Bogleheads.org

gclancer

GEHA is confusing because they contribute in arrears. The $150 you received in February is for January 2020. In January 2021 you’ll receive $150 for December 2020 which will be reported as a 2020 contribution and count towards your 2020 contribution limit. 12 x $150 = $1,800 so the most you can cont...

gclancer

First off, thank you to all for your comments. I’m a Schwab customer. I’ve long been considering switching to Fidelity, in part because I like that it’s a privately held company. Inertia kept me at Schwab this long, and now I’m going to stick with them because I feel like they’re winning the broker...

gclancer

I’m a Schwab customer. I’ve long been considering switching to Fidelity, in part because I like that it’s a privately held company. Inertia kept me at Schwab this long, and now I’m going to stick with them because I feel like they’re winning the brokerage wars. Specifically, my HSA is at TD Ameritr...

gclancer

I’m a Schwab customer. I’ve long been considering switching to Fidelity, in part because I like that it’s a privately held company. Inertia kept me at Schwab this long, and now I’m going to stick with them because I feel like they’re winning the brokerage wars. Specifically, my HSA is at TD Ameritra...

gclancer

I'm very happy that we got a HELOC right before I retired in late 2014. DH had retired several years prior. Our cash flow requirements are averaging around 4% of our portfolio, but our needs are lumpy. When we're right below a tax bracket bump, it's often cheaper to take a one-year fixed on the HEL...

gclancer

(there are real advantages to Vanguard ETFs over Schwab mutual funds). Like what? Paying higher expense ratios? Bogglizer’s post highlights the advantages. You can buy VXUS (ETF equivalent of VTIAX) or you can buy 3 mutual funds two of which are Fundamental Index funds with higher expense ratios. A...

gclancer

You could also buy the corresponding Vanguard ETF free of charge at Schwab. I actually understand preferring mutual funds over ETFs but consider this post your invitation to finally get on board with ETFs (there are real advantages to Vanguard ETFs over Schwab mutual funds).

gclancer

Yes, there are. I know PenFed (Pentagon Federal Credit Union) has done this in the past. You’d have to call them to talk through how/whether they still do it. My guess is that you’d have a better chance with credit unions than banks.

gclancer

FreddyC wrote: ↑
Fri Oct 18, 2019 6:37 am
and the HSA contribution is still capped at approximately $3500

Double check that assumption. I know nothing about VA eligibility and HDHP/HSA but that’s definitely something you’ll want to understand before taking the plunge.

gclancer

2) You should get a copy of the position description for the job, if possible. Then use that information to high light how your current qualifications match up. +1 understand that you have to get past an HR generalist before the decision makers in the work unit you’re applying to will even see the ...

gclancer

Research 72(t) distributions. The Roth ladder takes 5 years until you actually have money in hand which puts you at 56. 72(t) starts immediately and runs until you’re 59.5 years old. At that time you’ll be receiving the FERS Supplement and can turn off the IRA distributions. When the Supplement stop...

gclancer

I have a 401k at a w-2 job I contribute to get the company match. No more because of high fee funds (lowest is 1.3%). So solo Roth 401k is out. You’re allowed to have/contribute to more than one 401(k) plan. The combination of employee contributions to both plans cannot exceed $19,000 in 2019, but ...

gclancer

Boilermaker10 wrote: ↑
Mon Oct 07, 2019 10:15 am
I cannot do Roth 401k from my understanding because I do not have a paycheck withholding nor am I going to set that up.

Double check that assumption. Are you a sole proprietorship?

gclancer

I believe the FERS contribution calculation is based on your basic rate of pay and that the level of tax withholdings is immaterial. +1 for those interested your FERS annuity (contribution rate for most hired after Jan 1 2014 (not 2013) is 4.4% (not 4.9%)) is a percentage of your “basic pay.” The t...

gclancer

There’s no harm in applying right? Fully disclose that you were the owner of the business and sold it, and as a result of the sale you no longer have the job. The worst they can do is deny your claim, right? Good luck! Edit: I assume you paid FUTA and SUTA like you were supposed to. I suppose if you...

gclancer

I’d sooner take a 401(k) loan than tap my Roth money. You can always use the Roth money to pay off the 401(k) loan if things continue to go south.

gclancer

Silk McCue wrote: ↑
Thu Aug 29, 2019 6:43 pm
Longevity insurance.

I know nothing about OP, but I would say the risk of OP and OP’s spouse out living their money is higher than social security becoming insolvent. I would delay to 70 myself.

gclancer

Yes you can contribute to SEP and convert to Roth in the same year. HOWEVER, the SEP contribution reduces your qualified business income deduction and then you’ll pay tax on the conversion at your full marginal tax rate so it doesn’t make mathematical sense. For others reading this the solution is a...

gclancer

Are you sure you would have to take a pay cut? Research pay retention.

gclancer

If you keep a relatively well organized Outlook calendar then a note pad with chronological notes can work well. Once the pad is filled file it away until it’s safe to be thrown out. If you have a situation where you’re trying to remember what Tom or Sally said at some meeting you would just need to...

gclancer

Even though it’s a lower interest rate, I would knock out the unsubsidized $1,845 loan first due to the low balance. Once that monthly payment is gone, apply that same payment amount to the 6% loan. Defer the other loans as long as they remain subsidized.

gclancer

grabiner wrote: ↑
Thu Aug 01, 2019 7:22 pm
That is, you should pay it off with money you would have otherwise invested in munis, and sell bonds in your IRA/401(k) to buy more stocks for an amount you would have otherwise invested in stocks.

Continue to max out your IRA and 401(k), as this space is of permanent value.

+1

gclancer

The domestic funds are more expensive than over the counter total market funds and more complicated to manage so (assuming you have assets invested elsewhere in addition to TSP) I wouldn’t mess with them. Once the I Fund changes indexes (supposedly later this year?) that will be the cheapest total i...

gclancer

neilpilot wrote: ↑
Tue Jul 09, 2019 10:56 am
If we’ll be gone more than 4 days we don’t drive, we Lyft.

+1

gclancer

I’d say it’s just noise. Isn’t borrowing commercial paper simply an exercise in projecting cash flows? What difference does it make whether you’re projecting sale of inventory or receipt of rent? REITS have plenty of expenses that could be funded with commercial paper, it would only be worrisome if ...

gclancer

The $125 HSA contribution from GEHA has to go to HSA Bank, so I automatically transfer the $125 to TD and invest in PCOXX (high yielding money market fund with no transaction fees at TD). Your personal contributions can be made directly to Fidelity. Since I pay medical expenses out of my HSA it will...

gclancer

I'm not sure how Roth conversions would change anything other than increasing your income. +1 the Roth conversion will be taxed at 12% since it’s ordinary income. If you have already tax gain harvested in 2019, then tax losses will be applied against your gains first. If not, you could take losses ...

gclancer

My guess is that in the future, people will regard burial plots like they regard ice boxes and party lines. I don't think I know anyone of my generation who wants a burial plot, and for sure nobody of my kids’ generation. Maybe I have an odd circle of acquaintances. You don’t have odd acquaintances...

gclancer

You’ve got the perfect set up to add an additional income stream but not knowing anything about being a chiropractor I can’t put my finger on it. I wouldn’t be thinking real estate I’d be thinking a second job. Could you drive to a town an hour away and work there on your off days (for another chiro...

gclancer

This point has already been made repeatedly but especially on the short end you should just buy individual treasuries. It’s really not that much of a hassle. I can understand someone not wanting to mess with intermediate/long individual treasuries.

gclancer

What do you get for $99? I got the All Access package for that price which includes streaming from computers and smartphones. If you don’t mind haggling this is the approach I take. I have SiriusXM in my spouses car and then use Bluetooth to stream it through my phone in mine so it ends up being tw...

gclancer

Don’t know how long you’ve been in the game but for a good bonus like the one you’re describing sometimes you have to suck it up and go in to the branch for a face-to-face account opening. “Have you had an account with us in the past?” “I have, I don’t recall how long ago so I’m not sure if I’m in t...

gclancer

Student loan is the answer. There’s not a single valid argument for paying down the cabin loan instead.

gclancer

A 30 year fixed rate mortgage (or a few) would be a nice commodity to have. You’d be able to pay off a property you acquired for a quarter of a million dollars for the cost of a nice dinner out. Of course 10,000% inflation doesn’t occur overnight - I imagine those mortgages would be harder to come b...

gclancer

I would expand the paragraph discussing HSA contributions, or (probably better) create an entire new section discussing Section 125 Cafeteria Plans. That section could include discussion of HSA contributions; health/dental/vision insurance premiums; health care FSA and LEXFSA contributions; and depe...

gclancer

Assuming you’re an all cash buyer, you should still do a formal purchase transaction through a title company to make sure that you’re obtaining free and clear ownership of the property. Once you pay for the title search and the closing fees the owners title insurance isn’t all that much extra (at le...

gclancer

To play devils advocate there are some useful funds referenced. I would think TIAA Traditional and Real Estate as well as DFA Emerging Markets are worth looking in to. You could hold those in combination with broad indexes and build a nice portfolio in my opinion.

gclancer

greg24 wrote: ↑
Tue Apr 23, 2019 11:23 pm
The best financial move you can make is to fix your marriage.

Side benefit: also the best thing to make your life better.

+1 if “possible divorce” means “possibly remain married” that is the ideal outcome.

gclancer

Are you able to contribute 100% of the employee contribution? If so, wouldn't it make more sense to do that as a regular 401k rather than a roth so we get more money in there now tax free when we are taxed higher than in retirement? Yes, since your spouse doesn’t have another job, the first $19,000...

gclancer

Probably overkill, but I always put $50 into these certificates just to reserve the right to get 3.75% on a one year CD 28 months for now (just as an example). At maturity I end up just rolling the money into my highest yielding certificate I have, so keeping my options open hasn’t actually paid off...

gclancer

valleyrock wrote: ↑
Tue Apr 09, 2019 11:35 am
what is the approach Kessler says that big institutions use to do even better than just buying two-year treasuries now in anticipation of lower yields?

Treasury futures. Start with Google and go from there. Maybe someone will share a particularly helpful link if they have one.

gclancer

Open a Roth Solo 401(k) for her, contribute all of her net income to it, and you’ll get additional Roth space plus the QBI deduction on the dollars going in to the Roth. If you currently contribute to a Traditional IRA for your spouse that deduction would likely be lost (since she would be covered b...

gclancer

Sounds like the seller never made a written offer for you to accept, nor did they accept your offer(s) in writing. Typically contacts for the purchase/sale of real estate have to be in writing (see https://www.wardandsmith.com/articles/when-correspondence-may-establish-a-binding-contract ). In the f...

gclancer

The debate on EE bonds around here is whether to buy them in the first place (most would probably say no, but there wouldn’t be universal agreement). There would be universal agreement that once purchased and held for 15 years, one should hold for an additional 5 years to get to 20.

gclancer

My question for you is: How low would the expense ratio for Total World index fund have to be to get you to buy it? I would be tempted to use Total World if it had an expense ratio of 0.11% - this is the average expense ratio for VTI + VXUS. 2019 Follow up - Have you decided to buy VT at 0.09% or V...

gclancer

thanks everyone, spirit rider, Regarding “So you now have to factor in whether 22% * 80% = 17.6% makes it better to do pre-tax deferrals or designated Roth contributions.” Do you mean I should compare my current marginal tax rate (17.6%) from my projected marginal tax rate in retirement (12%)? Don'...

gclancer

Would you recommend increasing the bond allocation in our HSA to take advantage of not getting taxed (while maintaining our overall AA), or since the rest of our bonds are in tax advantage accounts it's the essentially the same? Personally I would allocate 100% of the HSA to the treasury fund while...

gclancer

Living in CA, we don't get a tax benefit of investing in our HSA. Seems like it is still worth maxing it because of the federal tax benefit, but am I missing something? If you use a treasury fund in the HSA you won't get taxed at the state level because treasuries aren't state-taxable and won't get...

gclancer

This isn't like taking no vacation. It's taking fewer vacations at the beginning of your career at the company. Once you're close to maxing out your vacation bank, you'll be taking vacations like the rest of your colleagues. All it takes is 3-4 years. +1 I am about to hit my 4th year with my curren...

gclancer

If I were in your shoes, I’d buy an owner-occupied single family home that needs fixing up. Fix it up and find some other early 20s roommates to live with you. Once the property is in good shape and you’ve got a track record of rent coming in the door do it all over again with a new owner occupied h...

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