Search found 11380 matches

by HomeStretch
Thu Mar 28, 2024 2:56 pm
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 143
Views: 8952

Re: Please help me organize the fixed income part of my portfolio

Since the suggestion was made to rollover IRA funds into the TSP…
Does the TSP have any beneficiary quirks that OP should be aware of? I am not familiar with it but I recall some issue such as a non-spouse beneficiary not being able to keep an inherited account in the TSP and/or having to take a full account distribution that can’t be rolled over to an IRA.
by HomeStretch
Thu Mar 28, 2024 2:40 pm
Forum: Personal Consumer Issues
Topic: High Quality Patio Dining Furniture
Replies: 14
Views: 624

Re: High Quality Patio Dining Furniture

I have had very good luck and longevity with multiple outdoor seating/dining areas using Woodard, Winston, Brown Jordan, Lloyd Flanders and Kingsley Bate. That’s a mix of powder coated aluminum, teak and weather-resistant rattan-look furniture. My parents’ Tropitone powder coated aluminum dining furniture with sling chairs lasted forever too.

For high quality, don’t be surprised with a five-figure price tag for a dining table, 6-8 chairs, umbrella w/heavy duty stand and covers.

Don’t waste your money on higher-priced outdoor furniture from popular stores such as Pottery Barn, Arhaus, etc. The metals and woods they use often don’t hold up with furniture left outside in a colder clime (even covered).
by HomeStretch
Thu Mar 28, 2024 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting Nightmare - Executor's Sale of Home
Replies: 4
Views: 530

Re: Tax Reporting Nightmare - Executor's Sale of Home

Welcome to the forum. Consider editing your thread subject in your original post to include “Form 1041”at the beginning to hopefully get some more feedback. The Estate is required to file a Form 1041 for each calendar or fiscal year the Estate had over $600 of income until the Estate is closed. A K-1 may also need to be issued to the beneficiary (you) to be reported on the beneficiary’s Form 1040. You use the Estate’s EIN # on Form 1041 but it will include your name and address as the fiduciary (Executor). Is the Estate account interest/dividend bearing and, if yes, did the Estate receive a 2023 Form 1099? Did the Estate receive a 2023 Form 1099-S reporting the sale to be reported on Form 1041? This may be in the closing package sent to the...
by HomeStretch
Thu Mar 28, 2024 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Got fired and I have question regarding resume.
Replies: 42
Views: 3951

Re: Got fired and I have question regarding resume.

BolderBoy wrote: Thu Mar 28, 2024 10:07 am
impala01 wrote: Thu Mar 28, 2024 9:28 amI was terminated due to not showing enough improvement after my 90 day performance interview prior. I was the only one terminated.
The 90 probationary period goes both ways - they can toss you or you can toss them.

As many others have suggested I would simply list it as a job (so there are no gaps in employment - though you could claim that during a gap you were actively looking for work). If during an interview someone asks why so short a job stint then matter-of-factly say it wasn't a good fit for either of you.
^^^ This
by HomeStretch
Thu Mar 28, 2024 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Any advice on how to manaage cashflow when % of income is variable?
Replies: 45
Views: 2039

Re: Any advice on how to manaage cashflow when % of income is variable?

… My biggest concern is that we’re in this lifestyle trap of ‘if we just had $x more then we’d be fine’, and that even if my base salary was $400k we’d still be in the same position because my we (or primarily my wife) won’t exercise impulse control. Rather than figuring out what we want/need and buying it with a plan, it’s like we’re just spending as long as there is money in the account and we’re keeping on going until we hit $0 every pay cycle. If your base salary leaves you on average $2k short/per month, an easy mechanism is to take $24k annually from your bonus/RSU proceeds, put it in a HYSA and transfer $2k per month to your checking to cover expenses. But based on your comment above, there seems to be merit in the feedback that you...
by HomeStretch
Thu Mar 28, 2024 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Got fired and I have question regarding resume.
Replies: 42
Views: 3951

Re: Got fired and I have question regarding resume.

It’s not clear to me whether you were fired or laid off - what did it say on any paperwork you received about the reason for termination? Edit - were you the only person laid off or was this a larger layoff by the employer? It’s also not clear how your former employer will respond to a reference check by a prospective employer. Do you know their policy? Many companies will only confirm job title and start/end employment dates due for potential liability reasons. Given the above, it’s hard to say whether you should include this 5-month stint on your resume or not. If you do include it, you need to give a succinct credible response when asked why you separated from the employer. If you fumble your response (or say you couldn’t learn the new s...
by HomeStretch
Thu Mar 28, 2024 7:28 am
Forum: Personal Consumer Issues
Topic: Basement Waterproofing
Replies: 26
Views: 1681

Re: Basement Waterproofing

When we purchased our house we had a similar issue with a small amount of water infiltration in our unfinished basement used for storage and walkway access to our garage. Water paths can change (underground erosion) and the problem worsened over the next 15 years. We didn’t want to shop vac water any more plus we were concerned it would get worse, cause unhealthy air quality or cause issues when selling. Correction for us was a multi-prong project during a large house and yard renovation. A lot of our fixes have been discussed above: 1) observed exterior in rain for possible water causes 2) consulted with professionals 3) regraded exterior to slope away from house 4) replaced gutters and downspouts with larger ones. Clean gutters regularly....
by HomeStretch
Thu Mar 28, 2024 6:47 am
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 143
Views: 8952

Re: Please hep me organise the fixed income part of my portfolio

Jimsad wrote: Thu Mar 28, 2024 6:41 am
HomeStretch wrote: Wed Mar 27, 2024 11:42 pm
Jimsad wrote: Mon Mar 25, 2024 4:04 pm 401ks with Paychex and tsp and IRA s in vanguard
Do you have funds in the Thrift Savings Plan and access to Fund G as per another poster?
My Total portfolio - mid 7 figures (excluding 529) - split as
65% - tax deferred
30% - taxable
5% Roth

Tax deferred portion has-
65-% in vanguard rollover IRA - not actively contributing
15% in tsp - actively contributing
15% in Paychex 401k- has vanguard funds- actively contributing

I rounded off above (could be off by about 5% or so in each category)
I missed that you are contributing to the TSP. For fixed income, your posts have discussed holding VBTLX, a TIPS fund and I-Bonds/treasuries/MMF. Consider using TSP G in the fixed income mix as discussed by other posters.
by HomeStretch
Wed Mar 27, 2024 11:42 pm
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 143
Views: 8952

Re: Please hep me organise the fixed income part of my portfolio

Jimsad wrote: Mon Mar 25, 2024 4:04 pm 401ks with Paychex and tsp and IRA s in vanguard
Do you have funds in the Thrift Savings Plan and access to Fund G as per another poster?
by HomeStretch
Wed Mar 27, 2024 10:56 pm
Forum: Personal Investments
Topic: Help | 85 Year Old about to Lose Home
Replies: 25
Views: 2021

Re: Help | 85 Year Old about to Lose Home

Be careful not to band-aid what may in essence be an unaffordable/unsustainable lifestyle. Your friend may be better off selling and using the equity to rent in senior housing which may offer more socialization and more affordable living especially if she can get into subsidized housing. Is living alone in a (large?) single family house with insufficient income to afford living there really the best option for your 85-year old family friend? If you put your own money into this, what happens in 1 year if she needs to move to someplace more accessible/more supportive or needs costly long term care where the home becomes the asset to pay for care or reimburse Medicaid LTC? Conversely what if she lives there for another 10-15 years… are you wil...
by HomeStretch
Wed Mar 27, 2024 10:41 pm
Forum: Investing - Theory, News & General
Topic: Can you do better than BND, Part 2: Test across bear and bull markets
Replies: 32
Views: 3943

Re: Can you do better than BND, Part 2: Test across bear and bull markets

Thank you for the analysis and conclusions.

If IT are preferable to BND, what does that mean for an investor in early retirement who holds a BH 3-fund 60/40 portfolio using BND? With interest rates expected to decline, should that investor exchange BND for IT today?
by HomeStretch
Wed Mar 27, 2024 6:25 pm
Forum: Personal Investments
Topic: How would you change my 401k?
Replies: 46
Views: 1691

Re: Starting to regret hiring Facet

Does “locked in for a year” just mean that you owe them the annual fee even if you cancel within a year?

Did they/you actually make changes to your 401k holdings or did they just recommend the complex holdings you posted?

If you are sure you will stick with managing your own portfolio, consider canceling the contract now and moving to a simpler portfolio as per your thread last month. The Facet fee is a sunk cost.
by HomeStretch
Wed Mar 27, 2024 3:32 pm
Forum: Personal Investments
Topic: Withdrawal Strategy Help Requested
Replies: 13
Views: 1273

Re: Withdrawal Strategy Help Requested

I put my responses in blue font below your underlined response to my 1st post. Congratulations on your upcoming retirement! You have $2.181 million in pretax IRAs, $53k in Roth IRAs and $876k in Taxable accounts including your emergency fund (EF). You plan to spend $138k per year which will be partly funded by SS in the future and the balance will come from your portfolio. Your pre-SS portfolio withdrawal rate will be 4.4% (= $138k / $3.11 million). Your spouse’s SS will start in 3-4 years and yours will start in 8 years. What are the SS amounts for each of you? Her SS would be $2100 if taken at 62 and mine would be $3,500 if taken at 67 Will you be using ACA health coverage (perhaps with premium tax subsidies, PTC) until Medicare at age 65...
by HomeStretch
Wed Mar 27, 2024 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1423

Re: Penna. executor's fees for handling will?

I believe (based on my state, not PA) that all this information must be submitted to the probate court and that all beneficiaries will be notified by the probate court and given a period to object before court approval.

If this is the case in PA, one option to consider is to quietly hire a good estate attorney now to review all this information and to raise a timely objection, if fees are excessive, with the estate attorney/court. This removes you from needing to communicate with your brother and having legal representation strengthens your position.

Condolences on your loss and the difficult estate process with your sibling.
by HomeStretch
Wed Mar 27, 2024 11:19 am
Forum: Personal Investments
Topic: transferring an IRA from Schwab to Vanguard - problem ("ineligble account")
Replies: 7
Views: 618

Re: transferring an IRA from Schwab to Vanguard - problem ("ineligble account")

Call Vanguard. The middle name v. middle initial may indeed be the issue. When I transferred a parent’s IRA to Vanguard a few years ago, this exact issue blocked an online transfer request. I received a different message in the transfer screen though - it said the account transfer request needed to be submitted by mail with (1) an affidavit form attesting “John B Doe” and “John Brown Doe” were the same person, and (2) the paperwork required a medallion guarantee.
by HomeStretch
Wed Mar 27, 2024 10:34 am
Forum: Personal Investments
Topic: Withdrawal Strategy Help Requested
Replies: 13
Views: 1273

Re: Withdrawal Strategy Help Requested

Congratulations on your upcoming retirement! You have $2.181 million in pretax IRAs, $53k in Roth IRAs and $876k in Taxable accounts including your emergency fund (EF). You plan to spend $138k per year which will be partly funded by SS in the future and the balance will come from your portfolio. Your pre-SS portfolio withdrawal rate will be 4.4% (= $138k / $3.11 million). Your spouse’s SS will start in 3-4 years and yours will start in 8 years. What are the SS amounts for each of you? Will you be using ACA health coverage (perhaps with premium tax subsidies, PTC) until Medicare at age 65? Using today’s $, what will your future marginal tax rate be with income from RMDs and 85% of SS? Do you have long-term care insurance? As a couple or as a...
by HomeStretch
Wed Mar 27, 2024 8:39 am
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 143
Views: 8952

Re: Please help me organize the fixed income part of my portfolio

Jimsad wrote: Wed Mar 27, 2024 6:03 am
bonesly wrote: Tue Mar 26, 2024 6:36 pm Image
My taxable account is 90% stocks
My tax deferred were about 40% stocks
I have been reallocating slowly over last few months from stocks to bonds and also reallocating within my fixed income

As of this morning - 59% in stocks over all portfolio
Will be happy to get to at least 65 %
It is hard to get in to stocks now with sky high valuations, but doing it slowly ; will try to get there in next couple of weeks
In looking at the portfolio table in bonesly’s post I see bonds in the Roth IRA which, if you are still holding, can be exchanged to equity without tax consequences.

Sorry if you already posted that these were exchanged already or were being held for a reason. Long thread!
by HomeStretch
Wed Mar 27, 2024 8:22 am
Forum: Personal Investments
Topic: First Taxable Account Investment - VTI or VTSAX?
Replies: 8
Views: 553

Re: First Taxable Account Investment - VTI or VTSAX?

I prefer the mutual fund (VTSAX) for reasons given above. My understanding is that VTI/VTSAX are equally tax efficient as they are share classes.

The ETF (VTI) is transferred more easily if that matters to you as not all brokerages offer VTSAX. If you decide to transfer to another brokerage, Vanguard will, upon request, convert VTSAX to VTI without tax consequences. VTI cannot be converted to VTSAX without tax consequences. VTSAX held at another brokerage cannot be converted to VTI without tax consequences.
by HomeStretch
Wed Mar 27, 2024 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Penna. executor's fees for handling will?
Replies: 26
Views: 1423

Re: Penna. executor's fees for handling will?

Perhaps your brother is including Form 1040/1041 income taxes in the 20% figure? Hard to say if it’s high without knowing the size of the Estate. Did your parent leave most of their assets to you and brother via POD/TOD? If yes, such assets pass outside of the estate to the beneficiaries and is not included (at least in my state, not PA) in the calculation of Executor fees. Ask your brother if there is any estate work you can help with so you can be paid too. :D Or, if you are named as successor Executor in your parent’s Will, ask your brother if he would like to refuse to serve so you can do so for no Executor fee. He might find the higher inheritance share and no estate work to be a good trade-off to step aside. Likely your brother as Exe...
by HomeStretch
Wed Mar 27, 2024 6:29 am
Forum: Personal Investments
Topic: Your insights on our retirement prep?
Replies: 10
Views: 1502

Re: Your insights on our retirement prep?

Overall, you are doing well. Congratulations. Does your spouse have earned income and, if so, does spouse have access to a retirement plan? Do you have any future college expenses and, if so, do you have any savings for it? Will your youngest child graduate from college by your planned retirement age of 55? Consider using one S&P500 fund/ETF in the three IRAs rather than both VTI and VTSAX in each account for simplicity and to avoid inadvertent wash sales with the Taxable account holding VTI. How long before you pay off the $65k car/boat debt? Consider using the company stock proceeds, Taxable VTI and a portion of your emergency fund to pay it off. Then use the (former) monthly loan payments amount to replenish the emergency fund. Also ...
by HomeStretch
Tue Mar 26, 2024 9:13 am
Forum: Personal Investments
Topic: Switch to Roth vs Traditional 403B
Replies: 8
Views: 403

Re: Switch to Roth vs Traditional 403B

Are you and spouse making retirement contributions (now or in the future when you earn more) above your maximum allowed 403b elective deferrals and Roth IRA contributions? If yes, are you making them to a Taxable account or to Roth via a mega backdoor Roth provision in your 403b? Do your or your spouse’s 403b plan(s) offer a mega backdoor Roth? You are holding 100% equity in your portfolio accounts now. If/when you shift your asset allocation to include fixed income, place it in your tax deferred account. It should have lower growth and in turn result in lower RMDs. Each year you can revisit your retirement contributions (where to save/how much). You don’t have too much in tax deferred yet imo even with growth until retirement in 25-30 year...
by HomeStretch
Tue Mar 26, 2024 6:54 am
Forum: Investing - Theory, News & General
Topic: Theoretically, would VTI be an effective long term retirement investment, even when held in a taxable account ?
Replies: 34
Views: 4314

Re: Theoretically, would VTI be an effective long term retirement investment, even when held in a taxable account ?

… Unlike a Roth, a VTI investment can be liquidated early without any penalty. So, the Happy Couple gets the benefit of an emergency fund. Not perfect, but the VTI can be a dual-purpose investment. Just as with a Roth, the Happy Couple can draw down on their VTI in retirement w/out any capital gains. There are Happy Couples who are undocumented immigrants that can't open IRAs directly, but they can invest in the market using a taxable brokerage account opened with an Individual Taxpayer Identification Number (ITIN). Also, unlike an IRA, there will never be RMDs. BerkshireHathaway (BRK.B) could be considered for a VTI alternative. … You are comparing an investment holding (VTI) to an account type (Roth). It would be more appropriate to comp...
by HomeStretch
Mon Mar 25, 2024 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI over limit for Roth contribution - Distribution already taken
Replies: 4
Views: 325

Re: MAGI over limit for Roth contribution - Distribution already taken

1. Are you removing the extra $ from the Roth IRA as a normal distribution?
OR
2. Did you ask for the custodian to ‘return an excess contribution’? Normally the custodian will also calculate and remove the earnings/loss on the excess contribution.

Both ways remove $ from your Roth IRA. But the 2nd way is the correct way to distribute the $ so your Form 1099-R is coded correctly. The 2nd way also allows you to contribute again although you may need to do so at a different brokerage.
by HomeStretch
Mon Mar 25, 2024 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Strange Tax Question - Bad EIN Ohio
Replies: 7
Views: 715

Re: Strange Tax Question - Bad EIN Ohio

Was the 2023 EIN entered correctly (no typos)?

Is the EIN on the 2023 Form 1099-R the same as the 2022 1099-R’s EIN?
by HomeStretch
Mon Mar 25, 2024 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Surprise contractor bill
Replies: 21
Views: 2349

Re: Surprise contractor bill

Ouch. No one likes surprise billings.

Does your signed written contract with the GC specify change orders with cost $ must be in writing and signed by both parties before work is performed?

Was the quality of all work good? Was the work done on time? Do you plan to use the GC again?

Did the GC explain why a new panel was needed? There are sometimes reasons for a mid-job panel replacement even if the original panel is initially thought to be fine. Doesn’t mean that the GC gets to bypass the change order process as outlined in the contract. But if the explanation makes sense and the price is reasonable, consider paying. GCs are busy and once in awhile stuff gets overlooked by mistake.
by HomeStretch
Mon Mar 25, 2024 12:00 pm
Forum: Personal Investments
Topic: Retirement Contribution Questions
Replies: 11
Views: 1058

Re: Retirement Contribution Questions

realclemsongrad wrote: Mon Mar 25, 2024 9:53 am
HomeStretch wrote: Sun Mar 24, 2024 10:27 pm If the annual fee is 0.16% ($680/yr) and you have some good low-ER plan choices and can access funds with retail ERs through the brokerage window, your 401k fees are fairly reasonable imo. It makes sense to continue making either Traditional or Roth contributions (depending on your marginal tax rate) to the plan.
I think OP means 0.16% on top of the ER of the funds. Either way to your point it is very reasonable.
Yes, that’s how I understood the OP’s post as well.
by HomeStretch
Mon Mar 25, 2024 6:58 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house after divorce
Replies: 3
Views: 670

Re: Buying a house after divorce

Welcome to the forum!

What is the breakdown of your $4 million net worth?
$1.9 million in cash/investments +
$x RSUs (vested or invested)? +
$y home equity(?) …

What is your asset allocation (equity/fixed income) for the $1.9 million in cash/investments?

When you say “buy” do you mean buying out your ex’s share of the house for $1 million or selling your current house and buying a $1 million house in the same area? What is the estimated mortgage rate %?
by HomeStretch
Sun Mar 24, 2024 10:36 pm
Forum: Personal Investments
Topic: Taxable account assets for pre-retirement
Replies: 8
Views: 914

Re: Taxable account assets for pre-retirement

sidewalkboots wrote: Sun Mar 24, 2024 9:20 pm … I think the main thing I'm asking is (1) Are stocks not so tax-efficient if it's more likely that I'll sell them early, triggering capital gains tax, …
Diversified low-ER equity funds in a Taxable account are tax efficient. Annual dividends at ~2% are likely qualified and taxable at the lower capital gains rate. Gains on sales of equities held > 1 year are also taxed at the lower capital gains rate.
by HomeStretch
Sun Mar 24, 2024 10:27 pm
Forum: Personal Investments
Topic: Retirement Contribution Questions
Replies: 11
Views: 1058

Re: Retirement Contribution Questions

If the annual fee is 0.16% ($680/yr) and you have some good low-ER plan choices and can access funds with retail ERs through the brokerage window, your 401k fees are fairly reasonable imo. It makes sense to continue making either Traditional or Roth contributions (depending on your marginal tax rate) to the plan.
by HomeStretch
Sun Mar 24, 2024 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: [Urgent] New build | Closure in two days | Multiple issues - Suggestions
Replies: 17
Views: 1702

Re: [Urgent] New build | Closure in two days | Multiple issues - Suggestions

You can request that the Seller escrow funds at closing sufficient to cover the cost of others completing the work if the Seller does not do so by a certain date.

If the Seller refuses, your real estate attorney can tell you what your options are under the agreement you signed with the builder.

Once you close and pay, you have very little leverage to get the punch list completed by the builder.
by HomeStretch
Sun Mar 24, 2024 6:49 pm
Forum: Personal Investments
Topic: Does restating Solo 401(k) plan start new plan-form 5500-EZ question
Replies: 7
Views: 726

Re: Does restating Solo 401(k) plan start new plan-form 5500-EZ question

It’s unexpected that your plan sequence #s were assigned by Vanguard and not you.

At Fidelity and E*TRADE, I was required to provide in the adoption agreement the sequence # at adoption (001) and when subsequently amended in the last IRS restatement cycle (001).
by HomeStretch
Sun Mar 24, 2024 4:51 pm
Forum: Personal Investments
Topic: Retirement Contribution Questions
Replies: 11
Views: 1058

Re: Retirement Contribution Questions

401k plans have to comply with IRS and DOL regulations. But not all plans are identical. 401k plan providers such as TIAA offer 401k plans with varying levels of customization available to plan sponsors. So while your 401k plan may offer a self-directed brokerage window, it’s possible that the plan provider or sponsor may put limits on what a participant can invest in through the window. Your company makes a great contribution to your 401k. But it sounds like your plan has high participant fees and at least some high-ER fund choices. 401k plan providers charge fees to administer the plan. Your employer chooses whether to pay them or pass them on to plan participants. Have you reviewed your 401k plan documents and annual participant disclosu...
by HomeStretch
Sun Mar 24, 2024 12:39 pm
Forum: Personal Investments
Topic: Incorrect 1099-R from Vanguard
Replies: 25
Views: 2138

Re: Incorrect 1099-R from Vanguard

I agree this is brokerage-dependent. No experience with Vanguard.

E*TRADE processed a paper-form Roth conversion (that took them 10 days to process) early afternoon before closing and used the prior day’s closing fund price.

Fidelity processed an online Roth conversion entered mid-day using that day’s closing fund price.
by HomeStretch
Sun Mar 24, 2024 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Form 5500 traditional/Roth 401k filing.
Replies: 18
Views: 1564

Re: Form 5500 traditional/Roth 401k filing.

May I ask, what is the harm in filling out an unnecessary 5500-EZ form for 2023? I doubt there is a penalty. I ask for my own curiosity. Next year with new contributions there is a good chance mindboggled will be over $250k. The form is very EZ to do. You should do whatever makes you most comfortable. I cannot answer how the IRS views gratuitous filings. I personally would not file anything with the IRS if not required as I don’t need to put myself on their radar or open myself up to inquiries on a not-required filing. A poster in a thread within the last couple months (sorry, couldn’t find it to link) who filed a Form 5500-EZ voluntarily (i.e., 12/31 balance < $250k) commented that they had received an IRS letter a couple years later remi...
by HomeStretch
Sun Mar 24, 2024 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Going Back to Work Numbers
Replies: 18
Views: 2466

Re: Going Back to Work Numbers

Tdubs wrote: Sun Mar 24, 2024 11:20 am
HomeStretch wrote: Sun Mar 24, 2024 8:06 am
rich126 wrote: Sun Mar 24, 2024 6:05 am … Are there any financial/tax issues I may be completely ignoring? …
You may be required to file a state tax return in the state you will be working and living in during the week.

As you are in your early 60s, Medicare IRMAA may be impacted by the higher earnings. Your age 63 MAGI will determine age 65 IRMAA, if any.

NIIT (net investment income tax) kicks in at AGI of 250k+.
Though with the IRMAA, he can likely get an exemption when he files for Medicare at 65. So, other than state taxes and the inability to do conversions, this seems like an easy decision.
Very true. Thanks for adding that!
by HomeStretch
Sun Mar 24, 2024 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Off-market home purchase - best practices?
Replies: 33
Views: 1982

Re: Off-market home purchase - best practices?

terran wrote: Sun Mar 24, 2024 9:22 am I'd be talking to a real estate lawyer about whether you're going to need to evict the "transients" and what you're getting into there. They should also be able to help you with the sale.
^^^ This.

Also be prepared to have the locks changed and cameras installed right after closing.
by HomeStretch
Sun Mar 24, 2024 10:18 am
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 143
Views: 8952

Re: Please hep me organise the fixed income part of my portfolio

Are you holding FI in Taxable, tax deferred and/or Roth? Are you married? How near to retirement are you? Will your retirement income be from SS/portfolio withdrawals only or will you have substantial additional income from pensions, etc.? imo it is reasonable to relook at your fixed income investment (type and mix) especially as one nears retirement. If As you are close to retirement: 1) adding inflation-protected fixed income investments is reasonable. If a couple, you can buy a substantial amount of I-Bonds (which currently have a 1.2% fixed rate through 4/30) for each other as gifts. TIPS (individual and funds) are fine too. 2) if buying inflation-protected investments results in lowering VBTLX, fine. But I personally would not avoid V...
by HomeStretch
Sun Mar 24, 2024 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3707

Re: Controling Assets From the Grave

Consider also in your estate planning how to best handle your shared primary residence, if any, at the death of the first spouse. It seems not uncommon (according to multiple friends in the situation) for the deceased spouse to leave their 50% share or their full ownership of the primary residence to the biological children with the surviving step parent being given the lifetime right to live in the house. In some cases, this has caused the biological children to become the long-term landlord for a step parent, or a co-owner with a step parent that refuses to pay the house bills or care for the property, or to become the de facto caretaker of the step parent who develops issues but refuses to move from the house. Or one friend had the step ...
by HomeStretch
Sun Mar 24, 2024 9:34 am
Forum: Personal Investments
Topic: Paying off 115K in Debt Using an IRA BDA - Should I Sell?
Replies: 14
Views: 912

Re: Paying off 115K in Debt Using an IRA BDA - Should I Sell?

Your plan per your 2022 thread was to pay off your debt in 2024 with your inherited IRA funds. Fortunately, your IRA has grown since then and the 2024 projected debt balance hasn’t. So you are in good shape to follow your plan to pay off all debt and start with a fresh slate. If you are going to pay off the $95k in student loans, why not pay off the family debt of $20k to get completely out of debt? Also, they have been generous enough to lend to you for multiple years at 0% interest. Pay it off now so they can start earning interest on the funds. If you can only afford to pay off $95k in debt in 2024, consider paying $20k to your family and $75k of the student loans. That is a good point. Thank you! Congratulations on your upcoming gradua...
by HomeStretch
Sun Mar 24, 2024 9:25 am
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 143
Views: 8952

Re: Please hep me organise the fixed income part of my portfolio

Are you holding FI in Taxable, tax deferred and/or Roth? Are you married? How near to retirement are you? Will your retirement income be from SS/portfolio withdrawals only or will you have substantial additional income from pensions, etc.? imo it is reasonable to relook at your fixed income investment (type and mix) especially as one nears retirement. If As you are close to retirement: 1) adding inflation-protected fixed income investments is reasonable. If a couple, you can buy a substantial amount of I-Bonds (which currently have a 1.2% fixed rate through 4/30) for each other as gifts. TIPS (individual and funds) are fine too. 2) if buying inflation-protected investments results in lowering VBTLX, fine. But I personally would not avoid VB...
by HomeStretch
Sun Mar 24, 2024 8:37 am
Forum: Personal Investments
Topic: Paying off 115K in Debt Using an IRA BDA - Should I Sell?
Replies: 14
Views: 912

Re: Paying off 115K in Debt Using an IRA BDA - Should I Sell?

Your plan per your 2022 thread was to pay off your debt in 2024 with your inherited IRA funds. Fortunately, your IRA has grown since then and the 2024 projected debt balance hasn’t. So you are in good shape to follow your plan to pay off all debt and start with a fresh slate.

If you are going to pay off the $95k in student loans, why not pay off the family debt of $20k to get completely out of debt? Also, they have been generous enough to lend to you for multiple years at 0% interest. Pay it off now so they can start earning interest on the funds. If you can only afford to pay off $95k in debt in 2024, consider paying $20k to your family and $75k of the student loans.
by HomeStretch
Sun Mar 24, 2024 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Going Back to Work Numbers
Replies: 18
Views: 2466

Re: Going Back to Work Numbers

rich126 wrote: Sun Mar 24, 2024 6:05 am … Are there any financial/tax issues I may be completely ignoring? …
You may be required to file a state tax return in the state you will be working and living in during the week.

As you are in your early 60s, Medicare IRMAA may be impacted by the higher earnings. Your age 63 MAGI will determine age 65 IRMAA, if any.

NIIT (net investment income tax) kicks in at AGI of 250k+.
by HomeStretch
Sun Mar 24, 2024 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Form 5500 traditional/Roth 401k filing.
Replies: 18
Views: 1564

Re: Form 5500 traditional/Roth 401k filing.

… As of Dec 31, 2023 the sum of my self-employed spouse's 401(k) and Roth 401(k) was $249,598.90. We can't tell if it crossed $250,000 at any point in 2023 since we only have quarterly statements. Based on the Dec 31, 2023 value does it mean we do not have to file 5500 by July 31, 2024? … Your self-employed spouse has a self-employed individual 401k plan, correct? See the IRS instructions to Form 5500-EZ section “who does not have to file Form 5500-EZ): https://www.irs.gov/pub/irs-pdf/i5500ez.pdf Only the 12/31/23 plan balance (= combined Traditional + Roth sub-accounts) matters for the annual filing threshold of $250k+. The 12/31/23 statement value of $249,599 is reduced by any 12/31/23 plan liabilities (which are not common for an i401k)...
by HomeStretch
Sat Mar 23, 2024 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Controling Assets From the Grave
Replies: 32
Views: 3707

Re: Controling Assets From the Grave

… My overly-long post failed to be clear enough about the main concern: How might one ensure the passage of assets to different sets of bene's on the second death, preferably without using an irrevocable trust? It's understood that living trusts are for the living and don't apply after death. … Do you and your spouse have long-term care insurance (LTCi)? Does your state require Spouse A to spend down their assets (including retirement accounts) to fund Spouse B’s long-term care costs? If you and your spouse do not have LTCi or if you are not okay with fully spending down individual/joint assets on LTC for one spouse (leaving nothing for your separate beneficiaries), testamentary irrevocable trusts may not be sufficient. It’s a good discuss...
by HomeStretch
Sat Mar 23, 2024 3:15 pm
Forum: Personal Investments
Topic: Moving AIVSX from SIMPLE IRA to Vanguard Roth IRA
Replies: 6
Views: 472

Re: Moving AIVSX from SIMPLE IRA to Vanguard Roth IRA

Personally I would not hold AIVSX at the new brokerage. While the front load you paid is a sunk cost, it is an actively managed stock fund with a higher expense ratio (ER) of 0.58%. Consider selling it and buying a low-cost passive U.S. total stock market fund (VTSAX) or S&P 500 fund (VFIAX), ER 0.04% for each. Thanks, I was not considering the ER, for some reason I was only considering the front load, which seemed high, so I figured the damage was already done, but I see now it doesn't make sense to own it long term because of the ER. If I remember right, I didn't have many options when starting the employer plan, all the grown oriented ones had high front loads and I was 32 at the time (I'm 33 now, boy how time flies :-P ) so I have ...
by HomeStretch
Sat Mar 23, 2024 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare premiums reimbursements from HSA
Replies: 17
Views: 1400

Re: Medicare premiums reimbursements from HSA

It’s an interesting question. Hopefully one of the tax experts will weigh in on it. IRS Publication 502 Medical and Dental Expenses includes Medicare premiums paid as qualified medical expenses that can be deducted on Schedule A (Form 1040). IRS Publication 969 section “Distributions from HSAs” states “you can’t deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA.” Since a Schedule A deduction is not allowed for qualified medical expenses reimbursed by a HRA/HSA, I have always extended that concept to not being able to deduct reimbursed medical expenses (such as premiums) anywhere else on Form 1040 (such as SEHD). But if something is not expressly pro...
by HomeStretch
Sat Mar 23, 2024 6:46 am
Forum: Personal Investments
Topic: Moving AIVSX from SIMPLE IRA to Vanguard Roth IRA
Replies: 6
Views: 472

Re: Moving AIVSX from SIMPLE IRA to Vanguard Roth IRA

Welcome to the forum!

It’s a good move, when your SIMPLE IRA is eligible, to transfer the balance to a low-cost brokerage’s IRA. Initiate the transfer at the receiving brokerage (Vanguard).

Yes, converting your pretax IRA to a Roth IRA in a low-tax year makes sense.

Personally I would not hold AIVSX at the new brokerage. While the front load you paid is a sunk cost, it is an actively managed stock fund with a higher expense ratio (ER) of 0.58%. Consider selling it and buying a low-cost passive U.S. total stock market fund (VTSAX) or S&P 500 fund (VFIAX), ER 0.04% for each.
by HomeStretch
Sat Mar 23, 2024 6:18 am
Forum: Personal Finance (Not Investing)
Topic: Medicare premiums reimbursements from HSA
Replies: 17
Views: 1400

Re: SE Health Insurance Deduction and HSA Medicare Premium Reimbursement

When calculating the SEHD, you include net premiums. Net premiums = gross premiums minus:
(1) non taxable retiree benefit of premium reimbursement,
(2) HSA reimbursements of premiums (HSA are pretax funds),
(3) ACA premium subsidies,
(4) premiums included in medical deductions if you itemize.

I can’t give you a citation for the above but the concept is you can’t take a tax benefit twice for the same item.The SEHD Form 7206 instructions list a couple of the above (but not #2, your case). IRS publication 969 HSAs addresses #4.

SpiritRider’s posts in the linked thread don’t discuss the SEHD.
by HomeStretch
Sat Mar 23, 2024 5:55 am
Forum: Personal Finance (Not Investing)
Topic: Merrill ACAT / filled order issue
Replies: 2
Views: 246

Re: Merrill ACAT / filled order issue

Welcome to the forum! .. Do I have liability here? Do “I” have to repurchase the stocks to close the short position or are they at fault? It’s inconvenient but you are where you are with the negative ML balance due to a limit order that was not canceled. As your Merrill account has a negative balance it seems like you should buy/transfer back sufficient shares or, if allowed, re-deposit the cash they transferred for the stock sale proceeds in order to clear the negative balance. If you do not, it’s a possibility that Merrill can sue you or perhaps claw back the ACAT. If assigning fault is meaningful, seems like both parties share fault as you placed the limit order and their systems seem to not handle simultaneous transactions (executing th...
by HomeStretch
Sat Mar 23, 2024 5:43 am
Forum: Personal Investments
Topic: Dilemma of sorts…[asset allocation to reduce RMDs]
Replies: 16
Views: 2175

Re: Dilemma of sorts…

Yes, I do the same tax-efficient fund placement. I place tax-efficient equities in my Roth/Taxable account and hold my fixed income allocation in my tax deferred accounts which should slow the growth and, in turn, lower RMDs

The BH wiki page “Tax-efficient Fund Placement” may be useful:
https://www.bogleheads.org/wiki/Tax-eff ... _placement

Edit - typos.