Bogleheads.org

arcticpineapplecorp.

theophiled wrote: ↑Tue Mar 28, 2023 7:12 am Hello Boglers,

My approximate data is as follows:
+$9mm RE assets - ~ (no debt)
+$1mm Equities / Stock - ~
+$15mm Crypto - liquid
$10mm Venture funds (LP) / SPVs -
=$35,000,000

Could you live by yourself on $17,500,000? (i.e. half of current assets, in the event of split)?

if so, I don't see the problem.

arcticpineapplecorp.

original medicare covers 80% of the care. The other 20% would be covered if you sign up for a medigap plan or choose medicare advantage (which takes over for original medicare). you do have a medicare deductible with part B which is coverage for your doctors ($226 for 2023) to reach first before medicare kicks in it's 80% coverage. source: https://www.humana.com/medicare/medicare-resources/part-a-b-deductibles-review I wouldn't just have parts A&B only. I'd either get a medigap plan or medicare advantage. You might want to check with your SHIP state health insurance assistance program and ask a lot of questions before signing up. you also might want a part D (drug plan) if you need medications. Part A, B and medigap does not cover that.

arcticpineapplecorp.

OP- They mean what funds do you have the option to buy? I looked in my 403b plan and it appears I can choose the following: Stocks/Large Cap: FID Contrafund K6 (.48% ER) VANG Inst Index Plus Stocks/Mid Cap: VANG EXT Mkt IDX INS Stocks/Small Cap: VANG SMCPVL IDX ADM VANG TOT INTL STK IS Bonds VANG TOT BD MKT INST One other thing to note is I will have a decent pension when I retire as well as social security. I plan to eventually contribute to a Roth 403b (in addition to the traditional 403b), and once I've reached the contribution limit for those, I plan to contribute to a 457b as well. I just haven't gotten to the point where I'm able to contribute that much yet, but according to my budget, I should be there in another year or so. However...

arcticpineapplecorp.

Somehow now I learned more about finance now. I like to pick individual funds and follow the market to see how are we doing with our retirement plan. Will see how much do I know about the market, long term plan for retirement, along with RMD, tax planning, Roth conversion. I keep reading the blogs and feel smarter in this area. If anything unclear , I will post the question and hopefully will get some expert advice to enrich my knowledge. Someone said “knowledge is power !,” haha. Just kidding. Thank you for the advice. SD but a life strategy fund or a target date retirement fund holds the same individual funds you're likely to hold (i.e., the 3 fund portfolio consisting of total US stock, total international stock and total US bond, with ...

arcticpineapplecorp.

I foolishly did not understand the tax implications of this move. Because of the change in funds within the brokerage account, I now have over 23,000 in long term capital gains. I'm 42 and still working - my AGI last year was 56k. Is there a way to mitigate this tax burden, or do I understand correctly that I will have to pay 15% on 23,000? My account now offers TLH. I noticed in this other post that you contribute this per year: New Annual Contributions: 30,600 Brokerage: ~5,000 Roth: 6500 Work Retirement Fund: 2200 (employer provided, automatic) 457b: 13,050 HSA: 3850 If you cut the contributions to brokerage and the Roth (if you haven't already funded it) that could give you another $9450 (out of 11,500 to brokerage and Roth) to contrib...

arcticpineapplecorp.

It's dramatic title but European real estate ETFs have gone down by 40% last 12 months. What's happening? I know market isn't strong globally and interest rates are going through the roof but elsewhere the real estate funds have been performing more in par with the other market. I see -18.85% from March 2022-March 2023 source: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=2022&firstMonth=3&endYear=2023&lastMonth=3&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&...

arcticpineapplecorp.

Our lawyer charged $3,800 for a probate we just opened. It is also a simple $60,000 estate (all Ibonds). Don't ibonds allow you to name a beneficiary? If so, shouldn't that have passed directly to beneficiaries without the need for probate at all? Was there no beneficiary named on the ibonds? Yes, you can put a co-owner or a POD beneficiary. Unfortunately, my FIL had my MIL as beneficiary who pre-deceased him. I tried to get him to change the beneficiary, but one of his "good buddies" told him that wasn't needed. same thing with life insurance. when a spouse dies remains as beneficiary on the surving spouse's life insurance, that surviving spouse's life insurance will be subject to probate at his/her death since there's no longer...

arcticpineapplecorp.

1. first in order to determine what funds to choose from you have to list all the funds you have access to in your 403b. 2. you may have other accounts you don't mention (like either Roth IRA and/or taxable accounts). We need to know that in case you'd be better off filling in some gaps there that you don't have access to in 403b. 3. whether flcnx has a high expense ratio or not depends upon how much you are charged for that in your 403b. There is not "one expense ratio". The expense ratio could be one thing for your IRA but may be different in a 403b because your employer has an agreement/contract with the fund provider so we don't know the fee. You'll have to list that so we can see what you're paying in your 403b (along with a...

arcticpineapplecorp.

here's a couple posts to help:
viewtopic.php?t=397046
viewtopic.php?t=369316

and here's the pub to read up on requesting a waiver of penalty:

https://www.irs.gov/pub/irs-pdf/i5329.pdf

from one of the posts above:

secondcor521 wrote: ↑Sun Jan 30, 2022 1:49 pm Take a look at the last page of the instructions for Form 5329 where it talks about "waiver of tax for reasonable cause" (https://www.irs.gov/pub/irs-pdf/i5329.pdf). Generally that does involve taking the missed RMD as soon as possible. My understanding is that the IRS is generally lenient especially for first time offenders - he might want to use that phrase in their attached statement if it is in fact true.

arcticpineapplecorp.

1. first in order to determine what funds to choose from you have to list all the funds you have access to in your 403b. 2. you may have other accounts you don't mention (like either Roth IRA and/or taxable accounts). We need to know that in case you'd be better off filling in some gaps there that you don't have access to in 403b. 3. whether flcnx has a high expense ratio or not depends upon how much you are charged for that in your 403b. There is not "one expense ratio". The expense ratio could be one thing for your IRA but may be different in a 403b because your employer has an agreement/contract with the fund provider so we don't know the fee. You'll have to list that so we can see what you're paying in your 403b (along with an...

arcticpineapplecorp.

RyeBourbon wrote: ↑Mon Mar 27, 2023 6:37 pm
comfy wrote: ↑Mon Mar 27, 2023 6:36 pm
arcticpineapplecorp. wrote: ↑Mon Mar 27, 2023 6:32 pm
comfy wrote: ↑Mon Mar 27, 2023 5:42 pm Does anyone know any implications with it?
tax advantaged account (IRA/401k/Roth IRA) or taxable account?
In a Roth IRA.
Should be no implications then; just set it to reinvest dividends.

RyeBourbon is correct.

welcome to the group comfy.

arcticpineapplecorp.

PatrickA5 wrote: ↑Thu Mar 23, 2023 2:02 pm Our lawyer charged $3,800 for a probate we just opened. It is also a simple $60,000 estate (all Ibonds).

Don't ibonds allow you to name a beneficiary? If so, shouldn't that have passed directly to beneficiaries without the need for probate at all? Was there no beneficiary named on the ibonds?

arcticpineapplecorp.

is the 403b pretax or Roth 403b or do you have both (I have both pretax 457b and Roth 457b)?

arcticpineapplecorp.

comfy wrote: ↑Mon Mar 27, 2023 5:42 pm Does anyone know any implications with it?

tax advantaged account (IRA/401k/Roth IRA) or taxable account?

arcticpineapplecorp.

I agree with your synopsis.

Since she received more scholarship/stipend than the cost of qualified expenses you are looking at the excess as income right?

arcticpineapplecorp.

Opera Lover wrote: ↑Sun Mar 26, 2023 4:00 pm For reducing our risk, they would charge 1% annually. (Of course, in exchanging the taxable part of our portfolio, we would have pay taxes on about $200,000 of capital gains.)

I don’t quite understand why if we’re 99% sure of not outliving our money, we should move our money to a less risky allocation that’s so expensive.

pretty simple why:

Source

follow the money.

arcticpineapplecorp.

“Don't ask the barber whether you need a haircut,” --Warren Buffett 1994

arcticpineapplecorp.

The more I did into this the more questions arise. 1. Once I select a cost basis on a specific account do I need to sell future funds in that account with that same cost basis? 2. If I convert stock from an IRA to a Roth is there a cost basis I should consider? 3. What about selling the stock in the Roth account and taking cash? Any cost basis consideration? Thanks again! 1. probably. why would you want to change that when SpecID gives you the greatest control regarding tax implications? 2. If you convert from IRA to Roth you will pay taxes at ordinary income rates on the amount of the conversion. Cost basis isn't relevant in an IRA/Roth IRA (usually). It's more relevant in a taxable account since the cost basis is used to determine if you...

arcticpineapplecorp.

Gifting could be perceived as "hiding assets" when it comes to getting Medicaid benefits. I'm a little puzzled by an estate attorney who would recommend gifting the house. Does she have other assets that can be relied on 100% to fully cover any medical/care expenses? Medicaid would expect the house to be sold to cover as much of her expenses first before they would start paying for annoying. If Medicaid would never be a consideration, I'd still sell the house for simplicity. As far as the medicaid question goes she has enough additional assets to cover 5 years (lookback period) at the home of her choice before Medicaid kicks in. We worked all this out with her estate lawyer. but we don't know if the OP's mom has enough funds to p...

arcticpineapplecorp.

Lawyer told me I need to be carful, as anyone on their will could make it a hassle getting my money back.

if Lawyer can't help you be careful structuring this note, how can we help?

I think the Lawyer should write up things in a way that ensures you get paid back or can at least make a claim against the estate if there's no collateral to back stop the loan, right?

arcticpineapplecorp.

Bogle's Little Book of Commonsense of Investing
William Bernstein's The Four Pillars of Investing
Ellis and Malkiel's The Elements of Investing

arcticpineapplecorp.

You should not look at the cash flow statement in isolation. It’s best to read the income statement and balance sheet in conjunction with the cash flow statement to understand what the year over year changes were and how it affects the cash flow of the company. Reading the notes would be helpful to you as well. As to your question if the company is unprofitable, the income statement shows the company is profitable. Are you looking at this particular company for your schooling or for some other reason? I hold quite a bit of their stock. I am considering buying more. That’s why I am asking. what a coincidence! I own their stock too...along with all other stocks. That's the beauty of owning the market. You get to own all the stocks and not ha...

arcticpineapplecorp.

nisiprius wrote: ↑Mon Mar 27, 2023 7:31 am I just tried it right now and it is working for me.

I haven't kept any records, but I have sometimes gotten the impression that Morningstar is glitchy on Sundays.

i just got a similar issue after I clicked on data type "10k share return". Don't know if that was the problem.

arcticpineapplecorp.

You should not look at the cash flow statement in isolation. It’s best to read the income statement and balance sheet in conjunction with the cash flow statement to understand what the year over year changes were and how it affects the cash flow of the company. Reading the notes would be helpful to you as well. As to your question if the company is unprofitable, the income statement shows the company is profitable. Are you looking at this particular company for your schooling or for some other reason? I hold quite a bit of their stock. I am considering buying more. That’s why I am asking. what a coincidence! I own their stock too...along with all other stocks. That's the beauty of owning the market. You get to own all the stocks and not ha...

arcticpineapplecorp.

In addition to whether you claim him or not, the scholarship could be considered income if he didn't use it for qualifying educational expenses because you paid the $15k tuition with the 529, not the scholarship. In order to not count the scholarship as income (taxable) he would have to have spent it on qualifying educational expenses. Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income... What are qualified educational expenses? To avoid a scholarship being subject to taxation, you’ll need to spend the funds on qualified educational expenses. Generally, this means tuition and fees required to enroll or attend the eligible educational institution. Bu...

arcticpineapplecorp.

This is really a myth. Debit cards have the same de jure protections as credit cards when run as credit. The difference is practical. When someone does a fraudulent debit purchase you’re at the mercy of dealing with the bank to put the money back while it’s all settled. With a credit card you just don’t pay. And even if the credit card company sides against you, you always have the option to never pay. Why You Should Never Use a Debit Card To Pay for Anything Debit Cards vs. Credit Cards: Consumer Protections A debit card doesn’t have the same legal protections that a credit card does. Here’s a look at the basic protections and consequences of what happens in cases of debit card fraud versus credit card fraud, courtesy of the Federal Trade...

arcticpineapplecorp.

"I want my two dollars!!" Cute. Yup! I’m gonna let the U.S. Treasury keep my $7 and move on. I just wanted to be sure that leaving a balance for a tax year, albeit a credit balance, wouldn’t have some unintended consequence. I’m now fairly well convinced that there are none and the hassle of shaking down $7 from an IRS, that still hasn’t caught up from the pandemic backlog, isn’t worth it. Moving on. i'm not encouraging you to give up at all. I'm encouraging you to be as tenacious as that newspaper delivery boy. It's your money, not the IRS's. I'd either contact the IRS if you haven't, then if they won't resolve, reach out to my congressman/woman to as j.click suggested. Might knock something loose at the IRS. Your rep is working...

arcticpineapplecorp.

This is really a myth. Debit cards have the same de jure protections as credit cards when run as credit. The difference is practical. When someone does a fraudulent debit purchase you’re at the mercy of dealing with the bank to put the money back while it’s all settled. With a credit card you just don’t pay. And even if the credit card company sides against you, you always have the option to never pay. Why You Should Never Use a Debit Card To Pay for Anything Debit Cards vs. Credit Cards: Consumer Protections A debit card doesn’t have the same legal protections that a credit card does. Here’s a look at the basic protections and consequences of what happens in cases of debit card fraud versus credit card fraud, courtesy of the Federal Trade...

arcticpineapplecorp.

Does turbo tax know you got these state refunds in 2022 because you received a 1099-G and you reported that along with other income from 2022? Box 2. State or Local Income Tax Refunds, Credits, or Offsets Enter refunds, credits, or offsets of state or local income tax of $10 or more you made to recipients. These include refunds or carryforward credits of overpayments of tax due to refundable state tax credits and incentive payments that are paid under an existing state tax law and administered by the state taxing agency. Filmmaker incentive credits, home improvement credits paid in low-income areas, and solar panel installation credits are some types of state programs which are generally reportable in box 2, to the extent a refund is paid b...

arcticpineapplecorp.

"I want my two dollars!!"

arcticpineapplecorp.

I didn't spend too much on FSMAX (current value $2800), but right now it's down a much more significant percentage (-28.75%) than FSKAX (-11.8%). this appears to be from Nov 2021 to now. thing is, if we look at a much longer time frame back to 1993 (using vanguard's total stock market index fund vs vanguard's extended market index fund) because fidelity's only goes back to 2012 what we see is this: https://i.postimg.cc/MGvQNRrL/extended.jpg Source what do you notice? there were times when extended pulled ahead of total stock market and times when it fell behind. But over the long term (30 years so far!) they've been pretty similar with total market edging out 9.55% CAGR vs extended market's 9.47%. That's a difference of 0.08%, basically ki...

arcticpineapplecorp.

i wholeheartedly agree. And especially for those of us who can't attend in person, these are the next best thing. Thanks very much.

Eric Balchunus was an amazing keynote speaker in my opinion. His slides are fantastic, so knowledgeable, funny and so enthusiastic.

Thanks to everyone who put on a great conference, especially Christine Benz who I believe was responsible for organizing the conference this year and Rick Ferri for emceeing and everyone who had a part behind the scenes in making the conference a success. As my dear old friend Badger used to say, "First class! First class!"

2022 Conference Videos

arcticpineapplecorp.

Read this excellent article by fellow boglehead Jon Luskin called Are stable value funds safe?

You'll learn why stable value doesn't mean guaranteed value.

arcticpineapplecorp.

China represents approximately 8.40% of Vanguard Total International Stock Index. Best. Tony 8.40% is 8.40% more than I want of China in any index. I think Developed Market Index countries are closer to us in many areas. I might be giving up a bit of return by eschewing China, but I can live with that. Broken Man 1999 Or maybe owning china won't make much of a difference at all. If you own 20% international and say instead you do total not developed, 8.4% of 20% means china is only 1.68% of your total equity portion. Depending on how your allocation is it could make up less than that in your whole porrfolio. Say you're 60/40 stock/bond...china then only makes up just 1% of your entire portfolio. It ain't gonna move the needle either way. A...

arcticpineapplecorp.

MarkRoulo wrote: ↑Sun Mar 26, 2023 4:20 pm
What is so confusing?

Seriously, the best thing for you to do here is nothing.

+1

Opera lover why would you want to generate $200K in capital gains for no good reason?

arcticpineapplecorp.

If you don't trust the safety and security of government bonds, how much credence does she put in SSA? Hmmm. Her biggest issue is going to be on the consumption side. Yes, opening a deductible IRA annually would help (lower taxes later), but really, her budget is going to be the issue. At worse, she ends up rooming with someone or living in a smaller studio apartment. She's by no means without any assets, but ... getting a divorce settlement 20 years ago and parking it in a bank at 0.1% is sad. Point her to Mr Money Mustache or get her the Frugal Zealot book on how to radically cut lifestyle costs. Make it super clear she's on her own here! What are the lowest cost rental options near you or other family members? I said the exact same thin...

arcticpineapplecorp.

How was your 401k invested previously?

Are you looking to invest similarly or if differently, then why?

arcticpineapplecorp.

just tried max and it's working for me. not sure what the problem is. it worked the same regardless of whether i was signed in to morninstar or not. I do notice my ending balance is different for yours but the dates appear to be the same. not sure what's up with that.

arcticpineapplecorp.

bh1 wrote: ↑Sun Mar 26, 2023 9:52 am This thread seems to be mostly an argument over the definition of "early". The "official" retirement age has always been a moving target.

that's definitely true for the French right now.

arcticpineapplecorp.

We plan to roll this account to existing IRA to make the RMD calculation less complicated. May i ask what's complicated about the rmd? Is it the 401k having pretax and after tax or is it just having two accounts? Because i believe you don't have to take rmds from every account as long as you take an rmd that is required based on the value of 12/31/xx for the total of all pretax accounts combined. You are correct for IRA rules, which allow an aggregated RMD. However 401k & 457 plans are required by law to ensure that a RMD is taken separately from each plan. 403b accounts have their own rules. https://retirementlc.com/the-dos-and-donts-of-aggregating-required-minimum-distributions/ In some cases, this makes life simpler- the 401k custod...

arcticpineapplecorp.

Robert20 wrote: ↑Sat Mar 25, 2023 6:27 pm
watchnerd wrote: ↑Sat Mar 25, 2023 4:34 pm
smooth_rough wrote: ↑Sat Mar 25, 2023 3:39 pm Russell 1000 would provide more diversified exposure by including mid-cap market. Or consider adding defensive sector fund, such as vanguard utilities fund. Or both.
Why stop at Russell 1000?

Just go total market.
or use VXF Vanguard Extended Market Index ETF

i wouldn't recommend that:

source

higher standard deviation, lower sharpe and sortino ratios, worse drawdowns and worse years for extended market and lower CAGR.

total includes the extended market, why exclude the S&P500 when you get get that PLUS the extended/completion market?

arcticpineapplecorp.

BashDash wrote: ↑Sat Mar 25, 2023 8:07 pm Fixed ! Installed new app. Set to default. Uninstalled it and went back to original. Back to working again. Thanks!

glad to hear your back in business!

arcticpineapplecorp.

BashDash wrote: ↑Sat Mar 25, 2023 3:47 pm Thanks artic for giving me hope lol! I already have the Google messages app by default....is there another one you are talking about? Google chat?

yeah, i'm using the messaging app from google.

source: https://www.google.com/search?client=fi ... rom+google

arcticpineapplecorp.

I don't see how they would be eligible for Medicare with no work history. people who don't have enough quarters earned to qualify for RSDI (retirement, survivors, disability insurance) can still qualify for SSI (supplemental Security income). These individuals in most states qualify for medicaid (state insurance) but just like a RSDI recipient who gets RSDI because of disability would be eligible for medicare after a 24 months qualifying period: https://www.ssa.gov/ssi/text-other-ussi.htm https://www.ssa.gov/disabilityresearch/wi/medicare.htm the issue of whether or not the person is elgible for medicare might have more to do with being a permanent resident alien (green card). Some might be eligible for medicare, and some may not depending...

arcticpineapplecorp.

1. context matters. If memory serves one of the reasons Jack wanted more corporates than total bond contains is because BACK THEN government bonds were paying very little and you could get some better yields from corporates. 2. Have you compared the performance of core bond vs total bond? if not: https://i.postimg.cc/ZqG1ctWg/core-bond.jpg Source i notice from 2017 until March 2020 they were neck and neck. Then since 2020 core bond has done better. So first you have to ask will the future look more like 2017-2020 or like 2020-2022? who knows. over this time period since it's inception it appears to have about the same worst drawdown and year, but because it's best year did better than total bond, that's why it's pulled ahead. past performan...

arcticpineapplecorp.

My 66 year old mom is in very bad shape retirement planning wise. I didn’t realize how bad until very recently. I plan to make another post asking for advice once I am able to get all the pertinent information from her. One quick question I have; As a divorcee can she claim my dads (65) benefit while she is still working and then switch to her benefit when she retires? My understanding is that she is entitled to half my dads benefit or her benefit, which ever is larger. While her benefit will be larger as she is planning to start withdrawing at 70+, if the option to claim half of my dads benefit now and save that money for later is available I think this would help a lot. I tried searching online for this but was having trouble getting a c...

arcticpineapplecorp.

watchnerd wrote: ↑Sat Mar 25, 2023 3:17 pm Isn't there some statistic about how the vast majority of the stock market index's returns, for any given period, is driven mostly by a handful of companies?

Yep. 4% of all companies from 1926-2017 created all the value of the market:
Bessembinder's study

arcticpineapplecorp.

Retirednurse wrote: ↑Sat Mar 25, 2023 4:20 pm We plan to roll this account to existing IRA to make the RMD calculation less complicated.

May i ask what's complicated about the rmd? Is it the 401k having pretax and after tax or is it just having two accounts? Because i believe you don't have to take rmds from every account as long as you take an rmd that is required based on the value of 12/31/xx for the total of all pretax accounts combined.

arcticpineapplecorp.

Don't think so. They don't get to take a deduction if they don't itemize and they're not donating anyway, they're paying you rent. You can donate money and get a deduction if you itemize but in this case if you're renting space that is considered income and you now have a business. Congratulations. Doesn't pass the smell test.

arcticpineapplecorp.

there are deductions in some states (mine does) and some local tax authorities that allow you to take a deduction that isn't allowed under federal for employees (not self employed) called an unreimbursed employee business expense. I have helped a few people take these deductions under our State and Local only (not federal). Some examples are mileage, union dues, clothing required to work as an employee but not worn for personal use (scrubs for nurses as an example). However, since your employer is reimbursing you that would not be considered, because it would have to be unreimbursed expenses.

if you have any other unreimbursed employee expenses check to see if that could be a deduction for your State and Local taxes.

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