Search found 80 matches

by RyeBourbon
Thu Oct 29, 2020 9:00 pm
Forum: Personal Investments
Topic: Buy Vanguard and immediately transferring to Fidelity?
Replies: 26
Views: 1401

Re: Buy Vanguard and immediately transferring to Fidelity?

I don't believe you can hold VTSAX at Fidelity. If I were you, I would just use FSKAX or FZROX instead; they're pretty much indistinguishable from VTSAX. Or bite the bullet and use VTI or ITOT; the premium/discount spreads on these are usually paper thin. Are you sure I cannot hold VTSAX at Fidelit...
by RyeBourbon
Wed Oct 28, 2020 6:56 pm
Forum: Personal Investments
Topic: Opening a Roth IRA
Replies: 18
Views: 735

Re: Opening a Roth IRA

You have to wait until 59.5 years old to withdraw unless you want to get penalized All the interest/gains you make on your contributions to the Roth IRA are taxed free when you withdraw at 59.5 As far as I know there is no penalty or restriction for withdrawing contributions. Well, not in the typic...
by RyeBourbon
Wed Oct 28, 2020 6:44 pm
Forum: Personal Investments
Topic: Opening a Roth IRA
Replies: 18
Views: 735

Re: Opening a Roth IRA

You have to wait until 59.5 years old to withdraw unless you want to get penalized All the interest/gains you make on your contributions to the Roth IRA are taxed free when you withdraw at 59.5 As far as I know there is no penalty or restriction for withdrawing contributions. Well, not in the typic...
by RyeBourbon
Wed Oct 28, 2020 5:48 pm
Forum: Personal Investments
Topic: Opening a Roth IRA
Replies: 18
Views: 735

Re: Opening a Roth IRA

You won't always be able to pull old brokerage account statements online, so keep copies. Yes, if you put in $6k per year for 4 years, you can withdraw the 24k if you need to. You shouldn't do it, as you lose that opportunity to keep generating tax-free earnings. But it can be a sort of second level...
by RyeBourbon
Wed Oct 28, 2020 5:41 pm
Forum: Personal Investments
Topic: Opening a Roth IRA
Replies: 18
Views: 735

Re: Opening a Roth IRA

Everything you've contributed, so keep good records.
by RyeBourbon
Tue Oct 27, 2020 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Is it difficult to administer a revocable trust?
Replies: 21
Views: 1275

Re: Is it difficult to administer a revocable trust?

Investopedia says "Costs of maintaining a revocable trust are greater than other estate planning tools such as a will" https://www.investopedia.com/terms/r/revocabletrust.asp This doesn't make much sense. I have no idea what these "costs of maintaining a revocable trust" are. Payment of a fee to th...
by RyeBourbon
Mon Oct 26, 2020 8:09 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 38
Views: 3012

Re: Idiot Check: About to spend $6667 on I Bonds

I think it makes a lot of sense and I was going to do the same thing (different amounts). I opened the account last week and started transferring funds into the C of I account (to accumulate from multiple bank accounts) and buy the bond all at once. The day the funds went in, they locked my account...
by RyeBourbon
Mon Oct 26, 2020 8:00 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 38
Views: 3012

Re: Idiot Check: About to spend $6667 on I Bonds

I think it makes a lot of sense and I was going to do the same thing (different amounts). I opened the account last week and started transferring funds into the C of I account (to accumulate from multiple bank accounts) and buy the bond all at once. The day the funds went in, they locked my account...
by RyeBourbon
Mon Oct 26, 2020 7:51 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 38
Views: 3012

Re: Idiot Check: About to spend $6667 on I Bonds

I think it makes a lot of sense and I was going to do the same thing (different amounts). I opened the account last week and started transferring funds into the C of I account (to accumulate from multiple bank accounts) and buy the bond all at once. The day the funds went in, they locked my account...
by RyeBourbon
Mon Oct 26, 2020 7:46 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 38
Views: 3012

Re: Idiot Check: About to spend $6667 on I Bonds

Tipswatcher's and others’ arguments for I Bonds as a 11-month investment that presently provides a greater, guaranteed return (.95%) than a CD (.8%) or high-yield savings account (.75%) are compelling. The possibility is new to me, however, and my relatively low income of $50k/year means that I nee...
by RyeBourbon
Sun Oct 25, 2020 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Moving between states to save on taxes and unload house
Replies: 30
Views: 3010

Re: Moving between states to save on taxes and unload house

I'm guessing your current location is either D.C. or NYC. If you think the current location is either D.C. or NYC, what state is located only 5 miles from either one and also has no state income tax? I confess I haven't come up with a good guess as to the current location. Portland OR? Is that HCOL?
by RyeBourbon
Sun Oct 25, 2020 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Borrowing money from Trust
Replies: 67
Views: 3997

Re: Borrowing money from Trust

If it's a revocable trust you are way over-complicating it by borrowing it and paying interest. "Borrow" it if you want but it's your money. Borrow it, document it, and pay it back if you like but it's your money. Take it out of your left pocket, or your right pocket, but it's just money. OP has al...
by RyeBourbon
Sun Oct 25, 2020 7:50 pm
Forum: Personal Investments
Topic: Help getting in the market
Replies: 52
Views: 3420

Re: Help getting in the market

How long until you will actually need to tap the money? What market? The US market? International markets? The answers to these questions matter quite a bit, especially when you're working with a substantial sum. Really trying to retire before I'm 60. So 18 years? 91% stocks, 9% other. 64% us stock...
by RyeBourbon
Sun Oct 25, 2020 7:37 pm
Forum: Personal Investments
Topic: Capital Loss via a Non-transferable Stock
Replies: 7
Views: 410

Re: Capital Loss via a Non-transferable Stock

Rollover IRAs do not have capital gains or losses. Instead the money going in (to the 401K) was not taxed but will be taxed when you withdraw it. Congratulations. You can withdraw the entire amount and not owe any taxes on it. That's probably not what you want to hear, but that's how IRAs work. You...
by RyeBourbon
Thu Oct 22, 2020 5:04 pm
Forum: Personal Investments
Topic: Simple Covered Call Strategy
Replies: 27
Views: 2539

Re: Simple Covered Call Strategy

A good rule to adhere to is never sell a call below your cost basis strike price This is an anchoring bias. If you hold a stock worth $70 and write a call at $80, your returns will be the same whether you bought the stock at $100, or bought it for $70. (You might even have the same cumulative retur...
by RyeBourbon
Thu Oct 22, 2020 3:49 pm
Forum: Personal Investments
Topic: I'm an independent contractor with a Roth IRA. Should I also have a SEP IRA or Simple IRA?
Replies: 9
Views: 582

Re: I'm an independent contractor with a Roth IRA. Should I also have a SEP IRA or Simple IRA?

It depends on your tax rate. If you're in a high bracket and want to lower your current tax liability, I'd open a SEP. The contribution limit is higher than a Traditional IRA.
by RyeBourbon
Thu Oct 22, 2020 3:16 pm
Forum: Personal Investments
Topic: Unfreeze Credit To Open TreasuryDirect Accounts?
Replies: 14
Views: 1004

Re: Unfreeze Credit To Open TreasuryDirect Accounts?

I sympathize with OP’s concern because it could be a real pain to open a TD account after the online process rejection because he will have to get the dreaded medallion signature guarantee. Anyway, good luck to the OP. Again, see my recommendations up thread. I just opened a TD account to buy some ...
by RyeBourbon
Thu Oct 22, 2020 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Wills/Trusts - Retirement Account Beneficiary
Replies: 30
Views: 1712

Re: Wills/Trusts - Retirement Account Beneficiary

Thank you all for the replies but I have a few additional questions: We are setting up a living trust currently; some of the responses speak to a trust for each child. This sounds like a different direction than a living trust, yes? I can't really comment on the tax issues, but my (and my spouse's)...
by RyeBourbon
Tue Oct 20, 2020 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund Options.....
Replies: 5
Views: 734

Re: Emergency Fund Options.....

I don't think there are any other good options if you want to preserve your principal and keep it liquid in the short-term.
by RyeBourbon
Mon Oct 19, 2020 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Wills/Trusts - Retirement Account Beneficiary
Replies: 30
Views: 1712

Re: Wills/Trusts - Retirement Account Beneficiary

I was advised to name my spouse as the beneficiary and my living trust as the contingent (secondary) beneficiary to cover the possibility that we go at the same time.
by RyeBourbon
Sun Oct 18, 2020 6:39 pm
Forum: Personal Investments
Topic: Help for wife after I pass away
Replies: 54
Views: 7479

Re: Help for wife after I pass away

My wife is the same way. Although at first I was very annoyed at her for being so childish about finances, I now realize it is a topic simply beyond her comprehension no matter how many books she reads or how hard she tries. My written instructions to her are to move all money in our IRA to Vanguar...
by RyeBourbon
Sun Oct 18, 2020 5:27 pm
Forum: Personal Investments
Topic: Help for wife after I pass away
Replies: 54
Views: 7479

Re: Help for wife after I pass away

My wife is the same way. Although at first I was very annoyed at her for being so childish about finances, I now realize it is a topic simply beyond her comprehension no matter how many books she reads or how hard she tries. My written instructions to her are to move all money in our IRA to Vanguar...
by RyeBourbon
Wed Oct 07, 2020 7:30 pm
Forum: Personal Investments
Topic: Are bonds worth investing in with fed rate of 0.25%?
Replies: 61
Views: 4794

Re: Are bonds worth investing in with fed rate of 0.25%?

I'm young and have a relatively low bond allotment, but with the current rates of interest I wonder if it's even worthwhile owning bonds for the near future. I know you can't time markets, but you can't get lower fed rate than 0-0.25% can you? If it's for retirement, you don't need bonds yet. I was...
by RyeBourbon
Tue Oct 06, 2020 3:26 pm
Forum: Personal Investments
Topic: I think I’m on the right track
Replies: 28
Views: 1726

Re: 401K Question

Dannyzecca wrote: Tue Oct 06, 2020 3:23 pm
RyeBourbon wrote: Tue Oct 06, 2020 3:20 pm If you plan to retire in 35 years, that's fine choice - what's the expense ratio?
0.13%
Looks good. It should be fairly aggressive, you can look up the asset allocation for yourself and see if you're comfortable with its risk level.
by RyeBourbon
Tue Oct 06, 2020 3:20 pm
Forum: Personal Investments
Topic: I think I’m on the right track
Replies: 28
Views: 1726

Re: 401K Question

If you plan to retire in 35 years, that's fine choice - what's the expense ratio?
by RyeBourbon
Sat Oct 03, 2020 1:02 pm
Forum: Personal Investments
Topic: Tax question
Replies: 13
Views: 1243

Re: Tax question

If you have no other capital gains, up to $3,000 per year of capital loss may offset regular taxable income which may include dividends.

Note that this offsets the income/dividends not the tax. It reduces your taxable income.
by RyeBourbon
Sat Oct 03, 2020 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Can Appraisal from recent refinance be used for HELOC? And other HELOC questions
Replies: 19
Views: 944

Re: Can Appraisal from recent refinance be used for HELOC? And other HELOC questions

itsallaboutme wrote: Sat Oct 03, 2020 9:45 am looks like I don't qualify for Third Federal they are only lending LTV 70% I am about 7k short of that.
I'm doing 80% LTV at Citizens Bank. I don't know if it's available in your area. I think they're at 2.99% right now.
by RyeBourbon
Sat Oct 03, 2020 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Social Security: Website Estimate vs Actual
Replies: 25
Views: 2400

Re: Social Security: Website Estimate vs Actual

What about for people 20+ years out? Is it accurate that far out? I think it estimates certain things, but I guess it’s hard to predict the future that far out. Social security estimates assume (among other things) that both wage inflation and price inflation will be zero between now and when you c...
by RyeBourbon
Fri Oct 02, 2020 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Can Appraisal from recent refinance be used for HELOC? And other HELOC questions
Replies: 19
Views: 944

Re: Can Appraisal from recent refinance be used for HELOC? And other HELOC questions

On their site right now I see 2.240% and prime 1.01% (not sure what that is will look it up) the interest rate 2.240% goes up and down correct? We have $113k but for some reason other site calculator it only shows 33k I will call them tomorrow I don't understand HELOC's. That's Prime minus 1.01% - ...
by RyeBourbon
Thu Oct 01, 2020 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

Several people have mentioned a HELOC on the new property, and that's an option as well. It's the same concept. Live off the equity in the house for a few years to keep MAGI low enough to qualify for the premium tax credits.
by RyeBourbon
Thu Oct 01, 2020 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

Just as one data point, I was 53 when I transitioned eight years ago so have that many years experience with this issue. In our situation, we prefer managing modified adjusted gross income to qualify for premium tax credits under the affordable care act which leaves no room for a Roth conversions. ...
by RyeBourbon
Thu Oct 01, 2020 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

OP, One aspect to consider is the current size of your before-tax accounts, expected returns and future RMDs. Hard to tell at this point since we don’t have enough info. For me, it became an easy decision to pass on the ACA subsidies in favor of large Roth Conversions before RMDs begin (especially ...
by RyeBourbon
Thu Oct 01, 2020 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

Given the current situation with the ACA, I would have a plan b (what-if) scenario if the ACA subsidies go away. It's still a few years in the future, I hope the "current" situation will be clearer. I guess Plan B is to continue working... I think if the Supreme Court (with a 6-3 conservative major...
by RyeBourbon
Thu Oct 01, 2020 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

It is not clear when you talk about drawing from taxable accounts. Unless these are not invested in securities, capital gains are include in your ACA MAGI. The taxable account would be the proceeds from the house sale. I'm assuming the capital gain would be excluded because of the purchase of a new...
by RyeBourbon
Thu Oct 01, 2020 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

I intentionally retired in the middle of the year so that 18 months of COBRA would get us through the rest of that year and all of the way through the next year. Hi Watty, this is interesting. Would you mind elaborating on this strategy? What's the advantage of having COBRA expire in December and s...
by RyeBourbon
Wed Sep 30, 2020 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

It looks like I may be able to work remotely and relocate to our retirement location before I retire. One potential problem with that is that your work provided health insurance may not have any in-network doctors or facilities in that area. Be sure to check on that. I plan to buy the new house wit...
by RyeBourbon
Wed Sep 30, 2020 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

If you plan on using ACA as a healthcare bridge, keep an eye on both the general stability and any state-specific situations (especially if you are considering moving). There can be major differences in costs, plan availability, and subsidies between different locations. If you can find an HSA plan...
by RyeBourbon
Wed Sep 30, 2020 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Re: Pre-retirement and bridge to Medicare

toocold wrote: Wed Sep 30, 2020 8:39 am Given the current situation with the ACA, I would have a plan b (what-if) scenario if the ACA subsidies go away.
It's still a few years in the future, I hope the "current" situation will be clearer. I guess Plan B is to continue working...
by RyeBourbon
Tue Sep 29, 2020 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement and bridge to Medicare
Replies: 25
Views: 2644

Pre-retirement and bridge to Medicare

This year, we paid off our mortgage and my daughter is graduating from college in December. It's really the first time that the thought of retiring became real. I've always assumed I'd work to 65 (we are both almost 57), but now it looks like we will hit the needed number in the next few years. I'm ...
by RyeBourbon
Tue Sep 29, 2020 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can i afford
Replies: 19
Views: 2377

Re: How much house can i afford

Fund your retirement first, college second. Then figure out how much you can spend on a house.
by RyeBourbon
Mon Sep 28, 2020 6:56 pm
Forum: Personal Investments
Topic: Investing order
Replies: 12
Views: 1136

Re: Investing order

Hello, i have a question on investing order. my status 87k gross income combine with wife we are both 48 years old, would like to retire at 58.. we invest 20% gross to our 401k & 403b currently 401k bal 163k now 403b bal 48k now IRA vang. 125k now Was thinking about drop the percentage from 20% to ...
by RyeBourbon
Sat Sep 26, 2020 9:10 am
Forum: Personal Finance (Not Investing)
Topic: estate planning attorneys: how to split an inheritance?
Replies: 28
Views: 2331

Re: estate planning attorneys: how to split an inheritance?

We have our estate set to split equally between two children no matter how many children they have. My wife's mother decided to bequeath her IRA to her six grandchildren. Our two kids got 1/3, a brother's three got half, and another brother's kid got the rest. This obviously favored the brother who...
by RyeBourbon
Thu Sep 24, 2020 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding Estate Tax
Replies: 38
Views: 3113

Re: Avoiding Estate Tax

IANAL or an accountant, but I think gift tax issues come into play. You should google it.
by RyeBourbon
Wed Sep 23, 2020 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Credit score mystery
Replies: 26
Views: 2051

Re: Credit score mystery

There's also something called a bankruptcy score.
by RyeBourbon
Tue Sep 22, 2020 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Finance App (if you start fresh)?
Replies: 32
Views: 1498

Re: Personal Finance App (if you start fresh)?

I use Mint. I liked it better when it had Bill Pay so I'm in the market for a new app.
by RyeBourbon
Mon Sep 21, 2020 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Beneficiary Modification
Replies: 57
Views: 2918

Re: Trust Beneficiary Modification

My grandma passed away a little over a year ago a left a trust to be split equally among her three kids, one of them being my dad. I’m lost. Since your grandmother died, her trust is now irrevocable and your father should have received his share. He can do anything he wants with it including puttin...