Search found 11134 matches

by letsgobobby
Thu May 24, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: How to invest $1.4 million inheritance?
Replies: 19
Views: 2033

Re: How to invest $1.4 million inheritance?

With a recent inheritance I am value averaging in over three years, but my target is only 60/40 and I started at 30/70, so it's not a steep path. It felt like the right way for me to go since I believe valuations matter.
by letsgobobby
Wed May 23, 2018 1:47 pm
Forum: Personal Consumer Issues
Topic: How have you upgraded your wardrobe?
Replies: 96
Views: 4205

Re: How have you upgraded your wardrobe?

Recently found that Uniqlo slim fit shirts actually are slimmer. Affordable and better quality than whatever I had before. Bought a half dozen in the last year and in a decade I'll go shopping again.
by letsgobobby
Tue May 22, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy a new car?
Replies: 42
Views: 1914

Re: Should I buy a new car?

You say money is just piling up. Where's the pile?
by letsgobobby
Tue May 22, 2018 1:21 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 2615
Views: 497586

Re: What's Your Credit Card Rewards Strategy?

Cit Aadvantage Gold MC 65,000 bonus points and annual fee waived first year is tempting.

Thanks to daughter’s braces, just knocked out the Hawaiian $2000 spend for 60,000 miles x 2 (Barclay’s).

If I’m not careful I’m going to get hit with the Chase 5/24 ban.
by letsgobobby
Tue May 22, 2018 12:48 am
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 47193

Re: "Why 97% of People Don't Use 529 College Savings Plans."

C'mon now. Think most of the discussion is about prioritizing which tax efficient vehicles. And most likely applicable for new 12-22% tax brackets. If you are in 32% marginal, and have maxed most of savings vehicles, the have additional monies to save, got kids (or plans), 529 seems no brainer - es...
by letsgobobby
Mon May 21, 2018 8:33 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 47193

Re: "Why 97% of People Don't Use 529 College Savings Plans."

Note if you are paying 40+% marginal taxes you may be paying 18.8-23.8% capital gains taxes. Unlikely you'll be paying 15%. I approximate the tag drag in taxable is offset by the slightly higher fees in 529s. Details depend on specific investments and tax rates. The 40% marginal we are speaking of ...
by letsgobobby
Mon May 21, 2018 8:08 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 47193

Re: "Why 97% of People Don't Use 529 College Savings Plans."

Note if you are paying 40+% marginal taxes you may be paying 18.8-23.8% capital gains taxes. Unlikely you'll be paying 15%.

I approximate the tag drag in taxable is offset by the slightly higher fees in 529s. Details depend on specific investments and tax rates.
by letsgobobby
Mon May 21, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: When should we stop contributing to our 529?
Replies: 18
Views: 1740

Re: When should we stop contributing to our 529?

How much of your child’s future education are you willing to pay? Able to pay? Will you pay if he wants to go to USC ($300,000 for four years today)? Will you pay for grad/professional school if he is interested? What will you do if there is a shortfall in your account? What will you do if you are o...
by letsgobobby
Mon May 21, 2018 12:55 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

I suspect those who have both their own 8606 as well as an inherited IRA with basis and thus an inherited 8606 usually have more complex tax returns... The complication comes for those using tax software, none of which can handle this situation. It’s not just a matter of having to do an 8606 by han...
by letsgobobby
Sun May 20, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Alzheimer's Disease, Long Term Care, and your Retirement Finances
Replies: 67
Views: 6048

Re: Alzheimer's Disease, Long Term Care, and your Retirement Finances

Trying to stay off the banned medical discussion but still provide some useful planning info. Other than leading the healthiest life you can, if you want to know what your future holds you can get a florbetapir scan in your 50s. https://www.medscape.com/viewarticle/844948 You'll have to pay out of p...
by letsgobobby
Sat May 19, 2018 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Young Doctor Couple - Starting Work, Starting to Invest
Replies: 31
Views: 2707

Re: Young Doctor Couple - Starting Work, Starting to Invest

There's no rush to invest. July 1 is just around the corner and you'll likely be buying a dividend anyway if you invest now. Just sit tight. Not sure the rationale for filing separately. Hopefully others can chime in on the wisdom of doing this. I don't agree with the PP but you could interpret his ...
by letsgobobby
Sat May 19, 2018 10:22 am
Forum: Investing - Theory, News & General
Topic: Possibility of EE bond rates changing?
Replies: 8
Views: 723

Re: Possibility of EE bond rates changing?

it has long been the case that EE bonds only made sense for money you knew you didn’t need for twenty years. with rates higher across the board, it seems Treasury now has the opportunity to make them more competitive for other situations.
by letsgobobby
Sat May 19, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 47193

Re: "Why 97% of People Don't Use 529 College Savings Plans."

Also missing from the article was the mantra that a family should not contribute to a 529 plan unless they have made the maximum contributions to retirement plans first. :thumbsup I don't understand why some financial pundits recommend that people contribute to 529 plans when they are not maxing ou...
by letsgobobby
Fri May 18, 2018 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Fellow non-529ers
Replies: 43
Views: 2865

Re: Fellow non-529ers

It’s not unreasonable to forgo 529s because of their limitations. It’s potentially a very expensive choice, easily costing high income/high saving households six figures in additional taxes over their lifetimes - but to each his/her own. I’m with livesoft. I don’t see the advantage of a segregated t...
by letsgobobby
Fri May 18, 2018 12:30 pm
Forum: Investing - Theory, News & General
Topic: Possibility of EE bond rates changing?
Replies: 8
Views: 723

Possibility of EE bond rates changing?

While no one can predict the future, based on past interest rate environments, does anyone care to guess when/under what conditions the Treasury might change the rate offered by EE bonds? Either the fixed rate, or the doubling time? We have not bought this year’s allotment. If there is a chance any ...
by letsgobobby
Thu May 17, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 440
Views: 22075

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

If I make ten million dollars this year I may never have to work again, and will be in a lower tax bracket indefinitely. Not true; If I make ten million dollars this year, and I will be making fifteen million dollars next year, and twenty year after next etc why I would I stop working? You can do w...
by letsgobobby
Thu May 17, 2018 1:31 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 440
Views: 22075

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I put money into my tax deferred 403(b) account for 40 years with a hefty "match". I maxed my contributions to this account in my latter working years, thus keeping me in the 25% marginal bracket. Then in retirement, I annuitized a portion of that income to get higher lifetime income than a simple ...
by letsgobobby
Tue May 15, 2018 11:36 pm
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 97
Views: 8385

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

If your investment horizon is over ten years, there is absolutely no reason to own bond funds right now. VBTLX has a 2.64% dividend yield, while VBILX has 2.76%. VTSAX has 1.74%. Why chase the less than 1% difference in yield, when bond funds have fallen so much harder than VTSAX? In the event of a...
by letsgobobby
Tue May 15, 2018 9:39 pm
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 97
Views: 8385

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

If your investment horizon is over ten years, there is absolutely no reason to own bond funds right now. VBTLX has a 2.64% dividend yield, while VBILX has 2.76%. VTSAX has 1.74%. Why chase the less than 1% difference in yield, when bond funds have fallen so much harder than VTSAX? In the event of a...
by letsgobobby
Sat May 12, 2018 9:38 am
Forum: Investing - Help with Personal Investments
Topic: What would you do to lower our oversized emergency fund?
Replies: 35
Views: 3274

Re: What would you do to lower our oversized emergency fund?

KlangFool: Not sure why we have such funds not in the tax deferred. We have basically been substantially increasing our tax deferred contributions to the point where our paychecks don't have much money actually making it to us. My wife just re-entered the work force again so I didn't want to overdo...
by letsgobobby
Sat May 12, 2018 9:34 am
Forum: Investing - Help with Personal Investments
Topic: What would you do to lower our oversized emergency fund?
Replies: 35
Views: 3274

Re: What would you do to lower our oversized emergency fund?

"partially max"

Is that different from "don't max"

?
by letsgobobby
Tue May 08, 2018 7:20 pm
Forum: Personal Consumer Issues
Topic: Which City to spend 4-6 weeks?
Replies: 47
Views: 4455

Re: Which City to spend 4-6 weeks?

Sevilla Spain for a smaller option.
by letsgobobby
Tue May 08, 2018 12:41 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

She used the past tense so I assumed she no longer had the option, for one reason or another (no longer has the 401k, rules changed, etc).
by letsgobobby
Tue May 08, 2018 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust question for kids
Replies: 23
Views: 1895

Re: Will/Trust question for kids

I assume you also have life insurance in which case your trust may be two million dollars or more. My opinion, which is just that, is that asking the guardian to also be the trustee could set him up for difficulty as the child ages, at least in some cases. Conflict of interest, oversight, etc. In ma...
by letsgobobby
Tue May 08, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

... but I would assume that whenever you do a QCD from an IRA that has a nonzero basis, you would still have to prorate that basis. ... I haven't checked the Code, Regulations, legislative history or other IRS guidance. However, Publication 590-B says (on page 13) that you don't prorate. The QCD co...
by letsgobobby
Tue May 08, 2018 7:53 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

I am presuming we are not the only ones who have been religiously filing Form 8606. The time we started, we did not have the ROTH option or the backdoor ROTH option. You are not. I filed them for several years and, quite frankly, I just don't understand the concern here. It is one of the simplest I...
by letsgobobby
Tue May 08, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Thanks for that background info. The analysis about when to convert, etc, is complicated. My plan is to keep all pretax money in an employment account until I am done working for good, or when we would no longer need to do backdoor Roth IRAs (say because our income drops enough to make direct Roth I...
by letsgobobby
Mon May 07, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Why not roll the IRA into the 401k now? That was a possibility when I started converting, although not sure I could have rolled the entire tIRA into my 401k because my tIRA has a 50/50 mix of already taxed and untaxed money, but the 401k is all untaxed. Also, I figured that leaving it in the tIRA a...
by letsgobobby
Mon May 07, 2018 9:55 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

AM I right in assuming that the taxes will have to be paid of TIRA (or rather that income will be counted towards taxable income BUT actual taxes would depend upon the brackets etc). So either the couple pays it or the heirs pay it. If couple decides that rather than paying the taxes up front, they...
by letsgobobby
Mon May 07, 2018 8:00 am
Forum: Personal Consumer Issues
Topic: New car for my wife
Replies: 25
Views: 2635

Re: New car for my wife

There might be two fallacies in your post. First, a quality vehicle such as a Lexus should not be worthless after five years, even with high miles. You may choose to give away your vehicles but that does not mean they are worthless. Your financial analysis should reflect reality. Second, unless you ...
by letsgobobby
Sun May 06, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Plan After Windfall At My Age With 3 Kids
Replies: 15
Views: 2606

Re: Investment Plan After Windfall At My Age With 3 Kids

I'll throw out 60/40 because that's what I am. Probably not much less aggressive than that. 50/50-80/20 is reasonable. I really don't think it makes a big difference how you hold bonds. It sounds like you would like a black and white answer but I don't believe there is one. Since I couldn't make up ...
by letsgobobby
Sun May 06, 2018 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: Start 529 Plan?
Replies: 45
Views: 1988

Re: Start 529 Plan?

When your annual saving is high enough, you do not need to save for college education.

KlangFool
When your tax rate is high enough, you want to save for college education.
by letsgobobby
Sun May 06, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Start 529 Plan?
Replies: 45
Views: 1988

Re: Start 529 Plan?

Thanks for all the advice! For those who are funding above what expected college/grad expenses will be, what are your plans to do with the excess money? After kids graduate change the beneficiary to grandkids? most likely. maybe nieces and nephews. possibly a few adult education classes for ourselv...
by letsgobobby
Sun May 06, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Start 529 Plan?
Replies: 45
Views: 1988

Re: Start 529 Plan?

Just so OP knows the efforts for 529 compared to TIRA to ROTH conversion dance per year for someone with high net worth and have kids. 01/2009: Open a 529 account with child as beneficiary and transfer $100K (Gift tax exclusion with five year worth contributions from dad & mom) 01/2009: One time en...
by letsgobobby
Sun May 06, 2018 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: 529 vs Roth IRA
Replies: 7
Views: 510

Re: 529 vs Roth IRA

Roth first
by letsgobobby
Sun May 06, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Start 529 Plan?
Replies: 45
Views: 1988

Re: Start 529 Plan?

The costs are almost zero. Slightly higher fees are more than offset by avoidance of tax drag. State and federal tax benefits can be immense, orders of magnitude higher than for a Roth IRA because the contribution limits are orders of magnitude higher. Most people who have enough to contribute enoug...
by letsgobobby
Sun May 06, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

I believe in doing what’s best for me and my wife. I’m not overly complicating my life to spare my heirs from a tricky tax return on free money. Most people involved in serious estate planning also want what's best for their heirs or at least plan across generations. You can do what you want, of co...
by letsgobobby
Sun May 06, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Start 529 Plan?
Replies: 45
Views: 1988

Re: Start 529 Plan?

One question here. Is your statement about tax benefits just about the Illinois benefits at time or contribution or also about distribution time? Assuming my kid goes to college aren't the distributions tax free saving me money on the earnings. Doesn't this make the 529 worth it? aaja, I am answeri...
by letsgobobby
Sun May 06, 2018 9:01 am
Forum: Personal Consumer Issues
Topic: Can We Move To Oahu ?
Replies: 17
Views: 2877

Re: Can We Move To Oahu ?

Looking at moving to Oahu by Fall of 2019. This would be contingent upon being able to buy a SFH in the new Koa Ridge development in Mililani. There is no guarantee the SFH's won't go to lottery. We have visited the area extensively and think it will be a great fit for us. My Sister lives in Kaneoh...
by letsgobobby
Sun May 06, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

why not donate the whole thing to charity? you would not have to worry about it then at all! Non spouses cannot donate inherited IRAs without first withdrawing the funds. I think. Otherwise a great idea. Keep in mind that you can do Qualified Charitable Distributions from an inherited IRA, but you ...
by letsgobobby
Sun May 06, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Let's not be snarky, eh? In my case hiring a professional to complete my taxes will cost far more over the life of the IRA than it is worth. I do have options of ignoring basis (and paying a total of 75% combined tax rates on the basis, between the decedent's and my tax rates), or withdrawing all th...
by letsgobobby
Sat May 05, 2018 8:55 pm
Forum: Personal Consumer Issues
Topic: Open-ended question about vacationing in Yosemite or a different national park
Replies: 49
Views: 2936

Re: Open-ended question about vacationing in Yosemite or a different national park

jehovasfitness wrote:
Sat May 05, 2018 5:38 pm
Big Bend in TX is awesome imo and way less crowded though we plan on Yosemite at some point
Maybe not in August
by letsgobobby
Sat May 05, 2018 8:50 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

wrongfunds wrote:
Sat May 05, 2018 7:30 pm
why not donate the whole thing to charity? you would not have to worry about it then at all!
Non spouses cannot donate inherited IRAs without first withdrawing the funds. I think. Otherwise a great idea.
by letsgobobby
Sat May 05, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

:oops:

Repeatedly have stated it is not that simple. The tax software incorrectly combines 8606 basis. It's not that you can't efile; it's that the 1040, along with myriad forms, is wrong. It has to be redone. Nearly my entire return, 27 pages, was wrong.
by letsgobobby
Sat May 05, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

All you have to do is provide evidence of tax prep software that handles this problem. Let me know when you do. Until then, it's presumptuous to say the statement is false. It's important for others to know that your suggestion has not been functional to any individual taxpayer as far as I know.
by letsgobobby
Sat May 05, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

It's a false dichotomy to present the choices as "efile or do it by hand". You can prepare tax returns with software and then mail the return. Not always. My software cannot correctly compute multiple 8606s so it puts incorrect numbers on practically every form. That's a different problem. I'm not ...
by letsgobobby
Sat May 05, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Earl Lemongrab wrote:
Sat May 05, 2018 12:41 pm
It's a false dichotomy to present the choices as "efile or do it by hand". You can prepare tax returns with software and then mail the return.
Not always. My software cannot correctly compute multiple 8606s so it puts incorrect numbers on practically every form.
by letsgobobby
Sat May 05, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

What is that expression? "don't look a gift horse in the mouth"? Isn't this applicable here? As they say, nothing is free.... Literally the cost to step up to a tax professional would be five times greater than the tax paid on the basis, if I elected to ignore it. And my dad would have had a conipt...
by letsgobobby
Sat May 05, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8257

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

I believe each of your Roth conversions has to be prorated, so you can never get rid of the basis unless you convert your entire IRA, or roll in the untaxed portion to a 401k or other similar plan. And really any basis, even $10, creates the same problem as a larger basis. It still creates the need ...