Search found 40 matches

by mkaytn17
Sat Sep 19, 2020 7:19 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

Someone that's never really invested their entire life is going to be freaking out the next bear market...and blame you for it. Even if the stock market does "decent" over the next few years, the amount invested at this point for her is going to be pretty trivial in terms of growth. Say y...
by mkaytn17
Sat Sep 19, 2020 7:17 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

She looks to me for advice. When you say she looks to you for advice, what does that mean? Has she asked for your advice? She no longer feels confident to decide what to do with it, so, yes, she did ask for advice. We moved the money into a 6-month CD when rates fell in the spring. I have given her...
by mkaytn17
Sat Sep 19, 2020 9:14 am
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

I don't think starting investing at our age is a good idea when she hasn't been doing it, and hasn't insisted on it. No point in creating worries at that age. Rates for cash are not good as I am sure you have noticed. At least inflation is not yet a concern. If she is comfortable using online bank,...
by mkaytn17
Fri Sep 18, 2020 7:35 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

Thanks for your input, Pasadena and cheese_breath.

We sure hope she doesn’t end up in dialysis. We lived through that with my mother, and it’s tough!

Good reminder about the legal documents too — I’ll ask if she’s done those.
by mkaytn17
Fri Sep 18, 2020 2:31 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

Given her age and medical condition as you describe it, I'd keep it all in cash or cash equivalent to minimize the risk. You never know when she might need it, and you don't want it to be during a market downturn. Let me share my experience with the same type of decision. As many on the forum know,...
by mkaytn17
Fri Sep 18, 2020 2:26 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

Brianmcg321 wrote: Fri Sep 18, 2020 2:23 pm If you are wanting something simple like a one fund I would look at the Target Retirement Income Fund instead of the Life Strategy.
Thank you, great visualization! Too bad she hasn’t been in it the last 15 years!
by mkaytn17
Fri Sep 18, 2020 2:19 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

In her shoes, I'd consider a rolling CD ladder for half (e.g. $10k in 1, 2, 3, 4, 5 year CDs) and preserve the safety of cash. Shop around for better interest for an online savings account. Investing is inherently risky, not something I would want some with health issues and her age to try for the ...
by mkaytn17
Fri Sep 18, 2020 2:18 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

Brianmcg321 wrote: Fri Sep 18, 2020 2:13 pm What is she doing with the RMD if she doesn't spend it?
Well, I guess I have to amend that statement a little. She did replace her car a couple of years ago and has has made repairs on her home when necessary.
by mkaytn17
Fri Sep 18, 2020 2:16 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

Re: My sister — should some of her money be invested?

What do her current and future living conditions look like? How does she plan on covering LTC, probably with medical assistance, in the future, and how close do you think that future is? Does she have children and are they taking care of her or ready to step in if/when needed? Does she own her home...
by mkaytn17
Fri Sep 18, 2020 2:03 pm
Forum: Personal Investments
Topic: My sister — should some of her money be invested?
Replies: 19
Views: 1991

My sister — should some of her money be invested?

My sister is 78, widowed, is diabetic (in mid stages of kidney disease), and has atrial fibrillation, although her health seems to be stable. Her TIRA is worth about $90,000, all in cash. She withdraws her RMD yearly but doesn’t spend it, living on Social Security and a small pension. She looks to m...
by mkaytn17
Wed Dec 18, 2019 2:48 pm
Forum: Personal Investments
Topic: Roth conversions before Social security
Replies: 18
Views: 1235

Re: Roth conversions before Social security

You may want to get familiar with IRMAA. The IRMAA thresholds don't exactly line up with the tax brackets, and if you exceed the thresholds with your Roth conversions, you might be essentially paying a 35%+ tax rates on the (small part of) conversion amount, when you could have withdrawn the money ...
by mkaytn17
Sun Sep 22, 2019 6:15 pm
Forum: Personal Investments
Topic: I am being asked to retire. Am I ready?
Replies: 84
Views: 11254

Re: I am being asked to retire. Am I ready?

Another thing to consider - if you take the pension as a lump sum and roll into a traditional IRA - you will probably not be able to perform Roth conversions without paying quite a bit of tax due to the pro rata rule. Plus it looks like you already hold a traditional IRA as well which would add to ...
by mkaytn17
Thu Aug 29, 2019 3:04 pm
Forum: Personal Investments
Topic: IRMAA and Form SSA-44
Replies: 2
Views: 234

Re: IRMAA and Form SSA-44

FiveK wrote: Thu Aug 29, 2019 2:58 pm
From what you describe, your 2018 actual MAGI was low enough that SS rescinded the IRMAA addition for 2019. Your estimated 2019 MAGI would have been important only if your 2018 actual was not low enough.

Does that all make sense?
Aha! Yes, that makes sense. Thanks FiveK!
by mkaytn17
Thu Aug 29, 2019 2:47 pm
Forum: Personal Investments
Topic: IRMAA and Form SSA-44
Replies: 2
Views: 234

IRMAA and Form SSA-44

Hope someone will know the answer to this question. Quick background: Medicare began for me on August 1 of this year. During my look-back year (2017) I had worked through August, then my job was eliminated and I received a one-year severance, so my income for 2017 ended up being fairly large and wou...
by mkaytn17
Tue Jul 02, 2019 4:21 pm
Forum: Personal Investments
Topic: Synchrony Bank - Trying to close a maturing CD online
Replies: 1
Views: 2601

Re: Synchrony Bank - Trying to close a maturing CD online

I had the same experience when I tried to close out a CD at Symphony last December. I finally just called them and they took care of it — no problems.
by mkaytn17
Thu Jun 20, 2019 3:41 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

My current situation though is that with no mortgage and no property tax, it would be hard to exceed the $12,000 standard deduction, even with deduction lumping. I’ll play around with the idea though. Your 2019 standard deduction is actually $13,850, since you will turn 65 before the end of this ye...
by mkaytn17
Thu Jun 20, 2019 2:43 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Your Welcome Two other resources I found helpful. The I-ORP planner (NOTE: Use the Extended OPR tab located here https://www.i-orp.com/APenalty/extended.html ) was good in opening my eyes to the advantages to aggressive Roth conversion but is really more focused on figuring out the optimal withdraw...
by mkaytn17
Thu Jun 20, 2019 1:12 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

I a few years behind you and so still in the planning phase myself. I have found the RPM (Retiree Portfolio Model) by bogleheads user bigfoot48 quite useful in modeling the effects of various Roth conversions in detail. It can take a few weeks to really understand the spreadsheet and get all your n...
by mkaytn17
Thu Jun 20, 2019 1:02 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Your Roth IRA is invested in VWENX which is about 2/3 stock. Consider changing this to hold 100% equity (VTSAX) in your Roth IRA. Maintain your 40-60 allocation by adjusting your Traditional IRA holdings to reduce VTSAX and increase VBTLX. This change has the benefit of having your fastest growing ...
by mkaytn17
Thu Jun 20, 2019 12:07 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

If charitable giving is a significant portion of your budget, then donating your most appreciated mutual fund holdings in your taxable account can be very tax efficient. You might also want to think about some deduction lumping during your big Roth conversion years, perhaps with a Donor Advised Fun...
by mkaytn17
Thu Jun 20, 2019 11:20 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

I think that 85% of this person's SS is taxed anyway - before considering the Roth conversions. So no hump.... (Again, FiveK's graph is ignoring that the OP is currently making taxable tIRA withdrawals for the purpose of living expenses rather than for the purpose of Roth conversions. His graph is ...
by mkaytn17
Thu Jun 20, 2019 9:44 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

In regard to Georgia’s income tax: Georgia Retirement Tax Friendliness | SmartAsset.com Georgia Retirement Tax Friendliness. Georgia does not tax Social Security retirement benefits and provides a deduction of $65,000 per person on all types of retirement income for anyone 65 or older. The state's ...
by mkaytn17
Thu Jun 20, 2019 9:42 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

I think that 85% of this person's SS is taxed anyway - before considering the Roth conversions. So no hump.... (Again, FiveK's graph is ignoring that the OP is currently making taxable tIRA withdrawals for the purpose of living expenses rather than for the purpose of Roth conversions. His graph is ...
by mkaytn17
Thu Jun 20, 2019 9:11 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

2. What would be an ideal amount for a single person to have in a tIRA? As already mentioned, any answer to this would be very fuzzy. Here are a few things that I've thought about. I think it could be beneficial to have enough left in tIRA to have some money available that would never be taxed if n...
by mkaytn17
Thu Jun 20, 2019 8:58 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Thank you, FiveK, for running those charts and yes I start to see the value of making even bigger conversions. I will have to go back and read the Wiki even more closely, in addition to trying to tackle the dreaded spreadsheets! :wink: It’s very likely I’ll be back asking for help getting started! ...
by mkaytn17
Thu Jun 20, 2019 8:56 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

FiveK, I know this is a big request, but can you give a rundown of what is happening with that grey line? By that I mean what event is causing each change? You seem to have an idea of "what it means" that may not be particularly apparent to the rest of us. https://i.postimg.cc/NG16nh3p/sc...
by mkaytn17
Thu Jun 20, 2019 8:33 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

6. Legacy for children. I don’t anticipate that I will use the entire portfolio and would like to leave an inheritance for my 3 children, so I’m also concerned about the tax bill if they were to inherit a portfolio consisting mostly of a tIRA. If one or more of your children are in the 30% plus tax...
by mkaytn17
Thu Jun 20, 2019 8:26 am
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Questions 1. Since I am single and already drawing SS widow benefit, did I miss the boat already on Roth conversion? If it would still be worthwhile for me to convert, then I have these further questions: 2. What would be an ideal amount for a single person to have in a tIRA? 3. How much per year t...
by mkaytn17
Wed Jun 19, 2019 7:46 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

... Oh, I answered too quickly. You mean $36k SS after age 70, right? Whoops! Yes, I meant $36k. A typo in my lead-in... I'm not up on all the finer points of Medicare but I believe that one can appeal an IRMAA determination if the AGI is now reduced. So my estimate for what it costs in increased M...
by mkaytn17
Wed Jun 19, 2019 7:37 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Many people lived below their desires to pack that 401k every year... and with the long bull market and pension buyouts, are looking at IRAs that will be taxed higher years ago. I've been madly analyzing what my tax bracket is now (age 60) and when IRMAA hits (63, it has a 2-year lookback), and whe...
by mkaytn17
Wed Jun 19, 2019 7:11 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

New and improved using $26k social security benefit after age 70: If you continue drawing from tIRA at present rate and take your SS at 70, tax bracket remains at 22%, with total tax paid over 30 years being $223,255. RMDs kick the annual draw up to around $55k per year. After 30 years (assuming 1....
by mkaytn17
Wed Jun 19, 2019 7:09 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

So here's what my crystal ball (Excel spreadsheet) tells me: If you continue drawing from tIRA at present rate, tax bracket remains at 22%, with total tax paid over 30 years being $223,255. RMDs kick the annual draw up to around $55k per year. After 30 years (assuming 1.5% real growth) you have $43...
by mkaytn17
Wed Jun 19, 2019 6:28 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Do you expect to switch to your own SS benefit (with delayed credits) at age 70? If so, would it be significantly higher than the widow's benefit you are now collecting? Is there anything else (inheritance?) that is likely to increase your income in future years? It's a good idea to understand what...
by mkaytn17
Wed Jun 19, 2019 6:07 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

... I’ve already had a close call with the IRMAA. I was going to have to pay a surcharge of nearly $300 monthly because of my 2017 income (my severance benefit). I was at the Social Security office last week to claim Life Event change and prove my normal income was not what was filed for 2017. Do y...
by mkaytn17
Wed Jun 19, 2019 5:50 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Does a pension lump sum have to go into a TIRA? I just assumed that the choice was monthly pension check or one time lump sum pension check. Just curious... Hi Wiggums, had I taken the lump sum as a check made out to me, the full amount would have been taxed. Instead I rolled it into my IRA, just l...
by mkaytn17
Wed Jun 19, 2019 5:43 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

... Do you have any specific suggestions on how I should approach the Roth conversions? Your SS benefit is 85% taxable, plus if you withdraw $45k from the tIRA that gives you total income of about $60k but an AGI of around $57,500. As you mentioned, that puts you in the 22% bracket. In looking at R...
by mkaytn17
Wed Jun 19, 2019 5:17 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

... Ummm, I don't see how to pick up specific quotes to respond to. Maybe someone can give me a pointer. In the top right corner of a person's comment is the Reply with Quote button. Click on that and it will paste the comment into the edit box. You can delete the portions of the prior comment that...
by mkaytn17
Wed Jun 19, 2019 4:58 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

That’s a great pointer, HomeStretch. The VWENX is a holdover from what the financial planner had set up. I’ve been gradually whittling everything down into a 3-Fund Portfolio, but I was unsure what to do with the VWENX. Do you have any specific suggestions on how I should approach the Roth conversio...
by mkaytn17
Wed Jun 19, 2019 4:31 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Re: Roth Conversion Question – Please help! (First Post)

Thank you, Duckie, and happy to see you think it would make sense for me to do conversions! Ummm, I don't see how to pick up specific quotes to respond to. Maybe someone can give me a pointer. I've recently made the move to take all my living expenses (what I need in addition to SS) from the tIRA. T...
by mkaytn17
Wed Jun 19, 2019 1:49 pm
Forum: Personal Investments
Topic: Roth Conversion Question – Please help! (First Post)
Replies: 66
Views: 3212

Roth Conversion Question – Please help! (First Post)

I’ve been following the Bogleheads site sporadically for several years and daily for the last couple of months. I find it pretty intimidating to come before you; on the other hand, I find I no longer am interested in, nor would I trust, anyone else to advise me! I’ve been a widow for 16 years and wi...