Search found 636 matches

by cbeck
Tue Aug 16, 2022 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to send US$ to foreign bank account
Replies: 31
Views: 3227

Re: Best way to send US$ to foreign bank account

If the US sender can select the foreign bank, e.g. if he owns the foreign account himself, then he can save a little bit of the fee by choosing a foreign bank that has its own ABA Routing number. Major European countries like Germany and France will have a number of local banks that are simultaneously American banks with an ABA number. Here in Thailand there is only one, Bangkok Bank.

As a retiree whose SS benefits are automatically deposited I qualify as an Emeritus Member at State Department Federal Credit Union the chief benefit of which is that I can send a domestic wire for $6 instead of the usual $20. The foreign wire fee is $25. I have been doing these monthly wires for years without any problem.
by cbeck
Sun Aug 14, 2022 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Any BHs retire in France? 401k, IRA withdraw Pension and SS tax issues.
Replies: 57
Views: 7179

Re: Any BHs retire in France? 401k, IRA withdraw Pension and SS tax issues.

You apply for a one-year long stay visa which has minimal requirements such as a minimum of €15,000 income per year. You will also need to have your own health insurance for the first year. Then on arrival you apply for a carte de séjour, which is the right to remain in France. After 90 days you are eligible to be enrolled in the Sécurité Sociale, which is the national health insurance. Enrollment may take a few months after which you no longer need your private insurance, but you will want to sign up for a supplemental insurance policy, called a "mutuel" which covers what the Sécu doesn't. For five years you apply annually to renew the visa. After five years of continual residency you can apply for a permanent visa or French citi...
by cbeck
Sat Aug 13, 2022 7:19 pm
Forum: Personal Consumer Issues
Topic: Long(ish) term storage for computer files?
Replies: 66
Views: 5239

Re: Long(ish) term storage for computer files?

It's better NOT to move your long-term storage offline. Media fail over time. If your files are offline you won't notice the failure until you need the docs and then it will be too late. Better to keep them online, backed up regularly with periodic tests of the backups. You can use a program like Duplicati to back up the files end-to-end encrypted to some cheap or even free cloud storage.
by cbeck
Wed Aug 10, 2022 8:55 pm
Forum: Investing - Theory, News & General
Topic: Corrupt file in Quicken?
Replies: 16
Views: 1530

Re: Corrupt file in Quicken?

Have you tried opening a previous version of the file? Yes. That’s exactly how I’ve been “recovering” and then when I close the recovered file and reopen it, it’s corrupt again. Quicken since 1990; no corruption issues today, or ever for that matter. Just curious - what is the size of your QDF file? Some evidence online about 150MB being a limit where corruption may start to occur. (Mine is 36MB and no issues here) Similarly, any register with at over 16,000 transactions? 16K (most likely precisely 16,384 entries) seems to run up against some variable size limit in the code, again according to some online sources. Good luck! My Quicken data file is over 8 GB for years now and has never been corrupted. 8 GB? Wow. Mine is only 49 MB and I ha...
by cbeck
Tue Aug 09, 2022 3:34 pm
Forum: Investing - Theory, News & General
Topic: Corrupt file in Quicken?
Replies: 16
Views: 1530

Re: Corrupt file in Quicken?

BogleKev wrote: Tue Aug 09, 2022 3:22 pm
Longdog wrote: Tue Aug 09, 2022 12:10 pm
jebmke wrote: Tue Aug 09, 2022 12:06 pm Have you tried opening a previous version of the file?
Yes. That’s exactly how I’ve been “recovering” and then when I close the recovered file and reopen it, it’s corrupt again.
Quicken since 1990; no corruption issues today, or ever for that matter.

Just curious - what is the size of your QDF file? Some evidence online about 150MB being a limit where corruption may start to occur. (Mine is 36MB and no issues here)

Similarly, any register with at over 16,000 transactions? 16K (most likely precisely 16,384 entries) seems to run up against some variable size limit in the code, again according to some online sources.

Good luck!
My Quicken data file is over 8 GB for years now and has never been corrupted.
by cbeck
Mon Aug 08, 2022 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Any BHs retire in France? 401k, IRA withdraw Pension and SS tax issues.
Replies: 57
Views: 7179

Re: Any BHs retire in France? 401k, IRA withdraw Pension and SS tax issues.

I am planning a move to France in the near future. France is indeed the best location for an American expat, especially if a substantial portion of your assets are in a TIRA and/or a Roth IRA. As others have pointed out, these sources of income along with SS are considered "national pension" schemes by the fisc and, by terms of the treaty, we won't be taxed on them. But it's even better than that. After 90 days in France you will be eligible to join the Sécurité Sociale healthcare system. The amount you pay for the healthcare insurance depends on your taxable income, i.e. not including SS and distributions from your TIRA and Roth IRA. If those are your only sources of income then the Sécu will be free. However, the Sécu only cover...
by cbeck
Mon Aug 08, 2022 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Banking in the US when outside of the US?
Replies: 41
Views: 3577

Re: Banking in the US when outside of the US?

rick2427 wrote: Mon Aug 08, 2022 10:42 am Hi Cbeck, regarding your suggestion to OP regarding using Google Voice account to get SMS 2fa codes on your cell phone while overseas, it is my understanding that Many financial institutions will now only send their 2FA codes to true mobile phone numbers. Google Voice numbers are land lines, with the text messaging function spliced on via a third-party messaging gateway.

Is this still working for you overseas while trying to access brokerage accounts at Vanguard/Fidelity/Schwab etc?

Thanks!
It's true that some institutions will no longer send SMS messages to Google Voice. So far, this hasn't affected any of my accounts.
by cbeck
Mon Aug 08, 2022 1:52 am
Forum: Personal Finance (Not Investing)
Topic: Banking in the US when outside of the US?
Replies: 41
Views: 3577

Re: Banking in the US when outside of the US?

4. While still in the US open an account at State Department Federal Credit Union, sdfcu.org. They will actually open an account for a US expat , but it's a little easier to do while you are still stateside. They wouldn't do one for me as an expat unless I went to a local branch which is out East someplace I think. So yeah, maybe do it stateside especially if you don't have a US address you can use. I'm not sure they'll open an account if you're not in the US. When you fill out their online application you have to certify that you are in the US. "You acknowledge and agree that you are currently located within the territorial boundaries of the United States, Canada, or the United States territories of Puerto Rico, Guam, and the Virgin ...
by cbeck
Sun Aug 07, 2022 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Banking in the US when outside of the US?
Replies: 41
Views: 3577

Re: Banking in the US when outside of the US?

You can also call and ask, as a new customer, hypothetically, if you were to take an expat assignment in country y, would your account be restricted? Do so from a number that's not linked to your account, since 800 numbers get your phone # even if you've blocked caller ID. The answer depends both on your bank/brokerage, and on which country you're going to be in. I recently called fidelity about New Zealand, and they had to look up their policy for that particular country, and said it's on their restricted list where you can maintain an account, but can't make new purchases. At Schwab, for New Zealand, the accounts would need to be closed. TIAA bank said "no problem," you just need a US address right now to open an account, and a...
by cbeck
Sun Aug 07, 2022 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Banking in the US when outside of the US?
Replies: 41
Views: 3577

Re: Banking in the US when outside of the US?

ObiQuiet wrote: Sun Aug 07, 2022 8:19 pm But, why?? If one retires overseas, does one really have to close and move retirement accounts, et al??
There is a good reason why US banks and brokers generally don't want expats as customers. Doing so would expose the institution to the regulatory requirements of the foreign jurisdiction since the institution would be doing business in the foreign country. Closing or freezing the accounts of US expats lends credibility to their stance of avoiding doing business outside the US.

I speak from experience.
by cbeck
Sun Aug 07, 2022 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Banking in the US when outside of the US?
Replies: 41
Views: 3577

Re: Banking in the US when outside of the US?

In general, US banks and brokerages will either freeze or close out your account if they get wind that you no longer reside in the US. There are some exceptions and some workarounds as follows: 1. open an account with a commercial mail receiving agent in a US state that does not have an income tax. I use https://app.sbimailservice.com/. 2. While you are still resident in the US change your registered address with your financial institutions to the CMRA address. 3. While still in the US, get a Google Voice account that will enable you to make and receive US calls on your cellphone. Importantly, you will also be able to receive SMS messages, such as the authentication codes sent by banks. 4. While still in the US open an account at State Depa...
by cbeck
Thu Aug 04, 2022 11:15 pm
Forum: Personal Consumer Issues
Topic: hearing aids
Replies: 49
Views: 4690

Re: hearing aids

Hearing aids are wonderful devices. I should have gotten mine years earlier. I have the Costco KS 9.0 aids now which I like very much because of the bluetooth capability. Having a phone conversation with the aids and my android phone on bluetooth is the only time I can fully enjoy talking on the phone. Consumer Reports found a few years ago that 75% of users overwhelmingly like their HAs even though 40% of the aids were not correctly fitted. That said, hearing aids are at the same time a scam. Unlike all other consumer electronics, the prices of hearing aids have been going up steadily for years and it isn't because there is anything special about the technology since digital signal processors are widely used in cell phones and headphones, ...
by cbeck
Sat Jul 30, 2022 1:04 am
Forum: Non-US Investing
Topic: Moving from US to Canada - Accessing my Vanguard account with a Canadian address
Replies: 11
Views: 2377

Re: Moving from US to Canada - Accessing my Vanguard account with a Canadian address

cbeck, appreciate the idea. It's certainly worth considering, though it would require some diligence to avoid tripping up and leaving a digital trail. Other reason I'm not gung-ho about it yet is that scouring various threads on this topic, other risks of providing a US address as an expat have been cited, including periodic reviews by brokerages of customers' residency status and potential future data exchanges between the CRA and the IRS that could give the game away. Perhaps the odds of those things happening are slim, but you could say I'm too chicken and too averse to dealing with the fallout while in Canada to go this route, though I haven't ruled it out entirely. I certainly am not suggesting that you conceal your physical address f...
by cbeck
Sat Jul 30, 2022 12:56 am
Forum: Non-US Investing
Topic: Moving from US to Canada - Accessing my Vanguard account with a Canadian address
Replies: 11
Views: 2377

Re: Moving from US to Canada - Accessing my Vanguard account with a Canadian address

bagle wrote: Fri Jul 29, 2022 9:20 am
cbeck wrote: Wed Jul 27, 2022 4:44 am Steps to do before you move:

6. Forget VPNS. They leak information. Create a virtual machine on Google Cloud Platform or AWS, etc. in the US. Always connect to that vm and from there login to your Vanguard account.
Is there a good step-by-step tutorial for an IT-challenged person such as myself to follow? I've gotten this far using Google's help, but not sure what "machine series" to choose or how to actually access Vanguard once it's set up.

https://cloud.google.com/compute/docs/g ... s?hl=en_US
There are loads of tutorials on the subject. Just search on youtube "howto vm google cloud platform" for example.
by cbeck
Wed Jul 27, 2022 4:44 am
Forum: Non-US Investing
Topic: Moving from US to Canada - Accessing my Vanguard account with a Canadian address
Replies: 11
Views: 2377

Re: Moving from US to Canada - Accessing my Vanguard account with a Canadian address

Steps to do before you move: 1. Get a commercial mail receiving agent in a US state that doesn't have an income tax. 2. Change your address on your Vanguard account to your CMRA address. 3. Never, under any circumstances even consider providing your physical address to Vanguard. They are not likely to ask. 4. Open accounts at US banks that won't close your account if they ever find out that you have expatted, e.g. USAA Federal Savings Bank (if you have military ties) and/or State Department Federal Credit Union. The more banks the better. 5. Do money transfers only between your US banks and Vanguard, never with your Canadian banks. 6. Forget VPNS. They leak information. Create a virtual machine on Google Cloud Platform or AWS, etc. in the U...
by cbeck
Mon Jul 18, 2022 5:18 am
Forum: Personal Investments
Topic: Vanguard and Fast Identity Online (FIDO)
Replies: 2
Views: 642

Vanguard and Fast Identity Online (FIDO)

Has Vanguard made any announcement about supporting FIDO logins with passkeys?
by cbeck
Sun Jun 26, 2022 8:02 pm
Forum: Personal Consumer Issues
Topic: Can you recommend a good financial account program for Mac?
Replies: 39
Views: 3652

Re: Can you recommend a good financial account program for Mac?

The best home accounting program is still Quicken for Windows. You could run that version on a Mac by install Parallels to create a Windows virtual machine. Neither the Mac nor the online version of Quicken has all the functionality of the Windows versions.
by cbeck
Mon Jun 20, 2022 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: how to schedule a transfer of wealth on death to a Mexican national
Replies: 1
Views: 431

how to schedule a transfer of wealth on death to a Mexican national

So, my friend who lives part time in Mexico has a problem. She has asked a bilingual friend, who is a Mexican national, to handle some transactions for her after her death or the death of her husband whichever occurs later. We'll call her Juana. Juana, whom my friend trusts, has agreed. My friend would like to compensate her immediately after the death of the last member of the couple, but without waiting until the assigned, somewhat onerous transactions are completed. My friend's financial assets are almost entirely in the US. We have considered these possible solutions, each of which has drawbacks: 1. Name Juana as the secondary beneficiary on a TOD brokerage or bank account in the US with her husband as primary beneficiary. The drawback ...
by cbeck
Mon Jun 20, 2022 8:24 pm
Forum: Personal Consumer Issues
Topic: What is the BEST thing you spent money on?
Replies: 461
Views: 69269

Re: What is the BEST thing you spent money on?

Best trip, by far: Galapagos Best purchase, by far: Costco KS9 hearing aids Can you expand on your Galapagos trip? We recently returned from Costa Rica, another "best trip" vacation. Thank you. Galapagos will be a memorable trip for you as it was for us. Most visitors go for one or two weeks on a boat which takes you to the next destination overnight while you sleep. The price ranges of the boats vary, but they are all good apparently. We were on La Pinta which had just been refurbished at the time. We went in January, which was a good choice because it was not a school holiday so there were no little kiddies. Also, there were no mosquitoes in January, a big plus. The downside of the winter season is that you don't get to see muc...
by cbeck
Wed May 04, 2022 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: does a variable annuity get a stepped-up basis on inheritance?
Replies: 4
Views: 617

does a variable annuity get a stepped-up basis on inheritance?

My friend owns a Transamerica variable annuity with substantial capital gains. She intends to convert part of it to an income annuity naming her brother as the annuitant. The advice we have is that as the owner she would be on the hook for the income tax due on the gains portion of each payout, which is unfortunate since she is in a high tax bracket while her brother is in a low bracket. She could transfer ownership of the variable annuity outright to her brother, but in that case she would be taxed in the year of the transfer on the entire amount of the gain. We have two questions: 1. Is there any way to transfer the tax burden to her brother? 2. If she were to go ahead and convert part of the variable annuity to an income annuity with her...
by cbeck
Mon Jan 03, 2022 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

You are focusing much too narrowly on this RMD issue. Presumably there are going to be plenty of other assets and accounts transferred to her as part of your death. As such, it should be very unlikely she’d actually need to withdraw from the Roth thus satisfying Alan’s recommendation of combining only if she’s pretty darn sure she won’t need the money. That said, you can combine it just before the decedent would have reached 72.5 and thus preserve both the ability to withdraw Willy Nilly and combine it into the non-RMD generating individual account. Your assumptions do not apply. Other than some checking accounts, 100% of my assets are in a TIRA and a Roth IRA, i.e. no house, no car, etc. And the fact is, I am now 72. This is not the theor...
by cbeck
Mon Jan 03, 2022 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

You are focusing much too narrowly on this RMD issue. Presumably there are going to be plenty of other assets and accounts transferred to her as part of your death. As such, it should be very unlikely she’d actually need to withdraw from the Roth thus satisfying Alan’s recommendation of combining only if she’s pretty darn sure she won’t need the money. That said, you can combine it just before the decedent would have reached 72.5 and thus preserve both the ability to withdraw Willy Nilly and combine it into the non-RMD generating individual account. Your assumptions do not apply. Other than some checking accounts, 100% of my assets are in a TIRA and a Roth IRA, i.e. no house, no car, etc. And the fact is, I am now 72. This is not the theor...
by cbeck
Mon Jan 03, 2022 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

The ages that I listed, 61 and 50, were just examples for discussion of the principles. In fact, I am 72 now and she is not yet 50. So, with an "inherited Roth IRA" she would face immediate RMDs. I really do get it that if she does a spousal transfer of my Roth assets that then distributions of the earnings would be subject to tax and penalty prior her age of 59.5. But not distributions of the Roth basis, which for some reason you are just ignore. My expectation is just the Roth basis would be enough to sustain her living if she is as careful as I expect her to be. So, why be saddled with RMDs for life if it can be avoided? In your initial post, you presented a scenario involving an inherited Roth IRA, and the first "fact&qu...
by cbeck
Mon Jan 03, 2022 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

Lee_WSP wrote: Mon Jan 03, 2022 12:26 pm You are focusing much too narrowly on this RMD issue. Presumably there are going to be plenty of other assets and accounts transferred to her as part of your death. As such, it should be very unlikely she’d actually need to withdraw from the Roth thus satisfying Alan’s recommendation of combining only if she’s pretty darn sure she won’t need the money.

That said, you can combine it just before the decedent would have reached 72.5 and thus preserve both the ability to withdraw Willy Nilly and combine it into the non-RMD generating individual account.
Your assumptions do not apply. Other than some checking accounts, 100% of my assets are in a TIRA and a Roth IRA, i.e. no house, no car, etc.

And the fact is, I am now 72.
by cbeck
Mon Jan 03, 2022 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

A surviving spouse IRA beneficiary is not subject to the 10-year rule. Instead, RMDs can be taken over the life expectancy of the surviving spouse and would not begin until the year the deceased spouse would have reached age 72. Also, if first treated as an inherited IRA, at any time in the future the surviving spouse can re-title or rollover the inherited IRA into an IRA owned by the surviving spouse. We're talking about the Roth IRA here, not the TIRA. Inheriting a Roth IRA as an IRA makes no sense, since the taxable distributions would then have been taxed twice. Inheriting a Roth IRA as an "inherited Roth IRA" is not much better since it would be subject to RMDS. Taking it as an "inherited IRA" is the worst, since i...
by cbeck
Sun Jan 02, 2022 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

...what would those other methods be? If my Roth has a substantial basis and she is not too far off from 59.5 then her best option is to inherit my Roth as her own, take distributions up to the amount of the total of her own Roth basis plus my Roth basis. Assuming that amount is enough to tide her over to 59.5 then that would preserve the remaining Roth as long as possible. The alternative is for her to inherit my Roth as an "inherited Roth" in which case, since I am already older than 59.5, she could take any amount of distributions without penalty, but then she would have to drain the account completely within ten years. So, not optimal for the long run. A surviving spouse IRA beneficiary is not subject to the 10-year rule. Ins...
by cbeck
Sat Jan 01, 2022 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

mikeyzito22 wrote: Sat Jan 01, 2022 10:50 pm
Just my two cents, but I would be more worried about having the right asset allocation than the tax treatment once I kick the bucket.
My own preference is to worry about everything.
by cbeck
Sat Jan 01, 2022 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

...what would those other methods be? If my Roth has a substantial basis and she is not too far off from 59.5 then her best option is to inherit my Roth as her own, take distributions up to the amount of the total of her own Roth basis plus my Roth basis. Assuming that amount is enough to tide her over to 59.5 then that would preserve the remaining Roth as long as possible. The alternative is for her to inherit my Roth as an "inherited Roth" in which case, since I am already older than 59.5, she could take any amount of distributions without penalty, but then she would have to drain the account completely within ten years. So, not optimal for the long run. A surviving spouse IRA beneficiary is not subject to the 10-year rule. Ins...
by cbeck
Sat Jan 01, 2022 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

Your Roth basis is the sum of the after-tax contributions you have made to the Roth plus the conversions that are at least five years old. If you are less than 59.5 years old and you take a distribution then if the distribution exceeds your Roth basis then you owe a penalty on it. That's not quite correct. Your Roth basis is the sum of regular contributions and conversion contributions, regardless of whether the conversion contributions are five years old. If you take a nonqualified distribution prior to age 59.5 that contains conversion contributions that are less than five years old, the conversion amounts contained in the distribution may be subject to a 10% penalty, but not subject to tax because the conversion amount distributed is a ...
by cbeck
Sat Jan 01, 2022 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

Roth distributions are done in the following order: 1. Contributions 2. Conversions 3. Earnings Yes, due to ordering rules, contributions are automatically taken first. So the answer to my question is that, after my taking a fully qualified distribution of $1000 at age 61, my Roth basis has become $4000 which is the Roth basis that my age 50 wife inherits if she chooses to receive my Roth IRA as her own and not as an "inherited Roth," correct? Correct. I believe in this scenario if you treat the Roth as your own (as a spouse) than the same distribution rules apply. There are other ways to do this however, and you are not dead (yet). Assuming you and I mean the same thing by "this," what would those other methods be? If ...
by cbeck
Sat Jan 01, 2022 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

I am not sure that I fully understand Roth basis. So, here's scenario # 1: my age: 60 my Roth contributions: How does "basis" apply to Roth? Are you referring to your basis in a tIRA for purposes of a Roth conversion? Your Roth basis is the sum of the after-tax contributions you have made to the Roth plus the conversions that are at least five years old. If you are less than 59.5 years old and you take a distribution then if the distribution exceeds your Roth basis then you owe a penalty on it. Interesting; the only references I'd seen until now have considered contributions and basis being the same (assuming no withdrawals have occurred.) I can see differentiating five-plus-year-old contributions, although I had never considered...
by cbeck
Sat Jan 01, 2022 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

I am not sure that I fully understand Roth basis. So, here's scenario # 1: my age: 60 my Roth contributions: How does "basis" apply to Roth? Are you referring to your basis in a tIRA for purposes of a Roth conversion? Your Roth basis is the sum of the after-tax contributions you have made to the Roth plus the conversions that are at least five years old. If you are less than 59.5 years old and you take a distribution then if the distribution exceeds your Roth basis then you owe a penalty on it. Interesting; the only references I'd seen until now have considered contributions and basis being the same (assuming no withdrawals have occurred.) I can see differentiating five-plus-year-old contributions, although I had never considered...
by cbeck
Sat Jan 01, 2022 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

mikeyzito22 wrote: Sat Jan 01, 2022 9:48 pm
DIFAR31 wrote: Sat Jan 01, 2022 9:45 pm Roth distributions are done in the following order:
1. Contributions
2. Conversions
3. Earnings
Yes, due to ordering rules, contributions are automatically taken first.
So the answer to my question is that, after my taking a fully qualified distribution of $1000 at age 61, my Roth basis has become $4000 which is the Roth basis that my age 50 wife inherits if she chooses to receive my Roth IRA as her own and not as an "inherited Roth," correct?
by cbeck
Sat Jan 01, 2022 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

Re: how to calculate Roth Basis?

tibbitts wrote: Sat Jan 01, 2022 9:34 pm
cbeck wrote: Sat Jan 01, 2022 9:23 pm I am not sure that I fully understand Roth basis. So, here's scenario # 1:

my age: 60
my Roth contributions:
How does "basis" apply to Roth? Are you referring to your basis in a tIRA for purposes of a Roth conversion?
Your Roth basis is the sum of the after-tax contributions you have made to the Roth plus the conversions that are at least five years old. If you are less than 59.5 years old and you take a distribution then if the distribution exceeds your Roth basis then you owe a penalty on it.
by cbeck
Sat Jan 01, 2022 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: how to calculate Roth Basis?
Replies: 34
Views: 3073

how to calculate Roth Basis?

I am not sure that I fully understand Roth basis. So, here's a scenario: my age: 61 my Roth contributions: $5000 value of Roth: $10,000 age of Roth: > 5 years conversions: none So, my Roth basis is $5000. Any distribution I take is fully qualified, so no tax, no penalty. If I take a distribution of $1000 this year does my Roth basis remain $5000 or does it become $4000? Do distributions always come preferentially out of contributions and only out of earnings once contributions have been exhausted? The answer to my question doesn't matter to me, but if I die this year and my wife, age 50, inherits my Roth, which she chooses to take as her own Roth, not as an "inherited Roth," then she inherits my Roth basis. So, it matters what my ...
by cbeck
Wed Dec 29, 2021 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: WHY does it take so LONG to electronically transfer funds?!
Replies: 60
Views: 7259

Re: WHY does it take so LONG to electronically transfer funds?!

Yes, the US is way behind. They would still be pushing paper checks around the country for settlement if it weren't for 911.

Here in Thailand, any account holder at any bank can transfer funds to any other account at any other Thai bank instantly for free using the bank's website, a mobile app, or any atm. And it's been like that for at least the last 15 years of my experience here.
by cbeck
Thu Dec 09, 2021 8:10 pm
Forum: Personal Consumer Issues
Topic: Running Linux vs Other OS?
Replies: 173
Views: 16199

Re: Running Linux vs Other OS?

I think the optimal setup, if you need to runs Windows which I do, is to run linux on the bare metal. Then download the free Oracle VirtualBox hypervisor which will let you setup up one or more windows vms. Managing Windows as a vm has a lot of advantages. For instance, whenever doing anything risk such as updating software, you just take a snapshot in the VirtualBox manager before doing so. Then, if the update is worse than the previous version you just revert to the snapshot. Reverting to a snapshot has saved me from file system corruption due to a crash on more than one occasion, although that is not guaranteed to work. It's also easy to backup and restore a Windows vm on linux, since the files are just a bunch of linux files for which t...
by cbeck
Mon Dec 06, 2021 6:08 pm
Forum: Personal Investments
Topic: Maxifi
Replies: 63
Views: 9340

Re: Maxifi

The transaction under consideration would require a large enough down payment that she would have had to take a distribution from a tax-deferred account. I ran the scenario and all looked okay, but when I checked to see where Maxifi took the down payment from, none of her assets showed any large decrement. In discussions with Maxifi I realized that having a resolution of one year means effectively that Maxifi assumes that all transaction for the year occur on the same day. So, her tax-deferred account never got decremented for the down payment of her new place, because Maxifi took that amount out of the proceeds of the sale of her current apartment. Maybe off-topic - but out of curiosity - why take the distribution from tax-deferred? Perso...
by cbeck
Sun Dec 05, 2021 10:34 pm
Forum: Personal Investments
Topic: Maxifi
Replies: 63
Views: 9340

Re: Maxifi

I used Esplanner for many years and switch to Maxifi this year. I like them both since they take the most variables into account of any financial planning software to calculate the future consequences based on my assumptions. So, you get a panoramic view of the rest of your financial life. However, I have found a couple of limitations, one bug and one unexpected side effect of their method of calculation. The tech support was very responsive and helpful. They acknowledged the bug which only occurs in a boundary condition that few users will step on. The other problem was not a defect in their software, but did have real consequences for the scenario I was evaluating. They make the simplifying assumption that their results will have a resolu...
by cbeck
Fri Dec 03, 2021 4:57 pm
Forum: Investing - Theory, News & General
Topic: The risk of DEATH ---- under-discussed on this forum?
Replies: 258
Views: 22762

Re: The risk of DEATH ---- under-discussed on this forum?

Blue456 wrote: Thu Dec 02, 2021 4:57 pm Your life insurance company can probably pretty accurately calculate most likely year of death.
Not true at all. What they can calculate to a high degree of accuracy is the mortality rate of the cohort you are in. They are no more able to calculate your own life span than you are.
by cbeck
Thu Nov 18, 2021 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Banktivity vs Quicken for Mac
Replies: 24
Views: 4510

Re: Banktivity vs Quicken for Mac

Quicken for Mac doesn't provide all the functionality of the Windows version. For instance, there is no Home, Business, and Rental Property version for Mac.

You could run the Windows version on your Mac by downloading the free VirtualBox, a free copy of Windows from Microsoft, and installing a Windows virtual machine on your Mac. Youtube has videos on how to do all that. We run Quicken on Windows, in a Windows vm on Virtualbox on Mac and in a Windows vm on Google Cloud Platform. Works fine on all these platforms.
by cbeck
Sat Nov 13, 2021 7:56 pm
Forum: Personal Consumer Issues
Topic: What would you do? [going to Cancun]
Replies: 79
Views: 7630

Re: What would you do? [going to Cancun]

It's a tough question. We are regular visitors to the area, usually Playa del Carmen or Tulum, and have always felt safe, definitely safer than in some of our close by U.S. cities. In a normal, pre COVID year there are more than 6 million international visitors to the area. One death is too many, but the likelihood of dying due to gang violence is infinitesimal. The risk of serious injury from any source is always infinitesimal. I have read that the risk of being in a accident if you drive home drunk tonight "just this one time" is 0.001%. If true, that's pretty negligible, but no one is going to recommend it. It would be hard to come up with a less reliable basis on which to assess the risk of crime than the "feelings"...
by cbeck
Sat Nov 13, 2021 7:08 pm
Forum: Personal Investments
Topic: Changing jobs: retirement account stays in Fidelity, should I roll over?
Replies: 15
Views: 1741

Re: Changing jobs: retirement account stays in Fidelity, should I roll over?

Is there any other advantage or disadvantage I should be aware of? 401ks typically have high fees which are not transparent. So, it's almost always cheaper to roll it into an IRA at whatever broker. 401ks, at least the ones I invested so far, have very small fees, almost zero. My Fidelity 401k, along with BrokerageLink account I invest in, have 0.03% for VTSAX equivalent (I know there is a zero-fee Fidelity fund for this), and all others are below 0.07%. Facebook will be similar. Big tech don't f their employees like this. Rolling into IRA, as far as I know, is a taxable event. Does everyone recommend rolling 401k to IRA? I do have some gains last 5 years (also, I'm maxing out both 401K and mega backdoor roth, so it is more like I'm contri...
by cbeck
Sat Nov 13, 2021 6:29 pm
Forum: Personal Consumer Issues
Topic: Is it very hard to learn Spanish?
Replies: 81
Views: 9387

Re: Is it very hard to learn Spanish?

Yes, learning Spanish is very hard. All languages are hard to learn, although it's true that some are harder than others.

If you are not willing to work at it for years then choose another hobby.
by cbeck
Mon Nov 08, 2021 4:21 pm
Forum: Personal Investments
Topic: Changing jobs: retirement account stays in Fidelity, should I roll over?
Replies: 15
Views: 1741

Re: Changing jobs: retirement account stays in Fidelity, should I roll over?

ThisJustIn wrote: Mon Nov 08, 2021 9:40 am Is there any other advantage or disadvantage I should be aware of?
401ks typically have high fees which are not transparent. So, it's almost always cheaper to roll it into an IRA at whatever broker.
by cbeck
Sun Nov 07, 2021 3:28 pm
Forum: Personal Consumer Issues
Topic: What would you do? [going to Cancun]
Replies: 79
Views: 7630

Re: What would you do? [going to Cancun]

Mexico has a homicide rate of 29.07 per hundred thousand. The US rate is 4.96. I wouldn't have booked that vacation.
by cbeck
Sat Nov 06, 2021 8:39 pm
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 5802
Views: 574665

Re: What are you listening to now

Thanks, I'll give it a try. I read his book a few years ago. I've seen the docudrama and the documentary. All unbelievable, and it's getting weirder as they jockey in the courts. I believe I have not heard an "I'm sorry" from anyone involved, from Holmes, to Kissinger, Schultz, Rupert Murdoch, Boies, but esp Holmes. No remorse or apology from anyone. Carreyroo, the WSJ reporter, deserves kudos for his work. Wait til you hear Carreyrou's latest, including childbirth as a legal tactic, fake Ebola tests, phantom audited financials, and best of all, "Smart people picked off Mado[ff], but not you." You'll never hear an apology from any on that list, most of whom are either borderline or out-and-out psychopaths. However, you ...
by cbeck
Sat Nov 06, 2021 3:34 am
Forum: Investing - Theory, News & General
Topic: Does hyperinflation really help debtors?
Replies: 24
Views: 2472

Re: Does hyperinflation really help debtors?

It's my understanding that during the German hyperinflation in 1923-1924 all of the mortgages in the country were effectively wiped out. Good for the mortgagors, not so much for the mortgagees.
by cbeck
Fri Nov 05, 2021 1:02 am
Forum: Non-US Investing
Topic: Retirement planning for Expat to Bolivia
Replies: 19
Views: 3139

Re: Retirement planning for Expat to Bolivia

My wife and I retired in 2011 to Thailand where we have been living ever since. I benefitted from doing financial planning using a program whose current version is called Maxifiplanner from maxifiplanner.com. It allows you to input a wide variety of variables including investment returns, inflation, taxes, housing costs, and many more. You can then run scenarios comparing, for instance, retiring in Bolivia versus retiring in Missouri, if you wish. I found it very helpful since although we are all acting on assumptions that we make about the future the financial implications of which are too complicated for us to calculate in our heads. Retiring in one's late 30's is pretty young and will require a lot more in funding. I was in my 60's when ...
by cbeck
Fri Oct 29, 2021 12:42 am
Forum: Personal Finance (Not Investing)
Topic: I Bought Myself Quicken - Now What?
Replies: 49
Views: 31556

Re: I Bought Myself Quicken - Now What?

This came up in this or another recent thread. With the mobile app or web app you are able to view transactions and balances and enter transactions that will be synced with the main Quicken program. Since I download transactions from all accounts, I only need to enter cash transactions which are far and few between these days for me. I do have to adjust categories for some transactions that are downloaded. When last I checked Quicken mobile did not allow entering transactions in alternate currencies and so is useless for me. Similarly, what I understand is that Quicken on the Web is not the complete Home & Business Quicken that we use. So, the most complete solution for me is to synch the Quicken directories efficiently among the three...