Search found 106 matches

by AlabamaPaul
Fri Oct 16, 2020 4:37 pm
Forum: Personal Investments
Topic: Lump sum on pension or wait
Replies: 14
Views: 1273

Re: Lump sum on pension or wait

Even though it's a relatively small amount, it is a 6.17% return on that payout offer, which isn't bad at all given that it has a 100% survivor benefit. I don't know where you live, but many states do not tax pensions from a defined benefit plan. If your state has an income tax, that may be another ...
by AlabamaPaul
Fri Sep 18, 2020 7:26 pm
Forum: Personal Investments
Topic: Steps to get Coronavirus Related Distribution (CRD) into Roth IRA
Replies: 4
Views: 409

Re: Steps to get Coronavirus Related Distribution (CRD) into Roth IRA

5. Come up with an explanation for the IRS as to your need to take a CRD at end of September and immediately convert it to a Roth...
by AlabamaPaul
Fri Sep 18, 2020 3:44 pm
Forum: Personal Investments
Topic: Guidance for breaking the news to our financial advisor
Replies: 60
Views: 5362

Re: Guidance for breaking the news to our financial advisor

1. You've already paid for the review, so go, but at the end, ask to speak privately with your adviser. Let him know you appreciate all he has done over the years to get you two prepared for retirement and that you're now confident he has prepared you to handle your financial affairs through your re...
by AlabamaPaul
Thu Sep 17, 2020 5:55 pm
Forum: Personal Investments
Topic: How to deal with long distance rental property?
Replies: 13
Views: 792

Re: How to deal with long distance rental property?

How many years ago did you get transferred?
by AlabamaPaul
Mon Sep 14, 2020 3:42 pm
Forum: Personal Investments
Topic: Help Thinking about Home Purchase
Replies: 8
Views: 627

Re: Help Thinking about Home Purchase

Is this a CCRC (continuing care retirement community), or it it simply a community that has age restrictions? If it is a CCRC, what type of contract will you be entering into?
by AlabamaPaul
Fri Sep 11, 2020 4:49 pm
Forum: Personal Investments
Topic: Unitrust advice??
Replies: 24
Views: 1102

Re: Unitrust advice??

Luckywon wrote: Fri Sep 11, 2020 4:47 pm
AlabamaPaul wrote: Fri Sep 11, 2020 4:46 pm It would be very rare for a beneficiary to be a successor trustee as well.
This is completely false.
k...
by AlabamaPaul
Fri Sep 11, 2020 4:46 pm
Forum: Personal Investments
Topic: Unitrust advice??
Replies: 24
Views: 1102

Re: Unitrust advice??

It appears as if you are a future beneficiary only and not a future trustee. The trust's successor trustee(s) will manage the trust after your uncle passes... How do you know this? I don't see it in the facts. Gill It would be very rare for a beneficiary to be a successor trustee as well. There wou...
by AlabamaPaul
Fri Sep 11, 2020 3:57 pm
Forum: Personal Investments
Topic: Unitrust advice??
Replies: 24
Views: 1102

Re: Unitrust advice??

I am a future trustee (and beneficiary), as my uncle is still alive. I'm trying to get educated on how to proceed. So far, there is one suggestion - invest for total return - so I'll have to learn the best way to do that. I suppose that was what I was asking for in the first place - how to invest f...
by AlabamaPaul
Fri Sep 11, 2020 12:22 pm
Forum: Personal Investments
Topic: Is there a tax-efficient, one-fund portfolio?
Replies: 25
Views: 2628

Re: Is there a tax-efficient, one-fund portfolio?

pbguky wrote: Fri Sep 11, 2020 11:59 am Since target date funds cannot seem to meet this criteria due to bond holdings and turnover, is there anything else out there can be used in a taxable account?
Something like Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX)??
by AlabamaPaul
Thu Sep 10, 2020 5:00 pm
Forum: Personal Investments
Topic: How do your minor children invest?
Replies: 19
Views: 1582

Re: How do your minor children invest?

I have a brokerage account where my grandchildren are the beneficiaries. I did it this way so as to not burden my children with any tax consequences. The grandchildren are the named beneficiaries, and I take care of any taxes...
by AlabamaPaul
Thu Sep 10, 2020 3:46 pm
Forum: Personal Investments
Topic: Meaningful Goals
Replies: 9
Views: 916

Re: Meaningful Goals

Realistically, how much might one need to invest in stock and/or ETFs to see any meaningful returns? "meaningful returns" for each person are a function of savings rate. The satisfaction comes from watching your savings balance grow over time, and at some point, it becomes a bit addictive...
by AlabamaPaul
Wed Sep 09, 2020 3:49 pm
Forum: Personal Investments
Topic: Keep Rental or Sell?
Replies: 14
Views: 946

Re: Keep Rental or Sell?

This seems like a pretty terrible rental honestly. You're barely covering your mortgage and management fee, nevermind repairs. Why is a 3% 50k mortgage costing so much monthly? High insurance costs? I don't understand the logic of the 1% of purchase price rule of thumb that's surfaced seemingly all...
by AlabamaPaul
Tue Sep 08, 2020 4:24 pm
Forum: Personal Investments
Topic: Best way to build an emergency fund?
Replies: 96
Views: 6907

Re: Best way to build an emergency fund?

Just to be frank. At this point in your life, maintaining and contributing monthly to gift funds for nieces and nephews is not a wise choice. This is something one would do with excess after tax funds after all other priorities have been met. You could consider the taxable account as part of your em...
by AlabamaPaul
Sun Sep 06, 2020 3:27 pm
Forum: Personal Investments
Topic: Splitting Shares (Tesla)
Replies: 5
Views: 466

Re: Splitting Shares (Tesla)

Other than psychologically, stock splits are meaningless to the company's fundamentals...
by AlabamaPaul
Sat Sep 05, 2020 6:29 pm
Forum: Personal Investments
Topic: IRA Withdrawal
Replies: 4
Views: 327

Re: IRA Withdrawal

It needs to be taken in the calendar year you want it to count for taxes...
by AlabamaPaul
Sat Sep 05, 2020 4:53 pm
Forum: Personal Investments
Topic: How do I protect my investments moving forward?
Replies: 17
Views: 2165

Re: What do I do with my money market fund money?

You might want to consider a multi-year guaranteed annuity (MYGA) for part of your fixed income allocation. Their yield is much higher than a money market fund. Example --- Fixed Annuity Rates for September 2020 ---https://www.blueprintincome.com/fixed-annuities Five year rates as high as 3.45% per...
by AlabamaPaul
Sat Sep 05, 2020 4:42 pm
Forum: Personal Investments
Topic: How do I protect my investments moving forward?
Replies: 17
Views: 2165

Re: What do I do with my money market fund money?

There's not enough information provided to advise you. Your risk tolerance appears to be very low, but without knowing your risk capacity, any advice would be a guess at best...
by AlabamaPaul
Sat Sep 05, 2020 4:03 pm
Forum: Personal Investments
Topic: Gifting Shares -- which ones?
Replies: 10
Views: 626

Re: Gifting Shares -- which ones?

When I gift shares in kind which lot(s) should I gift? Biggest gainers? Biggest losers? I assume that the new owner will not touch them for a long time. I know they will get the cost basis along with the shares. I think biggest gainers are the best to gift as I want to save the losers (or least gai...
by AlabamaPaul
Sat Sep 05, 2020 3:58 pm
Forum: Personal Investments
Topic: Do I really own anything if everything can require a Medallion signature which I can never get?
Replies: 71
Views: 7896

Re: Do I really own anything if everything can require a Medallion signature which I can never get?

JonnyDVM wrote: Sat Sep 05, 2020 3:23 pm How are you guys walking into banks ? All of mine are drive through only. It’s been a while since I needed a Medallion but I agree it’s a pain. I think it’s highly unlikely you ever need one to sell securities.
Bank and credit union lobbies have been open here for months...
by AlabamaPaul
Sat Sep 05, 2020 2:46 pm
Forum: Personal Investments
Topic: should I get second IRA Roth account?
Replies: 5
Views: 678

Re: should I get second IRA Roth account?

Any conversion to a Roth account would trigger a new clock for that particular addition, but yearly investments will not. Remember, your added amount in always available. It's the gains that have the issue, and after 59 1/2 no penalties apply to withdrawals of gains, though taxes may apply...
by AlabamaPaul
Sat Sep 05, 2020 10:26 am
Forum: Personal Investments
Topic: Do I really own anything if everything can require a Medallion signature which I can never get?
Replies: 71
Views: 7896

Re: Do I really own anything if everything can require a Medallion signature which I can never get?

Vanguard's website says that you may need a medallion signature even to sell securities :( https://investor.vanguard.com/account-transfer/other-questions You may need a Medallion signature guarantee when: You're transferring or selling securities. You're transferring a joint account to an individua...
by AlabamaPaul
Fri Sep 04, 2020 3:52 pm
Forum: Personal Investments
Topic: Retirement advice
Replies: 8
Views: 1456

Re: Retirement advice

my wife is very desperate to find a good balanced fund with no more than 20% in international stocks. I told her that she needs to pick a target date fund or one of the life strategy funds or the 3 funds portfolio and DIY. She is 40 years old.Any suggestions? Half in Wellington and half in Wellesle...
by AlabamaPaul
Fri Sep 04, 2020 3:32 pm
Forum: Personal Investments
Topic: Pay down mortgage or invest
Replies: 31
Views: 2609

Re: Pay down mortgage or invest

At your age, I would vote for investing the proceeds from the sale of your second house. As you approach retirement is when you want to make sure you're debt free...
by AlabamaPaul
Fri Sep 04, 2020 10:38 am
Forum: Personal Investments
Topic: [Tesla - good buy after stock split?]
Replies: 34
Views: 3426

Re: [Tesla - good buy after stock split?]

:sharebeer This meteoric rise could not be more frustrating. This is painful hindsight. I was told more then once to buy TSLA. I’m still resisting. Take a look at the ARKK managed ETF to spread some the risk over disruptive companies... Looked into it. It was intriguing. I bought some. Looks like ab...
by AlabamaPaul
Thu Sep 03, 2020 2:52 pm
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

Yes, but the re-contribution is supposed to go into the account from which the distribution was taken... Not sure how you read "is supposed to go into the account from which the distribution was taken" into any part of the law or the IRS notices. Could you quote the text that leads you to...
by AlabamaPaul
Thu Sep 03, 2020 12:10 pm
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

From your OP: "...take a $100,000 distribution from Transamerica and then redistribute this back to a fidelity rollover IRA (pretax)." Call it what you want, but that would be an attempted rollover. From what I understand, once you take the distribution, you will have three years to pay t...
by AlabamaPaul
Thu Sep 03, 2020 11:51 am
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

Right, and I'm not sure how the IRS will see a rollover as a hardship. It's a can of worms in my view, unless it can be clearly demonstrated as necessary... It’s not a rollover. It is a distribution, then redistribution. I am a qualified individual and following all the rules exactly as laid out by...
by AlabamaPaul
Thu Sep 03, 2020 11:47 am
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

Can you prove a Corona related hardship? I don't think the IRS has settled on all the rules yet... See "B. Definition of qualified individual" starting on p. 4 of https://www.irs.gov/pub/irs-drop/n-20-50.pdf for what may be the most detailed guidance we'll get. Right, and I'm not sure how...
by AlabamaPaul
Thu Sep 03, 2020 11:33 am
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

Right, and I'm not sure how the IRS will see a rollover as a hardship. It's a can of worms in my view, unless it can be clearly demonstrated as necessary... It’s not a rollover. It is a distribution, then redistribution. I am a qualified individual and following all the rules exactly as laid out by...
by AlabamaPaul
Wed Sep 02, 2020 4:29 pm
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

Can you prove a Corona related hardship? I don't think the IRS has settled on all the rules yet... See "B. Definition of qualified individual" starting on p. 4 of https://www.irs.gov/pub/irs-drop/n-20-50.pdf for what may be the most detailed guidance we'll get. Right, and I'm not sure how...
by AlabamaPaul
Wed Sep 02, 2020 4:06 pm
Forum: Personal Investments
Topic: Cares act redistribution question
Replies: 16
Views: 895

Re: Cares act redistribution question

Can you prove a Corona related hardship? I don't think the IRS has settled on all the rules yet...
by AlabamaPaul
Tue Sep 01, 2020 8:04 pm
Forum: Investing - Theory, News & General
Topic: Ark Funds
Replies: 64
Views: 7739

Re: Ark Funds

I have ARKK in my Roth. Some speculative investing keeps me off the streets and out of bars...
by AlabamaPaul
Tue Sep 01, 2020 5:22 pm
Forum: Personal Investments
Topic: How to begin an investment in the 3 item index fund portfolio
Replies: 4
Views: 402

Re: How to begin an investment in the 3 item index fund portfolio

If your current portfolio is in a taxable account, I would be inclined to let it ride as is. Otherwise, there probably would be significant LTCGs to deal with...
by AlabamaPaul
Tue Sep 01, 2020 12:55 pm
Forum: Personal Investments
Topic: Fidelity Short Term Treasury Bond Index - Help me Understand
Replies: 12
Views: 1010

Re: Fidelity Short Term Treasury Bond Index - Help me Understand

I see that I have rcvd dividend of 4.95 as credit and than the same has been withdrawn as dividend reinvestment . Why is that ? The dividend was received and immediately reinvested into the fund. Reinvestment is likely standard, and you would need to change that manually inside your account if you ...
by AlabamaPaul
Tue Sep 01, 2020 9:54 am
Forum: Personal Investments
Topic: Tips on investing play money
Replies: 37
Views: 2135

Re: Tips on investing play money

I fully subscribe to indexing and many of the core investing principles often discussed on this forum. I am thinking about taking a certain amount of money and designate it as play (gambling) money. It would strictly be invested in stocks. Looking for any tips, websites or anything that would help....
by AlabamaPaul
Mon Aug 31, 2020 11:19 am
Forum: Personal Investments
Topic: LTCG Question
Replies: 9
Views: 438

Re: LTCG Question

I would never borrow when I had the funds readily available elsewhere, and yes, you are correct in that there would be no tax on the LTCG given the information provided...
by AlabamaPaul
Sun Aug 30, 2020 4:50 pm
Forum: Personal Investments
Topic: Starting to Invest in Your 50s
Replies: 15
Views: 1765

Re: Starting to Invest in Your 50s

Does anyone know of any FI blogs or articles out there about starting to invest in your 50s? The FI community is pretty heavily focused on retiring early, and I can't find much information on what to do if you are starting so late in the game. I've already browsed the forum and couldn't find what I...
by AlabamaPaul
Sat Aug 29, 2020 8:02 pm
Forum: Personal Investments
Topic: Fidelity 401k to Vanguard 401k direct rollover not possible?
Replies: 19
Views: 1158

Re: Fidelity 401k to Vanguard 401k direct rollover not possible?

At Schwab, a slightly different situation - one that did not involve any "employers", which seems to make all the difference - we had no trouble at all transfering "in kind" from an IRA to a taxable account. We just paid the taxes from other money. RM Why in the world did you pa...
by AlabamaPaul
Sat Aug 29, 2020 5:14 pm
Forum: Personal Investments
Topic: What to do with $150K Bonus?
Replies: 31
Views: 3557

Re: What to do with $150K Bonus?

luckybamboo wrote: Sat Aug 29, 2020 5:09 pm
AlabamaPaul wrote: Sat Aug 29, 2020 4:41 pm I'm confused. Which one of you has the $100k IRA, the one still working or the stay at home Mom?
Stay at home Mom. All DH traditional IRAs are rolled into 401K and backdoor ROTH is done yearly.
Got it, thanks...
by AlabamaPaul
Sat Aug 29, 2020 4:52 pm
Forum: Personal Investments
Topic: Where to Park Money for short term?
Replies: 6
Views: 814

Re: Where to Park Money for short term?

With that short of a time frame, there is no real inflation risk. So, just keep it readily available...
by AlabamaPaul
Sat Aug 29, 2020 4:41 pm
Forum: Personal Investments
Topic: What to do with $150K Bonus?
Replies: 31
Views: 3557

Re: What to do with $150K Bonus?

I'm confused. Which one of you has the $100k IRA, the one still working or the stay at home Mom?
by AlabamaPaul
Sat Aug 29, 2020 2:32 pm
Forum: Personal Investments
Topic: SWR for 81 year old widow?
Replies: 21
Views: 1418

Re: SWR for 81 year old widow?

What is a reasonable Safe WIthdrawal Rate for a newly-widowed 81 year old woman? The Social Security calculator says her remaining life expectancy is about nine more years, although she is in good health and generally comes from a long-lived family -- three aunts lived into their mid- to late-90's....
by AlabamaPaul
Sat Aug 29, 2020 2:29 pm
Forum: Personal Investments
Topic: Converted ROTH Withdrawal Question
Replies: 11
Views: 858

Re: Converted ROTH Withdrawal Question

I believe Alabama Paul is incorrect. As long as some money in the account has been there for 5 years you should not face any penalty. This is correct as long as there are "contributions". Conversions are a different animal... Never mind, i missed the part where he is just now over 59 1/2....
by AlabamaPaul
Sat Aug 29, 2020 2:21 pm
Forum: Personal Investments
Topic: Converted ROTH Withdrawal Question
Replies: 11
Views: 858

Re: Converted ROTH Withdrawal Question

1rl9DS5gl2 wrote: Sat Aug 29, 2020 2:16 pm I believe Alabama Paul is incorrect. As long as some money in the account has been there for 5 years you should not face any penalty.
This is correct as long as there are "contributions". Conversions are a different animal...
by AlabamaPaul
Sat Aug 29, 2020 2:13 pm
Forum: Personal Investments
Topic: Converted ROTH Withdrawal Question
Replies: 11
Views: 858

Re: Converted ROTH Withdrawal Question

Each conversion starts a new clock specific to that conversion amount...
by AlabamaPaul
Sat Aug 29, 2020 1:52 pm
Forum: Personal Investments
Topic: Mortgage vs. Taxable
Replies: 18
Views: 1554

Re: Mortgage vs. Taxable

I had that same internal debate. After sending in a few payments in addition to the required mortgage amount, I was like, I can't do this for multiple years, as it's too slow of a process. So, i started funding a taxable account with those "extra" payments and more. This gave me a certain ...
by AlabamaPaul
Sat Aug 29, 2020 10:33 am
Forum: Personal Investments
Topic: Brokerage Transfer Question
Replies: 8
Views: 557

Re: Brokerage Transfer Question

I would take a distribution of $0.01 from the tIRA at Wells Trade to zero it out and then let it sit there. The $95 is an account termination fee, and you won't be terminating the account. When I transferred my accounts from Ameritrade to Vanguard, I left a couple of dollars in each account and then...
by AlabamaPaul
Fri Aug 28, 2020 12:51 pm
Forum: Personal Investments
Topic: Which money market at 37 federal/10 state?
Replies: 6
Views: 519

Re: Which money market at 37 federal/10 state?

Phinance wrote: Fri Aug 28, 2020 12:46 pm What is VMBS? Isn't 0.8 (Ally/Marcus) still a better yield than any vanguard money market? (Yields at 0.08 to 0.10)
VMBS - Vanguard Mortgage Backed Securities ETF
VCSH - Vanguard Short-Term Corporate Bonds ETF

Yes, there is a bit of risk, but not more than I can tolerate...