies: 23
- Views: 3836
Re: Parents having trouble getting home loan
see prior thread. Mortgage for Retiree: viewtopic.php?p=5553050#p5553050
- Fri Jul 16, 2021 9:14 pm
- Forum: Investing - Theory, News & General
- Topic: When in the year do you take RMDs?
- Replies: 69
- Views: 8751
Re: When in the year do you take RMDs?
Since RMD is required even in the year of death, one strategy is to do it in January so that heirs cannot overlook the requirement.
- Wed Jul 14, 2021 12:59 am
- Forum: Personal Investments
- Topic: Hoping to retire early, rule of 55/Rule 72(t)
- Replies: 28
- Views: 5984
Re: Hoping to retire early, rule of 55/Rule 72(t)
If you hold company stock with low cost basis in a 401K, check into the potential for utilizing NUA tax treatment. You can withdraw some/all of the stock and pay tax on the cost basis. When stock is sold, you have a capital gain -- and opportunity for 0% tax rate applicable to LTCG when income (including capital gain) is within the 12% tax bracket. The balance of the 401K can then be rolled to IRA -- and full withdrawal from 401K must be completed in same tax year. Very strick rules. - - - and a few other notes. 1. Consider doing Roth conversions to the top of the 12% bracket, unless lower income is needed for ACA subsidy. 2. Understand the Taxation of Social Security . Make sure to study the heat chart . 3. Tax impacts are not modelled in ...
- Mon Jul 12, 2021 4:28 pm
- Forum: Personal Consumer Issues
- Topic: Colleges for STEM/CS kid - (Update - MIT in particular)
- Replies: 355
- Views: 31911
Re: Colleges for STEM/CS kid - Overall rank or engineering/CS rank?
Colorado School of Mines might be added to the list.
-- some student testimonials: https://www.minesnewsroom.com/humans-of-mines
-- some student testimonials: https://www.minesnewsroom.com/humans-of-mines
- Sun Jul 11, 2021 1:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: Need to Roth Convert at 22 - 24% Tax Bracket ??
- Replies: 37
- Views: 4354
Re: Need to Roth Convert at 22 - 24% Tax Bracket ??
Congratulations. You have no need...
Do Roth conversions, whenever you can use up the 12% tax bracket and retain the 0% rate for LTCG/QD, as previously noted. Beyond that, your marginal rate + IRMAA makes convertion benefits harder to define.
But the bigger question is how to distribute your wealth.
1. gifting to children -- perhaps do that via appreciated stocks and let them realize the gains.
2. qualified charitable distributions can satisfy RMD
3. charitable contributions of appreciated stock
Also note that years with high medical expenses can result in an opportunity for additional withdrawals/Roth conversions. (another way that tax rates could be lower on IRA balances).
Do Roth conversions, whenever you can use up the 12% tax bracket and retain the 0% rate for LTCG/QD, as previously noted. Beyond that, your marginal rate + IRMAA makes convertion benefits harder to define.
But the bigger question is how to distribute your wealth.
1. gifting to children -- perhaps do that via appreciated stocks and let them realize the gains.
2. qualified charitable distributions can satisfy RMD
3. charitable contributions of appreciated stock
Also note that years with high medical expenses can result in an opportunity for additional withdrawals/Roth conversions. (another way that tax rates could be lower on IRA balances).
- Sun Jul 11, 2021 1:48 am
- Forum: Personal Finance (Not Investing)
- Topic: Lendin child house money and having them take a mortgage out and pay you back
- Replies: 23
- Views: 3419
Re: Lendin child house money and having them take a mortgage out and pay you back
This program might be of interest. With funds in after tax brokerage account, up to 100% financing.
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
Credit unions might also be a good source to check.
If you provide mortgage financing, the title company can provide the documents necessary to formalize the mortgage, file the lien, etc. You charge an interest rate not lower than the applicable federal rates. https://resources.evans-legal.com/?p=2591
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
Credit unions might also be a good source to check.
If you provide mortgage financing, the title company can provide the documents necessary to formalize the mortgage, file the lien, etc. You charge an interest rate not lower than the applicable federal rates. https://resources.evans-legal.com/?p=2591
- Sat Jul 03, 2021 8:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Cheapest way to fund home purchase while holding current home?
- Replies: 7
- Views: 1442
Re: Cheapest way to fund home purchase while holding current home?
This program might be of interest. With funds in after tax brokerage account, up to 100% financing.
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
- Tue Jun 29, 2021 4:38 pm
- Forum: Personal Investments
- Topic: Tax minimization - Spending off 401k or other savings first in early retirement
- Replies: 28
- Views: 2729
Re: Tax minimization - Spending off 401k or other savings first in early retirement
If you hold company stock in a 401K, check out NUA tax treatment. Very strict rules, so be careful not to take withdrawals from 401K until you figure it out. https://www.bogleheads.org/wiki/Net_unrealized_appreciation
- Sat Jun 26, 2021 11:04 am
- Forum: Personal Investments
- Topic: Roth vs. Traditional when only taxes matter
- Replies: 11
- Views: 1407
Re: Roth vs. Traditional when only taxes matter
IRMAA brackets start before the top of the 22% tax bracket. And from age 63. So at 24%, it seems your risk of overpayment is 2%. But if you think in terms of lifetime marginal rates, the risk could be less due to eventually being a single filer with high tax rate. Another reason to do Roth is if your savings are in pretax accounts. Should you have a need for funds, you could pay higher tax rates. If you have low cost basis company stock in 401k, NUA tax treatment can be available, and significantly change your balance of taxed/untaxed funds. Note that there are strict rules on how to do it -- balance of 401k rolled to IRA in same tax year, and more... Don't forget about the potential for lower rates. Years having high medical deductions. Qu...
- Tue Jun 22, 2021 11:25 am
- Forum: Personal Investments
- Topic: Texas TRS and early retirement
- Replies: 5
- Views: 1398
Re: Texas TRS and early retirement
The details can be found in the TRS Benefits Handbook One reason for the confusion is that the 'Normal Age Retirement' changed for newer employees, so you have to figure out which 'Tier' you are in. If you are in Tiers 1 or 2, once you meet the Rule of 80, there is no early retirement penalty. Every year you work increases your annuity, and brings you two years closer to retirement at full annuity (based on years of service formula). But make sure you have met Rule of 80 -- the way TRS calculates it. For Tiers 3 or 4, there is a reduction in the annuity if not age 60. For Tiers 5 or 6, there is a reduction in the annuity if not age 62. Folks who were grandfathered in Tiers 1 or 2 might retire at age 55 with 25 years of service. At age 50 an...
- Sun Jun 06, 2021 6:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retired, Any reason NOT to roll over my 401k to my IRA
- Replies: 12
- Views: 1782
Re: Retired, Any reason NOT to roll over my 401k to my IRA
If you have low cost basis company stock in 401K, you might have an opportunity for NUA tax treatment. You withdraw the stock and pay tax on the cost basis. When you sell the stock, the difference gets capital gains treatment. Strict rules; proceed with caution. The remaining balance in 401k is rolled to IRA before the end of the same tax year.
- Sat Jun 05, 2021 12:19 am
- Forum: Personal Consumer Issues
- Topic: Mazda3/CX-30 vs Mercedes GLA vs Toyota C-HR
- Replies: 18
- Views: 2409
Re: Mazda3/CX-30 vs Mercedes GLA vs Toyota C-HR
I am not a fan of cylinder deactivation; do not want it - too many issues. I want reliability. Fuel economy is much less critical.
https://www.mazda3revolution.com/threads/cylinder-deactivation-issues.237085
Some models come without it. My 2018 Mazda3 Touring, 2.5L, 6-speed A.T. has been fine. prior post
https://www.mazda3revolution.com/threads/cylinder-deactivation-issues.237085
Some models come without it. My 2018 Mazda3 Touring, 2.5L, 6-speed A.T. has been fine. prior post
- Sun May 30, 2021 11:27 am
- Forum: Personal Investments
- Topic: Roth Conversion and Retirement
- Replies: 14
- Views: 2570
Re: Roth Conversion and Retirement
Keep in mind that marginal tax rates are different with Social Security income, i.e., you may find very little 12% marginal tax rates; your income will be high enough to put you firmly into the 22% tax bracket. a. fully utilize 12% tax bracket with Roth conversions, but consider b. Roth conversions count as income for ACA subsidy c. Opportunities to utilize 0% tax for LTCG and qualified dividends Other ideas: Use RPM or other tools to model income. Years with high medical expense can result lower taxes. Qualified charitable distribution can satisfy RMD. Some reasons to convert at 22%: - If heirs marginal tax rates are likely to be in the 22% bracket - Added flexibility of funds in Roth can avoid higher taxes should you decide on a large exp...
- Mon Mar 08, 2021 8:45 pm
- Forum: Personal Investments
- Topic: Am I thinking about Roth correctly?
- Replies: 22
- Views: 3638
Re: Am I thinking about Roth correctly?
... My guess is you will never have a marginal tax rate less than 22%, as you will always withdraw or convert up to the top of the 12% bracket. ... I am curious how you made this calculation? Did you make some assumptions which he/she did not post? He/she can swing to Roths now, delay SS, adjust AA placement, and retire early ...maybe earlier than 60. If the OP does retire early and does Roths conversions up to $106K per year for 10+ years why might he always be above 22%? When you fill up the 12% bracket every year, but eventually pay 22%, your marginal rate could be viewed as 22%. And with retirement before age 65, you might want to keep income low to qualify for ACA subsidy. The assumed growth in 401K is also something to model. The OP ...
- Mon Mar 08, 2021 1:36 pm
- Forum: Personal Investments
- Topic: Am I thinking about Roth correctly?
- Replies: 22
- Views: 3638
Re: Am I thinking about Roth correctly?
You are correct in considering where you will live in retirement. (And also understand how some states tax retirement income differently.) But besides considering the federal tax implications, understand that from age 63 the IRMAA premium is similar to an additional tax, except it is a step scale based on Medicare MAGI (AGI plus tax exempt interest), and the first bracket starts well before the top of the 22% tax bracket. Another consideration is whether you have company stock with a low cost basis in your 401K. If done correctly, you withdraw some/all of the stock with low cost basis and pay tax on the cost basis. When the stock is sold, there will be capital gains taxes on the difference between sales price and the cost basis. But the poi...
- Sat Feb 13, 2021 12:22 pm
- Forum: Personal Investments
- Topic: Bond alternative for retiring parents
- Replies: 16
- Views: 1380
Re: Bond alternative for retiring parents
Age? Deferring SS to age 70 has a good return and since you're considering bond equivalence... opensocialsecurity.com $10k each in EE Bonds doubles in 20 years. Perhaps you can schedule out the timing of investments and withdrawals by year. Do some tax planning to fully utilize 12% tax bracket. And then you are back to the questions: What to do about low bond yields? What to do about large residual portfolio? I am as concerned/confused, but unwilling to be too aggressive in equities -- because I don't need to be, and don't want the risk. The benefit of not having large IRA balances means less RMD to push high tax and IRMAA. You may want to utilize RMD for qualified charitable contributions; also higher IRA withdrawals in years with high med...
- Fri Feb 05, 2021 10:30 am
- Forum: Personal Consumer Issues
- Topic: International travel insurance
- Replies: 20
- Views: 1747
Re: International travel insurance
For cruising, we will use the cruise company or Costco.
Also subscribe to MedJetAssist, which gets you home.
My question is: What insurance to get for hospital coverage while traveling outside the USA, when your Medicare Advantage plan falls short?
Also subscribe to MedJetAssist, which gets you home.
My question is: What insurance to get for hospital coverage while traveling outside the USA, when your Medicare Advantage plan falls short?
- Thu Feb 04, 2021 5:21 pm
- Forum: Personal Investments
- Topic: Planning to defer Social Security ‘til 70 ? OPEN Social SEC says… (+ROTH?)
- Replies: 13
- Views: 1729
Re: Planning to defer Social Security ‘til 70 ? OPEN Social SEC says… (+ROTH?)
To further build on other observations -- One way you might reduce IRMAA potential is to do more Roth conversions. It does mean paying taxes earlier... It also reflects my plan to fully utilize as much 22% tax bracket as possible, while staying safely below the first IRMAA bracket. I've put my numbers in the RPM spreadsheet and can see that my marginal tax rate will never be lower than 22%. Here is one scenario which shows how you might accelerate capital gains over 3 years and retain the 0% tax rate for them. Then pursue Roth conversions. https://sat02pap001files.storage.live.com/y4mdcgBPOSSs4FbZCtnL94jukuieSc-lA2yD6f8PjKU7qvFnp0kQAzjVvjZwv7P6PrqXm_JH1Z53Aglnd7Z892Oau8CXCUVLSVDthUpbw3ufKVz-jCeX9sgjo3ifQoAhnfqKsycpVU9-1jO0Q-Mr78KMBe8nUsSJqq...
- Wed Feb 03, 2021 3:52 pm
- Forum: Personal Consumer Issues
- Topic: Poor Call Quality on Google Voice
- Replies: 27
- Views: 3630
Re: Poor Call Quality on Google Voice
Perhaps this will help on QoS setup for TP-Link AC1750LifeIsGood wrote: ↑Wed Feb 03, 2021 5:54 am ...
I scoured all the logs in my router but don't see anything resembling bandwidth utilization by device
I also don't see a setting for QoS setup.
...
https://www.tp-link.com/us/support/faq/1104/
https://www.tp-link.com/us/user-guides/ ... ub-title-1
Several other results can be found
search: tp link qos by device
or, tp link qos obi200
- Tue Feb 02, 2021 12:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: Cash Out Refinance to pay Credit Card Debt?
- Replies: 6
- Views: 852
Re: Cash Out Refinance to pay Credit Card Debt?
If you 'need' to consolidate the credit card debt, you seem to have come up with a plan to do that. And getting rid of the high interest is a plus. It may bring relief. But will it also enable more credit card debt? Figure out how you acquired the debt. Do some budget analysis. Remember the need for maintaining an emergency fund. Once you have a complete budget plan, then you can identify next steps. 1. If you can easily pay off the credit cards over the next year or two, then that would be a reasonable approach. And once paid off, you can build on your emergency fund, etc. - or - 2. If you need an extended length of time to pay off the credit cards, it seems that the cash out refinancing is not necessarily a bad idea. - but - 3. If you are...
- Tue Feb 02, 2021 2:01 am
- Forum: Personal Consumer Issues
- Topic: Poor Call Quality on Google Voice
- Replies: 27
- Views: 3630
Re: Poor Call Quality on Google Voice
I had a similar problem with my VoIP. I updated settings in the router; specified high priority for the VoIP device.
In my router, I can see a table that shows bandwidth utilization by device.
The link to that table is only shown at the bottom of the screen under the Advanced tab; Setup; QoS Setup, and scroll down until the link appears at the bottom of the page. Then select the device and edit the priority setting.
I also reserve an IP address for the VoIP device (as well as most other devices).
In my router, I can see a table that shows bandwidth utilization by device.
The link to that table is only shown at the bottom of the screen under the Advanced tab; Setup; QoS Setup, and scroll down until the link appears at the bottom of the page. Then select the device and edit the priority setting.
I also reserve an IP address for the VoIP device (as well as most other devices).
- Tue Feb 02, 2021 12:47 am
- Forum: Personal Finance (Not Investing)
- Topic: Ridiculous insurance premium
- Replies: 41
- Views: 4334
Re: Ridiculous insurance premium
A frequent topic. Perhaps this thread will give you some ideas:
Options for healthcare during FIRE (but before 65)?
Options for healthcare during FIRE (but before 65)?
- Mon Feb 01, 2021 7:02 pm
- Forum: Personal Investments
- Topic: Any downsides to holding stock in a Merrill Lynch account?
- Replies: 11
- Views: 934
Re: Any downsides to holding stock in a Merrill Lynch account?
This program might be of interest -- if investments in after tax brokerage account; up to 100% financing.
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
- Mon Feb 01, 2021 12:28 pm
- Forum: Personal Investments
- Topic: Roth converts to lower RMD
- Replies: 5
- Views: 661
Re: Roth converts to lower RMD
The RPM spreadsheet might help you identify the amount to convert each year. It showed that my marginal tax rate would never be less than 22%, so each year I convert into the 22% bracket while staying under the first IRMAA bracket. And I review the spreadsheet each year to see that I will always fully utilize the 12% bracket for every future year. Keep in mind that some IRA funds can be taxed at lower rates. Qualified charitable contributions can satisfy RMD. Also years with high medical expenses (nursing home). Also review how SS becomes taxable based on non-SS income; if IRA is your source of non-SS income, you might have an opportunity to pay no tax on annual withdrawals. Until 85% of SS becomes taxable, marginal tax rates are higher tha...
- Sun Jan 31, 2021 1:48 pm
- Forum: Investing - Theory, News & General
- Topic: EE Savings Bonds in IRA or 401k account
- Replies: 16
- Views: 1865
Re: EE Savings Bonds in IRA or 401k account
I had the same question.
I am unable achieve AA and yield in IRA/Roth holdings.
Considering the other opportunities for bond yields, I would buy the $10k EE bond limit each year.
In order to do this, I would need to forego $10k Roth conversion. Should I consider it?
I am unable achieve AA and yield in IRA/Roth holdings.
Considering the other opportunities for bond yields, I would buy the $10k EE bond limit each year.
In order to do this, I would need to forego $10k Roth conversion. Should I consider it?
- Thu Jan 14, 2021 5:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: mortgage life insurance
- Replies: 26
- Views: 1155
Re: mortgage life insurance
Obtaining a mortgage in retirement can be a challenge. Lenders like to see regular deposits into your bank account, and/or tax returns showing IRA withdrawals or Roth conversions.
-- a prior thread: Mortgage for Retiree?
-- a prior thread: Mortgage for Retiree?
- Mon Jan 11, 2021 12:45 am
- Forum: Personal Finance (Not Investing)
- Topic: I was denied term life, being advised to consider whole life
- Replies: 36
- Views: 3667
Re: I was denied term life, being advised to consider whole life
To evaluate the whole life option, obtain a schedule of guaranteed cash values. You can then evaluate the 'cost of insurance' for each future year, with an 'assumed rate of return'. There should also be a schedule that shows how long the policy is in force once you stop paying the premium. Perhaps you would pay the $700 monthly premium for several years, and the policy would be effectively paid-up thru age 60. Some policies might provide flexibility in terms of your options to resume payments at a later date. I am not a proponent of whole life. I wanted to point out that the monthly premium is only part of the story. If your present insurer will let you convert to whole life, what are the other options from that insurer? Can you renew it in...
- Sat Jan 02, 2021 4:34 pm
- Forum: Personal Consumer Issues
- Topic: Best < $100 purchase?
- Replies: 299
- Views: 55791
Re: Best < $100 purchase?
2000 lumens, 3000k LED lighting for 12-foot kitchen ceiling
-- part number may be required to find these: LEDR56XHO/930CA/6
-- 'online only' from Home Depot
-- be careful (with faulty website) as you can easily wind up with 1290 lumens: LEDR56HO/930CA
[my apologies if links are against policy, but these were really difficult to find]
These replaced 1250 lumens that were a few years old. DW was amazed at the difference. And I was saved from crawling around in the attic to install additional cans.
- Sat Jan 02, 2021 1:29 pm
- Forum: Personal Investments
- Topic: Borrowing against stock funds when making a big purchase
- Replies: 26
- Views: 3518
Re: Borrowing against stock funds when making a big purchase
This program might be of interest -- enables keeping investments in after tax brokerage account; up to 100% financing.
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
https://mlaem.fs.ml.com/content/dam/ML/ ... ayment.pdf
- Fri Jan 01, 2021 11:17 am
- Forum: Investing - Theory, News & General
- Topic: $1200 stimulus to drop into my account 01/04/21
- Replies: 71
- Views: 11017
Re: $1200 stimulus to drop into my account 01/04/21
Stimulus showed up today, but it was about one-fourth of the one from May. I knew that the amount was based on $600, but I had not seen that the phase out had been reduced. And this payment was based on 2019 AGI; the earlier one was based on 2018 AGI.
Now to update my estimated tax payment. Since the stimulus is an advance payment of 2020 tax credit, my 2020 AGI should enable collecting the full stimulus amount. (No repayment for those whose 2020 AGI would result in lower stimulus.)
Now to update my estimated tax payment. Since the stimulus is an advance payment of 2020 tax credit, my 2020 AGI should enable collecting the full stimulus amount. (No repayment for those whose 2020 AGI would result in lower stimulus.)
- Fri Nov 27, 2020 11:21 am
- Forum: Personal Finance (Not Investing)
- Topic: Retire early or keep working
- Replies: 76
- Views: 10460
Re: Retire early or keep working
It is no longer a question about resources. You have the opportunity to choose your vocation for retirement and where you want to live.
I've watched more than a few episodes of Hawaii Life, and sometimes think how nice it would be to live near the beach. It would certainly be a different lifestyle. And it doesn't have to be permanent.
You could live in a college town and perhaps teach.
You might consider reduced hours. Something like Monday, Tuesday and half-day Wednesday would give you purpose and plenty of time for other activities.
I've watched more than a few episodes of Hawaii Life, and sometimes think how nice it would be to live near the beach. It would certainly be a different lifestyle. And it doesn't have to be permanent.
You could live in a college town and perhaps teach.
You might consider reduced hours. Something like Monday, Tuesday and half-day Wednesday would give you purpose and plenty of time for other activities.
- Tue Nov 24, 2020 11:06 am
- Forum: Personal Investments
- Topic: Another Lump sum vs pension question - need help
- Replies: 19
- Views: 1797
Re: Another Lump sum vs pension question - need help
It is likely that the large lump sump is partly the result of low interest rates. I'm not inclined to purchase bonds at low interest rates. Same goes for annuities.
Taking the lump sum can also provide you with flexibility to decide what level of annuity you need/want. Perhaps wait until interest rates are higher and use 500k for SPIA.
Prior post with link to Kitces: viewtopic.php?p=5570360#p5570360
And, congratulations on being financially prepared for retirement. It looks like you could benefit from some long term planning; my guess is that you need to evaluate how Roth conversions might help avoid IRMAA.
Taking the lump sum can also provide you with flexibility to decide what level of annuity you need/want. Perhaps wait until interest rates are higher and use 500k for SPIA.
Prior post with link to Kitces: viewtopic.php?p=5570360#p5570360
And, congratulations on being financially prepared for retirement. It looks like you could benefit from some long term planning; my guess is that you need to evaluate how Roth conversions might help avoid IRMAA.
- Tue Nov 17, 2020 10:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retirement fund withdrawal help!!! and tax implication
- Replies: 6
- Views: 969
Re: Retirement fund withdrawal help!!! and tax implication
IRA rollover. No 2020 taxes. Then do Roth conversions over time, depending on your marginal tax rate. After 5 years, the original conversion amount can be withdrawn without penalty. Leave earnings until age 59.5.
Regardless of what you do: At some point, evaluate buying the SC years into the Texas plan. The costs could be based on pay from the first year teaching in Texas -- you might find that the payout is quite good as it adds to the years of service and might influence when you start talking retirement.
Note that teacher retirement can be an offset to social security benefits.
Regardless of what you do: At some point, evaluate buying the SC years into the Texas plan. The costs could be based on pay from the first year teaching in Texas -- you might find that the payout is quite good as it adds to the years of service and might influence when you start talking retirement.
Note that teacher retirement can be an offset to social security benefits.
- Fri Nov 13, 2020 11:25 am
- Forum: Personal Investments
- Topic: Convert IRA to Roth IRA
- Replies: 16
- Views: 1951
Re: Convert IRA to Roth IRA
With large IRA and RMD from age 72+, your marginal tax rate plus IRMAA could be 28%+. That's at current 24%, and rough estimate of IRMAA (step scale and difficult to optimise).
As others have noted, you should do some modeling to define a plan -- for Roth conversions, when to retire, when to take SS.
For 2020, consider converting into the 24% rate bracket if you have the after tax funds to pay the taxes.
There is a risk of paying tax at 24% vs 22%, but it is offset from the benefit: when you use after tax funds to pay the taxes, you have effectively moved those funds into the Roth account.
Figure out when to start SS. Probably higher earning spouse at age 70, and other spouse at 65 or 62.
As others have noted, you should do some modeling to define a plan -- for Roth conversions, when to retire, when to take SS.
For 2020, consider converting into the 24% rate bracket if you have the after tax funds to pay the taxes.
There is a risk of paying tax at 24% vs 22%, but it is offset from the benefit: when you use after tax funds to pay the taxes, you have effectively moved those funds into the Roth account.
Figure out when to start SS. Probably higher earning spouse at age 70, and other spouse at 65 or 62.
- Tue Oct 27, 2020 11:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Lump Sum or Pension Annuity?
- Replies: 20
- Views: 2230
Re: Lump Sum or Pension Annuity?
When looking at lump sum vs. annuity, I want to understand the implied discount rate. One way to check it is to use the Pension Payout Probability Analysis spreadsheet from this Kitces page: Rigorous Analysis of Pension Options Done Right! A quick check with your numbers showed 3% for the 100% survivor and 2.4% for the 50% survivor option. What this tells me is that either decision is reasonable; no obvious math reason to take the annuity over the lump sum. The reason to take the annuity would be if you want/need the annuity. I'd roll the lump sum into an IRA, probably defer starting SS to age 70 for you -- use the opensocialsecurity calculator to confirm and figure out when your wife should start. Deferring to age 70 is equivalent to buyin...
- Mon Oct 19, 2020 12:12 am
- Forum: Personal Investments
- Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
- Replies: 31
- Views: 2877
Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Put your numbers into RPM to model the benefit/timing of Roth conversions. https://www.bogleheads.org/wiki/Retiree_Portfolio_Model With RPM, you will see your marginal tax rate in future years. Also shows where you are likely to incur IRMAA. My guess is take the pension now AND do Roth conversions to top of 24% tax bracket until age 63 or 64 depending on when you would get hit with the IRMAA premiums. (first year will likely be less than 12 months and also consider wife's age) Keep in mind that tIRA can have a lower tax rate in years of high medical expense, or with qualified charitable distributions. https://www.bogleheads.org/wiki/Qualified_charitable_distributions Remember to use other funds to pay the tax on Roth conversions, which effe...
- Sun Oct 18, 2020 12:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Mortgage for Retiree?
- Replies: 19
- Views: 3097
Re: Mortgage for Retiree?
A credit union can also be good. Sometimes loans are kept in house. Regardless of your lender, ask to speak with someone experienced with loans for retirees and/or asset based loans. 'Loan officers' know how to qualify borrowers based on monthly income, but the rules are more complex for qualifying borrowers when assets are the basis for repayment. It likely becomes an exercise in calculating a monthly income equivalent. I also found that SS does not count, unless you are already drawing it. Somewhat true for IRA accounts, if you are not making withdrawals. But there is a formula lenders can follow for IRA balances. Another anomaly is that Roth conversions count, as they are reported as income on the tax return. This program might be of int...