Search found 5226 matches
- Thu Mar 28, 2024 11:17 am
- Forum: Non-US Investing
- Topic: Short investment window and retiring soon
- Replies: 15
- Views: 815
Re: Short investment window and retiring soon
Your short window probably is not really a short window. I assume you plan on living a few decades after retirement. You should choose your asset allocation (AA) based on your needs. Since you have not held equities previously, you do not really know how you will react with the next crash. You need an AA that meets your needs and also allows you to stay the course. You don't give enough info to provide more specific help. I would not recommend 100% equities. I would hold at least 25% in bonds. What if during a market crash I'm able to live completely without my portfolio? Like on my Pension plus a rental property. So I would be able to comfortably ride a bear market. Do you think there would still be need for bonds? You could play with htt...
- Thu Mar 28, 2024 10:10 am
- Forum: Personal Finance (Not Investing)
- Topic: Retirement Calculator With SS Bridge.
- Replies: 8
- Views: 630
Re: Retirement Calculator With SS Bridge.
SS Bridge is just mental accounting. As you see, it is complicating things.
Two solutions:
1. run firecalc for two scenarios: A. on just SS bridge B. After bridge
2. just use firecalc without labeling something as SS bridge. You have a portfolio, expenses, income streams. Firecalc handles this. No need to call something a SS bridge.
Two solutions:
1. run firecalc for two scenarios: A. on just SS bridge B. After bridge
2. just use firecalc without labeling something as SS bridge. You have a portfolio, expenses, income streams. Firecalc handles this. No need to call something a SS bridge.
- Thu Mar 28, 2024 9:38 am
- Forum: Personal Investments
- Topic: Significant additional Cash Reserves. If you have/had any how have/will you deploy it?
- Replies: 12
- Views: 595
Re: Significant additional Cash Reserves. If you have/had any how have/will you deploy it?
We only have enough cash to cover monthly expenses. We do not have an EF. I have found that it is better to stay fully invested according to our AA.
- Thu Mar 28, 2024 9:31 am
- Forum: Personal Investments
- Topic: Those complimentary dinners for retirees by investment advisors
- Replies: 143
- Views: 10506
Re: Those complimentary dinners for retirees by investment advisors
This may be a naive question, but how do they know you're retired and a likely mark potential customer? I've been retired for a few years and have never been invited (for which I shall be eternally grateful.) Did you retire early? My impression is that they mail by age of victim rather than employment status. Birthdate data is obviously easy to come by or estimate from other info. If you haven't been getting these yet, your prime years are still ahead of you! :beer Or could it be that people getting these invitations have, at one point or another, worked with a finacial firm, financial planner, or accountant who was OK with selling their lists of contact information (I am not saying any financial details, just name, address, birth year). T...
- Wed Mar 27, 2024 3:24 pm
- Forum: Personal Investments
- Topic: Looking for a new savings/investment vehicle.
- Replies: 15
- Views: 988
Re: Looking for a new Investment/Retirement Vehcile
Health Savings Account if you have a qualified high deductible medical plan.
Ibonds
Ibonds
- Wed Mar 27, 2024 10:05 am
- Forum: Non-US Investing
- Topic: Short investment window and retiring soon
- Replies: 15
- Views: 815
Re: Short investment window and retiring soon
Your short window probably is not really a short window. I assume you plan on living a few decades after retirement.
You should choose your asset allocation (AA) based on your needs. Since you have not held equities previously, you do not really know how you will react with the next crash. You need an AA that meets your needs and also allows you to stay the course.
You don't give enough info to provide more specific help. I would not recommend 100% equities. I would hold at least 25% in bonds.
You should choose your asset allocation (AA) based on your needs. Since you have not held equities previously, you do not really know how you will react with the next crash. You need an AA that meets your needs and also allows you to stay the course.
You don't give enough info to provide more specific help. I would not recommend 100% equities. I would hold at least 25% in bonds.
- Wed Mar 27, 2024 9:43 am
- Forum: Personal Consumer Issues
- Topic: Favorite protein powder for shakes at home?
- Replies: 75
- Views: 3258
Re: Favorite protein powder for shakes at home?
Optimum Nutrition Gold Standard 100% Whey Protein Powder, Double Rich Chocolate
My whole family loves this. I put a scoop in my oatmeal every morning. I found this to be the easiest way to get my protein at breakfast.
Recently, we used subscribe & save on Amazon and purchased 2 10lb bags for $180. It was the first time my DW had used subscribe & save, so we received 40% off.
My whole family loves this. I put a scoop in my oatmeal every morning. I found this to be the easiest way to get my protein at breakfast.
Recently, we used subscribe & save on Amazon and purchased 2 10lb bags for $180. It was the first time my DW had used subscribe & save, so we received 40% off.
- Tue Mar 26, 2024 9:55 am
- Forum: Investing - Theory, News & General
- Topic: Asset allocation when retirement income needs are not flat
- Replies: 9
- Views: 993
Re: Asset allocation when retirement income needs are not flat
Our withdrawal rate in retirement will step down as the kids leave, medicare kicks in, SS starts, ....
I used https://earlyretirementnow.com/safe-wit ... te-series/ to set our AA. The main driving factor for our AA is the duration of our retirement. I planned for a 50 year retirement (1 year in), so we have a 75/25 AA. I plan on staying there. In 10, 20, 30, 40 years, I have no idea what it will be, but I don't have current plans on changing it. I could imagine going to something like 10 years of bonds and everything else equities once we are on SS. I could also imagine getting a SPIA so my DW has a constant income once I pass. It would make it easier for her.
I used https://earlyretirementnow.com/safe-wit ... te-series/ to set our AA. The main driving factor for our AA is the duration of our retirement. I planned for a 50 year retirement (1 year in), so we have a 75/25 AA. I plan on staying there. In 10, 20, 30, 40 years, I have no idea what it will be, but I don't have current plans on changing it. I could imagine going to something like 10 years of bonds and everything else equities once we are on SS. I could also imagine getting a SPIA so my DW has a constant income once I pass. It would make it easier for her.
- Tue Mar 26, 2024 9:41 am
- Forum: Personal Finance (Not Investing)
- Topic: Fidelity as a one stop shop
- Replies: 6053
- Views: 1037370
Re: Should I move it all to Fidelity?
I am starting the process to move everything to Fidelity. My first step is to open the CMA and get the credit card and checkbook. I will keep a local brick and mortar bank because Fidelity does not have Zelle, and I like the idea of a backup bank. I will move slowly because I am in no hurry.
I believe Fidelity will meet the needs you listed.
I believe Fidelity will meet the needs you listed.
- Mon Mar 25, 2024 9:53 am
- Forum: Personal Investments
- Topic: Those complimentary dinners for retirees by investment advisors
- Replies: 143
- Views: 10506
Re: Those complimentary dinners for retirees by investment advisors
I went to one a few months back. The presentation is definitely a sales pitch. They were well skilled at instilling fear and confusion to make people think they need an advisor. I find analyzing communication styles and sales techniques interesting. There were really good appetizers on the table when we arrived. Alcohol was provided if you wanted it. I had a Diet Coke and my DW drank water. The presentation then began and lasted about 45 minutes. The advisors then left and went home to their families. Dinner was served and was nice. It was getting late, so we asked for our desserts in to go boxes. We also took home what we didn't eat. They had us fill out a card to indicate if we wanted any follow up contact. We indicated we were not intere...
- Mon Mar 25, 2024 9:24 am
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4288
- Views: 1082148
Re: Share your net worth progression
Strong years are always nice. I retired last year, and I am up quite a bit even with living off the portfolio. Nice!
Just remember to stay the course when the down years come.
- Sat Mar 23, 2024 10:00 am
- Forum: Personal Investments
- Topic: Retirement Planning courses
- Replies: 7
- Views: 834
Re: Retirement Planning courses
You should wait for the invite that includes a steak dinner. That one will definitely be a sales pitch to take your money.
- Fri Mar 22, 2024 9:42 am
- Forum: Personal Consumer Issues
- Topic: What Toys Have You Bought That Have Been Worth it?
- Replies: 259
- Views: 18621
Re: What Toys Have You Bought That Have Been Worth it?
Smoker.
I smoke meat regularly for the family but also:
neighborhood block party
backyard parties
meals for others - births, deaths, sick, injured
work lunches
Concept2 Erg Rower
I row 3 times a week. I really enjoy it. It is nice to be able to work out without leaving the house.
I smoke meat regularly for the family but also:
neighborhood block party
backyard parties
meals for others - births, deaths, sick, injured
work lunches
Concept2 Erg Rower
I row 3 times a week. I really enjoy it. It is nice to be able to work out without leaving the house.
- Fri Mar 22, 2024 9:15 am
- Forum: Personal Finance (Not Investing)
- Topic: 12 months before retirement what do you wish you had done
- Replies: 72
- Views: 8826
Re: 12 months from retirement what do you wish you had done
I have been retired for a little over a year. There are some things that change once one retires. Here are a few things I had to learn prior to retiring and shortly after.
1. Medical insurance - ACA vs Cobra vs retiree
2. Estimated tax payments - federal and state
3. Roth conversions
Obviously, one needs to have a plan on how to replace the paycheck. For me, that was pretty easy. I just sell from taxable account when we need to replenish the checking account.
The transition from working to not working is not very complicated. It has been an easy transition.
1. Medical insurance - ACA vs Cobra vs retiree
2. Estimated tax payments - federal and state
3. Roth conversions
Obviously, one needs to have a plan on how to replace the paycheck. For me, that was pretty easy. I just sell from taxable account when we need to replenish the checking account.
The transition from working to not working is not very complicated. It has been an easy transition.
- Thu Mar 21, 2024 2:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth vs Traditional 401k - Tax Bracket + FICA taxes
- Replies: 4
- Views: 481
Re: Roth vs Traditional 401k - Tax Bracket + FICA taxes
When your MAGI exceeds $250k, NIIT (3.8%) and medicare (0.9%) kicks in. I think I would try to stay below the thresholds. NIIT is for investment income, and the other is for earned income. It looks like you should be able to keep your MAGI below $250k by contributing to a traditional 401k.
- Wed Mar 20, 2024 3:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4288
- Views: 1082148
Re: Share your net worth progression
You are allowed to look. Is it leading to some bad behavior?bugleheadd wrote: ↑Wed Mar 20, 2024 2:33 pm How do I stop looking at my accounts..I hit 1m sometimes in Q4 of last year, now I'm around 1.2m. cant stop looking everyday as we hit new all time highs every few days
Looking is good in my opinion. I want to get use to how it moves.
- Wed Mar 20, 2024 3:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: How would you estimate Medicare costs for us?
- Replies: 11
- Views: 1074
Re: How would you estimate Medicare costs for us?
This is also the number I use. I have several retired friends in the neighborhood who are on medicare and both use the UHC supplement (I don't remember the letter, F, G, or N). $1000/mo/person seems about right. I'm still 10 years away, so this is close enough for me. My DW is even further out.jebmke wrote: ↑Wed Mar 20, 2024 3:25 pm I never made a separate estimate for Medicare. My “budget” for total medical cost was $1,000 per person per month. I’ve never looked at the actual cost over the years (15) but I’d guess the actual cost was below estimate. But other expenses must have eaten all that up because our total expenses have averaged pretty close to the original estimate.
- Wed Mar 20, 2024 3:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I retire in 5 years?
- Replies: 23
- Views: 2596
Re: Can I retire in 5 years?
Maverick,
thank you for your service.
Yes you can retire in 5 years. With the pensions and SS and your nest egg, you will have plenty. I believe your medical will also be covered for life, which is really nice.
You will be going through different phases of life as you retire, then your DW, then the kids are gone, then SS kicks in, .... The amount of money you will pull from your portfolio will change in each phase. You should estimate your expenses in each phase and then run it through cfiresim. It can handle this. When you estimate expenses, make sure that it includes everything (taxes, medical, college, new cars).
thank you for your service.
Yes you can retire in 5 years. With the pensions and SS and your nest egg, you will have plenty. I believe your medical will also be covered for life, which is really nice.
You will be going through different phases of life as you retire, then your DW, then the kids are gone, then SS kicks in, .... The amount of money you will pull from your portfolio will change in each phase. You should estimate your expenses in each phase and then run it through cfiresim. It can handle this. When you estimate expenses, make sure that it includes everything (taxes, medical, college, new cars).
- Wed Mar 20, 2024 9:33 am
- Forum: Personal Investments
- Topic: Should (and How) I get out of TDFs in my taxable account
- Replies: 17
- Views: 1340
Re: Should (and How) I get out of TDFs in my taxable account
OP,
looks like $66k in gains. At 35% bracket you are either 15% or 20% on LTCG. You then have 3.8% NIIT and state tax. You would pay $15-25k in taxes depending on your specifics. I would not sell any with short term capital gains. You could calculate how long it would take to overcome the immediate tax hit.
It probably is a toss up on what to do. $15-25k is not going to change your life. Most of us have lost more than that by doing stupid things. I know I have.
looks like $66k in gains. At 35% bracket you are either 15% or 20% on LTCG. You then have 3.8% NIIT and state tax. You would pay $15-25k in taxes depending on your specifics. I would not sell any with short term capital gains. You could calculate how long it would take to overcome the immediate tax hit.
It probably is a toss up on what to do. $15-25k is not going to change your life. Most of us have lost more than that by doing stupid things. I know I have.
- Tue Mar 19, 2024 3:13 pm
- Forum: Personal Investments
- Topic: Should (and How) I get out of TDFs in my taxable account
- Replies: 17
- Views: 1340
Re: Should (and How) I get out of TDFs in my taxable account
Welcome to the forum! More info is needed to help. 1. Names of funds, not just ticker symbols 2. Cost basis of each fund indicated long/short term capital gains 3. Your tax bracket 4. Will your income change drastically in the next few years? In general, when trying to undo an investment in a taxable account: 1. Turn off reinvestment of dividends and capital gains (don't buy more) 2. If you donate to charity, start donating the shares with the largest unrealized long term capital gains. Then you have to weigh the on going tax drag against a lump sum tax hit. In theory this could be done in Excel making some guesses. You could also wait for a market drop to see if you could get out with lower capital gains. This is kind of gambling though.
- Tue Mar 19, 2024 9:06 am
- Forum: Personal Investments
- Topic: Portfolio Advice Needed - Can I Retire?
- Replies: 29
- Views: 3247
Re: Portfolio Advice Needed - Can I Retire?
Appreciate the reply. Looks like you can retire if your $100k/yr includes all expenses (medical, taxes, ...). Ooops, good point on taxes! Medical was in there but not income taxes on withdrawals (can't believe I forgot that). Edited my OP to make it $115k withdraw. 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 ...
- Mon Mar 18, 2024 2:59 pm
- Forum: Personal Investments
- Topic: Portfolio Advice Needed - Can I Retire?
- Replies: 29
- Views: 3247
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...
- Tue Mar 12, 2024 3:09 pm
- Forum: Personal Investments
- Topic: VUSXX
- Replies: 6
- Views: 920
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.
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.
- Tue Mar 12, 2024 3:03 pm
- Forum: Personal Finance (Not Investing)
- Topic: Health Care Savings account contribution question
- Replies: 11
- Views: 810
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.
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.
- Tue Mar 12, 2024 11:18 am
- Forum: Personal Finance (Not Investing)
- Topic: One spouse retiring earlier than the other?
- Replies: 38
- Views: 3078
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.
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.
- Tue Mar 12, 2024 9:55 am
- Forum: Personal Investments
- Topic: Fidelity Portfolio Manager Tools
- Replies: 10
- Views: 1274
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...
- Mon Mar 11, 2024 1:58 pm
- Forum: Personal Investments
- Topic: Reducing risk and increasing diversification as we approach retirement
- Replies: 7
- Views: 694
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.
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.
- Mon Mar 11, 2024 10:06 am
- Forum: Personal Consumer Issues
- Topic: Estimated Tax payments confusion
- Replies: 8
- Views: 901
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.
- Mon Mar 11, 2024 10:04 am
- Forum: Personal Finance (Not Investing)
- Topic: Question about Turbo Tax
- Replies: 8
- Views: 730
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.
- Sun Mar 10, 2024 3:41 pm
- Forum: Personal Investments
- Topic: 401K vs Roth IRA
- Replies: 17
- Views: 1609
- Sun Mar 10, 2024 10:18 am
- Forum: Personal Investments
- Topic: Asset allocation and location when approaching (early) retirement
- Replies: 10
- Views: 1288
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.
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.
- Fri Mar 08, 2024 5:08 pm
- Forum: Investing - Theory, News & General
- Topic: "When" do you sell equities during Retirement?
- Replies: 29
- Views: 4526
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 ...
- Thu Mar 07, 2024 1:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Mental health or Money: navigating the OMY question
- Replies: 48
- Views: 4972
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.
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.
- Wed Mar 06, 2024 3:44 pm
- Forum: Personal Investments
- Topic: Participate in deferred compensation plan?
- Replies: 9
- Views: 729
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.
Seems like you would have to run the numbers to see which option is better.
- Wed Mar 06, 2024 9:26 am
- Forum: Personal Finance (Not Investing)
- Topic: Roth conversion, estimated taxes, safe harbor question
- Replies: 8
- Views: 767
Re: Roth conversion, estimated taxes, safe harbor question
When you move the money from taxable to Roth IRA.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?
- Tue Mar 05, 2024 3:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth conversion, estimated taxes, safe harbor question
- Replies: 8
- Views: 767
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.
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.
- Tue Mar 05, 2024 2:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth conversion, estimated taxes, safe harbor question
- Replies: 8
- Views: 767
Re: Roth conversion, estimated taxes, safe harbor question
Make sure you understand the estimated tax rules. There are two methods with different pros and cons.
- Tue Mar 05, 2024 2:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Roth conversion, estimated taxes, safe harbor question
- Replies: 8
- Views: 767
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
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
- Tue Mar 05, 2024 12:22 pm
- Forum: Personal Investments
- Topic: How close am I to FIRE?
- Replies: 25
- Views: 5188
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...
- Mon Mar 04, 2024 3:26 pm
- Forum: Personal Finance (Not Investing)
- Topic: Backdoor Roth Questions
- Replies: 14
- Views: 909
Re: Backdoor Roth Questions
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.
- 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: 3662
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...
- Mon Mar 04, 2024 3:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: FireCalc.Com Question
- Replies: 19
- Views: 1830
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.
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.
- Mon Mar 04, 2024 2:59 pm
- Forum: Personal Consumer Issues
- Topic: Trip from KC to Bozeman
- Replies: 41
- Views: 2926
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...
- Mon Mar 04, 2024 9:58 am
- Forum: Personal Finance (Not Investing)
- Topic: Estimated Tax Payments with Zero Liability
- Replies: 4
- Views: 637
Re: Estimated Tax Payments with Zero Liability
You could fill up the rest of the 0% bracket with Tax Gain Harvesting or Roth Conversions.
- Sat Mar 02, 2024 2:36 pm
- Forum: Personal Consumer Issues
- Topic: Trip from KC to Bozeman
- Replies: 41
- Views: 2926
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...
- Sat Mar 02, 2024 12:06 pm
- Forum: Personal Consumer Issues
- Topic: Trip from KC to Bozeman
- Replies: 41
- Views: 2926
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
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
- Sat Mar 02, 2024 11:28 am
- Forum: Personal Investments
- Topic: OK to pay down large chunk of mortgage?
- Replies: 35
- Views: 2848
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.
- Sat Mar 02, 2024 11:25 am
- Forum: Personal Investments
- Topic: Realize Taxable Gains or use HSA?
- Replies: 2
- Views: 389
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.
- Sat Mar 02, 2024 9:50 am
- Forum: Personal Consumer Issues
- Topic: Products/Services with Automatic renewal
- Replies: 22
- Views: 1006
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.
- Sat Mar 02, 2024 9:41 am
- Forum: Personal Investments
- Topic: Tax Efficient Asset Allocation - How Confused Am I?
- Replies: 45
- Views: 3550
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
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