Bogleheads.org

Can someone explain the difference between ? TTTXX - BlackRock Liquidity Funds: Treasury Trust - Yield 4.49 vs TSTXX - BlackRock Liquidity Funds: T-Fund - Yield 4.68 https://www.blackrock.com/cash/en-us/products/282770/blf-t-fund https://www.blackrock.com/cash/en-us/products/282697/blf-treasury-trust-fund I invested in TSTXX in ME per the https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/ICCRateSheet.pdf but based on the discssion in this thread, is TTTXX is safer vs TSTXX ? TTTXX will likely mostly be exempt from state/local income taxes because it only holds US treasuries. TSTXX is almost entirely repos so not state/local income tax exemption. So depending on your state/local income tax situation TTTXX may have a higher after...

Ah okay, thanks. I assume I should wait for the amount to actually be credited to my IRS account before eFiling my 2022 tax return, since I am listing that amount as taxes paid on line 26 of Form 1040? Isn't Line 26 for 2022 estimated taxes paid on or prior to January 15, 2023? Yeah you're right. I didn't look up the line, but I agree it's too late for est. taxes / Line 26. I assumed anon_investor was referring to 4868/extension payment which shows up on Form 1040 Line 31. anon_investor, did you pay estimated taxes on 3/28? If so, that likely was for 2023, not 2022. You can make 4868 / Extension payment though and that goes on 2022. That's where I saw it move from scheduled to pending, and when it was pending it also showed up on my 2022 t...

I see my payment from last night is also in my IRS account as scheduled for tomorrow (3/30). So would the IRS count is as paid on 3/30? It will eventually get backdated to the day you actually submitted the payment. Ah okay, thanks. I assume I should wait for the amount to actually be credited to my IRS account before eFiling my 2022 tax return, since I am listing that amount as taxes paid on line 26 of Form 1040? Isn't Line 26 for 2022 estimated taxes paid on or prior to January 15, 2023? Yeah you're right. I didn't look up the line, but I agree it's too late for est. taxes / Line 26. I assumed anon_investor was referring to 4868/extension payment which shows up on Form 1040 Line 31. anon_investor, did you pay estimated taxes on 3/28? If ...

1 day yield on FZEXX has fallen 1 bps on Monday and Tuesday, and FFTXX has fallen 4 bps on Monday and 3 bps on Tuesday. I wonder if this is the start of muni money market funds yields falling again. Sifma Swap index dropped from last week 4.35 to 3.97 today. So I’d expect a small drop in yield today and a larger drop tomorrow. I wouldn’t be surprised by a bigger drop next Wednesday, so I’ll probably swap back in a week if that happens. I’m considering starting a new thread this evening to track these rate changes. I think several of us have been discussing this topic (Muni swap decision due to seasonality) for the past several weeks across several threads, so it may make sense to consolidate the useful information that everyone has shared ...

Got it anon. Yeah, I was trying to buy in from my iphone today while walking back from dropping kids off at school. First off, I thought I had to get it done before 1200 Eastern time b/c I recall something here saying there was a cutoff for same day transactions. Second, on mobile setup, it did not show me a minimum so that got me thinking if I was missing something. I searched Google and found TTTXX had a $3mil for institutional and thought... "wait, something is not right here. The minimum can't be $3mil." For future reference, cutoff times and minimums are available from the Desktop site: Research -> Mutual Funds -> Cash Management Solutions TTTXX is 1:45PM ET. You have to be logged in to view this, but this shows you all of t...

It looks like the 7-day yield for VCTXX (Vanguard California Municipal Money Market Fund) has jumped way up in the last week or so, while some other yields (like the yields on Treasury Money Market funds) have stayed roughly the same. Anyone know why this is, and how unusual it is? I moved all my cash out of VCTXX into VUSXX and am now regretting it. There is a well known cyclical pattern to muni money market fund yields. We have been discussing this in various threads for some years. Here's a chart of yields for about the last year: https://i.postimg.cc/GhHdwPsj/image.png Kevin Has anyone analyzed whether the cycles are predictable? Ie, around certain times of the quarter? Seems like this yield cycles could be compared to previous years, ...

Was going to put some cash in TTTXX. Is there a minimum? Edit: never mind, I see it is $1000. Just read the fine print for the asterisk which shows it is $1000. One weird thing about using money market funds at ME, is they only let you buy in $1 increments (this was also true of TOIXX and FSIXX), and when the dividends reinvest, they can only reinvest in $1 increments, so you always get some loose change in your settlement account. I usually just transfer over instantly from my checking account enough to make a whole dollar, and then but $1 worth of TTTXX. After making the initial $1k+ purchase, I have gone under $1k in TTTXX before and it did not give me a warning message or try to kick me out of the fund. Though I was only under $1k for ...

I made a debit card payment at payusatax last night at 8pm and I see it in the scheduled section in my IRS account already this morning. I see my payment from last night is also in my IRS account as scheduled for tomorrow (3/30). So would the IRS count is as paid on 3/30? It will eventually get backdated to the day you actually submitted the payment. Ah okay, thanks. I assume I should wait for the amount to actually be credited to my IRS account before eFiling my 2022 tax return, since I am listing that amount as taxes paid on line 26 of Form 1040? Once it's pending I think it's ok. After it went to pending instead of scheduled, it showed on my 2022 transcript and I felt comfortable filing. Thanks, it still is listed as scheduled 3/30 in m...

When I was buying SPAXX, it took a whole day for the order to execute (I am guessing because it's a mutual fund and not an EFT and is done at the end of the day?). I am hoping/assuming it shouldn't take a full day for it to auto sell. I am assuming that should be almost immediate to enable my mortgage company to get paid. On the other hand, maybe those bill payments are not real time and are also processed at the end of the day right after they auto sell my SPAXX It auto liquidates, and payments are timely. I use my Fido CMA like a checking account. My Wells Fargo mortgage is automatically paid out of my Fido CMA. I only hold FDLXX, and Fido automatically liquidates it to satisfying any payments (I pay all my credit card bills with this ac...

feh wrote: ↑Wed Mar 29, 2023 1:17 pm SPAXX current yield is 4.22%

https://fundresearch.fidelity.com/mutua ... /31617H102

Actually that number is old, SPAXX is now yielding 4.44% (7 day yield as of 3/28/2023):
https://fundresearch.fidelity.com/mutua ... /31617H102

MrJedi wrote: ↑Wed Mar 29, 2023 11:21 am

anon_investor wrote: ↑Wed Mar 29, 2023 11:11 am

MrJedi wrote: ↑Wed Mar 29, 2023 8:51 am

anon_investor wrote: ↑Tue Mar 28, 2023 9:49 pm Anyone know how long it is taking for CC payments using payUSAtax take to show up in your IRS account?

I made a debit card payment at payusatax last night at 8pm and I see it in the scheduled section in my IRS account already this morning.

I see my payment from last night is also in my IRS account as scheduled for tomorrow (3/30). So would the IRS count is as paid on 3/30?

It will eventually get backdated to the day you actually submitted the payment.

Ah okay, thanks. I assume I should wait for the amount to actually be credited to my IRS account before eFiling my 2022 tax return, since I am listing that amount as taxes paid on line 26 of Form 1040?

MrJedi wrote: ↑Wed Mar 29, 2023 8:51 am

anon_investor wrote: ↑Tue Mar 28, 2023 9:49 pm Anyone know how long it is taking for CC payments using payUSAtax take to show up in your IRS account?

I made a debit card payment at payusatax last night at 8pm and I see it in the scheduled section in my IRS account already this morning.

I see my payment from last night is also in my IRS account as scheduled for tomorrow (3/30). So would the IRS count is as paid on 3/30?

I recently transitioned to Fidelity as one stop shop with a combination of a $0 CMA account backed by a brokerage account. This has worked seamlessly with most payment counterparts, however, I had an issue come up recently with a failed transaction due to insufficient balance (attempting to pay off a BoA cc via their ebill system from my fidelity CMA). Is there something special I need to do to get this to work? I seem to recall the same issue connecting Cash app to Fidelity CMA as well and not being able to transfer funds from CMA. My theory is that some financial institutions seem to reject a transaction due to insufficient balance ($0 in my CMA, but with more than sufficient settled funds in SPRXX in brokerage) without trying the pull. ...

Anyone know how long it is taking for CC payments using payUSAtax take to show up in your IRS account?

I've been checking out Bing because of this thread. I see people talking about rewards, and I signed up and have already earned a couple of hundred points, but what can you get for them, really? Yeah, I see Amazon gift cards and a couple of other small things, but is it possible to earn enough rewards over time to cash out for, say, a Surface laptop? Or at least get a decent credit towards purchasing one? It probably would take a long time. I get about $10 worth of Amazon gift cards a month, and this requires maxing out the daily points. So even after a year that is only $120. If you had saved up, could you do anything else with that $120? I'm not really interested in Amazon gift cards but might be in the market for a Surface or something ...

Mystery solved. I deleted everything and tried re-entering the info. It worked correctly for my spouse's info. Then it increased the taxes again for mine. I kept clicking through and eventually it asked: "Tell Us the Value of Your Traditional IRA" -- I had previously made a mistake here and entered the numbers from the Form 5498 that I had received, but that form gives the value of my Roth IRA. So the correct answer to that question is $0. Thus, TurboTax was inferring that it was a pro rata conversion (I assume), at which point tax was owed. I'm not even sure how to navigate back to that page without just clicking through the dialogue, but that seems to have fixed it. I zeroed out that question and now it works correctly. Thanks ...

... Will they auto-liquidate purchased MM funds in the CMA account for debits (or ATM withdrawals)? I can't find any documentation of that - is it just an undocumented feature? ... Yes. Just make sure your account shows cash as "available to withdraw". If the 'core' bank sweep is at or goes to $0 it will automatically draw from the money market funds for ATM, debit card, billpay, ACH pulls, etc... your "available to withdraw" amounts shown under balances will include the money market funds. Yep, very important to always have enough funds available to withdraw. I always make sure to keep at least a months worth of expenses in FDLXX in my CMA that is settled and listed as available to withdraw, so I won't have ACH payment...

rgs92 wrote: ↑Tue Mar 28, 2023 1:09 am I know many people who moved to new states and had new DL numbers and never heard any of them mention any problem getting new accounts or any problem at all with financial institutions because of this.

If financial institutions made this a roadblock they would hurt their own business because people relocate all the time and the institution would be taking on all sorts of extra work.

Maybe getting a new social security number would cause issues, but I don't know anyone who did this.

I have personally moved states twice (3 different state drivers licenses) and had no issues opening multiple bank account all along the way in each state.

Naris wrote: ↑Mon Mar 27, 2023 7:57 pm Also, I have entered the matching amounts in the Deductions & Credits section for our IRAs, and TurboTax points out that our income is too high to deduct those contributions. But it fails to make the connection that it's those nondeductible Traditional IRA contributions that are being rolled over, and I don't see a place to tell it the basis for those conversions (they're not prior year nondeductible contributions, so I don't think that question is the spot for it).

I think something entered here may be the issue.

Backdoor Roth on TT worked me this year. I will have to take a look at what I entered when I get a chance.

I think it depends on your view of debt as a droll little game or an existential threat. For most it’s somewhere between those two, but we won’t know until the game is over. What I mean by that is some will make $ on their card, some will overspend, some will take unnecessary flights for mileage points, some will be cautious at first but gradually lose track of it, and some will suffer declining credit scores when they lose their jobs and can’t keep up or when dementia strikes. It plays out over time, so we don’t really know how it will end for us. It’s a process. If you can't control yourself a credit card can be dangerous. However, if you can, it can be beneficial. We charge everything but our mortgage and only buy what we need, snagging...

UpperNwGuy wrote: ↑Mon Mar 27, 2023 7:37 pm

retiringwhen wrote: ↑Mon Mar 27, 2023 7:28 pm

Kevin M wrote: ↑Mon Mar 27, 2023 7:18 pm I would call 70% pessimistic, as it's been running at 75-80%, so I would call 80% optimistic and 70% pessimistic. I just changed my TEY calcs to use 75% USGO as an estimate for 2023.

I concur. I switched to 75% after the FEB report on VUSXX. I am using 40% for VMFXX and VMRXX as well base upon their recent reports.

Why are folk sticking with VUSXX now that it is no longer 100% USGO? Don't Fidelity and Schwab have 100% USGO money market funds?

Fidelity offers a 93% USGO money market fund (FDLXX). I hold this.

Gaston wrote: ↑Mon Mar 27, 2023 3:16 pm

GreendaleCC wrote: ↑Mon Mar 27, 2023 2:56 pm

Gaston wrote: ↑Mon Mar 27, 2023 2:44 pm Since lots of people are looking at safety these days, is there any reason to prefer a US treasury money market fund (such as Vanguard's VUSXX) versus a federal money market fund (VMFXX)?

Look at the fund composition. Some holdings are state tax-free (treasuries), others are not.

Yes, I get that. But from a standpoint of safety, is there any reason to choose one over the other?

Check the after tax yield. For folks in high income tax states (e.g. NY, CA, etc.), sometimes getting a larger % exempt from state/local income taxes means you get to keep more after taxes even if the pre-tax yield is lower.

FedGuy wrote: ↑Sun Mar 19, 2023 5:43 pm I've been checking out Bing because of this thread. I see people talking about rewards, and I signed up and have already earned a couple of hundred points, but what can you get for them, really? Yeah, I see Amazon gift cards and a couple of other small things, but is it possible to earn enough rewards over time to cash out for, say, a Surface laptop? Or at least get a decent credit towards purchasing one?

It probably would take a long time. I get about $10 worth of Amazon gift cards a month, and this requires maxing out the daily points. So even after a year that is only $120.

There are so many angles being discussed. Psychology. Rewards. Consumer protection legalities. Those are all valid. But the one incontrovertible difference is what happens with a fraudulent charge or a dispute (such as goods not delivered). I’d rather put the bank’s money at risk and not my checking account balance. So it turns on one’s risk appetite. Sure fraud is rare. Sure I have enough other funds that my mortgage and other bills won’t go unpaid while I chase recovery of my own money. Sure I’ll probably get the dispute resolved and my own funds restored quickly. Sure I can be mindful of where and when to not use my debit card (gas stations, e. g.) To use a gambling maxim, I just prefer betting with House money, that is all:-) Debit car...

muffins14 wrote: ↑Mon Mar 27, 2023 7:02 am

anon_investor wrote: ↑Mon Mar 27, 2023 6:57 am For folks who payoff credit cards, I see 0 benefits using a debit card, just a lot of risks. All of my debit cards are always locked via their respective mobile apps.

Right, even if the protections were equal for reimbursement after fraud, I’d rather not see my actual spending account get zeroed out just before I had to pay rent or a mortgage. At least with credit my cash is unaffected and untouched, whereas the debit card is a direct link to my liquidity. Having debit card fraud would this be more stressful to me

Add on credit rewards and it becomes an even more lopsided comparison.

For folks who payoff credit cards, I see 0 benefits using a debit card, just a lot of risks. All of my debit cards are always locked via their respective mobile apps.

I shifted most of my cash balances from VMFXX Vanguard Federal Money Market Fund to VUSXX Vanguard Treasury Money Market Fund due to the fact that VMFXX surprised me this year by making me liable for state taxes by using Repos rather than just holding Treasuries(this was not the case over past decade). Now I see VUSXX has updated their holding and also is now increasingly using Repos after being 100% Treasuries last year. There now is no Vanguard Money Market fund that is just Treasuries without Repo. Need to go to Fidelity FDLXX Treasury Only Money Market Fund. Really disappointed. I was wondering... did you factor in the lower yield (4.16%) and the higher expense ratio (0.42%) compared to VUSXX? Source: https://fundresearch.fidelity.com/...

You're probably better off with a money market fund if you want something that is more closely aligned with Fed actions. For example, Vanguard Treasury Money Market (VUSXX) now yields 4.6%. No reason to buy a short-term bill, IMO. ... When VUSXX held 100% Treasuries there was no immediate yield change when the fed increased the FFR, as there was for VMFXX and VMRXX, which have held repos for as long as I remember. Now that VUSXX holds some repos, we saw a quick jump in VUSXX yield after the most recent FFR increase. So the repos contribute to closer tracking of FFR, but are not USGO, so are not exempt from state income tax. So, the repos are the key? That is important to know since we have numerous MM choices at Vanguard and Fidelity. The ...

^ both Schwab and Fidelity will do principal transactions as well (taking the other side of your trade/selling you securities from their own portfolio), as with payment for "order flow" there are regulations about doing that, but if one looks at less-reputable brokers (like Robin Hood) you can see some seem to take it as a business model to just pay the fines and continue to rip off their clients (at least that's the appearance given how frequently they continue to do the same thing after receiving fines for violations.) My vague understanding, was that in the past if you were trading less than a 'round lot' (100 shares) you were most likely not going to get best execution on the primary exchange. I'm not sure if that's still the...

bbrock wrote: ↑Sun Mar 26, 2023 11:20 am Through reading here, I was gonna dump 10k into TTTXX because it read like that was the best as far as (same day trade before cutoff). However is there an advantage of FISXX over TTTXX?

I’m not sweating any minuscule yield difference as it’s all relative.

TTTXX will likely get a very high % exempt from state/local taxes because it invests in only treasuries. Because FISXX has a lot of repos it will not get that same tax advantage.

Note that FDLXX is a treasury only money market fund and invests exclusively in treasuries, no repos. According to Fidelity In addition, the Adviser normally invests at least 80% of the fund's assets in U.S. Treasury securities. And The Adviser normally invests at least 99.5% of the fund's total assets in cash and U.S. Treasury securities. Potentially entering into reverse repurchase agreements. So it does not invest exclusively in Treasurys. But the share of Treasurys is higher than in some other Treasury money market funds. At least the short note from Fidelity does not specify what "cash" means. It has been 100% US treasury debt for quite some time. I am sure that carve out is to avoid breaking the buck in a worst case sceneri...

20cm wrote: ↑Sun Mar 26, 2023 1:34 pm

anon_investor wrote: ↑Sun Mar 26, 2023 1:11 pm

20cm wrote: ↑Sun Mar 26, 2023 12:29 pm

kavm wrote: ↑Sun Mar 26, 2023 12:27 pm Does the tax include CG distributions from the mutual funds?

Yes, it does. It also includes undistributed LTCG retained in the fund.

What about for ETFs?

Wait aren't realized LTCG in a mutual fund always required to be distributed?

https://www.irs.gov/forms-pubs/about-form-2439

Just get ETFs then, no capital gains.

Note that FDLXX is a treasury only money market fund and invests exclusively in treasuries, no repos. According to Fidelity In addition, the Adviser normally invests at least 80% of the fund's assets in U.S. Treasury securities. And The Adviser normally invests at least 99.5% of the fund's total assets in cash and U.S. Treasury securities. Potentially entering into reverse repurchase agreements. So it does not invest exclusively in Treasurys. But the share of Treasurys is higher than in some other Treasury money market funds. At least the short note from Fidelity does not specify what "cash" means. It has been 100% US treasury debt for quite some time. I am sure that carve out is to avoid breaking the buck in a worst case sceneri...

20cm wrote: ↑Sun Mar 26, 2023 12:29 pm

kavm wrote: ↑Sun Mar 26, 2023 12:27 pm Does the tax include CG distributions from the mutual funds?

Yes, it does. It also includes undistributed LTCG retained in the fund.

What about for ETFs?

Wait aren't realized LTCG in a mutual fund always required to be distributed?

Note that Treasury money market funds for the most part do not invest directly in Treasurys. Much of the money is in repurchase agreements collateralized by Treasurys. In principle, the collateral should support the value if the seller defaults on the agreement. But holding this is different than directly owning the Treasury security. The US does not guarantee the value of the repurchase agreement. The value of the securities is also exposed to interest rate risk. If there is a spike in rates, then the value of the shares can go down. As others have noted, the SIPC does not provide any protection against this. For these reasons, an FDIC-insured bank account is safer than a money market fund, even a Treasury money market fund. The risk of a...

WhatWillFutureHold wrote: ↑Sun Mar 26, 2023 11:06 am

anon_investor wrote: ↑Sun Mar 26, 2023 6:18 am
Instead of 20% cash, you can do 10% cash and 10% short term TIPS.

Thank you, anon_investor, for the suggestion about using short term TIPS for some of the cash portion of the portfolio. I suppose that would help with inflation eroding the cash portion.

VTIP is a good ETF for short term TIPS.

They are both 100% insured, so I don’t see the point. People are too panicked these days Who is providing insurance for option B? OP states, Option B - $250,000 in a money fund at Fidelity, which is NOT FDIC insured. But it is insured against almost everything. There is SIPC insurance in case the brokerage explodes and loses your shares, so the 250k would be recovered. Yes, under some very small set of situations the money market could “break the buck” temporarily, but that would be like a temporary <1% price movement, not a total loss It could however trigger a run on the MMF? Everyone races to get out, because they know redemptions will cause the sale of the more liquid/ higher quality securities in the MMF? aka "It's not rational t...

They are both 100% insured, so I don’t see the point. People are too panicked these days Who is providing insurance for option B? OP states, Option B - $250,000 in a money fund at Fidelity, which is NOT FDIC insured. But it is insured against almost everything. There is SIPC insurance in case the brokerage explodes and loses your shares, so the 250k would be recovered. Yes, under some very small set of situations the money market could “break the buck” temporarily, but that would be like a temporary <1% price movement, not a total loss It could however trigger a run on the MMF? Everyone races to get out, because they know redemptions will cause the sale of the more liquid/ higher quality securities in the MMF? aka "It's not rational t...

cyclist wrote: ↑Sun Mar 26, 2023 9:44 am Whenever I choose PayPal as a payment method I get an SMS verification code that I must supply first. (Yes, I know about SMS vulnerabilities, but I am raising a different issue.)

Yesterday I made a donation to a friend’s fundraiser on Facebook. I know the friend and the fundraiser to be legitimate.

I specified PayPal as the funding method, and the transaction simply went through without any SMS code being sent at all.

How did that happen, and how can I avoid it in the future?

Cyclist

Did you at some point click remember this device once when you did 2FA for PayPal previously? I think you can unremember the device within your PayPal account.

FYI you can change your PayPal 2FA to an authenticator app and turn off SMS 2FA.

... Someone on this forum mentioned that the interest that Schwab gets on the your low-interest settlement accounts is a main source of revenue in Schwab's business model. I think they get reinvested dividends for a day for outside ETFs and MFs. So, slow movement of funds through the settlement account is your price for Schwab's service now that no transaction fees are charged. I don't what Fidelity's business model is. Fidelity makes interest on cash held with them, how much they're making isn't as clear as with Schwab because Fidelity isn't a public traded company, so it doesn't have the same financial disclosures with it's books. It is clear that Fidelity's bank sweep pays less than Vanguard's, money market funds have higher ERs, and th...

In an odd situation with 2023 Tax Safe Harbors. Ended up owing a lot of tax in 2022, only withholding ~87% of 2022 taxes, but our income increased a lot, such that we did withhold > 125% of 2021 taxes, so we got the Safe Harbor. For 2023, expect the income to be much closer to 2022, probably a little higher, but not huge. I have no idea what investment income will be. But I don't think our 2023 tax liability will be >110% of 2022. I'm certain that withholding to match at least 100% of 2022 tax liability will be well above 90% of 2023 taxes. Will that qualify for 2023 safe harbor? Am I missing anything? I am in a similar situation. I am targeting withholding 90% of 2023 income. You must be in a high tax bracket, having to withhold 90% of yo...

CletusCaddy wrote: ↑Sat Mar 25, 2023 6:55 am The couple who sold out at the bottom in 2008 is the most tragic story of all. They would have been better off with Edward Jones.

Just goes to show, BHs underestimate the strength of behavioral proclivities in their recommendations

I wonder if they were 100% equities at the time. Would some bonds in their portfolio have helped them avoid that behavioral mistake.

skeptical wrote: ↑Sun Mar 26, 2023 7:59 am As I get older, I am mentally tired having to watch the bank account to make sure it does not drop too low, fretting about low interest checking, managing multiple logins. It may not sound like a lot, but there is just no reason to have to do this.

Your kids will thank you one day.

In our current environment, which is option is safer? Option A - $250,000 cash in an online savings account at a small online bank, which is FDIC insured. Option B - $250,000 in a money fund at Fidelity, which is NOT FDIC insured. What are your thoughts? Also, is there a third option that is even safer? Option A. FDIC insured. Assuming it is a government money fund, both are backed by the full faith in credit of the US government. Sure, a money fund can technically break the buck, but if the money fund collapses, then so does FDIC. Technically only treasuries are backed by the full faith and credit of the US government. But money market funds that hold treasuries only are likely just as safe. Not all government money market funds hold only...

OldSport wrote: ↑Sat Mar 25, 2023 9:24 pm In an odd situation with 2023 Tax Safe Harbors.

Ended up owing a lot of tax in 2022, only withholding ~87% of 2022 taxes, but our income increased a lot, such that we did withhold > 125% of 2021 taxes, so we got the Safe Harbor.

For 2023, expect the income to be much closer to 2022, probably a little higher, but not huge. I have no idea what investment income will be. But I don't think our 2023 tax liability will be >110% of 2022.

I'm certain that withholding to match at least 100% of 2022 tax liability will be well above 90% of 2023 taxes. Will that qualify for 2023 safe harbor?

Am I missing anything?

I am in a similar situation. I am targeting withholding 90% of 2023 income [tax].

teelainen wrote: ↑Sat Mar 25, 2023 9:29 pm

JoMoney wrote: ↑Sat Mar 25, 2023 9:16 pm Third "safer" option: If you spend your money, you won't have to worry about losing it.

If you have suggestions on things we can buy that will hold value and preserve our wealth, that would be wonderful. At this point, growth is not a super high priority.

I Bonds or TIPS?

Especially given that your mother is saving 30% of her annual income, consider increasing the stock allocation, increasing the cash allocation, and decreasing the bond allocation. Maybe 60% stock, 20% bonds, and 20% cash? The increase in volatility in stocks would be reduced by the increase in cash. But there’d be more cash available in the event of an emergency. I like the idea of 60/20/20, at least at current money market rates. At her current expenses, and with social security, she only needs about a 1.25% withdrawal rate, and much of her RMDs get "recycled" back into her portfolio. There will likey come a time when she has medical or other expenses that necessitate extra withdrawals, and she would be comfortable knowing that ...

If it were me, I'd sell the company stock and use the proceeds to buy into an index fund within the same 401k plan. Why take the firm specific risk at an employer that you no longer have any connection (and visibility) to? Regards, The OP probably has favorable NUA tax treatment on that company stock. I am keeping some company stock in my 401k that I received as part of an ESOP since it has NUA tax treatment and very low cost basis. Thanks for that but I didn't know anything about NUA. Who would know if it would get NUA treatment? I guess I should call up the plan administrator and check on that. If it doesn't get NUA treatment I am think about converting it into some index fund. Here is more info about NUA: https://www.bogleheads.org/wiki...

WhatWillFutureHold wrote: ↑Sat Mar 25, 2023 6:11 pm 162k (10%) UBS Bank Deposit earning 0.05% APY

This alone makes me sick. Not only has UBS been charging your mom 1.2% AUM, they put her cash into some self serving UBS 0.05% APY account, when even the default Fidelity core option has paid exponentially more.

If she wants a cash allocation, Fidelity has several excellent government money market options. For over $100k, FZCXX (Fidelity Government Money Market Fund - Premium Class) is a great option ($100k minimum initial investment):
https://institutional.fidelity.com/app/ ... fzcxx.html

vk22 wrote: ↑Sat Mar 25, 2023 9:14 pm Does helping someone get elected to office assist in improving one's personal finance?

Context : Someone is running for congress and asking for assistance in fund raising and other relevant activities. Not too politically inclined... wondering about the value of doing this from those who have experience. Is it a civic duty and not relevant to financials?

You might get a job out of it if they are elected?