Search found 1486 matches

by Chip
Sat Oct 14, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversions...did I miss the boat?
Replies: 6
Views: 990

Re: Roth conversions...did I miss the boat?

pshonore wrote:
Sat Oct 14, 2017 10:05 am
I could be mistaken but I don't think Roth conversions were to available to high income folks during the financial crisis. I think that didn't happen until 2010.
You have it right. Other income had to be below 100k. I guess that was some sort of MAGI calculation.
by Chip
Sat Oct 14, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: HELP! 2016 taxes down to the wire: form 1116 help
Replies: 25
Views: 926

Re: HELP! 2016 taxes down to the wire: form 1116 help

You can either do what some have suggested, and take the $300 credit by reducing the amount of foreign tax paid reported on you 1099-B. . It's not really kosher, but you could do it. Or, you can try filling out the worksheets. Or, you can do what I suggested earlier: leave the credit off and later f...
by Chip
Sat Oct 14, 2017 10:18 am
Forum: Personal Finance (Not Investing)
Topic: HELP! 2016 taxes down to the wire: form 1116 help
Replies: 25
Views: 926

Re: HELP! 2016 taxes down to the wire: form 1116 help

Try searching on Form 1116. There have been many threads about it. Here are a few I bookmarked in the past: https://www.bogleheads.org/forum/viewtopic.php?p=1979319 https://www.bogleheads.org/forum/viewtopic.php?t=159294 https://www.bogleheads.org/forum/viewtopic.php?f=10&t=157261 You can always fil...
by Chip
Fri Oct 13, 2017 8:42 am
Forum: Personal Consumer Issues
Topic: Building additional garage - recommendations?
Replies: 26
Views: 1177

Re: Building additional garage - recommendations?

Door width: 18' minimum for a double door, 9' for single (10' would be even better). I've had two side-facing 3 car garages which required a 90 degree turn just before entering. The first one had doors with the above dimensions and it was a snap to enter/exit. The second had 16'/8' doors and I've ha...
by Chip
Thu Oct 12, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Can I contribute to a spousal IRA?
Replies: 5
Views: 355

Re: Can I contribute to a spousal IRA?

You can always contribute to her spousal IRA since you have the necessary amount of compensation. But it may not be deductible. tIRA deductibility limits here. These only apply if she is NOT covered by a retirement plan at work.
by Chip
Thu Oct 12, 2017 9:16 am
Forum: Personal Finance (Not Investing)
Topic: What is the process for liquidating inherited individual stocks?
Replies: 17
Views: 1089

Re: What is the process for liquidating inherited individual stocks?

Vanguard has assured me that when mey father dies all I will have to do is provide them a death certificate and have each sibling set up an account at Vanguard. Vanguard will then offer, separately to each sibling, to have their shares of my father's stocks deposited to their Vanguard account or to...
by Chip
Tue Oct 10, 2017 3:30 am
Forum: Personal Consumer Issues
Topic: When to buy new tires? - penny or quarter test
Replies: 35
Views: 2161

Re: When to buy new tires? - penny or quarter test

I always notice a substantial decrease in wet/snow performance before reaching 2/32". Sometimes even dry road performance on low mileage vehicles due to age hardening of the rubber.

So I end up replacing earlier. Coincidentally that's usually around 4/32".
by Chip
Mon Oct 09, 2017 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with maturing TIP funds
Replies: 4
Views: 317

Re: What to do with maturing TIP funds

I bought a TIPS fund and am rebuilding a 10 year TIPS ladder over time via auction purchases, using sales of the fund to buy the individual issues. It will probably end up being the wrong move. :D I also bought a nominal Treasury fund and have been selling it to buy brokered CDs at issue The CD rate...
by Chip
Sat Oct 07, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: Has your "risk tolerance" been tested?
Replies: 97
Views: 5107

Re: Has your "risk tolerance" been tested?

Retired since mid-2001 and living off the portfolio. Tested in 1987, 1990, 2000-2 and 2008-9. I don't remember what I did in 1987. Probably nothing. I think we were still using tin cans and string to communicate with our broker. In 2000-2 I tax loss harvested and rebalanced into stocks (but not a "f...
by Chip
Sat Oct 07, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1297

Re: Roth vs. Traditional for RMD's & Tax Diversification

(Roth legislation isn't really worth talking about as it is speculation and would get this wonderful thread locked, I shouldn't have mentioned it. Apologies.) I guess I’m just ignorant on this one....why is this topic off limits? From the forum https://www.bogleheads.org/forum/rules : Note that dis...
by Chip
Sat Oct 07, 2017 7:10 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

However, your use of it seems to have some some typos: First, the denominator of the ratio should be Adjusted Opening Balance (AOB), not ACB. I also don't see where the "1" comes into play as you do the arithmetic, but know it represents the Value of the Conversion/Contribution on the day it was ma...
by Chip
Fri Oct 06, 2017 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

Epsilon Delta, thank you! Then, I just need to wade through some examples to see how multiple conversions will play out in a declining market, with the assumption I recharacterize all except the last (lowest price) one..... and hope I model it right! Celia, that formula gets you dollars, but they a...
by Chip
Fri Oct 06, 2017 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Company Stock Investment sale / Capital Loss carryover
Replies: 12
Views: 493

Re: Company Stock Investment sale / Capital Loss carryover

My experience is that if these are NQSO (NSO) and you did a cashless exercise (exercise & sell immediately),then your "gain" (difference between sale price and exercise price = the bargain element) is not capital gains but ordinary income which shows up in your W2 increasing your wages. There may b...
by Chip
Fri Oct 06, 2017 6:03 am
Forum: Investing - Help with Personal Investments
Topic: suggestions for moving non tax account from stocks to bonds
Replies: 1
Views: 197

Re: suggestions for moving non tax account from stocks to bonds

Hi, and welcome to the forum! You'll probably get more and better answers if you post your question in the standard format. See Asking Portfolio Questions . In particular, please add the names and expense ratios of those funds you mentioned. Most people won't bother to look them up. You can do that ...
by Chip
Fri Oct 06, 2017 5:32 am
Forum: Personal Finance (Not Investing)
Topic: Question About Long Term Care
Replies: 75
Views: 5665

Re: Question About Long Term Care

As of my next anniversary, I and my wife with have a $199 daily benefit each for 5 years. We have a spousal rider, so if one of us would go on claim, and exhaust our 5 years of benefits, we can access our spouses' 5 years of benefits, up to the policy's 10 year max (thereby decreasing the other's p...
by Chip
Fri Oct 06, 2017 4:42 am
Forum: Investing - Help with Personal Investments
Topic: Company Stock Investment sale / Capital Loss carryover
Replies: 12
Views: 493

Re: Company Stock Investment sale / Capital Loss carryover

Welcome to the forum! As MotoTrojan alluded to, the terminology you're using is confusing us. If you were granted stock OPTIONS when you joined the company it gets a different tax treatment than if you were given actual shares of stock. Options give you the right to buy stock at a specified price. T...
by Chip
Fri Oct 06, 2017 3:58 am
Forum: Personal Consumer Issues
Topic: Garage door opener on last leg
Replies: 32
Views: 2649

Re: Garage door opener on last leg

When I’ve done this in the past, I was able to buy the latest model Chamberlain at Home Depot an install the head unit right onto the existing hardware and rails - everything matched up. I stowed all the extra parts in the basement for awhile but eventually just threw them out. I did set the metal ...
by Chip
Thu Oct 05, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

Retired engineer - forgive my deep digging, but I really want to understand exactly how the dollar and share math works on this. I do my own taxes and manage my own accounts; I really need to understand. Does Vanguard truly use the IRS formula and ignore converted share dates? I'm not a Vanguard cu...
by Chip
Thu Oct 05, 2017 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

I should further note that a large beginning balance in the receiving Roth (relative to the conversion sizes) will dilute the effect shown in the example. So if we change the zero starting balance to 100k in the example, with the same two conversions, only 10,769 will have to be returned to the tIRA...
by Chip
Thu Oct 05, 2017 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

The ACB is the balance on the date of recharacterization, less any distributions or other recharacterizations (none in this case). So the ACB is 30k. Technical correction: The Adjusted Closing Balance (ACB) is the balance on the date of recharacterization increased by the amount of any distribution...
by Chip
Thu Oct 05, 2017 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

Thinking about it - the ability to recharacterize specific shares by date in a Roth IRA is critical to this implementation. We have not had a down market for me to test this (my prior rechacterizations were to lower taxable conversions, since everything went up). Looking at the Vanguard "Authorizat...
by Chip
Thu Oct 05, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Recharacterization [theory] ?
Replies: 34
Views: 1905

Re: Roth Conversion and Recharacterization ?

The truly critical piece of information here is that each Roth should contain ONLY ONE ASSET - the number that an investor opens is just implementation, and a new account every time is by no means the only solution to the IRS "problem" of recharacterizing across all assets in account (should one ma...
by Chip
Wed Oct 04, 2017 7:00 am
Forum: Investing - Theory, News & General
Topic: Is a Roth conversion a good idea if you are in the 15% tax bracket?
Replies: 39
Views: 3720

Re: Is a Roth conversion a good idea if you are in the 15% tax bracket?

Roth conversions within the 15% bracket are great. But so is tax gain harvesting. If you TGH, you get an immediate relief of 15%. If you do a Roth conversion you pay 15% now, in the hopes that you don't pay 25-28% in the future. Many years later, if or when you do end up in a larger 25-28% tax brac...
by Chip
Mon Oct 02, 2017 1:43 pm
Forum: Personal Consumer Issues
Topic: Photography gear and what you use it for?
Replies: 26
Views: 1573

Re: Photography gear and what you use it for?

1 First Real Camera of distinction. Minolta SR-T 101. Started off with 55mm f1.4, 28mm f3.5, 135mm f2.8 lenses. Shot hundreds of rolls of Plus-X and Tri-X, most of slightly outdated and obtained at no cost. Also developed the film and enlargements. Shot a bit of Ektachrome and developed that with t...
by Chip
Mon Sep 25, 2017 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Novice doing some tax planning for 2018
Replies: 21
Views: 1833

Re: Novice doing some tax planning for 2018

Agree with others about itemizing vs. standard deduction. I don't get the 5,616 deduction for two children. The personal exemption for this year is 4,050 per person. You'd get 4 of those (16,200), assuming both kids are your dependents. If the kids are under age 17 on 12/31/18 you would also be elig...
by Chip
Sun Sep 24, 2017 3:07 pm
Forum: Personal Consumer Issues
Topic: What is your favorite reasonably priced bourbon?
Replies: 95
Views: 6170

Re: What is your favorite reasonably priced bourbon?

I am not a connoisseur. When I drink it I mix it with Diet Coke. But even that way a good bourbon makes a difference. I'd say Buffalo Trace is one of my favorites from that perspective. Quote from one of the Maker's Mark owners (according to tour guide there): Q: "You know what you get when mix Mak...
by Chip
Sun Sep 24, 2017 3:04 pm
Forum: Personal Consumer Issues
Topic: What is your favorite reasonably priced bourbon?
Replies: 95
Views: 6170

Re: What is your favorite reasonably priced bourbon?

The demand from the Weller = poor mans Pappy connection has unfortunately driven one of my favorite cheap bourbons off the shelf. Or when it's there the price has been jacked way up. The Weller lines that I've had (never seen the 12 year old in my area) are pretty good, better than Makers at least ...
by Chip
Sun Sep 24, 2017 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 846

Re: Mortgage Recast Before Renting Out

First off, thanks! We're pretty excited! I calculated COCR with ~$130k-$135k lump sum brought in to recast to drop our monthly payments by a difference of $653/mo, $7,836/yr. $7836/$130k = ~6% annual COCR. Cumulative interest was $55k lower than current loan estimate. Mortgage terms are: current ba...
by Chip
Sun Sep 24, 2017 10:51 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 3591

Re: Roth Conversions and taxes

Great thread. I'm contemplating the move suggested in this example but I'm concerned there could be a flaw in logic regarding the amount to exchange in the tIRA to equalize the selling of stocks in taxable. The tIRA is not all your money, it's part yours and part your Uncle Sam's. So it's not a dol...
by Chip
Sun Sep 24, 2017 5:26 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 846

Re: Mortgage Recast Before Renting Out

Congratulations on your first home! For an estimate, I calculated the lump sum/recast to give an annual cash-on-cash return of ~6% and $50k+ saved on interest which isn't too bad. I realize that just continuing the current terms/monthly payments with paying it down would pay it off earlier but this ...
by Chip
Sat Sep 23, 2017 3:19 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion and Strategy
Replies: 25
Views: 2800

Re: Roth Conversion and Strategy

The following article by Sumutka and Coopersmith might be of interest: http://www.iarfc.org/documents/issues/Vol16Issue1.pdf Thanks for pointing out that article, Phil. It's an interesting approach, but I think it fails to take into account some important variables that we discuss here. 1. The auth...
by Chip
Sat Sep 23, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Just Need Encouragement to Stick with TSP G Fund over F Fund
Replies: 14
Views: 1101

Re: Just Need Encouragement to Stick with TSP G Fund over F Fund

Here's some encouragement:

If I had access to the G fund I would have all of my nominal bond allocation in it. And it's a lot more than your 10%.
by Chip
Sat Sep 23, 2017 7:47 am
Forum: Investing - Help with Personal Investments
Topic: IRS Letter
Replies: 6
Views: 663

Re: IRS Letter

In my limited experience, dealing with them by phone is problematic. Long hold times followed by reaching a clueless rep. But you might get lucky and get through quickly and reach someone competent. It's kind of like a lottery, with similar odds. :) If you have documentation that shows they are wron...
by Chip
Sat Sep 23, 2017 5:48 am
Forum: Investing - Help with Personal Investments
Topic: [Is company stock part of my 3-fund portfolio?]
Replies: 10
Views: 564

Re: [Is company stock part of my 3-fund portfolio?]

This is a good point. Currently the Stock+Options is about 10% of my portfolio. About 80% of the stock exposure is older options that is LT cap gains. It might be a good idea to liquidate some of those options despite not holding on to it for an optimal amount time. Welcome! You're getting good ans...
by Chip
Sat Sep 23, 2017 5:38 am
Forum: Personal Consumer Issues
Topic: What is your favorite reasonably priced bourbon?
Replies: 95
Views: 6170

Re: What is your favorite reasonably priced bourbon?

There are several past threads that might be worth reading; search on bourbon. Obviously it's very much an individual taste thing. I tend to like "wheated" bourbons. An inexpensive one that's good enough for me to drink neat is the W.L. Weller 7 year. I am NOT an aficionado. They will be along short...
by Chip
Fri Sep 22, 2017 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 3591

Re: Roth Conversions and taxes

I don't know who would do those calcs other than a financial planner. Or the Boglehead collective. :D The first year RMD on your IRA/401k balance is 3.65%. So on your current balance it's 66k. Think of the IRMAA tier as a lump sum "tax" you have to pay. Just throwing out some numbers, let's assume y...
by Chip
Fri Sep 22, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 3591

Re: Roth Conversions and taxes

I think it's generally a good plan. Have you considered the tax rates of the beneficiaries of your IRAs after both you and your wife are gone? If those rates are low it might make sense to convert less than you would if their rates are high. Don't forget the Medicare IRMAA limits apply not just afte...
by Chip
Wed Sep 20, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 3591

Re: Roth Conversions and taxes

1. & 2. That makes sense, however, I would then be increasing the stock portion (and decreasing the bond portion) of my tIRA, which is what I wanted to avoid since in the long run, our RMDs would then increase (especially after the market rebounds). In my situation, I would think it would be best t...
by Chip
Wed Sep 20, 2017 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 3591

Re: Roth Conversions and taxes

Nobody can be *sure* that they will "ultimately be in 28% or 33% bracket" ten (and more) years down the road. Even leaving completely aside the possibility of future tax legislation, there is always the possibility that one spouse may sooner or later need significant LTC expenses, potentially gener...
by Chip
Wed Sep 20, 2017 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions and taxes
Replies: 36
Views: 3591

Re: Roth Conversions and taxes

Given that you're sure you'll ultimately be in the 28% or 33% bracket I think the top of the 25% makes the most sense. Top of the 28% might be reasonable as well. Though I know the up front taxes are a bitter pill to swallow. At age 63 & up you might examine whether it is worth it to go all the way ...
by Chip
Wed Sep 20, 2017 7:09 am
Forum: Investing - Theory, News & General
Topic: Any "average Joe" here actually make out well with individual stocks?
Replies: 108
Views: 12457

Re: Any "average Joe" here actually make out well with individual stocks?

I have one individual stock from a former employer in a tax deferred IRA that I want to sell next year (my first full year of retirement). I want to wait to take advantage of the net unrealized appreciation tax rules when I am in a lower tax bracket. I hope the stock is still in a company plan (e.g...
by Chip
Fri Sep 15, 2017 7:14 am
Forum: Personal Consumer Issues
Topic: Is "Fall" grass fertilizer formulation really necessary?
Replies: 8
Views: 818

Re: Is "Fall" grass fertilizer formulation really necessary?

I also fertilize in the fall only, and use Winterguard. But if I were in your situation I would use up the regular Turf Builder. There's not that much difference, and you really don't know if you need the extra potassium without a soil test. BTW, I fertilizer 2 or 3 times in the fall, putting on abo...
by Chip
Sun Sep 10, 2017 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Capital gains in retirement with no earned income: Is this right?
Replies: 8
Views: 818

Re: Capital gains in retirement with no earned income: Is this right?

+1 OP is mistaken in thinking he/she has $120K in income. That is undoubtedly the source of the problem. Nope. The calculator is bad. Though I agree 120k would be a problem. But the calculator comes up with a non-zero federal capital gains tax for 70k of LT gains, MFJ, no other income, etc. Bad cal...
by Chip
Sun Sep 10, 2017 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Capital gains in retirement with no earned income: Is this right?
Replies: 8
Views: 818

Re: Capital gains in retirement with no earned income: Is this right?

Find a different calculator. That one stinks.

Adding qualified dividends to LTCG is a reasonable shortcut and wouldn't change the taxes.
by Chip
Sun Sep 10, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: China drops the Hammer on Cryptocurrencies
Replies: 23
Views: 3023

Re: China drops the Hammer on Cryptocurrencies

The other thing that the articles I read made clear is that both Chiasso and Zug are hoping to attract cryptocurrency businesses to locate in their towns by appearing to be "crypto-friendly". So it appears that this is likely an economic development move, and not necessarily a ringing endorsement of...
by Chip
Sun Sep 10, 2017 7:02 am
Forum: Investing - Theory, News & General
Topic: Market timing using Gold-Lumber indicator
Replies: 24
Views: 2218

Re: Market timing using Gold-Lumber indicator

I skimmed the paper. Honestly it seems like a lot of curve fitting to me. I was amazed to see them quote wikinvest for the statement (p. 3) that: "It is estimated that “one-third of the forestland in the United States is publicly owned and has been withdrawn from production…[and] of the remaining 50...
by Chip
Sun Sep 10, 2017 6:22 am
Forum: Investing - Theory, News & General
Topic: China drops the Hammer on Cryptocurrencies
Replies: 23
Views: 3023

Re: China drops the Hammer on Cryptocurrencies

Today Switzerland announces they will allow citizens to pay taxes using Bitcoin https://news.bitcoin.com/chiasso-switzerland-to-allow-citizens-to-pay-taxes-in-bitcoin/?utm_source=OneSignal+Push&utm_medium=notification&utm_campaign=Push+Notifications Switzerland didn't announce it will accept Bitcoi...
by Chip
Sat Sep 09, 2017 3:04 pm
Forum: Personal Consumer Issues
Topic: First Class Stamps on Large Packages
Replies: 26
Views: 1782

Re: First Class Stamps on Large Packages

I have used all old stamps on packages, but I don't remember ever doing some stamps plus a post office printed postage. I would take the stamps to the post office, unapplied. Then ask at the counter if they want you to apply them. Maybe they'll just take them as partial payment and print out the ent...
by Chip
Wed Sep 06, 2017 4:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax-Loss Harvesting
Replies: 8
Views: 1249

Re: Tax-Loss Harvesting

The basic answer is yes. If you tax loss harvest you can use that to offset short term or long term capital gains. Once those are offset you can offset ordinary income up to a yearly limit of $3000 (mfj). When you sell investment real estate you have held for a few years you may have both capital g...
by Chip
Tue Sep 05, 2017 5:01 am
Forum: Personal Consumer Issues
Topic: How long do cars last these days (electronics)
Replies: 32
Views: 2336

Re: How long do cars last these days (electronics)

Thanks for all the replies. Lots of good points. Sounds like we will continue in our mode of buy a new Honda, Toyota or very similar, and keep it forever. At this rate, it won't be long before we're on our next to the last car! Be aware that your concern about the cost/reliability of electronics wa...