Search found 45 matches

by GeoMetry
Mon Nov 18, 2019 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Process for surviving spouse.
Replies: 58
Views: 10037

Financial To Do List for a surviving spouse.

[Thread merged into here, see below. --admin LadyGeek] Typical older couple. Husband was older. Wife did not work outside the home. Wife has small spousal IRA. Husband has substantial Traditional IRA. Military Retirement and Social Security. Wife is the survivor, what should be on her financial To ...
by GeoMetry
Mon Nov 11, 2019 4:40 am
Forum: Personal Finance (Not Investing)
Topic: Do I Understand Safe Harbor rules correctly?
Replies: 27
Views: 2489

Re: Do I Understand Safe Harbor rules correctly?

If you received a large bonus in January and nothing was withheld for taxes it is still possible to make a "Timely" payment at the end of the year. Assuming you have the cash to cover the amount needed to get to the safe harbor. You can initiate a 60 day rollover from a traditional IRA and instruct ...
by GeoMetry
Sat Oct 12, 2019 10:23 am
Forum: Personal Investments
Topic: FERS employee age 51 offered a VERA can't access my TSP savings
Replies: 10
Views: 931

Re: FERS employee age 51 offered a VERA can't access my TSP savings

This is confusing. You asked this question as if you are the TSP holder, but earlier posts suggest it is your wife who has the TSP. Sorry I should not have used "my" in the title. I do sometimes think of the posts as individual questions not an ongoing story. I will sometimes alter the facts a bit ...
by GeoMetry
Sat Oct 12, 2019 9:18 am
Forum: Personal Investments
Topic: FERS employee age 51 offered a VERA can't access my TSP savings
Replies: 10
Views: 931

Re: FERS employee age 51 offered a VERA can't access my TSP savings

Thanks, we looked at 72t but the Roth ladder works better for us we just need to get the money into the Roth before the older spouse turns 70. Nine year age difference. We have money to live on till then.
by GeoMetry
Sat Oct 12, 2019 7:24 am
Forum: Personal Investments
Topic: FERS employee age 51 offered a VERA can't access my TSP savings
Replies: 10
Views: 931

FERS employee age 51 offered a VERA can't access my TSP savings

If I retire at age 51 can I do partial rollovers from TSP to a Roth IRA. I think the FIRE folks call this a "Roth Ladder" Is there anything in the TSP rules that would prevent me from rolling the account out to an IRA and doing annual partial Roth conversions at my age?
by GeoMetry
Wed Oct 09, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question related to large Roth Conversion
Replies: 13
Views: 1253

Re: Tax Question related to large Roth Conversion

I am pretty close to retirement today. I am also being pinched between my current income and IRMAA, taxation of our social security benefits (delaying to 70), RMDs, and the expiration of the Trump tax cuts. I have a 5 year window and about $1M to convert. After 5 years everything gets less favorable...
by GeoMetry
Wed Oct 09, 2019 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question related to large Roth Conversion
Replies: 13
Views: 1253

Re: Tax Question related to large Roth Conversion

I question your numbers though. With an income tax liability of 60 k, I have not been able to figure out a way to convert 200 k while only incurring 45 k more in taxes. You are correct I misstated my current tax bill. My current tax bill is more like $40K, the increase would be $65K. (That's just F...
by GeoMetry
Wed Oct 09, 2019 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question related to large Roth Conversion
Replies: 13
Views: 1253

Tax Question related to large Roth Conversion

If I decide to do a large Roth Conversion late in the year, will I be subject to a penalty for not paying enough taxes earlier in the year? My normal federal income tax bill is around $60K. It is all paid via payroll withholding. I generally hit that target pretty close. (within $2K) I might convert...
by GeoMetry
Wed Sep 25, 2019 10:58 am
Forum: Personal Finance (Not Investing)
Topic: TSP, Traditional IRA, Roth IRA and 72t
Replies: 5
Views: 661

Re: TSP, Traditional IRA, Roth IRA and 72t

This is my new updated idea based upon the advice in this thread. We will do Roth conversions from my wife's TSP to her Roth IRA, spend a matching amount from my Roth account. This avoids SEPP, enables us to reduce the Traditional TSP balance before my wife turns 59.5, is tax neutral and does not af...
by GeoMetry
Wed Sep 25, 2019 10:50 am
Forum: Investing - Theory, News & General
Topic: Buy Low, Sell High... Define High
Replies: 10
Views: 1123

Buy Low, Sell High... Define High

So I am a buy and hold index fund kind of guy. Now I am ready to retire and pretty soon I need to liquidate something in order to support myself. My thinking is that I should liquidate an asset that is High. But thinking about it I'm not sure what that really means; When evaluating my holdings to de...
by GeoMetry
Sun Sep 22, 2019 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: TSP, Traditional IRA, Roth IRA and 72t
Replies: 5
Views: 661

Re: TSP, Traditional IRA, Roth IRA and 72t

Alan, Thanks for the detailed response. The reason for doing the 72t is simply to reduce the balance in the Traditional TSP before Social Security income starts in order to minimize the taxation of our Social Security benefits. To that end we will be taking our distributions totally pre tax. With re...
by GeoMetry
Sun Sep 22, 2019 4:41 am
Forum: Personal Finance (Not Investing)
Topic: TSP, Traditional IRA, Roth IRA and 72t
Replies: 5
Views: 661

TSP, Traditional IRA, Roth IRA and 72t

The funding in my wife's TSP is 90% Traditional 10% Roth. If she were to retire next year she would be only 52 years old. We have a tax planning window between now and 2030. In 2030 we plan to turn on our social security benefits and supplement that with withdrawals from our Roth accounts. The more ...
by GeoMetry
Sat Sep 21, 2019 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Best way to track / categorize spending?
Replies: 35
Views: 2020

Re: Best way to track / categorize spending?

BTW Microsoft Money is Free https://www.microsoft.com/en-us/download/details.aspx?id=20738 I think you can use any of the tools suggested. The important thing is to figure out what question you are trying to answer with all the data you will be entering and make sure that you collect the data you ne...
by GeoMetry
Thu Sep 19, 2019 2:01 pm
Forum: Personal Investments
Topic: Advice on unwinding a large taxable holding
Replies: 13
Views: 1441

Re: Advice on unwinding a large taxable holding

You didn't mention your age. If you will be 65+ within 8 years make sure you look at the IRMAA consequences.
Also factor in the possibility that taxes will go up within your 6 year time frame because the TCJA tax cuts are currently scheduled to expire.
by GeoMetry
Tue Sep 03, 2019 2:00 pm
Forum: Personal Investments
Topic: Self insured Long Term Care Fund
Replies: 36
Views: 2699

Re: Self insured Long Term Care Fund

One of the nice things about self insuring is that you are not limited to paying licensed providers so within reason you can hire anyone that you want to provide services at potentially much lower cost. A LTC policy would require that the service providers are licensed. You also have more flexibilit...
by GeoMetry
Fri Aug 23, 2019 1:55 pm
Forum: Personal Investments
Topic: Take projected taxes into account when calculating AA?
Replies: 7
Views: 470

Take projected taxes into account when calculating AA?

So I decided I would like a 60/40 asset allocation. When looking at my existing assets to see if I need to re-balance should I take the tax treatment of the accounts that hold the assets into account. I have a higher percentage of my stock holdings in Roth accounts and a higher percentage of my bond...
by GeoMetry
Sun Aug 18, 2019 8:54 am
Forum: Personal Investments
Topic: Getting Married - Portfolio Optimization Questions
Replies: 7
Views: 820

Re: Getting Married - Portfolio Optimization Questions

If for any reason there is a year that you are unable to max out all the tax advantaged accounts, max out the tax advantaged accounts of the younger spouse first. This is because the younger spouses RMDs will occur later.
by GeoMetry
Wed Jul 31, 2019 9:16 am
Forum: Personal Investments
Topic: Passing assets to our children
Replies: 9
Views: 761

Passing assets to our children

We would like to pass some assets on to our children but we think we would prefer to do it gradually while we are still alive. What are the pros and cons for passing assets before and after death? Are there good reasons to do it after death rather than occasional gifts while still alive? Both of our...
by GeoMetry
Tue Jul 30, 2019 3:09 pm
Forum: Personal Investments
Topic: Pay off Mortgage? Pay down Mortgage? Let it ride?
Replies: 15
Views: 2155

Pay off Mortgage? Pay down Mortgage? Let it ride?

What are the things we should consider when trying to decide if we should use the some of the assets in our brokerage account to pay down or pay off our mortgage? • We owe 208K • Our interest rate is 3.75% • We have 22.5 years left to pay • We have $328K in our brokerage account ($233K basis, $95K L...
by GeoMetry
Wed Jul 10, 2019 1:43 pm
Forum: Personal Investments
Topic: New Military recruit needs help with TSP
Replies: 18
Views: 1869

Re: New Military recruit needs help with TSP

White Coat Investor wrote:
Wed Jul 10, 2019 1:35 pm
Just leave it at 60% and go into finance late in the year and write a check for the rest.
Is that something you can do? Is there a form for that?
by GeoMetry
Wed Jul 10, 2019 1:29 pm
Forum: Personal Investments
Topic: New Military recruit needs help with TSP
Replies: 18
Views: 1869

Re: New Military recruit needs help with TSP

She can't put any of her housing allowance or food allowance into TSP. Housing and food allowances are not taxed. She is sharing an apartment so she will have some left over money from the housing allowance. Fresh out of college she will still have more money to spend than she has ever had before. S...
by GeoMetry
Tue Jul 09, 2019 6:05 pm
Forum: Personal Investments
Topic: mothers retirement
Replies: 11
Views: 1084

Re: mothers retirement

Will she also be receiving Social Security?
by GeoMetry
Tue Jul 09, 2019 5:46 pm
Forum: Personal Investments
Topic: What to fund or pay off next
Replies: 20
Views: 1126

Re: What to fund or pay off next

Since you thought it was important to mention your DI and Life insurance, do you have an umbrella policy?
by GeoMetry
Tue Jul 09, 2019 5:32 pm
Forum: Personal Investments
Topic: New Military recruit needs help with TSP
Replies: 18
Views: 1869

New Military recruit needs help with TSP

My daughter is in the new US Military BRS (Blended Retirement System) I have convinced her to maximize her TSP contributions. She went to the MyPay web site and the input form said the maximum she is allowed to contribute to Roth is 60% of her base pay. There was a slightly higher limit for Traditio...
by GeoMetry
Tue Jul 02, 2019 1:55 am
Forum: Personal Investments
Topic: De-Accumulation methods appropriate for a couple without a significant pension
Replies: 12
Views: 1324

Re: De-Accumulation methods appropriate for a couple without a significant pension

Thanks to all, I have some reading to do. Your input was just what I needed.
by GeoMetry
Mon Jul 01, 2019 5:30 pm
Forum: Personal Investments
Topic: De-Accumulation methods appropriate for a couple without a significant pension
Replies: 12
Views: 1324

Re: De-Accumulation methods appropriate for a couple without a significant pension

Social Security will start after 10 years. Another complication is that the age difference is almost 10 years so there is a 50 year planning horizon. Social Security will cover 1/2 of planned expenses if benefits remain unchanged.
by GeoMetry
Mon Jul 01, 2019 5:25 pm
Forum: Personal Investments
Topic: Setting up mega backdoor Roth - where to allocate funds?
Replies: 8
Views: 740

Re: Setting up mega backdoor Roth - where to allocate funds?

Do you have employees that will also be in your 401k. Be careful that you don't benefit too much compared to others in the plan. The biggest challenge for an employer having an After Tax Contribution plan is passing the discrimination testing. All monies, even though not matched upon, are included w...
by GeoMetry
Mon Jul 01, 2019 5:20 pm
Forum: Personal Investments
Topic: Emergency fund at Vanguard
Replies: 15
Views: 2413

Re: Emergency fund at Vanguard

Someone recently pointed me to this idea for emergency funds

https://www.bogleheads.org/wiki/Placing ... ed_account
by GeoMetry
Mon Jul 01, 2019 5:16 pm
Forum: Personal Investments
Topic: De-Accumulation methods appropriate for a couple without a significant pension
Replies: 12
Views: 1324

De-Accumulation methods appropriate for a couple without a significant pension

We have saved a pretty good nest egg and now we need to live off of it for the rest of our lives. We have been pitched three basic options: • 4% rule (sometimes called 3% rule) • Bucket Plan (with varying numbers of buckets) • Annuities (with more options than we would have ever imagined) We see plu...
by GeoMetry
Sat Jun 29, 2019 3:20 pm
Forum: Personal Investments
Topic: Establishing Buffer Assets (Bucket 2)
Replies: 6
Views: 588

Re: Establishing Buffer Assets (Bucket 2)

A lot of people around here don't do buckets. I am one of them. I am happy to have only equities in my taxable accounts because they often go up quite a lot over the intermediate to longer term. So with your 10 years of use for the goal of this money, I would just keep it in equities for the next 5...
by GeoMetry
Sat Jun 29, 2019 2:06 pm
Forum: Personal Investments
Topic: Establishing Buffer Assets (Bucket 2)
Replies: 6
Views: 588

Establishing Buffer Assets (Bucket 2)

Retiring in less than 3 years. One of our accounts is a brokerage account containing $320K Vanguard Total Stock Market Index Fund (VTSAX), $240K Basis and $80K LTCG. This account is about a third of our buffer assets that we need to live off of for the next ten years. If we wait until we retire our ...
by GeoMetry
Wed Jun 19, 2019 2:04 am
Forum: Personal Investments
Topic: Big changes, Retirement is Imminent
Replies: 23
Views: 3060

Re: Big changes, Retirement is Imminent

I didn't think it was important to the original question and I thought I might start getting advice about the plan as a whole rather than the specific question I was asking so I did not include some of the details that the last few posts are requesting. At this point I feel better about the "Big Cha...
by GeoMetry
Tue Jun 18, 2019 5:44 pm
Forum: Personal Investments
Topic: Big changes, Retirement is Imminent
Replies: 23
Views: 3060

Re: Big changes, Retirement is Imminent

Since the money is in retirement accounts you could also buy a ladder of ten individual TIPS where one will mature each year for that years expenses. That way you would not have to guess at what the future inflation will be like. Since all the money for the first ten years is stuck inside TSP and 4...
by GeoMetry
Tue Jun 18, 2019 5:10 pm
Forum: Personal Investments
Topic: Big changes, Retirement is Imminent
Replies: 23
Views: 3060

Re: Big changes, Retirement is Imminent

Out of the $2M, how much are you thinking of converting? Just to be clear the plan is to "remove" a certain sum from the portfolio and place that money effectively into cash (earning some interest) while keeping the rest of the money at a 60/40 asset allocation and withdrawing from that portfolio s...
by GeoMetry
Tue Jun 18, 2019 4:11 pm
Forum: Personal Investments
Topic: Big changes, Retirement is Imminent
Replies: 23
Views: 3060

Re: Big changes, Retirement is Imminent

Almost 3%
by GeoMetry
Tue Jun 18, 2019 3:49 pm
Forum: Personal Investments
Topic: Big changes, Retirement is Imminent
Replies: 23
Views: 3060

Big changes, Retirement is Imminent

I get uncomfortable when I consider making significant changes to our retirement portfolio. A lot of thought went into getting it to where it is today. I need to challenge my decision making process to make sure I am making a logical decision, not an emotional decision. I also need to consider the p...
by GeoMetry
Sat Jan 13, 2018 6:35 pm
Forum: Investing - Theory, News & General
Topic: Best 401k Employer Match Structure
Replies: 132
Views: 15484

Re: Best 401k Employer Match Structure

If you are just looking to pile on inexpensive benefits you could pay for an Amazon Prime membership for each employee only $100 per year and they will thank you every time they order from Amazon.
by GeoMetry
Sat Jan 13, 2018 3:23 pm
Forum: Investing - Theory, News & General
Topic: Best 401k Employer Match Structure
Replies: 132
Views: 15484

Re: Best 401k Employer Match Structure

If you want to offer a 401k benefit that doesn't cost you much, look at what you need to do to enable your employees to take advantage of the "Mega back door Roth"
by GeoMetry
Wed Jan 10, 2018 11:32 am
Forum: Investing - Theory, News & General
Topic: Withdrawal sequencing
Replies: 19
Views: 2490

Re: Withdrawal sequencing

My goal is maximizing after tax returns. I'm not sure minimizing taxes a good proxy for maximizing after tax returns. A million taxed at 15% is better than 800K tax free. I agree that IF I am in a 0% tax bracket then the tIRA would be as good as the Brokerage account but still not better. This seems...
by GeoMetry
Wed Jan 10, 2018 9:10 am
Forum: Investing - Theory, News & General
Topic: Withdrawal sequencing
Replies: 19
Views: 2490

Withdrawal sequencing

Suppose I have three accounts; a traditional IRA; a Roth IRA; and a Joint brokerage account with my spouse. All three invested 100% in the same index fund (VTSAX). I am retired and no longer able to contribute to any qualified accounts. One thousand dollars in any one of these accounts will have the...
by GeoMetry
Sat Apr 16, 2016 5:26 pm
Forum: Personal Investments
Topic: Coordinating Investments in general with a specific question about Bonds
Replies: 4
Views: 708

Re: Coordinating Investments in general with a specific question about Bonds

Thank you I think that answers my primary question. The G fund's advantage is that because it matures every day and there is no risk, generally lower risk would equate with lower returns as well right? Do I need to take that into consideration or am I not thinking about it the right way? Also, I am ...
by GeoMetry
Sat Apr 16, 2016 11:07 am
Forum: Personal Investments
Topic: Help: Back Door Roth
Replies: 7
Views: 990

Re: Help: Back Door Roth

The tax form asks: What was the total value of ALL of your traditional IRAs on the last day of the previous tax year. My advice is to get the value of your traditional IRAs down to zero before starting the back door process. I assume what you have in you rollover IRA is pretax dollars. If you backdo...
by GeoMetry
Sat Apr 16, 2016 10:30 am
Forum: Personal Investments
Topic: Coordinating Investments in general with a specific question about Bonds
Replies: 4
Views: 708

Coordinating Investments in general with a specific question about Bonds

• Writing this first post is a bit daunting. • Three months of expenses covered by checking account balance beyond three months we would start pulling money out of the joint taxable account. • We owe $228K on our house. I estimate that the house is worth $650K. The interest rate on our 30 year fixed...
by GeoMetry
Tue Feb 01, 2011 5:09 pm
Forum: Personal Investments
Topic: Backdoor Roth and Turbotax
Replies: 24
Views: 7562

Well that general rule is trumped by paying no taxes. (in the future) I see the humor in your comment but I was hoping for a more helpful response.
by GeoMetry
Mon Jan 31, 2011 8:52 pm
Forum: Personal Investments
Topic: Backdoor Roth and Turbotax
Replies: 24
Views: 7562

A follow up question. I rolled a 401k to a TIRA then converted to a Roth. I am using TurboTax and I don't think it is spreading the tax over multiple years. My general rule of thumb is to pay taxes as late as possible. I did pay estimated taxes in antisipation of paying the entire amount this year b...