Search found 6529 matches

by JW-Retired
Mon Dec 18, 2017 11:09 am
Forum: Investing - Theory, News & General
Topic: Why is Vanguard switching all accounts to brokerage accounts?
Replies: 44
Views: 5310

Re: Why is Vanguard switching all accounts to brokerage accounts?

I guess the process must be easier if you just hold an account as an individual? My spouse and I have a revocable living trust that we set up for estate planning purposes; everything is in the name of the trust. I think that's why there would be a bunch of paperwork for me if I were to go through w...
by JW-Retired
Sun Dec 17, 2017 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Problem with H&R Block Tax Software Download
Replies: 10
Views: 589

Re: Problem with H&R Block Tax Software Download

OP, This is why I do not buy the download version. The disc version is the same price most of the time. KlangFool ?? I have not bought a disc version in years, but back when I still was the first thing it always did was update itself via a download. So what's the point to it? Anyway, the last few y...
by JW-Retired
Sun Dec 17, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal SS benefits
Replies: 28
Views: 1668

Re: Spousal SS benefits

Thanks, JW for this info. So the second year of suspended benefits you get the 2% COLA for 2018 and then the 8% DRC up top of that. But the 8% I think is based on your age 66 PIA, not PIA + COLA? Correct me if I am wrong. Thanks... Disregard my previous answer.............. I misunderstood what you...
by JW-Retired
Sun Dec 17, 2017 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal SS benefits
Replies: 28
Views: 1668

Re: Spousal SS benefits

Does the PIA increase with the annual COLA if one is suspending benefits to get delayed retirement credits? Also,when I unsuspend to start my benefits in two years when my wife is 66, I know she will get 1/2 of my PIA, but with COLA's? Thanks Your PIA is a moving reference benefit amount that by de...
by JW-Retired
Sun Dec 17, 2017 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Spousal SS benefits
Replies: 28
Views: 1668

Re: Spousal SS benefits

I take this to mean that the spousal benefit cannot increase past what it would have been at the worker's full retirement age even if the worker delays taking SS past that point. Is this correct? Yes and no. Half the worker's PIA is as big as it can get.... but, that means it can increase with infl...
by JW-Retired
Sun Dec 17, 2017 8:41 am
Forum: Personal Finance (Not Investing)
Topic: H&R Block Software
Replies: 131
Views: 10852

Re: H&R Block Software

FWIW, I just noticed that HRB has changed their on-line tax calculator look for next year. First run through I feared they may have copied Turbo-tax and made it clunkier to make input changes and see the results quickly...... but it's not. If you click on "What You Told Us" it shows you all your ent...
by JW-Retired
Sun Dec 17, 2017 8:09 am
Forum: Investing - Help with Personal Investments
Topic: 28 Years Old: In the current market, what % into bonds?
Replies: 56
Views: 3170

Re: 28 Years Old: In the current market, what % into bonds?

To get a feel for the relative risk vs. returns, here is a table from Vanguard of historical returns in the past 91 years. Keep in mind that the table only tracks gains/losses for 91 calendar years. Gains and losses within 1 year periods can be larger than this table shows, because they might occur...
by JW-Retired
Sat Dec 16, 2017 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Stop Contributing to 401(k)??
Replies: 26
Views: 2184

Re: Stop Contributing to 401(k)??

UncleBen wrote:
Sat Dec 16, 2017 8:37 pm
What are your marginal state and federal tax rates now?
What do you think they will be in retirement?
You might split that into early retirement before you are taking social security, and late retirement when you are drawing everything.
JW
by JW-Retired
Sat Dec 16, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth
Replies: 6
Views: 706

Re: Back Door Roth

If my husband does not have a roth can we open a Vanguard account and deposit “new” money to a brokerage account and then convert to a roth? You might be confused about how this works or maybe you just misspoke about "not have a roth". It's a traditional IRA of any sort with tax deferred money in i...
by JW-Retired
Sat Dec 16, 2017 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes on 401(k)withdrawl
Replies: 12
Views: 1017

Re: Taxes on 401(k)withdrawl

Rick C., If you are asking what the tax will be: Assuming the $7000/month was your total income, and you were 60 years old so you could withdraw it without penalty, and no medicare taking a cut, federal tax only......... my favorite tax calculator says for filing single & std deduction you would net...
by JW-Retired
Fri Dec 15, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: baffle about Roth IRA contribution using turbo tax
Replies: 19
Views: 806

Re: baffle about Roth IRA contribution using turbo tax

The $6500 to pay for my Roth IRA is money I have taken from my 457B pension distribution. Maybe nuts and bolts on the 1040 would help? Roth or tIRA, the total income line on your 1040 (line 22) will be the same. What matters is for the Roth you don't get to take a $6500 tax deduction on line 32 of ...
by JW-Retired
Fri Dec 15, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: baffle about Roth IRA contribution using turbo tax
Replies: 19
Views: 806

Re: baffle about Roth IRA contribution using turbo tax

I thought it would be $96500 as I read that with Roth IRA you need to pay taxes first. Probably two possibilities, (1) you did already pay taxes on the 6500 when you earned it last year, or (2) it's part of the 90,000 you earned this year so you have already had it withheld this year. Nobody has gi...
by JW-Retired
Fri Dec 15, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 1083

Re: Tax planning: Convert Roth or zero tax due?

You might think about suspending your SS until age 70....JW Are you sure you can still do that? I thought that had been stopped a few years ago. Yes, you can still suspend when you have reached FRA. The only change is it now suspends the payments of everyone on your account. So the "file and suspen...
by JW-Retired
Fri Dec 15, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 1083

Re: Tax planning: Convert Roth or zero tax due?

I retired in May 2016, so 2017 is the first year that I have had 12 full months of social security income ($30,000 per annum). My only other income source is an $8,000 annual pension. I am 67 and I have TIRA account balances that I want to convert to my existing Roth IRA over the next 3 years, befo...
by JW-Retired
Thu Dec 14, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3700

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thanks for your advice I did not take it as a criticism. I will likely take out slightly higher RMDS that Fidelity or Vanguard estimates as I'm neurotic about not paying enough taxes. Lynette, You really don't need to do "slightly higher". Fidelity or Vanguard don't "estimate" your RMDs they comput...
by JW-Retired
Thu Dec 14, 2017 10:52 am
Forum: Personal Consumer Issues
Topic: How easy is it to minimize tax liability yourself without a CPA/accountant?
Replies: 26
Views: 2541

Re: How easy is it to minimize tax liability yourself without a CPA/accountant?

I started doing taxes myself, in pen way before software was available to do it, when the CPA I went to made a mistake (that I found) and then charged me more than the mistake cost in tax to file the form to fix the mistake. I figured that even if I made a $500 mistake, I'd be ahead of the game. De...
by JW-Retired
Thu Dec 14, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: 40,000 to safely invest
Replies: 15
Views: 816

Re: 40,000 to safely invest

With the backdoor option it is not a tax savings at a higher combined income level? It doesn't save on (or add too) your taxes now but it does save on your taxes when you get to the point of taking money out of the Roth in retirement. For the Roth there is no tax on any withdrawals when you take mo...
by JW-Retired
Thu Dec 14, 2017 8:59 am
Forum: Investing - Help with Personal Investments
Topic: 40,000 to safely invest
Replies: 15
Views: 816

Re: 40,000 to safely invest

We earn to much for the Roth IRA and reg Ira we don't get a tax deduction. I guess the reason I am asking is I know my earning potential is going away to raise our kids and I've been careeer oriented this far. Letting my husband go kill the meat for a bit.. Do you already have money in a reg IRA? (...
by JW-Retired
Wed Dec 13, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3700

Re: How does the IRS know the value of my 401K at end of year for RMDs

There is no IRS reporting of individual 401k year end balances or if RMDs are required. The only year-end reporting for 401k plans is for the plan as a whole via one of the versions of Form 5500. Unlike IRAs, 401k plan administrators are required to distribute RMDs. These are reported on Form 1099-...
by JW-Retired
Wed Dec 13, 2017 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3700

Re: How does the IRS know the value of my 401K at end of year for RMDs

I took my RMD in January which my Megacorp designated as the required amount. I took a further distribution in June. I've started the rollover in December so that I can take QCDs next year. My confusion was how the IRS would know the balance on my 401K on 12/31/2016 to ensure that I had taken suffi...
by JW-Retired
Wed Dec 13, 2017 9:24 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3700

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thank you for all of the assistance. The reason I asked the question is that I am in the process of rolling over my 401K to Vanguard and Fidelity IRA's. I wanted to know how the reporting worked so that I can fill in my 1040 correctly. I understand that the balance for my 401K at the end of 2016 ne...
by JW-Retired
Wed Dec 13, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3700

Re: How does the IRS know the value of my 401K at end of year for RMDs

There is no IRS reporting of individual 401k year end balances or if RMDs are required. The only year-end reporting for 401k plans is for the plan as a whole via one of the versions of Form 5500. Unlike IRAs, 401k plan administrators are required to distribute RMDs. These are reported on Form 1099-...
by JW-Retired
Tue Dec 12, 2017 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3700

Re: How does the IRS know the value of my 401K at end of year for RMDs

How does the IRS know the value of my 401K / IRA at the end of the year to calculate RMDs? 2017 was the first year I had to take RMDs and my former employer calculated the amount of the RMD. I was wondering if that information is given to the IRS as I think there are large penalties if you do not t...
by JW-Retired
Tue Dec 12, 2017 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: How to report property tax
Replies: 6
Views: 354

Re: How to report property tax

I pay my property taxes directly to the local authorities. They send me a bill. I send them a check. The IRS is not involved at all. I put the amounts I paid on my Schedule A. So it is just like any other tax deductible item (charitable donation): I have a cancelled check and a receipt. Yep, exactl...
by JW-Retired
Tue Dec 12, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Having trouble finding a Lincoln Financial "Regional Office"...any help?
Replies: 5
Views: 364

Re: Having trouble finding a Lincoln Financial "Regional Office"...any help?

edge wrote:
Tue Dec 12, 2017 11:56 am
Why in the world would you want to find one?
You beat me to this comment.
JW
by JW-Retired
Tue Dec 12, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: What to do after losing $117k in stock market?
Replies: 154
Views: 15736

Re: What to do after losing $117k in stock market?

Yes, I feel like the biggest idiot especially in this bull market. I only started investing 3 years ago and got involved in high risk stocks (oil and biotech). Made some really bad picks and took a massive loss. ........ I am lucky to have a stable $120k/year job. Maybe I missed it but did you real...
by JW-Retired
Mon Dec 11, 2017 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth IRA conversions
Replies: 8
Views: 941

Re: RMD and Roth IRA conversions

So it sounds like I will have to wait until she retires. Then start moving money into the Roth IRA up to the 25% tax bracket max. We don't plan to take SS until 67 so that will give us some years to move money into the Roth IRA. Also, we can live the same as now with just my pension. Looks like a g...
by JW-Retired
Mon Dec 11, 2017 10:13 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 1017

Re: How should I look at SS and pensions when developing my post-FRA AA?

How should I look at SS and pensions when developing my post-FRA AA? Should I count them as bonds @ 25x, should I discount them to 20x or 15x, or should I disregard them. It makes sense to me to regard them as guaranteed income streams and subtract them from projected expenses for cash flow purpose...
by JW-Retired
Mon Dec 11, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth IRA conversions
Replies: 8
Views: 941

Re: RMD and Roth IRA conversions

Is this correct, and is there really a big advantage of starting to moving the money early. My example is that my pension keeps us in the 25% tax bracket. My wife still works but we max out her 401k at work. This keeps us below the Roth IRA contribution salary limits. When she retires in around 7 y...
by JW-Retired
Sun Dec 10, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 1017

Re: How should I look at SS and pensions when developing my post-FRA AA?

Simple straightforward question. How should I look at SS and pensions when developing my post-FRA AA? Should I count them as bonds @ 25x, should I discount them to 20x or 15x, or should I disregard them. It makes sense to me to regard them as guaranteed income streams and subtract them from project...
by JW-Retired
Sun Dec 10, 2017 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Does a Boglehead ever time the market?
Replies: 65
Views: 4141

Re: Does a Boglehead ever time the market?

livesoft wrote:
Sun Dec 10, 2017 9:12 am
^I think you may have mis-read "not a few hundred." :) I think the OP may have a 6-figure or more windfall or something like that.
Maybe, but I was thinking 6-figures would have rated at least a "not a few thousand". :D
by JW-Retired
Sun Dec 10, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Does a Boglehead ever time the market?
Replies: 65
Views: 4141

Re: Does a Boglehead ever time the market?

Wow that is a lot of replies and a lot of info to digest, thanks to everyone for the advice and the time spent replying, its a bit overwhelming I feel like I have dived in head first. For the record I am 34, timeframe is 20 years + and my nestegg is a lump sum, not a few hundred. No offense, but "n...
by JW-Retired
Sat Dec 09, 2017 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Did I make an irrevocable IRA mistake?
Replies: 6
Views: 648

Re: Did I make an irrevocable IRA mistake?

I've been told that it's more trouble than it's worth to transfer the traditional IRA to a Roth, but I don't want that money to be decimated by taxes when I do finally decide to take it out. It's just a simple "conversion" to a Roth........ Vanguard could do it for you in a jiffy. Not any trouble a...
by JW-Retired
Sat Dec 09, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Exchanging managed funds for Indexed funds
Replies: 10
Views: 555

Re: Exchanging managed funds for Indexed funds

in a taxable vanguard account i have a mix of indexed and managed funds - i have learned in the past 5 years to only purchase index funds to avoid the yearly tax penalty that comes from managed funds - we have about $ 90,000 in profits in the managed funds plus another $ 40,000 in profits from abou...
by JW-Retired
Sat Dec 09, 2017 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Exchanging managed funds for Indexed funds
Replies: 10
Views: 555

Re: Exchanging managed funds for Indexed funds

- we have about $ 90,000 in profits in the managed funds plus another $ 40,000 in profits from about 20 stocks my Questions - ideally i would like to 'sell' the managed funds and move into indexed funds - however when does the long term capital gains impact cover the indexed fund advantages. - hard...
by JW-Retired
Fri Dec 08, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Tax questions about moving taxable to lower ER options
Replies: 8
Views: 667

Re: Tax questions about moving taxable to lower ER options

......... I see Cost Basis and Unrealized Gain/Loss Amount. Is calculating the tax we'd have to pay as simple as .15 * that gain amount? One other consideration. My wife might be moving to a lower paying, but much more rewarding, position next year which might drop us one tax bracket (we're on the ...
by JW-Retired
Fri Dec 08, 2017 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions: how far should I go in 2017?
Replies: 15
Views: 1319

Re: Roth conversions: how far should I go in 2017?

If I convert to the top of the 25% bracket each year until RMD, I will be able to convert a little more than 40% of my tax deferred assets before RMDs begin. That's probably overstated because - The 40% assumes no growth of the tax deferred portfolio from now to age 70 1/2. - I have assumed no Soci...
by JW-Retired
Thu Dec 07, 2017 9:26 pm
Forum: Personal Consumer Issues
Topic: sharing cost of tree cutting
Replies: 31
Views: 1603

Re: sharing cost of tree cutting

We follow the 100% neighbor safest way for tree trimming. We pay for any/all trimming or removal of my trees, and I only trim neighbors tree limbs back to my fence line. My tree trim guys never set foot on the neighbors ground. If a little something falls in their yard they hook it up over the fence...
by JW-Retired
Thu Dec 07, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: SSN on job applications
Replies: 33
Views: 1763

Re: SSN on job applications

I’m currently searching for a job. After my last interview, which was definitely the wrong company for me, I immediately regretted putting my social on the application I filled out. If you are serious about this my thought would be to hedge your bets. Hold back your SS number for every other interv...
by JW-Retired
Thu Dec 07, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: What did you do with your first RMD withdrawal money?
Replies: 63
Views: 4369

Re: What did you do with your first RMD withdrawal money?

Nothing special. First and every RMD withdrawal went to withheld taxes and the checking account first. Then it is sooner or later deployed to a combination of spending, family gifting, taxable account investments, and other longer term savings. Like any income.
JW
by JW-Retired
Thu Dec 07, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Help Me Not Screw Up Back Door Roth
Replies: 3
Views: 362

Re: Help Me Not Screw Up Back Door Roth

You have it if you hold to the requirement that on 12/31/2017 you still do not to have any money in tIRAs, SEP IRAs, Simple IRAs, and rollover IRAs.

And don't forget to practice filling out the 8606 forms so you can tell if your tax software is understanding you.
JW
by JW-Retired
Wed Dec 06, 2017 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement fund suggestion
Replies: 5
Views: 621

Re: Retirement fund suggestion

Where have all your assets been invested in past years? Is Wellington a big change in stock/bond asset allocation?
JW
by JW-Retired
Wed Dec 06, 2017 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Analyzing Expense Ratios
Replies: 39
Views: 2189

Re: Analyzing Expense Ratios

My work offers a 3% match within their 401K pension plan. The plan has a mix of Oppenheimer, Prudential, and Invesco funds (Class R) available to select from. In my review of these funds the expense ratio is expensive, 1.08% to 1.66% (every one have sub-transfer fee's, front end loads, and 12B fee'...
by JW-Retired
Wed Dec 06, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Analyzing Expense Ratios
Replies: 39
Views: 2189

Re: Analyzing Expense Ratios

A personal Roth IRA and a Roth 401k account are independent. You can open a personal IRA with Vanguard or some other low cost fund company and that adds to what you can contribute the 401k. If you are under age 50, a Roth 401k has a $18k/year contribution limit and the Roth IRA adds another $5.5k. O...
by JW-Retired
Wed Dec 06, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 894

Re: Voya 401k or Not! Not enough in 401ks?

Can't you do the 2 tIRAs and 3% to the 401k? Even if the match is not very much the tax reduction on 3% is the same.
JW
by JW-Retired
Wed Dec 06, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 894

Re: Voya 401k or Not! Not enough in 401ks?

6 years to be vested in the 401k! Meaning they take some of the match back if she leaves earlier. It's a sliding scale so they take less of it back for each of the 5 years so the match is worthwhile after a couple of years. It's been a long time, but I recall my 401k was something like that too. The...
by JW-Retired
Wed Dec 06, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 894

Re: Voya 401k or Not! Not enough in 401ks?

While I know I should of been smart after the fact and put in 401k all these years I cant go back and change that mistake. We have 40 years expenses based on my withdrawal rate if we did not cut it so good there so just not sure what is the smart thing to do here. I like just having that extra inco...
by JW-Retired
Tue Dec 05, 2017 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: question about opening Traditional IRA
Replies: 8
Views: 518

Re: question about opening Traditional IRA

mine is already rolled over. my question was i was wondering if there's any way to avoid 3 retirement accounts (my traditional IRA, hubby traditional IRA, hubby's work 401k). Nope, no way to combine yours and hubby IRAs. An IRA is an Individual Retirement Account. Same applies to Roths and employer...
by JW-Retired
Tue Dec 05, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 23
Views: 2222

Re: Social Security Spousal Benefit

Using the calculator for SS it advises us that the higher earning spouse should claim at age 70, and the lower earning spouse should claim at full retirement age. The calculator advises us that the lower earning spouse claiming early will lower lifetime benefits. I am trying to figure out why that ...
by JW-Retired
Mon Dec 04, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Regrets for taking SS at 62 or waiting?
Replies: 100
Views: 9243

Re: Regrets for taking SS at 62 or waiting?

62 or waiting? I'm very happy I waited to 70. It's so calming to know that when I'm gone, dear wife will get the maximum $42k/year (colaed and very tax favored) SS benefit instead of a measly $24k/year. How could we do otherwise? Living in California, I also really like maximizing that lightly taxed...