Search found 5205 matches

by mhc
Mon Mar 18, 2024 2:59 pm
Forum: Personal Investments
Topic: Portfolio Advice Needed - Can I Retire?
Replies: 16
Views: 1457

Re: Portfolio Advice Needed - Can I Retire?

Looks like you can retire if your $100k/yr includes all expenses (medical, taxes, ...). Cash/CDs in taxable account have a bad tax drag on them. I prefer little to no cash for a long retirement. I started a 50 year retirement plan last year and hold less than 0.5% in cash. If you must keep cash to sleep well at night, move it into your IRA. The taxable account should be stock mutual funds/ETFs. When you need cash, sell the mutual fund from taxable and exchange cash in IRA for what you just sold from taxable account. It has the same affect of having cash in taxable account, but it is more tax efficient. You should do Roth conversions to the top of the 12% bracket and maybe higher. It really depends on if you are going for ACA premium tax cre...
by mhc
Tue Mar 12, 2024 3:09 pm
Forum: Personal Investments
Topic: VUSXX
Replies: 6
Views: 887

Re: VUSXX

VUSXX is great.

I noticed you said you are holding some of this money for charity. Donating mutual funds, ETFs, or stocks with long term capital gains from your taxable account is more tax efficient than donating cash. You get a double tax advantage that way. You can then use the cash to buy back what you sold or something else that is a better fit. I know this is off topic, but there is a lot here. A lot of people around here use Donor Advised Funds to help facilitate this.
by mhc
Tue Mar 12, 2024 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Health Care Savings account contribution question
Replies: 11
Views: 736

Re: Health Care Savings account contribution question

You do want to make the $1000 post-tax contribution. You will then write off the $1000 against your income.

The only downside to a post-tax (non-payroll/cafeteria plan) contribution is you will not get the tax break on social security and medicare taxes. If you max the SS, then that part doesn't matter.

The $1000 will still go in income tax free, grow tax free, and come out tax free for qualified medical expenses.
by mhc
Tue Mar 12, 2024 11:18 am
Forum: Personal Finance (Not Investing)
Topic: One spouse retiring earlier than the other?
Replies: 38
Views: 2990

Re: One spouse retiring earlier than the other?

I had my spouse retire a few months before we got married. It has worked out great in 20+ years of marriage. When I retired last year, the only negative was that I disrupted her schedule by being home. I think it is because I use my rower while she works out. I don't think she likes me there even though I am focused on my rowing.

It is possible if she retires before you she could develop some routines that you disturb once you retire. You could solve that by retiring together right now. This way you could develop your retirement routines together.
by mhc
Tue Mar 12, 2024 9:55 am
Forum: Personal Investments
Topic: Fidelity Portfolio Manager Tools
Replies: 10
Views: 1244

Re: Fidelity Portfolio Manager Tools

The only thing I am aware of at Fidelity is Full View. It is an account aggregator. It shows my percentages for US equities, international equities, bonds, and cash. This is sufficient for me. It does have some more detailed reports. You could create a Fidelity account and play around with what they have to offer. AFAIK You don't have to fund anything to have access to what they offer. Recently, Fidelity dumbed down Full View. A lot of people complained, and Fidelity brought back the full featured version. I have no idea what the future of this tool is. I primarily rely on a spreadsheet I developed many years ago to let me know how to maintain my AA. Edit: Here is an article that discusses Full View and GPS. https://thefinancebuff.com/fidel...
by mhc
Mon Mar 11, 2024 1:58 pm
Forum: Personal Investments
Topic: Reducing risk and increasing diversification as we approach retirement
Replies: 7
Views: 664

Re: Reducing risk and increasing diversity as we approach retirement

Your plan seems quite reasonable.

There is no way to know if switching everything now will work out better than gliding into your desired AA. I will assume that you can make these changes in a tax advantage account.

I would probably direct all new money to TIPS and move enough from US to international and nominal bonds right now to bring those two up to your desired AA. I would then glide into your final AA about the time you retire.

If any of this would require selling in a taxable account, then you need to post more information.
by mhc
Mon Mar 11, 2024 10:06 am
Forum: Personal Consumer Issues
Topic: Estimated Tax payments confusion
Replies: 8
Views: 845

Re: Estimated Tax payments confusion

TT has always given us those estimated tax vouchers. We have never paid estimated taxes and have never had a penalty. I just ignore the vouchers. We even get the vouchers when we have a refund.
by mhc
Mon Mar 11, 2024 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Question about Turbo Tax
Replies: 8
Views: 685

Re: Question about Turbo Tax

I use the TT deluxe desktop version. It handles all the stock stuff I need it to. It is the version usually recommended on this site if one is going to use TT. The best time to get it is usually at the end of December on Amazon when it goes on sale for a day.
by mhc
Sun Mar 10, 2024 3:41 pm
Forum: Personal Investments
Topic: 401K vs Roth IRA
Replies: 17
Views: 1523

Re: 401K vs Roth IRA

yogesh wrote: Sun Mar 10, 2024 3:28 pm Did you account for tax-free earnings/growth on investments in Roth compared to taxed earnings in pre-tax?
Please explain further. Equations showing your thinking would help.

vyk, I think you have the main points.
by mhc
Sun Mar 10, 2024 10:18 am
Forum: Personal Investments
Topic: Asset allocation and location when approaching (early) retirement
Replies: 10
Views: 1257

Re: Asset allocation and location when approaching (early) retirement

There is a chart in the ERN series showing success rate vs AA vs withdrawal rate (WR) vs retirement years. I started a 50 year retirement plan last year. I chose 75/25 AA. It seems that having more equities for a long retirement is better. I was 80/20 for the last 12 years of accumulation. I moved to 75/25 right before retirement.

I am comfortable with 75/25. Our plan required 5+% WR for the first 10 years. The WR rate will drop as the kids are launched. It will then drop more when SS kicks in. We have enough flexibility in spending in case things go wrong, so I am not worried about it. I would rather eat beans and rice than work. There are so many ways to have a meaningful, joyful life that does not require money.
by mhc
Fri Mar 08, 2024 5:08 pm
Forum: Investing - Theory, News & General
Topic: "When" do you sell equities during Retirement?
Replies: 29
Views: 4402

Re: "When" do you sell equities during Retirement?

Welcome to the forum! I can only say what I do. I am less than 59.5, so we are living off our taxable account. I sell equity funds when we need money. I use my 401k to maintain our asset allocation (AA). This could look like selling stocks when high and selling bonds when high. In reality, I just maintain our AA. For example, if we have too much in equities according to our AA, then when I sell from taxable, which only has equities, then we will get closer to our desired AA. Next example, if we have too much in bonds, then when I sell equities from taxable. I will then exchange some bonds for equities in the 401k. This has the affect of selling bonds. Each example demonstrates that we sell whatever is doing well. We don't have to sell when ...
by mhc
Thu Mar 07, 2024 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Mental health or Money: navigating the OMY question
Replies: 48
Views: 4796

Re: Mental health or Money: navigating the OMY question

Once I had enough I retired. I don't regret it at all. I left at the peak of my earning. I have been retired 1 year, and it has been one of the best years of my life. I'm so glad I left. Will the extra money improve your life?

I was not the type that could just disengage at work. My mind was always thinking of work even when I was home. If you can disengage and use all your time off, then maybe one more year won't be so bad. I couldn't do that.
by mhc
Wed Mar 06, 2024 3:44 pm
Forum: Personal Investments
Topic: Participate in deferred compensation plan?
Replies: 9
Views: 691

Re: Participate in deferred compensation plan?

Sounds like you understand it.

Seems like you would have to run the numbers to see which option is better.
by mhc
Wed Mar 06, 2024 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, estimated taxes, safe harbor question
Replies: 8
Views: 747

Re: Roth conversion, estimated taxes, safe harbor question

Morik wrote: Tue Mar 05, 2024 4:27 pm Just making sure--you aren't talking about some election I need to make when doing a distribution from my tIRA -> Taxable, where the only election I see available is the withholding % I want.
You are talking about the second step right? When I move the money from some taxable account into the Roth IRA?
When you move the money from taxable to Roth IRA.
by mhc
Tue Mar 05, 2024 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, estimated taxes, safe harbor question
Replies: 8
Views: 747

Re: Roth conversion, estimated taxes, safe harbor question

If you do the rollover method, make sure you specify it is a rollover.

Also, if you go over $250k MFJ, then NIIT kicks in.

Tax credits can be affected also. I do a dummy tax return with TT to dial in my Roth conversion.
by mhc
Tue Mar 05, 2024 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, estimated taxes, safe harbor question
Replies: 8
Views: 747

Re: Roth conversion, estimated taxes, safe harbor question

Morik wrote: Tue Mar 05, 2024 2:41 pm Ah I think i was thinking of it backwards--sounds like if I do a conversion I should make an estimated tax payment at that time (or withhold & roll over, I'll check that other thread).
Make sure you understand the estimated tax rules. There are two methods with different pros and cons.
by mhc
Tue Mar 05, 2024 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, estimated taxes, safe harbor question
Replies: 8
Views: 747

Re: Roth conversion, estimated taxes, safe harbor question

Your withholdings will probably drop with your reduced income. I don't see you hitting the safe harbor with tax withholdings from your paycheck. That usually works when your income increases not decreases.

Paying estimated taxes is one way to avoid any penalties. You can also do a withholding from the Roth conversion and then do a 60 day rollover into your Roth using money from a taxable account. Take a look at this thread:

viewtopic.php?t=425147
by mhc
Tue Mar 05, 2024 12:22 pm
Forum: Personal Investments
Topic: How close am I to FIRE?
Replies: 25
Views: 5136

Re: How close am I to FIRE?

You need to list your expenses essentially for the rest of your lives. The expenses must include taxes, medical insurance, one time purchases, .... The expenses must include everything. I know that is hard, but you have to make some educated guesses. Once you know that, you can plug it into a retirement calculator like Firecalc and see where you stand. What about Social Security or pensions? Is your investment property only breaking even? If so, why do you keep it? Let's say your expenses are $120k/yr for retirement for a 50 year retirement. I would think you would need at least $3.5-4 million. In reality, your expenses will not be flat across the different stages of life. That is why it is important to project expenses for the rest of your...
by mhc
Mon Mar 04, 2024 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Questions
Replies: 14
Views: 876

Re: Backdoor Roth Questions

GastroMD wrote: Mon Mar 04, 2024 10:39 am
akam wrote: Mon Mar 04, 2024 10:29 am You probably need to wait until tomorrow morning. If you submitted an order on Saturday, that means it will process tonight and be reflected in your account in the morning.
That's what I was thinking; just trying to minimize any gains of a few dollars on my $7k. I will wait till tmrw.
Don't worry about the gains of a few dollars. Those gains get moved into your Roth. That means that you are getting more money into your Roth. Isn't that a good thing? Transactions take time to settle. Tax software handles the gains with no problems. The tax you will pay on the gains is less than a cup of coffee.
by mhc
Mon Mar 04, 2024 3:21 pm
Forum: Investing - Theory, News & General
Topic: Aggressive savers: Reduce stocks % the closer you are to your target numbers?
Replies: 32
Views: 3574

Re: Aggressive savers: Reduce stocks % the closer you are to your target numbers?

It depends on how long the retirement plan is. If you are planning for a very long retirement (40-50 years), then a higher equity allocation is better. If your retirement plan is short, then I think a lower equity allocation is better. I retired last year with a 50 year plan. I am at 75/25. A few years before that I was 80/20. I plan on staying at 75/25. I think other things come into play like pensions and SS because they affect how much you have to pull from your portfolio for essentials. How many years does your retirement plan cover? How much of your FI number is discretionary spending? The retirement tools that use historical data account for the worst case scenarios that have occurred. If you are fine with the results from those tools...
by mhc
Mon Mar 04, 2024 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: FireCalc.Com Question
Replies: 19
Views: 1811

Re: FireCalc.Com Question

I would say 95% success rate with Firecalc and significantly below average with the Fidelity tool.

The Fidelity tool does a tax estimate, so one does not include taxes with the Fidelity tool. I'm a little suspect about the accuracy of the tax estimation.

Firecalc wants you to include taxes in your expenses.
by mhc
Mon Mar 04, 2024 2:59 pm
Forum: Personal Consumer Issues
Topic: Trip from KC to Bozeman
Replies: 41
Views: 2802

Re: Trip from KC to Bozeman

In terms of navigating the park is Gardiner a good entrance point vs west entrance? Hotels are cheaper in Gardiner. I just want the best experience and the hotel price is not that big of deal. If price is not that big of a deal, then stay in the park. It is a large park. We have stayed in the park and in West Yellowstone. In the park saves a lot of time. Traffic moves very slowly in the park. The speed limits are pretty low, and people are going slowly to look for wildlife and to enjoy the scenery. If the bison get on or near the road, traffic will come to a dead stop. Don't be in a hurry when driving in the park. It won't help. I would stay near Old Faithful if possible because it is centrally located. There is food and gas in the park. Y...
by mhc
Mon Mar 04, 2024 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Tax Payments with Zero Liability
Replies: 4
Views: 626

Re: Estimated Tax Payments with Zero Liability

You could fill up the rest of the 0% bracket with Tax Gain Harvesting or Roth Conversions.
by mhc
Sat Mar 02, 2024 2:36 pm
Forum: Personal Consumer Issues
Topic: Trip from KC to Bozeman
Replies: 41
Views: 2802

Re: Trip from KC to Bozeman

KC: 1 or 2 days WW1 museum Money museum Union Station Nelson-Atkins Art Museum Arabia Steamboat Museum Jackstacks and/or Joe's Kansas City Omaha: (not much there) zoo Lincoln: 1 day (off the path) capital free art museum at University of Nebraska Sioux Falls: 1 day, not really a tourist town. My DW is from there. We go there just about every year. Black Hills: 2-4 days, it is a big area with a lot to do if you want Yellowstone: 2-4 days, a lot of people spend much longer there. It is a big park. The Tetons are on the south side. I-90 from Billings to Bozeman is not much but you could hit the Battle of Little Bighorn on the way to Billings. Just east of Billings is Pompeys Pillar National Monument. I would head due west out of Rapid City and...
by mhc
Sat Mar 02, 2024 12:06 pm
Forum: Personal Consumer Issues
Topic: Trip from KC to Bozeman
Replies: 41
Views: 2802

Re: Trip from KC to Bozeman

I have driven most of that. Some of it many times. We are big at seeing everything. There won't be much on your route. There will be long stretches of nothing. The scenery will improve as you approach Rapid City. Mountains on this route should not be an issue.

KC to Sioux Falls:
Pony Express museum in St. Joseph

Sioux Falls:
Falls Park

Sioux Falls to Rapid City:
Corn Palace in Mitchell
Minute Man National Historic Site east of Wall (get tickets early)

Blackhills:
Mount Rushmore
Jewel Cave
Mammoth Site in Hot Springs

Rapid to Yellowstone:
Devils Tower

Yellowstone:
does not require hiking, lots of short walk if you like

Bozeman:
Museum of the Rockies
by mhc
Sat Mar 02, 2024 11:28 am
Forum: Personal Investments
Topic: OK to pay down large chunk of mortgage?
Replies: 35
Views: 2742

Re: OK to pay down large chunk of mortgage?

I wouldn't pay down the mortgage with that low interest rate. Invest the money. When you downshift, you can sell from your taxable account to supplement your income.
by mhc
Sat Mar 02, 2024 11:25 am
Forum: Personal Investments
Topic: Realize Taxable Gains or use HSA?
Replies: 2
Views: 370

Re: Realize Taxable Gains or use HSA?

I would use the taxable account. The tax hit is pretty small. I wouldn't want to give up the tax benefits of the HSA. Your taxable account is still large enough to serve as an emergency fund. If things really go crazy, you can take from the HSA later. If you take from the HSA now, you can never undo that.
by mhc
Sat Mar 02, 2024 9:50 am
Forum: Personal Consumer Issues
Topic: Products/Services with Automatic renewal
Replies: 22
Views: 944

Re: Products/Services with Automatic renewal

I get a notification on my phone every time one of our credit cards are used. If you have auto-renewal/subscription, you will see when it renews. I find this easier than looking at statements. There are several other benefits to these notifications.
by mhc
Sat Mar 02, 2024 9:41 am
Forum: Personal Investments
Topic: Tax Efficient Asset Allocation - How Confused Am I?
Replies: 45
Views: 3447

Re: Tax Efficient Asset Allocation - How Confused Am I?

Welcome to the forum!

Looks like you have it correct. Good job.

"The greatest enemy of a good plan is the dream of a perfect plan."
- General Carl von Clausewitz
by mhc
Fri Mar 01, 2024 4:04 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562240

Re: Post your Financial Milestone Announcements Here

ruralavalon wrote: Fri Mar 01, 2024 3:31 pm
mhc wrote: Fri Mar 01, 2024 2:32 pm Today is my 1 year anniversary of my retirement. I just added up the numbers, and we have 14.5% more than we did on March 1, 2023. Not bad considering what we have spent over the last year.
Congratulations, you have dodged the sequence of returns risk so far :D

Its a wonderful feeling when portfolio growth is greater than retirement living expenses.
Thank you everyone.

I'm still debating if I should tell my DW. She might really start blowing the dough. :D
by mhc
Fri Mar 01, 2024 2:32 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3606
Views: 562240

Re: Post your Financial Milestone Announcements Here

Today is my 1 year anniversary of my retirement. I just added up the numbers, and we have 14.5% more than we did on March 1, 2023. Not bad considering what we have spent over the last year.
by mhc
Fri Mar 01, 2024 2:18 pm
Forum: Personal Investments
Topic: Favorite calculator(s) to estimate how many years portfolio will potentially last...
Replies: 51
Views: 8681

Re: Favorite calculator(s) to estimate how many years portfolio will potentially last...

The Fidelity calculator does handle spending changes. It is in the spending tab. Ah, interesting. Maybe I have missed it or am looking in the wrong place. I don't see a "Spending Tab," I do see the "Retirement Expenses" tab, under which I have two options: "Estimated Dollars" and "Detailed Expenses." The difference between the two options is the level of detail -- "Estimated Dollars" is just two numbers I enter ("Essential" and "Discretionary"), while "Detailed" gives me a dozen or so categories. Under neither do I see an option to reduce (or increase) spending over the years. The fine print at the bottom says Fidelity increases medical spending by 4.9% per yea...
by mhc
Fri Mar 01, 2024 9:38 am
Forum: Personal Investments
Topic: Favorite calculator(s) to estimate how many years portfolio will potentially last...
Replies: 51
Views: 8681

Re: Favorite calculator(s) to estimate how many years portfolio will potentially last...

KISS is really important to me, so I stick with the Fidelity calculator, since my data is mostly already in Fidelity. I do wish Fidelity let you specify the basis, and also enter expected changes to overall spending over time. I also find it humorous that Fidelity gives you only three options for market predictions: Average, Below Average, and Substantially Below Average. There are no options for Above Average or Substantially Above Average. Come on Fidelity, don't be so pessimistic! The Fidelity calculator does handle spending changes. It is in the spending tab. I agree with your other comments. Whenever Fidelity asks me for feedback, I enter the changes I want to see. I believe Fidelity looks at the feedback. Last year Fidelity tried a n...
by mhc
Mon Feb 26, 2024 9:13 am
Forum: Personal Finance (Not Investing)
Topic: HSA Contribution
Replies: 13
Views: 1675

Re: HSA Contribution

I'm retired and max out my HSA every year, but I have an HSA qualified medical plan. Do you have an HSA qualified medical plan?
by mhc
Sun Feb 25, 2024 5:00 pm
Forum: Personal Investments
Topic: Asset Allocation 101
Replies: 15
Views: 1282

Re: Asset Allocation 101

I would try to place the funds in a tax efficient manner. There is a Wiki page on this: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement Keep in mind that you do not have to mirror your portfolio in every account. Tax sheltered accounts can be changed at any time without tax consequences. That is not true with the taxable account. Make sure you get your taxable account correct from the get go. VOO or VTI would be a great option. Just starting out, your saving rate is more important than AA. You can use a spreadsheet to calculate your AA across your portfolio. I only keep 1 fund in my smaller accounts (Roth IRA, HSA, wife's Roth IRA). My taxable only has VTSAX and VTIAX. Just keep it simple. I see you are using Roth accounts. Wha...
by mhc
Fri Feb 23, 2024 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Using withholding on Roth conversion instead of estimated tax payment
Replies: 86
Views: 5893

Re: Using withholding on Roth conversion instead of estimated tax payment

Alan S. wrote: Thu Feb 22, 2024 9:34 pm
This will work fine as long as you have the funds available to complete the rollover.
Alan, thank you for weighing in. This makes me feel a lot better about doing this.
by mhc
Fri Feb 23, 2024 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Using withholding on Roth conversion instead of estimated tax payment
Replies: 86
Views: 5893

Re: Using withholding on Roth conversion instead of estimated tax payment

Here are two other threads that touch on this topic: https://www.bogleheads.org/forum/viewtopic.php?t=418969 https://www.bogleheads.org/forum/viewtopic.php?p=7160980#p7160980 The IRS gives an example (mentioned in one of the threads above) that is similar. Look at #2 of the example with Jordan. https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions It seems like one can do a Roth conversion and have taxes withheld. Then do an indirect conversion in the same amount of the withholdings to get a "complete" Roth conversion and pay taxes through withholding. Withholdings are always timely. I need to decide if I'll try this out or just do Q1 Roth conversion and quarterly estima...
by mhc
Fri Feb 23, 2024 9:54 am
Forum: Personal Investments
Topic: VMFXX vs VUSXX
Replies: 15
Views: 2326

Re: VMFXX vs VUSXX

For 2023, around 80% of my dividend from VUSXX will be exempt from my state income tax. All of my dividend from VMFXX will be taxed by my state. In my state it would have been just under 50% state tax free. Doctor Rhythm, do you live in one of the states that requires at least 50%? Hi mhc. Starting my taxes soon. What percent is tax exempt for VMFXX in Colorado if I may ask. Thanks,cleosdad It should be on the supplemental part of your 1099 Consolidated. I didn't hold VMFXX in 2023. I think it was a tad under 50%. I had VTIAX, VTSAX, and VUSXX. I had a section that showed all 3. I picked up a few extra pennies by including VTIAX and VTSAX in the total state tax free calculation. I am in Colorado. My understanding it is the percentage inclu...
by mhc
Thu Feb 22, 2024 4:45 pm
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS = 2.2% real!
Replies: 26
Views: 4695

Re: 30 yr TIPS = 2.2% real!

Always passive wrote: Thu Feb 22, 2024 2:01 pm Why hold anything riskier if the goal is peaceful retirement?
Because my retirement plan is 50 years long.
by mhc
Thu Feb 22, 2024 4:42 pm
Forum: Personal Investments
Topic: VMFXX vs VUSXX
Replies: 15
Views: 2326

Re: VMFXX vs VUSXX

Doctor Rhythm wrote: Thu Feb 22, 2024 11:49 am For 2023, around 80% of my dividend from VUSXX will be exempt from my state income tax. All of my dividend from VMFXX will be taxed by my state.
In my state it would have been just under 50% state tax free. Doctor Rhythm, do you live in one of the states that requires at least 50%?
by mhc
Thu Feb 22, 2024 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Using withholding on Roth conversion instead of estimated tax payment
Replies: 86
Views: 5893

Re: Using withholding on Roth conversion instead of estimated tax payment

Here are two other threads that touch on this topic: https://www.bogleheads.org/forum/viewtopic.php?t=418969 https://www.bogleheads.org/forum/viewtopic.php?p=7160980#p7160980 The IRS gives an example (mentioned in one of the threads above) that is similar. Look at #2 of the example with Jordan. https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions It seems like one can do a Roth conversion and have taxes withheld. Then do an indirect conversion in the same amount of the withholdings to get a "complete" Roth conversion and pay taxes through withholding. Withholdings are always timely. I need to decide if I'll try this out or just do Q1 Roth conversion and quarterly estimat...
by mhc
Tue Feb 20, 2024 9:51 am
Forum: Personal Consumer Issues
Topic: Paying personal income taxes through TurboTax or IRS.gov
Replies: 1
Views: 415

Re: Paying personal income taxes through TurboTax or IRS.gov

I have paid through TT many times with no issues.
by mhc
Mon Feb 19, 2024 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare expense planning in retirement — a case study
Replies: 6
Views: 812

Re: Healthcare expense planning in retirement — a case study

mrc,

sorry for your loss.

Thank you for taking the time to share with us.
by mhc
Mon Feb 19, 2024 3:09 pm
Forum: Personal Investments
Topic: Are we a good fit for Vanguard Personal Advisor, at least for now?
Replies: 45
Views: 5658

Re: Are we a good fit for Vanguard Personal Advisor, at least for now?

I think it could be a good option. I would not go into it thinking that the Advisor will take your side and persuade your wife to align with you. Since you can quit the Advisor at any time, go for it. Let us know how it goes.
by mhc
Mon Feb 19, 2024 3:06 pm
Forum: Personal Investments
Topic: Need permission to stop saving and coast, please:)
Replies: 15
Views: 3289

Re: Need permission to stop saving and coast, please:)

What do the retirement calculators say?

I recommend plugging in your numbers to see where you stand. Here is a good one:
https://www.firecalc.com/
by mhc
Mon Feb 19, 2024 3:01 pm
Forum: Personal Investments
Topic: Let me retire! Please?
Replies: 62
Views: 8074

Re: Let me retire! Please?

Meg77 wrote: Mon Feb 19, 2024 12:50 pm I recommend spending 10x-100x the time and energy tending to your marriage as to your finances. The biggest financial risks are often those we pay very little mind to at all.
Wise words. Thanks Meg77.
by mhc
Mon Feb 19, 2024 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: How may this Restricted Stock Unit sale impact taxes? Not sure how long I've held this...
Replies: 5
Views: 406

Re: How may this Restricted Stock Unit sale impact taxes? Not sure how long I've held this...

If you have a Vanguard account, the MMF are paying about 5.3%, and there are some with state tax breaks if you live in a state with high taxes.
by mhc
Mon Feb 19, 2024 2:55 pm
Forum: Personal Investments
Topic: Am I Missing Anything?
Replies: 16
Views: 1169

Re: Am I Missing Anything?

A couple of minor things. A DAF should not be in your net worth. You no longer own that money. Unvested RSUs should not be in your net worth in my opinion. If they have vested, they are not RSUs but rather company stock. I recommend selling all RSUs when they vest. Use the money to pay bills or invest. It is okay to plow all new money in VTI. You could do worse. You are correct that you should not try to time the market. Invest the money according to your asset allocation (AA) when you get the money. Thanks. Fair points on net worth calculations. I sell all RSUs when they vest. Do you have any thoughts on my asset allocation for geography / size? Am I correct in assuming if I buy VTI I am just furthering the allocation that I have now, rig...
by mhc
Mon Feb 19, 2024 12:23 pm
Forum: Personal Investments
Topic: Let me retire! Please?
Replies: 62
Views: 8074

Re: Let me retire! Please?

I retired last year and our numbers are very similar. My wife is 7 years younger than I am. We also have 3 kids (1 college, 2 HS). One big difference is our asset allocation (AA) has more equities and less cash (75/24.5/0.5). For a long retirement, higher equities historically have had a higher success rate. I would be concerned having that much cash. It will be a big drag on the returns.

If you are flexible with your spending, you can make it work. Enjoy your retirement.

Once you retire, look to see if Roth conversions are appropriate for you.
by mhc
Mon Feb 19, 2024 12:15 pm
Forum: Personal Investments
Topic: Am I Missing Anything?
Replies: 16
Views: 1169

Re: Am I Missing Anything?

A couple of minor things.

A DAF should not be in your net worth. You no longer own that money.

Unvested RSUs should not be in your net worth in my opinion. If they have vested, they are not RSUs but rather company stock. I recommend selling all RSUs when they vest. Use the money to pay bills or invest.

It is okay to plow all new money in VTI. You could do worse. You are correct that you should not try to time the market. Invest the money according to your asset allocation (AA) when you get the money.