Search found 71 matches

by 168gr
Thu Jan 27, 2022 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-r help
Replies: 21
Views: 2416

Re: 1099-r help

ch016684 wrote: Tue Jan 25, 2022 7:12 pm So, I think the form is filled out correctly and this is a turbo tax bug. I ignored the message for now, and the results still seem correct on my tax forms.
Having the exact same issue with my annual SEP --> TSP rollover.

Upon completing the section, my tax liability didn't change though, so I think it's doing the right things in the background.

Just a "cosmetic" bug, I think.
by 168gr
Mon Nov 30, 2020 8:02 pm
Forum: Personal Investments
Topic: Can I max out $19.5K pretax to both a 403b and TSP at the same time?
Replies: 12
Views: 1612

Re: Can I max out $19.5K pretax to both a 403b and TSP at the same time?

The Thrift Savings Plan is treated like a 401(a) plan: https://www.law.cornell.edu/uscode/text/5/8440# As noted above, the 457(b) annual $19,500 contribution limit is in addition to the elective contribution limit for the qualified plans identified above. So an individual participating in both plans can contribute up to $39,000 this year, on top of whatever the employer contributes. Edit to add: There are two types of 457(b) plan, governmental and not. The governmental 457(b) is an excellent option. Non-governmental plans are treated differently in that the assets are held by a private entity and are not protected from bankruptcy. Thank you. It's non-governmental (a nonprofit hospital system). I'm not too worried about bankruptcy in the ne...
by 168gr
Mon Nov 30, 2020 11:59 am
Forum: Personal Investments
Topic: Can I max out $19.5K pretax to both a 403b and TSP at the same time?
Replies: 12
Views: 1612

Re: Can I max out $19.5K pretax to both a 403b and TSP at the same time?

lakpr wrote: Mon Nov 30, 2020 11:14 am This isn't an answer to your specific question, but tangentially related. Where there are 403(b) plans, usually there are also 457(b) plans. If you have access to such a 457(b) plan, and you have the ability to do so, you can defer an additional $19.5k (and catchup contributions, depending on your age) to the 457(b) plan.
Oh really ...

They do in fact have a "457 Fidelity pre-tax" line item on the benefits election web page. I'll have to talk to them about that.
by 168gr
Mon Nov 30, 2020 8:18 am
Forum: Personal Investments
Topic: Can I max out $19.5K pretax to both a 403b and TSP at the same time?
Replies: 12
Views: 1612

Re: Can I max out $19.5K pretax to both a 403b and TSP at the same time?

The only IRS document I can find is

https://www.irs.gov/retirement-plans/ho ... ement-plan

which says the $19.5K
limit must be aggregated for these plan types:

401(k)
403(b)
SIMPLE plans (SIMPLE IRA and SIMPLE 401(k) plans)
SARSEP
But they don't address TSP specifically.

I'm assuming I'm outta luck but I'd love to double my pretax savings.
by 168gr
Mon Nov 30, 2020 7:11 am
Forum: Personal Investments
Topic: Can I max out $19.5K pretax to both a 403b and TSP at the same time?
Replies: 12
Views: 1612

Can I max out $19.5K pretax to both a 403b and TSP at the same time?

I'm an active duty military physician. I max out TSP contributions.

I just started a moonlighting job that pays me by W-2. This is the first such job I've had that isn't a 1099. With the 1099 jobs, I have always contributed to a SEP IRA. No issue with that, beyond annual rollover into TSP so I can backdoor Roth without any pro rata shenanigans.

The new job has default elected me to 1% contributions to a pretax 403(b) at Fidelity. (There is no match.)

I'd like to max that out too, but I can't seem to be able to confirm that I'm allowed $19,500 pretax from military income to the TSP and ALSO another $19,500 pretax to the 403(b) from the moonlighting income.

Can I do this, or is it $19,500 total to all employer pretax accounts? Thank you.
by 168gr
Fri Mar 13, 2020 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: multiple 1099 sources - can a loss in one offset gains in another?
Replies: 3
Views: 413

Re: Tax Question: multiple 1099 sources - can a loss in one offset gains in another?

Thank you. Just seems a little bit dastardly that the IRS can hit me with taxes for my income from this job/hobby/activity but the expenses I incur for that income are not allowed or are capped. :?
by 168gr
Fri Mar 13, 2020 5:15 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question: multiple 1099 sources - can a loss in one offset gains in another?
Replies: 3
Views: 413

Tax Question: multiple 1099 sources - can a loss in one offset gains in another?

I am active duty military and of course get a W-2. I'm a physician and also moonlight at several civilian jobs, and receive 1099s for this work. Expenses related to that job (licensure, travel, liability insurance, and so on) are of course deductable from that block of income. I have substantial non-reimbursed military expenses that are unequivocally work related. I'm a member of one of the competition shooting teams and travel several times per year for service, interservice, and national competitions. I get "no cost" orders for these events, meaning it's part of my official duties. I compete in uniform, as a representative of the Navy. I have to pay for travel and other expenses such as equipment, ammunition for training and com...
by 168gr
Fri Jan 03, 2020 1:30 pm
Forum: Personal Investments
Topic: IRS Reference for Roth Conversion Timing / Pro Rata Avoidance
Replies: 2
Views: 273

IRS Reference for Roth Conversion Timing / Pro Rata Avoidance

Hello all, Concerning backdoor Roths and avoiding the pro rata rule, I know that the only day that matters for other pretax IRA balances is December 31st of the year in which the Roth conversion is made. E.g. you can have a SEP-IRA balance of $10,000 in January, do a traditional IRA to Roth conversion of $5,000 in February, transfer the SEP-IRA balance into a 401(k) or TSP in March, and as long as the SEP-IRA balance is $0 on December 31st of that year, everything is good. However, having searched irs.gov and various other bits of the internet for a while, I can't find any direct-from-the-IRS documentation that Dec 31st is the magical day. I was explaining the above to a friend today, and would like to be able to give him some definitive do...
by 168gr
Fri Nov 29, 2019 5:29 pm
Forum: Investing - Theory, News & General
Topic: When can we fund 2020 SEP IRA?
Replies: 20
Views: 1547

Re: When can we fund 2020 SEP IRA?

OP, you're better off with a solo k, BTW. Maybe this would be better as a separate thread but I'll ask here to start. Why is a solo 401(k) better than a SEP-IRA? I spent some time on Google but couldn't find a reason. I'm active duty military and maxed TSP for $19K. I also have self-employed 1099 income from a contracting job and use a SEP-IRA. Just me, no employees. No significant business expenses. For 2019 I'm able to max it with a $56K contribution. I also did a $6000 traditional IRA contribution and backdoor Roth. (The SEP got rolled into TSP to avoid the pro-rata rule; my tIRA balances will be $0 on Dec 31st.) What's the upside to a solo 401(k)? Can I do better than the above with it? Because most people don't have a tsp and can’t do...
by 168gr
Wed Nov 27, 2019 11:25 am
Forum: Investing - Theory, News & General
Topic: When can we fund 2020 SEP IRA?
Replies: 20
Views: 1547

Re: When can we fund 2020 SEP IRA?

Lee_WSP wrote: Tue Nov 26, 2019 8:59 am OP, you're better off with a solo k, BTW.
Maybe this would be better as a separate thread but I'll ask here to start.

Why is a solo 401(k) better than a SEP-IRA?

I spent some time on Google but couldn't find a reason.

I'm active duty military and maxed TSP for $19K. I also have self-employed 1099 income from a contracting job and use a SEP-IRA. Just me, no employees. No significant business expenses. For 2019 I'm able to max it with a $56K contribution. I also did a $6000 traditional IRA contribution and backdoor Roth. (The SEP got rolled into TSP to avoid the pro-rata rule; my tIRA balances will be $0 on Dec 31st.)

What's the upside to a solo 401(k)? Can I do better than the above with it?
by 168gr
Sun Jun 30, 2019 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Siblings and Inherited Property
Replies: 53
Views: 7656

Re: Siblings and Inherited Property

This is insanity. Get out of this deal now.

If you want an investment property, buy one based on math that supports the notion that it's a good investment. You've "picked" this property based on circumstance and sentimental value and it's already heading the direction of a money pit.

As a bonus, you've got some irrational family warfare brewing in the background.

Get out before it ends in tears and ruin.
by 168gr
Sun Jun 16, 2019 1:11 pm
Forum: Personal Investments
Topic: IRA Contribution For Future Year?
Replies: 2
Views: 438

IRA Contribution For Future Year?

I haven't been able to find any IRS publication stating this is possible, and I wouldn't expect it to be.

At Schwab when I make an online transfer to a traditional IRA account, the form asks what year I want the contribution to be applied to. Right now, I have the option of selecting 2019 or 2020.

Is it really possible to make contributions to future years?
by 168gr
Mon Apr 22, 2019 9:35 pm
Forum: Personal Investments
Topic: Actual steps to take to maximize TSP contributions while deployed
Replies: 8
Views: 1146

Re: Actual steps to take to maximize TSP contributions while deployed

Thanks all. I appreciate the replies.

ExitStageLeft wrote: Sun Apr 21, 2019 12:12 pm I'm a civilian in the TSP so am not up to speed on the finer points of military contributions. If you get a match, that is also part of the $56k annual addition limit.
No match for me. I'm under the legacy high-3 plan. New joins now get a token match under the new system, but if they stay for 20 they lose out with a lower multiplier.

cyborg wrote: Sun Apr 21, 2019 12:26 pm That’s a great question...not sure. But don’t also forget to take advantage of the savings deposit program to get 10% while there
SDP is a nice perk, but in the grand scheme of things though it's just a few hundred $ of interest. It's the whole bunch of extra tax-advantaged TSP space I'm lusting after. :)
by 168gr
Sat Apr 20, 2019 10:31 pm
Forum: Personal Investments
Topic: Actual steps to take to maximize TSP contributions while deployed
Replies: 8
Views: 1146

Actual steps to take to maximize TSP contributions while deployed

Google has helped me somewhat but I have a specific question that I can't find the answer to yet - I am a senior-ish active duty military physician. I expect to deploy later this year from about Sept 2019 through April 2020. The maximum TSP contribution is $19K, but deployed military members can get to $56K by making additional contributions while deployed. For 2019: - I am on track to contribute $19K between Jan 2019 and Aug 2019. - While I'm deployed, I will crank up the contribution in order to contribute the remaining $37K* between Sep 2019 and Dec 2019. * I think it'll actually be a little less than $37K, since "additional" contributions have to come from combat zone tax excluded pay, and the CZTE pay is capped at the senior-...
by 168gr
Sat Feb 02, 2019 1:15 pm
Forum: Personal Investments
Topic: Nondeductible IRA question
Replies: 7
Views: 647

Re: Nondeductible IRA question

2. The growth in the traditional IRA will be taxed at ordinary income tax rates and NOT at the favorable long-term capital gains tax rate. Even dividends in the tIRA will be taxed at ordinary income tax rates and NOT at the favorable Qualified Dividend Income tax rate. If the money had been invested tax efficiently in a taxable account, then I think one can come out a head including by giving away appreciated shares held long-term to charity and by tax-loss harvesting. These options are not really available in a tIRA destined to be converted to a Roth IRA. Of course, if you decide to invest tax-inefficiently in a taxable account, then the above does not apply, so don't do that. 3. Schwab won't know, but you will tell the IRS about it by fi...
by 168gr
Sat Feb 02, 2019 1:00 pm
Forum: Personal Investments
Topic: Nondeductible IRA question
Replies: 7
Views: 647

Re: Nondeductible IRA question

GoldPressedLatinum wrote: Sat Feb 02, 2019 12:32 pm Why contribute to a tIRA now with the intention to convert to a Roth in the future? Why not just contribute to a Roth now and avoid the headache later?
Because I'm over the income limit to make a Roth contribution this year.

The idea was that I'd do a backdoor Roth ... eventually ... after I don't have the SEP IRA to foul things up via the pro-rata rule.
by 168gr
Sat Feb 02, 2019 11:21 am
Forum: Personal Investments
Topic: Nondeductible IRA question
Replies: 7
Views: 647

Nondeductible IRA question

I have a few quick and simple (I hope) questions regarding IRAs. Background - I am over the income limit for a deductible contribution to a traditional IRA. I made the maximum contribution to my TSP account in 2018, from income from my full time W-2 job (active duty military). I also made the maximum contribution to a SEP IRA in 2018, from income from a 1099 contracting side job. I do not have any other traditional/pre-tax accounts. It's my understanding that I may make a $5500 contribution now to a traditional IRA for the 2018 year, but that this will not be deductible from my 2018 taxes. At some point in the future, I may convert this traditional IRA to a Roth IRA, without paying additional taxes (because I've already paid taxes on it). W...
by 168gr
Sat Jan 26, 2019 6:23 pm
Forum: Personal Investments
Topic: Simplifying my portfolio at Schwab - question about international index mutual funds
Replies: 3
Views: 1806

Simplifying my portfolio at Schwab - question about international index mutual funds

I have SEP and Roth IRAs at Schwab. They contain a mixture of various Schwab and not-Schwab mutual funds and ETFs and it's not super easy to do my annual rebalancing. I'm thinking of just liquidating it all and embracing the simplicity of a 3 fund portfolio as described in the Wiki - https://www.bogleheads.org/wiki/Three-fund_portfolio The suggested funds to create a 3 fund portfolio at Schwab are - SWTSX Schwab Total Stock Market Index 0.03% - SWISX Schwab International Index 0.06% - SWAGX Schwab U.S. Aggregate Bond Index Fund 0.04% The Wiki notes that "The Schwab International Index is based on the MSCI EAFE index, which does not include emerging market stocks, Canadian stocks, and which has minimal exposure to international small ca...
by 168gr
Mon May 23, 2016 9:20 am
Forum: Personal Consumer Issues
Topic: Amazon has no head to head competitors?
Replies: 71
Views: 9002

Re: Amazon has no head to head competitors?

My brother is a contractor that does mostly store remodels for large chains. He's starting a series of jobs this month doing work for Walmart, something like 80 or 100 stores. Apparently they are expanding their online ordering and in addition to local pick up, delivery is in the works. It makes a little sense. Walmart has a "distribution center" every few miles across the country. Maybe not much of a stretch to think they could compete on delivery with Amazon, which has to rely on 3rd party shipping. That said, these are the items I've ordered off Amazon this year and they are not things I'd ever expect Walmart to stock: - four tires (very specific make/model/size) - a 51/64 drill bit - a proprietary battery for a vacuum - CPU fa...
by 168gr
Sun Mar 27, 2016 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Would you pay more for USAA?
Replies: 23
Views: 3946

Re: Would you pay more for USAA?

...Why would you say YES for USAA for checking? Perhaps it's the no fee, no minimum protocol? And if you're direct depositing your paycheck, USAA gives you access to your money 6 hours after the "24 hour notice of deposit". I get paid on Friday's...I can spend the money as of 0600 hrs Thursday. So that's what it is... I always wondered why my fed pay (through DFAS) was showing when I got up Thursday mornings. My co-workers don't believe me. :D NFCU does something similar. DFAS pay always shows up a day early. It's a little odd. As for USAA, we've been using them for 19 years now. No claims for the first 17 years. Three in the last two (all auto). Easy process, no hassles. I wouldn't leave to save 5-10% on insurance at this point.
by 168gr
Sun Mar 27, 2016 1:57 pm
Forum: Personal Consumer Issues
Topic: does solar increase the value of a house
Replies: 61
Views: 7908

Re: does solar increase the value of a house

Speaking of Texas hail, what is the insurability/insurance cost of solar panels? Also, eventually those panels will deteriorate and need to be replaced or removed. Maintenance cost might be considered. Modern solar panels are surprisingly durable. They look like fragile glass but they're not. An adult can stand on them and jump up and down. Most are rated for 1" hail at 50+ mph. Panels from reputable manufacturers are generally warrantied for 80-90% of rated power production 25 years later. The primary maintenance cost to consider is that the inverters don't have the same life span as the panels, only 5-10 years. The panels on our central southern California house were installed in 2010. State/federal subsidies paid for about 1/3 of t...
by 168gr
Wed Feb 24, 2016 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: New Military Retirement System
Replies: 86
Views: 14776

Re: New Military Retirement System

Apologies for bumping an old thread. I was away for a while and just saw this reply to my post - Not to argue with the overall point here, but I have to disagree with the value of the pension you quoted above for a 45-ish year old retiree. Are there doctors retiring from the military at age 45? Even with a perfect career path, it seems like most docs would start around age 30 at the earliest, resulting in an age of over 50 at retirement. Does the military count residency toward years of service? It seems much more likely that the average age of retirement for military physicians is closer to 55, which would lower the NPV of the pension quite a bit. The traditional path, if there is one, is finishing college at age 22, and medical school at ...
by 168gr
Sun Dec 13, 2015 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: New Military Retirement System
Replies: 86
Views: 14776

Re: New Military Retirement System

As a military physician, you are financially better off leaving the service with or without a change in the retirement system. The benefit to remaining in the service as a physician is lower healthcare costs and the tax advantage of your BAH and BAS. [Comments have been deleted --admin LadyGeek] The potential to earn more money in the civilian sector, depending your specialization or field, will outweigh the advantages of remaining in service. There's a lot wrong here. It's too superficial to be good advice. It's probably generally true for highly paid surgical subspecialists (ENT, neurosurgery, etc) ... rarely true for primary care (peds, FM, IM) ... and sometimes true for the specialties in between. You really need to run the numbers whe...
by 168gr
Sun Dec 13, 2015 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: New Military Retirement System
Replies: 86
Views: 14776

Re: New Military Retirement System

Retirement pay is just one piece of a complicated system that manages recruiting and retention. It has nothing to do with what is fair or what anyone deserves; it's about how much we need to pay, and when, to recruit and retain enough of the right people. A prime example is that you can't break it down into combat vs. non-combat specialties, because the non-combat folks have more transferable skills and are thus often harder to retain. To all those who've said or implied that the system is too generous, your comments beg the question: why haven't you signed up for a 20+ year military career? Your answers will prove that military compensation isn't generous enough in many cases. I'm not saying that the system is perfectly designed (or even ...
by 168gr
Sun Dec 06, 2015 7:24 pm
Forum: Personal Investments
Topic: Doctor Strategies
Replies: 74
Views: 13810

Re: Doctor Strategies

Physicians make higher gross incomes in small to mid sized cities in flyover country than in the major urban centers in the coasts. Since cost of living is lower in flyover country, you are also able to save more there than in the coasts. This is one thing that's unique to the medical profession, in contrast to non-doctor high earners (finance types, IT people) whose big-paying jobs are concentrated in expensive New York, Silicon Valley, etc. The "unique doctor strategy" to be employed here may be to shun the coasts and move inland. This strategy may yield far greater financial returns than any complicated investing strategy you may have been thinking of. You don't have to live in the boondocks. There are many nice university tow...
by 168gr
Sat Oct 31, 2015 8:07 pm
Forum: Personal Consumer Issues
Topic: Replace safe Deposit Box with home safe?
Replies: 46
Views: 8403

Re: Replace safe Deposit Box with home safe?

A floor safe is an excellent option, though there's a small hassle and cost to get it installed. They're by far the best option for new construction, if your primary purpose is to store items you won't need access to often. They're inherently superior to other safes with regard to fire protection, being underground. You also get far better security vs burglary with them, because much more of the manufacturing cost can be put into the door and lock, only the door is exposed to attack, they can't be tipped on their side, and they can't be hauled off. The safes one can buy at ordinary retail stores are for keeping children out. Most "gun safes" are made with sheet metal measured in gauge. Anyone with a pry bar, or a sawzall, will be ...
by 168gr
Mon Aug 10, 2015 10:45 am
Forum: Personal Finance (Not Investing)
Topic: 529 withdrawal and contribution same year
Replies: 5
Views: 5133

529 withdrawal and contribution same year

I'd like some confirmation that my undestanding of the tax implications of this plan are correct. Background: 1) My son is starting college this year at an in-state public university. 2) Our income is above the thresholds for the AOTC or LLC federal tax credits. 3) He will collect Post 9/11 GI Bill benefits that I transferred to him. 4) He has a 529 account with about $10K in it. No contributions this calendar year. 5) We have two other kids in high school, with their own 529 accounts. 6) We can deduct contributions to the 529 plans, up to $4K per kid per year. The GI Bill benefits are enough to cover full tuition, fees, books, and living expenses for him for all four years. GI Bill tuition payments are made directly to the school, but the ...
by 168gr
Fri Jan 09, 2015 7:40 pm
Forum: Personal Investments
Topic: Roth or Traditional TSP?
Replies: 5
Views: 1405

Re: Roth or Traditional TSP?

You can earn $90K+ and still remain in the 15% bracket if married filing jointly with the standard deductions. Will your military pension be that large? You need to look at the average tax rate on your tax deferred withdrawals in order to make the Roth vs. Traditional calculation. Will there be a gap between retiring and collecting the pension where you can do Roth conversions at a low tax rate? Will there be a gap between retiring and collecting Social Security, where you also may be able to do Roth conversions at a lower rate? The military pension should be about $5K/month in 2013 dollars. There are some oddities to my retirement calculations because of the way medical school years don't count for eligibility or pay while in service, but...
by 168gr
Mon Jan 05, 2015 1:20 am
Forum: Personal Investments
Topic: Roth or Traditional TSP?
Replies: 5
Views: 1405

Roth or Traditional TSP?

Curious what general thoughts the forum has on this. I'm a military physician. I was just logged in to DFAS adjusting my contribution % in order to max out TSP for 2015 ($18,000). I've been maxing it for a number of years now, in addition to saving in a SEP IRA and taxable account at Schwab. My total military pay for 2015 will be around $250K, of which about $220K will be taxable. I pay no state income tax. I'm married filing jointly with 3 kids. No debt outside of two houses with super low rate 15-year mortgages, one we live in and one we have rented (very slightly negative cash flow). I also moonlight some. This year a reasonable guess is that I'll earn another $40-50K of 1099 income, which will be taxed by the feds and California and/or ...
by 168gr
Mon Feb 24, 2014 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: How long to keep previous years Income tax returns????
Replies: 63
Views: 7601

Re: How long to keep previous years Income tax returns????

Ice-9 wrote:Starting in 2000, I would keep a PDF of each return and scans of any paper documents on a CD. For several years, I created a new updated CD each year and destroyed the previous year CD.
It's good that you create a new CD every year, otherwise your first CDs would probably be coasters by now.

Lots of people don't realize that CDs you burn yourself have a pretty short life ... 5-10 years, or less if you're unlucky. CDs are not archive quality media.
by 168gr
Sat Feb 08, 2014 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question related to Roth conversion
Replies: 2
Views: 531

Re: Tax question related to Roth conversion

Thank you, that's what I thought. Appreciate the reply.
by 168gr
Fri Feb 07, 2014 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question related to Roth conversion
Replies: 2
Views: 531

Tax question related to Roth conversion

I'm a resident of Virginia, stationed in California on PCS orders. VA taxes my military income, CA does not. I earn some money via 1099 contracting in California. This income is taxed by CA, not VA. (There is a very odd mechanism by which CA and VA resolve this; it consists of filing CA and VA tax returns, paying money to VA, and submitting a copy of my VA return to CA, which then gets its money directly from VA. I don't think this oddness is relevant to my question though.) Some of that 1099 income was put in a SEP-IRA in 2009, 2010, 2011, and 2012. This reduced my tax liability to CA, not VA, during those years. In 2013 I was deployed to a combat zone most of the year, so my taxable income was much lower than usual. Because my federal bra...
by 168gr
Fri Nov 01, 2013 11:21 am
Forum: Personal Investments
Topic: Cost of inflation indexed SPIA
Replies: 8
Views: 2004

Re: Cost of inflation indexed SPIA

Thank you all. I appreciate the information. It's hard to put a dollar value on a military retirement benefit but this helps.
by 168gr
Wed Oct 30, 2013 12:24 pm
Forum: Personal Investments
Topic: Cost of inflation indexed SPIA
Replies: 8
Views: 2004

Cost of inflation indexed SPIA

I'm playing with some numbers, trying to make rough estimates of the value of a military retirement benefit. On the day of retirement from military service, the value of the pension benefit, in cash, at that instant, would seem to be equal to what one would have to pay, in cash, at that instant, for an inflation-indexed SPIA that paid out the same amount as the pension would. (Ignoring health care or other fringe benefits to the military pension.) Is there an online calculator or quote-machine someplace, that doesn't require submitting any personal information, to get an inflation indexed SPIA quote? I'm just playing with numbers. I don't want a horde of insurance salesmen following up with me concerning my inquiry. Or, failing that, I coul...
by 168gr
Sat Aug 03, 2013 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Some things a teen could do to help out parents college-wise
Replies: 74
Views: 8093

Re: Some things a teen could do to help out parents college-

Go to community college the first two years then transfer. I don't agree with that plan, unless a 4-year university is truly unaffordable, or there is no plan/goal for a major or career. Then sure, knock out the general education requirements cheap while you aimlessly find yourself and your ambitions. People who do two years at a community college before transferring to a university miss very real, very important life and educational experiences. Everything from lost opportunities to network, lost exposure to other fields, lost chances to work with the brightest and most talented fellow students, lost independence (vs living at home going to a JC), on and on and on. And very important: pick a major with a job on the other end. One of the b...
by 168gr
Sun Jul 28, 2013 11:44 am
Forum: Personal Finance (Not Investing)
Topic: pick up double major or finish college in 3 years?
Replies: 112
Views: 13467

Re: pick up double major or finish college in 3 years?

At the risk of going a little further off topic - how long ago was that exactly? I served on our admissions committee as a medical student in the mid-2000s...people with lower scores and a better story/background had a much better chance of getting in than someone with a perfect gpa and high MCAT without any significant EC activity. I also served on admissions for my residency program, and someone with a sky-high USMLE score and a boring story/background was far less appealing than someone with lower scores who showed they spent their time doing things that built character instead of spending all their time with their head in a book. Mid-1990s. Naturally I only had direct experience with one school (mine) but we had hard gpa/MCAT cutoffs b...
by 168gr
Thu Jul 25, 2013 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: pick up double major or finish college in 3 years?
Replies: 112
Views: 13467

Re: pick up double major or finish college in 3 years?

Here's an alternative perspective - if she decides to go to medical school, admissions committees will eat up a candidate with a double major in non-science fields (assuming she has the prereqs or goes back and does them later). Not to derail the thread too much (I didn't see the OP say his daughter had any interest in med school) but I'm going to throw out two contrary opinions to that. 1) Med school admission is a numbers game. Adcoms won't care one bit about the 2nd major or extracurricular anything if the applicant doesn't have the gpa and MCAT numbers to be competitive. A lot of premeds dilute their efforts with extracurricular work or nonacademic passions they think will make them "interesting" to adcoms, only to get lower ...
by 168gr
Wed Jul 17, 2013 2:05 am
Forum: Personal Finance (Not Investing)
Topic: Pay keeping up with inflation for your job?
Replies: 52
Views: 7910

Re: Pay keeping up with inflation for your job?

Polar_Ice wrote:So what do you think is acceptable for raises/pay vs. inflation?
Acceptable is kind of a vague word. Do you mean acceptable is "good enough for me to not quit and go work elsewhere" or simply "fair"? Good enough depends on you. Fair depends on whether or not the value of one's work has increased, and the financial health of one's employer, and what your contract says.

I work two jobs. My contract at one has certain longevity raises written into it, and very specific pay incentives based on professional qualifications and actual work done. My contract at the other does not. Both are acceptable to me.
by 168gr
Tue Jul 16, 2013 12:43 pm
Forum: Personal Investments
Topic: Conversion of Coverdell ESA to 529 plan, state tax benefits?
Replies: 3
Views: 536

Re: Conversion of Coverdell ESA to 529 plan, state tax benef

Thanks. As far as I can tell it'll be deductible in Virginia too.

I emailed the VA 529 people a few days ago, still waiting on an answer. I bet they'll just tell me to consult my tax adviser and dodge the question.
by 168gr
Mon Jul 15, 2013 6:25 am
Forum: Personal Investments
Topic: Conversion of Coverdell ESA to 529 plan, state tax benefits?
Replies: 3
Views: 536

Conversion of Coverdell ESA to 529 plan, state tax benefits?

Years ago we opened "Education IRA" accounts for our kids at our credit union. These days I guess they're called Coverdell education savings accounts. The only investment options were CDs (around 3.5% so not too bad for this era) and they'll mature soon. We quit putting money in those accounts when we started funding 529 plans for them. The Virginia 529 plan allows up to a $4,000 per year state income tax deduction, per beneficiary, which is very nice. The tax benefit for contributions over $4K even rolls over to future years, without any carryforward limits, which is even nicer. I understand that a Coverdell account can be effectively rolled over into a 529, without tax penalty, if a withdrawal is made as a 'qualifying distributi...
by 168gr
Sat Jul 13, 2013 7:12 am
Forum: Personal Finance (Not Investing)
Topic: how bad would it hurt to spend an extra 10k on a car (24 yo)
Replies: 93
Views: 8804

Re: how bad would it hurt to spend an extra 10k on a car (24

Of course if you ask an investing forum what you should do with $1 or $5 or $100 or $10,000 everyone's going to tell you to invest it.

Here's the right answer, IMHO: Make a conservative plan to meet your retirement goals, both in terms of timing and dollar value, with a cushion sufficient to let you sleep easily at night, and then implement a disciplined plan to get there. Pay yourself first. Spend what's left over on a car or a trip to the pyramids (when the revolution is over) or maybe just a truckload of Jalapeno Doritos if that's what you want, and live your life. The point isn't to die 70 years from now with 3x as much money as you need having lived a spartan life.
by 168gr
Sat Jul 13, 2013 3:20 am
Forum: Personal Investments
Topic: Questions re SEP-IRA & TSP
Replies: 2
Views: 1004

Re: Questions re SEP-IRA & TSP

I too am a cog in the government machine and contribute to TSP. I also have a SEP-IRA funded from non-goverment 1099 work. The IRA has investment options not available in TSP, most importantly (for me) REITs and emerging market equities. For that reason I very much like not having everything in TSP and wouldn't consider consolidating all of my tax-advantaged space there. I have spent most of this year overseas and as a result of the CZTE my taxable income is far lower than usual. I'm taking the opportunity to convert the SEP-IRA to a Roth IRA now since my marginal rate is a couple brackets lower. Going forward, I'll continue to fund the SEP as my 1099 income allows, with an eye toward conversions if any more overseas duty comes about. Absen...
by 168gr
Thu Jul 11, 2013 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Merchant costs on 2% cash back cards
Replies: 125
Views: 29735

Re: Merchant costs on 2% cash back cards

Jack wrote:Its worth noting that those of you who proudly pull out your Platinum Whatever card and present it to the merchant thinking it signals that you are an elite customer, that to the contrary, the merchant hates you. Those cards cost them an extra half to one percent for the transaction. They feel like they are being gouged to support your perks.
Well then, that merchant is free to tell me he doesn't want my business, and I'll go elsewhere. His opinion of my credit card means nothing to me.
by 168gr
Mon Jul 08, 2013 1:10 am
Forum: Personal Investments
Topic: Which TSP option to choose?
Replies: 7
Views: 1286

Re: Which TSP option to choose?

Jim180 wrote:Since you are in the military, if you ever get sent to a "combat zone" I think you can put money in your TSP that is tax-exempt.
That's right. I'm just about to leave a combat zone, and put the max $17.5K into Roth TSP while I was here. Tax free going in, tax free growth, tax free coming out. I'll go back to the regular deductible TSP as soon as I get home.

Time in a combat zone reduces your taxable income so much, that converting a traditional IRA to a Roth and paying the taxes on it that year can make good sense too. I have a SEP-IRA that I'll roll into a Roth when I get home too, since my taxable income will probably never be this low again.
by 168gr
Thu Jul 04, 2013 12:36 am
Forum: Personal Investments
Topic: Quick ETF vs mutual fund question
Replies: 1
Views: 379

Quick ETF vs mutual fund question

I have a SEP-IRA account at Schwab. A few of the funds I own there are

SWPPX (Schwab S&P 500 Index Fund, ER .09)
SWSSX (Schwab Small Cap Index Fund, ER .17)
SWISX (Schwab International Index Fund, developed market, ER .21)

But I was looking through the ETF offerings recently

SCHB (Schwab U.S. Broad Market ETF, ER .04)
SCHF (Schwab International Equity ETF, developed market, ER .09)

Is there any reason not to sell the mutual funds and own the ETFs instead? They all have pretty low expenses, but the ETFs are even lower. SCHB is even creeping up on my TSP costs.
by 168gr
Mon Jun 17, 2013 4:38 am
Forum: Personal Investments
Topic: 3 funders with a pinch of gold, silv
Replies: 22
Views: 2064

Re: 3 funders with a pinch of gold, silv

nedsaid wrote:It might be prudent to own gold and silver as a hedge in a portfolio. The problem is that these can be dead money for years. If one were interested in something like this, I would wait until the masses lose interest in precious metals. Gold in particular has had a great run up in price, though it is down from the highs. I sure wouldn't chase this now.
So, market timing? :happy

Seems like if you've decided to own it, the bogleheadish thing to do is own it and forget about it until it's time to rebalance.
by 168gr
Fri Jun 07, 2013 12:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Bogle: Yesterday Sound & Fury Signifying Nothing
Replies: 16
Views: 3140

Re: Vanguard's Bogle: Yesterday Sound & Fury Signifying Noth

apk wrote:I'm amazed that they keep inviting him back. What he says goes against what they hype. But he does say it politely. Maybe they don't understand what he is saying?
I keep hoping for a "Jon Stewart on Crossfire Moment" that exposes them for what they really are, in a way that even the regular viewers can see it, resulting in the network's outright cancellation.

"I made a special effort to come on the show today because I have privately, amongst my friends and also in occasional newspapers and television shows, mentioned this show as being bad. And I wanted to — I felt that that wasn't fair, and I should come here and tell you that I don't — it's not so much that it's bad, as it's hurting America."
by 168gr
Mon Jun 03, 2013 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Navy Mutual for Term Life Insurance?
Replies: 4
Views: 1180

Re: Navy Mutual for Term Life Insurance?

My wife and I have had term life insurance policies with them since 1997. Low premiums, good reputation. Haven't had occasion to file a claim :happy but overall happy with them.

And a big +1 on insuring the wife for more than $250K. Whether she has a career or is to be a stay-at-home mom with no income, $250K won't go very far if you need to replace her financial or childrearing contribution for the 18+ years it'll take to raise the kid.
by 168gr
Sat May 18, 2013 2:43 am
Forum: Personal Finance (Not Investing)
Topic: future of medical practice - career help - physician
Replies: 17
Views: 2560

Re: future of medical practice - career help - physician

One of the recurring themes on this forum is the idea of assessing your "need" to take risk. Along with that is the concept that once you've reached a goal, or that goal is within easy and assured reach, it's reasonable to take some risk off the table. I don't think that choosing a practice environment is any different. I would ask if you really NEED to take the risk of joining a private practice group to achieve the whole of your life goals, whatever they are. Are the risks associated with the PP position worth it? Is there a buy-in period? Partner track evaluation period? Could they cut you loose before you're vested with the group? Could existing partners sell out to a management company or hospital before you're a full voting ...