Search found 6736 matches

by JW-Retired
Sun Jun 17, 2018 10:08 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate "fun money" per year?
Replies: 33
Views: 2109

Re: How to calculate "fun money" per year?

One simple measure of retirement savings: You say you are "maxing" your contributions to your 401k and 2 IRAs meaning of $18.5k + $11k = $29.5k yearly. Does that amount to 15% of your salary or more? That's the number recommended in W. J. Bernstein's "If You Can" minibook as a good rate for a Millen...
by JW-Retired
Sat Jun 16, 2018 9:10 am
Forum: Personal Consumer Issues
Topic: Drive from Phoenix to San Diego
Replies: 40
Views: 2163

Re: Drive from Phoenix to San Diego

If those are the places you want to go, OP, your trip will be just fine. Sure, it is 108 right now (Thursday 1530hrs) in Phoenix. So what? You can see Grand Canyon easily in 2 days -- it's not like you are going to hike to the bottom with 2 kids. Joshua Tree is mostly a drive-by place, maybe a shor...
by JW-Retired
Sat Jun 16, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: portfolio checkup - move more money to Roth?
Replies: 10
Views: 876

Re: portfolio checkup - move more money to Roth?

I guess I am on the high end of the 22%, but doing any Roth conversation would like be in the 24% bracket. Also, did some calculation, with what I currently have in 401k and tax-deferred IRA, it will take 30k annual contribution for 20 years (7% annual return) to hit 2.5M mentioned by FiveK. Since ...
by JW-Retired
Wed Jun 13, 2018 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: One IRA contribution was non-deductible, but no records
Replies: 14
Views: 998

Re: One IRA contribution was non-deductible, but no records

If I use all my IRA before I die, I'll pay tax a second time on that $2k. But if I get down the the last $2k in my IRA before I die, I don't think it will make a lot of difference if I pay tax on it or not. :D PS, I'm happy that I don't have to use Form 8606 every year. In fact, I'm now using the s...
by JW-Retired
Wed Jun 13, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Interesting Social Security analysis
Replies: 16
Views: 2282

Re: Interesting Social Security analysis

To JW-Retired, the numbers are gross before taxes. In the bridge years, that would come out of taxable which would be LTCG @ 10%-15%. During the collection years, it would be SS vs. taxable or tax deferred, so it might be tax favorable to SS. My state (CA) taxes dividends and realized LTCG at the s...
by JW-Retired
Wed Jun 13, 2018 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Interesting Social Security analysis
Replies: 16
Views: 2282

Re: Interesting Social Security analysis

Income: $43,757 COLA Pension (I am collecting this now) $XX SS bridge $$$ then SS (the bridge dollars are taken from the portfolio balance) 4% SWR of remaining portfolio @ SS age Portfolio balance at 55 is estimated @ $1.96M. In all 3 scenarios, my annual income was about the same: $142,350 +- $200...
by JW-Retired
Tue Jun 12, 2018 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Social Security distribution strategy
Replies: 9
Views: 1068

Re: Social Security distribution strategy

Do you have a spouse that has filed spousal benefits under your record? Yes, my wife plans on receiving spousal benefits. Is it possible to suspend just my benefits while my wife receives the spousal benefit, or do we have to suspend both within 12 months to be able to receive the future 8% annuall...
by JW-Retired
Mon Jun 11, 2018 4:34 pm
Forum: Personal Consumer Issues
Topic: Question on applying for SS benefits
Replies: 16
Views: 1487

Re: Question on applying for SS benefits

Today I waited 1.5 hours in a Brooklyn Social Security office, finally get to the window and the clerk tells me that applying must be done in the early mornings. That " Tomorrow I should wait outside the SS office 2 hours before they open to make sure they take me (SS closed the main office in Bens...
by JW-Retired
Mon Jun 11, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2351

Re: converting some traditional IRA to Roth

Personally I don't see how the US can continue with such low income tax rates, so I'm betting on Roth conversion this year being worthwhile. But my income should be low enough in retirement that having most of my retirement savings in tax deferred should make sense. Thanks to David Jay and JW-Retir...
by JW-Retired
Mon Jun 11, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2351

Re: converting some traditional IRA to Roth

The pre-tax IRA funds would have also doubled and they would not have been reduced by the 22% tax right off the bat. What David Jay said uses the correct math. The pre-tax funds and the Roth funds would be the exact same amount (unless I put the cash into the 457b). So nothing's necessarily being r...
by JW-Retired
Mon Jun 11, 2018 12:10 pm
Forum: Personal Consumer Issues
Topic: Question on applying for SS benefits
Replies: 16
Views: 1487

Re: Question on applying for SS benefits

Is there any reason not to apply earlier rather than later during the four-month application window before your benefits start? https://www.ssa.gov/benefits/retirement/ I would do whatever you can to check what they are planning to do before you get the first check. My own experience is SSA skimmed...
by JW-Retired
Mon Jun 11, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2351

Re: converting some traditional IRA to Roth

I don't think you will regret having more Roth retirement money and less tax deferred, but the Roth conversion tax cost is going to be 22%. What you said here about the 11% tax isn't the correct math. Assuming 3% real return over 25 years, the money will double in the Roth... and I have a hard time ...
by JW-Retired
Mon Jun 11, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for a prolonged bear market
Replies: 62
Views: 5027

Re: Strategy for a prolonged bear market

I think that a lot of people also stop rebalancing during a prolonged bear market. I'm not sure if their IPS says that but the reality is that rebalancing is easier on the way up than on the way down, when it can feel like you are throwing good money after bad. We have no plan B. Our plan A (that w...
by JW-Retired
Sun Jun 10, 2018 9:45 am
Forum: Investing - Help with Personal Investments
Topic: tax loss worthwhile?
Replies: 15
Views: 1231

Re: tax loss worthwhile?

Wondering if i sold some Total Bond for a tax loss, if it can be claimed against Long term Cap gains even if i am in a low enough Tax Bracket that i do not pay any taxes on LTCGains? all is within a joint taxable brokerage account Not sure what you are getting at but sure, it will be accounted for ...
by JW-Retired
Sat Jun 09, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation 53 years old
Replies: 21
Views: 1715

Re: Asset Allocation 53 years old

I’m currently 53 and married (wife same age). ............. My question is about my assets allocation. It’s 80/20 now which is too high on equities going by what I read about the “100 - Age” rule of thumb. But how can I get to the goal with a more conservative allocation? Am i laying out way too mu...
by JW-Retired
Wed Jun 06, 2018 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Form 709 - no spousal consent for community property gift, right?
Replies: 1
Views: 221

Re: Form 709 - no spousal consent for community property gift, right?

I've always done it the other way around so you only need to file one 709. One spouse signs as the donor on lines 1-6, and the other spouse signs as consenting in lines 13-18. This doubles the amount of yearly gifts that are excluded from any tax. You check yes to gift splitting. I'm not a lawyer bu...
by JW-Retired
Wed Jun 06, 2018 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Teacher 403b TSA HELP Please!
Replies: 9
Views: 704

Re: Teacher 403b TSA HELP Please!

Yeah it looks like the NEA Direct Invest Option is available and offers a bunch of Vanguard funds. 403bwise also has some good discussion on this product and most people say it is a good option (among many bad ones) for teachers. You do need to find out the actual expenses of all the plans and pick...
by JW-Retired
Tue Jun 05, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 8
Views: 745

Re: Backdoor Roth IRA

Here is what to look for on your finished return with a backdoor Roth: On the front of the 1040 there is a line for IRA distributions (line 15 on 2017 forms). The field labeled 15a (total distribution) should show the total conversion amount; the field labeled 15b (taxable amount) should show $0 Th...
by JW-Retired
Sun Jun 03, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Tax software for 2018
Replies: 20
Views: 1628

Re: Tax software for 2018

Yep. HR Block's 2017 tax estimator adds what the 2018 tax would have been for comparison ...... i.e., "the new tax reform law could mean you owe $xxxx next year."

https://www.hrblock.com/tax-calculator/#/en/te/aboutYou
JW
by JW-Retired
Mon May 28, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Lump sum versus annuity - could use your insight.
Replies: 18
Views: 2230

Re: Lump sum versus annuity - could use your insight.

Planning on SS at age 68 combined with DW at $57k/yr. .......................... This is my first new topic post here, and I wanted to get your experienced thoughts. I keep flip-flopping....what am I missing? Thank you. Make sure you understand the weird way SS income is taxed compared to your othe...
by JW-Retired
Tue May 22, 2018 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Does the IRS care about pennies?
Replies: 7
Views: 947

Re: Does the IRS care about pennies?

My question is, does this sort of stuff ever present problems in the future? Is this something I should just ignore? Or does the IRS actually care about the 4 pennies worth of taxes that I should have paid on the 14 pennies worth of gains? In the future you should always convert "all" so it doesn't...
by JW-Retired
Mon May 21, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Can I transfer brokerage Acct without speaking to FA?
Replies: 20
Views: 1230

Re: Can I transfer brokerage Acct without speaking to FA?

I would like to at all costs avoid the uncomfortable conversation with the Financial Advisor before I transfer everything but when I called Citibank they say I have to go thru him because this is a managed account. Is this true? Is there no other way around this? I doubt very much that it's true. I...
by JW-Retired
Mon May 21, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2346

Re: Frontloading 401k Mistake

That's not what I'm suggesting. I'm suggesting that once you hit the $18,500 cap, you keep making after-tax contributions to get the match (if your new plan is setup this way). Yes! I did exactly this one year when I had boosted up my contributions to hit the max in April and then retire, but chang...
by JW-Retired
Sat May 19, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 32
Views: 3156

Re: If RMD are large should you still defer into 401k

The RMD calculator indicates that my first RMD will be over 50k. My wife' will be about 30k. I will be 70.5 in 6 years. ............... I am wondering since my projected RMD will be large ( at least to me) if I should stop my 401k contributions. ................. I don't know when I will retire. In...
by JW-Retired
Fri May 18, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Retiring soon - some questions
Replies: 27
Views: 3298

Re: Retiring soon - some questions

Not sure when I’ll take SS. I believe our total SS would be about 50K/yr at 66. This should be heavily dependent on what state you live in, which you didn't mention. Many/most states don't tax Social Security income at all, but some do tax every other type of income heavily. My dear old California ...
by JW-Retired
Thu May 17, 2018 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Large Personal Injury Settlement
Replies: 58
Views: 5162

Re: Large Personal Injury Settlement

Thanks a lot for your guys' analysis. I read the firms ADV part 2 form and I was wrong about their fee. I must have misunderstood on the phone and heard 1/8 of as percentage instead of .8%. How embarrassing. When I went into the meeting with the advisors, I think I brought the number up a couple ti...
by JW-Retired
Fri May 11, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - Use High Fee 401k With Match or Other?
Replies: 31
Views: 1352

Re: New Job - Use High Fee 401k With Match or Other?

I don't believe I have any Traditional IRAs, but that is what confused me in the past. All I have are Rollover IRAs, from when I left previous jobs and transferred the 401k over to a Vanguard Rollover IRA, regular taxable brokerage accounts, regular Roth IRAs and my active 401k. So no traditional I...
by JW-Retired
Fri May 11, 2018 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH for 1 Year Only? Worth It?
Replies: 12
Views: 687

Re: Backdoor ROTH for 1 Year Only? Worth It?

Assuming you have no old tIRAs or SEP/Simple/rollover IRAs somewhere you forgot to mention, there is just nothing to it. You and wife can each do one. That's $11k per year.
JW
by JW-Retired
Thu May 10, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: RMDS, Taxes, Social Security timing
Replies: 16
Views: 1770

Re: RMDS, Taxes, Social Security timing

On a purely dollar and cents basis, with taxes and RMDs taken out of the equation, we’d have higher annual Social Security payments if the higher earner’s retirement benefits were deferred till age 70. You probably need to keep taxes in your analysis. Many/most states with an income tax hit RMDs ha...
by JW-Retired
Sun May 06, 2018 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Help with post retirement IRA portfolio
Replies: 14
Views: 1267

Re: Help with post retirement IRA portfolio

I still must be doing something wrong - perhaps there are so many posting that responders stay at the top if the chronological list? Help!!!! I'm afraid we just don't have any magic advice for you. You have large taxable account holdings of high expense funds with 20 years of reinvesting earnings b...
by JW-Retired
Sun May 06, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Help with in-laws investment- 100% in stocks with 5 years left to retire
Replies: 46
Views: 3120

Re: Help with in-laws investment- 100% in stocks with 5 years left to retu

My in laws plan to retire in 5 years and have everything in 100% stocks. From reading bogleheads, I know this is not a recommended strategy. How do I discuss with them that they should be taking less risk? I would have some floor amount of bonds that I could survive on...... but given they each wil...
by JW-Retired
Sat May 05, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Basic knowledge-inexperienced and overwhelmed
Replies: 43
Views: 3464

Re: Basic knowledge-inexperienced and overwhelmed

My retirement plan is a company sponsored 401k. I should also note that I earn too much to have a Roth IRA. Sparkette, Welcome to the forum! Are you sure you have the Roth contribution limits right? You are implying you have more than $189,000/year in adjusted gross income, but can't scrape togethe...
by JW-Retired
Fri May 04, 2018 9:57 am
Forum: Investing - Help with Personal Investments
Topic: I inherited 1 million dollars, should I open an IRA or keep adding money to this million dollar brokerage account
Replies: 52
Views: 5195

Re: I inherited 1 million dollars, should I open an IRA or keep adding money to this million dollar brokerage account

I have a very modest 401k at work... If you are eligible for an IRA or Roth IRA then contributing to those is a slam dunk easy choice because of the tax advantages. You should also max out your 401k. You have to do this through payroll deductions so you would need to do something like increase your...
by JW-Retired
Thu May 03, 2018 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Help With Roth IRA
Replies: 6
Views: 404

Re: Help With Roth IRA

I have $2,400 Roth IRA in URTRX Usaa fund. What Vanguard Roth IRA fund should I move this money to? UTRTX is a 2030 target retirement fund that googling says has an expense ratio of 0.75%. ...... Vanguard's TR fund with the same 2030 target date is VTHRX, which has an expense ratio of 0.14%. :shock...
by JW-Retired
Wed May 02, 2018 9:14 am
Forum: Personal Consumer Issues
Topic: Device or app to find road gradient while biking?
Replies: 18
Views: 1215

Re: Device or app to find road gradient while biking?

Anything except a true inclinometer, like the bubble in a carpenter's level or the swinging dial in a handheld compass And the physics tells us that those will NOT work when you are NOT at steady speed (only applicable when there is no acceleration or deceleration during the measurement). Yes, but ...
by JW-Retired
Wed May 02, 2018 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Ally asking CURRENT customer to provide SSN card?
Replies: 58
Views: 4251

Re: Ally asking CURRENT customer to provide SSN card?

I wonder if this doesn't have something to do with the new social security cards that are being sent out to everyone. Has anyone received their new card yet? Appears new medicare cards without your SS number on them are being sent to everyone on medicare this year. Mine has not showed up. I don't t...
by JW-Retired
Tue Apr 17, 2018 8:13 am
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 97
Views: 10748

Re: Wanting to leave Fidelity

I moved almost all of our investments from Fidelity to Vanguard. The main reason was unsolicited calls from my Fidelity "Account Executive" urging me to take advantage of some flaky investment opportunity. Every call sounded like his hair was on fire and that the world was ending today. This sounds...
by JW-Retired
Mon Apr 16, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax When Very Little Income
Replies: 7
Views: 1046

Re: Capital Gains Tax When Very Little Income

Since I won't be making any income beyond my investment income this year will my marginal tax rate on these capital gains be $0 because I will be in one of the lower income brackets? Or am I not understanding this correctly. How much cap gains get Federally taxed depends on how much all your income...
by JW-Retired
Sat Apr 14, 2018 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Tax Consequences of Rolling a Traditional 401k to Roth IRA
Replies: 7
Views: 660

Re: Tax Consequences of Rolling a Traditional 401k to Roth IRA

Single (live in CA, which has state income tax) $10k business income @ 10% = $1k $10k non-qualified dividends @ 12% = $1.2k $20k qualified dividends @ 0% = $0k $10k qualified dividends @ 15% = $1.5k TOTAL = $3.7k Federal I also have a Traditional 401k with my previous employer and am thinking about...
by JW-Retired
Sat Apr 14, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand my 401K
Replies: 11
Views: 1426

Re: Trying to understand my 401K

Does this mean I can start a Roth now (neither I nor my husband currently have one) by just instructing my employer to do it for me? There are no warnings on the deferral form about income limits. I had the impression DH and I had too much income to have Roths. Our AGI for 2017 was about $212,000 (...
by JW-Retired
Fri Apr 13, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Question on Roth conversion
Replies: 6
Views: 543

Re: Question on Roth conversion

I was under the impression that most people that do a Backdoor Roth want to convert as quickly as possible to avoid a taxable event. Everything I've read said they opened the non-deductible TIRA on day 1 and on day 2 they converted to a Roth. I recall reading that doing it this way, it's likely the...
by JW-Retired
Thu Apr 12, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 7596

Re: Why traditional IRA better than Roth IRA

Traditional IRA is way better than Roth IRA because you do not pay tax in the beginning. Then when you reach 59 1/2 years old you make sure your withdrawals are at or less than $72K/year That way you don't pay tax ever. It turns out IRS does not tax dividends and capital gains up to 72K/year if you...
by JW-Retired
Thu Apr 12, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: How do I make sure IRS receives my manual tax return ?
Replies: 89
Views: 6235

Re: How do I make sure IRS receives my manual tax return ?

In some forums it says IRS does not recognize certified or express or priority mail as proof So what is the best way to make sure IRS receives it? I generally do it via certified mail with a return receipt. They do send back the return receipt. Never had a federal or state tax return get lost in 50...
by JW-Retired
Thu Apr 12, 2018 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Fund IRA's or not? Possible to have too much in IRA's?
Replies: 20
Views: 1991

Re: Fund IRA's or not? Possible to have too much in IRA's?

Coming back and adding to this: I looked into the process more. It turns out that I will need a 1099-R from Vanguard for the conversion. I will call Vanguard in the morning and see how quickly this would be issued. (Or can we do the conversion right away--before April 18th--and still file this with...
by JW-Retired
Wed Apr 11, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 7596

Re: Why traditional IRA better than Roth IRA

Folks, don't forget about the standard deduction which could make quite a lot of the traditional IRA withdrawal tax-free. So no taxes going in and no taxes coming out. I haven't run the numbers, but suppose a MFJ family had $72K a year from $30K Social Security checks and $42K from a traditional IR...
by JW-Retired
Tue Apr 10, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Fund IRA's or not? Possible to have too much in IRA's?
Replies: 20
Views: 1991

Re: Fund IRA's or not? Possible to have too much in IRA's?

These are our tax-advantaged accounts: His Roth IRA: $48,362 His Rollover IRA (not Roth): $88,580. His 401(k): $358,165 - just under half of this is Roth. Her Roth IRA: $31,570 Her Inherited IRA (not Roth): $3,399,992 Her inherited IRA is different and doesn't come into this at all, so she can do a...
by JW-Retired
Tue Apr 10, 2018 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Fund IRA's or not? Possible to have too much in IRA's?
Replies: 20
Views: 1991

Re: Fund IRA's or not? Possible to have too much in IRA's?

We do not qualify to fund Roth IRA's, but could each put $5,000 into traditional IRA's (for a total of $10,000 a year). We would not qualify for the IRA deduction however. The max contribution if you are age 50 or more is $6500. More important is you can convert your tIRA to a Roth IRA regardless o...
by JW-Retired
Mon Apr 09, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Roth Contribution 2017 MAGI Limits
Replies: 7
Views: 455

Re: Roth Contribution 2017 MAGI Limits

See page 6 of this for a nice table & list of what is and isn't taxable compensation for purposes of IRA contributions.
https://www.irs.gov/pub/irs-pdf/p590a.pdf
JW
by JW-Retired
Mon Apr 09, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 12497

Re: What is your AA, given your age? and, Why?

My current asset-allocation is approximately 40% bonds (money that I cannot afford to lose) and 60% stocks. Likewise ...... plus wife and I don't re-balance when stocks are down. That means a comforting thing about our 60/40 AA is if equities lose 50% of their value like in 2008, we still have 70% ...
by JW-Retired
Sun Apr 08, 2018 10:10 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 12497

Re: What is your AA, given your age? and, Why?

Wife and I are in our 70's with a target AA= 60/40 forevermore. We sell stocks to re-balance if/when equities get up to 65, never on the downside. (They got down to a hair below 50 in 08/09.) We don't sell bonds to re-balance, only sell them as a proportional share of our RMDs. Why?..... It's very e...