Search found 6202 matches

by JW-Retired
Wed Aug 16, 2017 8:15 am
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 34
Views: 1908

Re: California - clarification on taxes

We could add that at higher incomes you will start getting into phaseouts of itemized deductions and personal exemptions. Taxes, interest, and charitable contribution deductions are effected. This starts at $311k AGI for married joint filers. I think this puts high bracket couples in CA at just abou...
by JW-Retired
Tue Aug 15, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: How long to keep IRA records?
Replies: 47
Views: 2595

Re: How long to keep IRA records?

Didn't mean to go on a tangent here, but my point was when you have deductible AND non-deductible in the same IRA account, in other words co-mingled contribution dollars, it can get difficult for you or your beneficiaries to determine the correct taxable amount. My personal situation is to liquidat...
by JW-Retired
Tue Aug 15, 2017 9:12 am
Forum: Investing - Theory, News & General
Topic: REITs a disappointment, yet still useful
Replies: 19
Views: 2318

Re: REITs a disappointment, yet still useful

If one has, say 10-15% of their portfolio (accounting for the 3% in Total Stock Market) in a REIT fund such as VNQ, will they not be rewarded with further diversification? Furthermore, REITs are a "real" asset and nice to own in certain economic conditions. This example portfolio is pretty heavenly...
by JW-Retired
Mon Aug 14, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Filing Restricted SS Application - Language Check
Replies: 19
Views: 925

Re: Filing Restricted SS Application - Language Check

I'm getting ready to file sometime in the next several months a restricted application for my spousal benefit. I wanted to check the language I plan on using in the 'Remarks' box of the online application. I've researched several threads on the subject and have arrived at what I believe should cove...
by JW-Retired
Mon Aug 14, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: How long to keep IRA records?
Replies: 47
Views: 2595

Re: How long to keep IRA records?

Here's one specific state example: in 1982-86, you were allowed a Fed deduction of $2K/yr. CA did not allow the deduction if you had a qualified retirement plan Thus for CA , you have 10K basis for those years......not taxable and the basis is applied to the first withdrawals, not pro-rated. Wow! T...
by JW-Retired
Mon Aug 14, 2017 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Wife 1m to vanguard
Replies: 10
Views: 2219

Re: Wife 1m to vanguard

Wife is 61 and will be moving 1m this week to from principle to vanguard. This is her retirement money. She will wait until 70 to start taking money plus will start taking SS. Her family live to 90+. She will be staring in the money market fund then move slow to S&P, total market and some bonds. Sh...
by JW-Retired
Sun Aug 13, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Filing Restricted SS Application - Language Check
Replies: 19
Views: 925

Re: Filing Restricted SS Application - Language Check

I'm getting ready to file sometime in the next several months a restricted application for my spousal benefit. I wanted to check the language I plan on using in the 'Remarks' box of the online application. I've researched several threads on the subject and have arrived at what I believe should cove...
by JW-Retired
Sun Aug 13, 2017 6:31 am
Forum: Personal Finance (Not Investing)
Topic: IRA withdrawal tax aConsider couple on Medicare and over 70.5 years of age. They must take RMDsnd Medicare implications
Replies: 13
Views: 1076

Re: IRA withdrawal tax aConsider couple on Medicare and over 70.5 years of age. They must take RMDsnd Medicare implicat

Consider couple on Medicare and over 70.5 years of age. They must take RMDs each year from their IRAs (and any 401ks). After they have taken their RMDs in a year (1) Can withdraw any remaining IRA funds they wish and deposit them into a Roth IRA? (2) If yes, then if they withdraw significant funds,...
by JW-Retired
Tue Aug 01, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: 401k Rollover. Need advice
Replies: 9
Views: 495

Re: 401k Rollover. Need advice

If you will ever be highly paid to the point that you can't deduct tIRA contributions or even contribute to a Roth IRA (MFJ AGI of $194k), there is a good reason to avoid having any tIRA accounts at all. (See our Wiki article for "Backdoor Roth".) If this is you, it's probably best to keep...
by JW-Retired
Sat Jul 29, 2017 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Young Boglehead seeks Advice for Parents Approaching Retirement
Replies: 21
Views: 1643

Re: Young Boglehead seeks Advice for Parents Approaching Retirement

No tax deferred investments. 13 years until remainder of mortgage is paid off (15 year mortgage). They can save $35,000 a year until retirement. I would start pushing tax deferred investments. You have not told us about any income they might have in retirement except the CDs. If that's most of it, ...
by JW-Retired
Fri Jul 28, 2017 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Timing of 401K Rollover
Replies: 9
Views: 624

Re: Timing of 401K Rollover

How long should you wait after leaving your employer to roll over your 401k? Compared to an IRA, your assets are much more protected from lawsuit judgments in a 401k. I'm several years retired and leaving my 401k where it is indefinitely. (It is a good low cost plan so there is no down side.) JW Th...
by JW-Retired
Fri Jul 28, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: 10 years of Roth IRA contributions - to individual stocks
Replies: 10
Views: 1206

Re: 10 years of Roth IRA contributions - to individual stocks

What are the tax implications of selling these stocks and instead buying funds within the Roth IRA? Can this be done within the Roth IRA without any tax consequences? An IRA is the account not the particular investment. Yes, no tax consequences selling and buying something else if the money stays i...
by JW-Retired
Thu Jul 27, 2017 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: How is the growth portion of a non-qualified 457b taxed?
Replies: 4
Views: 272

Re: How is the growth portion of a non-qualified 457b taxed?

Yes, agree every dollar withdrawn is going to be taxed at your marginal rate just like taxable interest or wages. Dividends or capital gains within a tax deferred account such as a tIRA/401k/403b/457 are just an addition to the total dollars in the account holdings.
JW
by JW-Retired
Thu Jul 27, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Timing of 401K Rollover
Replies: 9
Views: 624

Re: Timing of 401K Rollover

SimonJester wrote: How long should you wait after leaving your employer to roll over your 401k?

Compared to an IRA, your assets are much more protected from lawsuit judgments in a 401k. I'm several years retired and leaving my 401k where it is indefinitely.
(It is a good low cost plan so there is no down side.)
JW
by JW-Retired
Tue Jul 25, 2017 8:30 am
Forum: Personal Finance (Not Investing)
Topic: How am I doing? (dual physician household)
Replies: 45
Views: 5627

Re: How am I doing? (dual physician household)

New annual Contributions 401K- 36 + Employee contrib- 20 = 56 Deferred comp- 170 Roth 10 Gross Income: 550 Annual expenses 80 beezquimby, It appears your AGI has to be way more than the amount that allows direct Roth contributions ($194k MAGI). Can you confirm that you are making Roth contributions...
by JW-Retired
Sun Jul 23, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA and backdoor Roth
Replies: 11
Views: 728

Re: SEP IRA and backdoor Roth

No, FA is someone who I bought some disability insurance from a while ago, is a fiduciary, and who we used to meet with a couple of times a year but are stepping away from. He brought up a SEP IRA and was aware I was doing backdoor roths. Tax person is someone I just used for the first time this ye...
by JW-Retired
Sun Jul 23, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: How do I get back to my asset allocation?
Replies: 14
Views: 1573

Re: How do I get back to my asset allocation?

I tried to market time and now regretting it. Help me get back in. At the end of last year, I re-balanced to an ultra-conservative position (35-65 stock-bond) in a simple Three-Fund portfolio. But now I am afraid it might be too late to rebalance back to my target. What should I do? I think probabl...
by JW-Retired
Sun Jul 23, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA and backdoor Roth
Replies: 11
Views: 728

Re: SEP IRA and backdoor Roth

To answer your questions about how I got into this spot: I have been doing backdoor Roths myself for a few years and using Turbotax to do my taxes. They have been fairly simple as I was previously single and only recently with a higher income. This year is the first time I used someone else to prep...
by JW-Retired
Sun Jul 23, 2017 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Should I convert my tIRA to a Roth? (Pro rata rule)
Replies: 8
Views: 502

Re: Should I convert my tIRA to a Roth? (Pro rata rule)

If I convert I think I will owe taxes on the difference between 137k and 31.5k. So I would owe taxes on 105k correct? How do I calculate the tax I will owe on this conversion? To answer this specific question dry run filling out an IRS 8606 form, which is the tax form and work sheet for figuring th...
by JW-Retired
Sun Jul 23, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA and backdoor Roth
Replies: 11
Views: 728

Re: SEP IRA and backdoor Roth

This year I had additional income as an independent contractor and at the suggestion of my financial adviser I opened a SEP IRA and placed roughly 10k in there, which will be close to the 25% allowable amount. For the last few years I have been funding a backdoor Roth IRA, and in fact I already per...
by JW-Retired
Sat Jul 22, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Security trades with an IRA (ROTH)
Replies: 3
Views: 291

Re: Security trades with an IRA (ROTH)

Not trying to speak for Livesoft, but if you wash a taxable-account loss with an ira buy, you lose the tax deduction forever. That is kind of a big deal. If you had washed the sale in taxable you only defer the deduction. That would be "No big deal". Didn't think it through... thanks for ...
by JW-Retired
Sat Jul 22, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Restricted SS Spousal benifit
Replies: 10
Views: 1080

Re: Restricted SS Spousal benifit

So I called SS they set up a phone appointment for review of my situation, but I would like to have some definitive answer first. Question- Can I file a restricted application on my wife's record for spousal benefit without disrupting my delaying until age 70? (sorry for the rehash of this topic) Y...
by JW-Retired
Sat Jul 22, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Security trades with an IRA (ROTH)
Replies: 3
Views: 291

Re: Security trades with an IRA (ROTH)

Yep, no taxable events trading in a tIRA, Roth, 401k, or other employer tax deferred accounts. However, you could get frequent trading fees from some Vanguard or other mutual funds if you trade them to frequently. Also, if you trade the same equity in your IRA et al and in your taxable account withi...
by JW-Retired
Fri Jul 21, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring an IRA to VG Question
Replies: 8
Views: 444

Re: Transferring an IRA to VG Question

Is this an employer plan? If this is an IRA, I don't think you should be using a form from the current custodian. Usually it's best to start this kind of transfer with the new custodian (Vanguard) and use their form. They will "pull" the funds from old company and VG is the one that has th...
by JW-Retired
Fri Jul 21, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Conduit IRA Requirement
Replies: 22
Views: 1124

Re: Conduit IRA Requirement

Yes. The wording is part of the plan and I need to sign documents declaring that it is a conduit IRA. I think my only option is to consider partial conversions as previously mentioned. Bottom line is this falls on my shoulders due to ignorance with the ratio rule when I had other rollover IRAs. Tha...
by JW-Retired
Thu Jul 20, 2017 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Should I stay with my advisor?
Replies: 6
Views: 626

Re: Should I stay with my advisor?

My Fargo Advisor has averaged me 8% the last 5 years. Depending on your stock allocation that 8% might be pretty awful. (as I see chicagoan23 said above) The US stock market averaged close to 15%/yr the last 5 years. Investing a $10K lump sum 5 years ago you would have almost exactly doubled your m...
by JW-Retired
Wed Jul 19, 2017 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: How do I contribute to a traditional IRA, literally?
Replies: 15
Views: 1035

Re: How do I contribute to a traditional IRA, literally?

Does it come out of my bank account and then I get the tax reimbursed later? If the latter is true, then it seems like I am not getting all the advantages of pre-tax contributions since there is a lower amount of money in the account prior to getting a tax reimbursement. Not really. You know you ar...
by JW-Retired
Wed Jul 19, 2017 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: avoiding capitol gains tax
Replies: 7
Views: 748

Re: avoiding capitol gains tax

we are closing are acc't and moving to vanguard. my f.a. said we will take a $10,000 hit on short term capital gains. Can we avoid this? Perhaps you could be patient and wait until the gains are long term? That should reduce the tax.......... possibly even to zero if you are in the 15% bracket. Giv...
by JW-Retired
Wed Jul 19, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Conduit IRA Requirement
Replies: 22
Views: 1124

Re: Conduit IRA Requirement

Marginal tax rate is 33%. Yes - I have the 8606 forms. Basis is 38500 and IRA is at 79K, which results in a heavy tax burden, thus the thoughts of moving some of the pre-tax into another vehicle if at all possible. see m You can isolate the basis by putting the $38500 amount in a separate tIRA acco...
by JW-Retired
Wed Jul 19, 2017 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Backing out 2017 Roth contributions
Replies: 4
Views: 423

Re: Backing out 2017 Roth contributions

Happens all the time. When I ran into it I called Vanguard (who held the Roth) and asked that question. They fixed it.
JW
by JW-Retired
Tue Jul 18, 2017 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Conduit IRA Requirement
Replies: 22
Views: 1124

Re: Conduit IRA Requirement

The only non-taxable money in the tIRA is the after-tax contributions themselves. All their earnings will be taxable income when they are withdrawn or Roth converted. Did you submit IRS 8606 forms for all the years you made non-taxable contributions? If you did, the most recent 8606 will tell you wh...
by JW-Retired
Mon Jul 17, 2017 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Question on When to Take Social Security
Replies: 14
Views: 1323

Re: Question on When to Take Social Security

I assume by ages now both were over 62 last January? IF so he can file and suspend and she can collect spousal at FRA Unfortunately, this file and suspend ploy doesn't work like that anymore. Husband can still do a suspension but the recent rules change now suspends her spousal benefit too if he su...
by JW-Retired
Fri Jul 14, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Working couple and social security questions.
Replies: 3
Views: 654

Re: Working couple and social security questions.

SS has done away with this. They apparently did think it was too good to be true. Now, when you apply for ss you are deemed to be applying for both benefits. m It's being phased out, so not quite totally done away with yet. Someone born before 1/2/1954 and at least full retirement age, can still do...
by JW-Retired
Tue Jul 11, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: What is the advantage of deferring taxes vs paying them up front?
Replies: 57
Views: 5054

Re: What is the advantage of deferring taxes vs paying them up front?

If you are still earning income, the question of how much to tax-defer and how much to pay taxes on remains, especially if your deductions are not very high. It is quite difficult to answer the question without an accurate crystal ball. I disagree if your age is within say 5 years of retirement. If...
by JW-Retired
Tue Jul 11, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Roth Vs Backdoor Roth
Replies: 9
Views: 1004

Re: Roth Vs Backdoor Roth

The only constraint that applies is you can each only contribute a total of $5500 to your Roth + tIRA combined. The conversion step has no dollar limit at all. But it is critical that you practice filling out an IRS 8606 tax form to see how documenting the backdoor works. Be aware that in line 6 a r...
by JW-Retired
Mon Jul 10, 2017 4:03 pm
Forum: Personal Consumer Issues
Topic: Coyote control
Replies: 66
Views: 4457

Re: Coyote control

What's a good way to deter coyotes? I'd get a shot gun, but there isn't a safe way to use it without potentially harming someone. I once bought a Wham-O slingshot and a box of moth balls to shoot at a large bunch of very noisy raccoons that were partying on our roof all night. It must have been a m...
by JW-Retired
Mon Jul 10, 2017 3:23 pm
Forum: Personal Consumer Issues
Topic: Most Effective Rat Poison
Replies: 24
Views: 1393

Re: Most Effective Rat Poison

Nothing is perfect. I can testify that my snap rat trap in the garage did in a young possum. It was close enough to rat size to get in.

I don't believe he would have eaten rat poison.
JW
by JW-Retired
Mon Jul 10, 2017 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?
Replies: 29
Views: 1657

Re: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?

I went back to the pension site and was able to get it to generate an estimate for the lump sum + annuity with 100% survivor benefit and it's $1,625/mo vs $1,918 with no survivor or $1,760 with 50%. That's compared to $2,835/mo with no lump sum. So with 100% survivor benefits for both, pension is $...
by JW-Retired
Mon Jul 10, 2017 11:54 am
Forum: Personal Consumer Issues
Topic: how to destroy hard disk with personal info
Replies: 99
Views: 7532

Re: how to destroy hard disk with personal info

I use secure erase software to delete everything on the disk. But you never know for sure about software. So then I've been following that up by putting the platters in a bench vice and whacking them with a sledge. I'm remembering they were something like aluminum and didn't break, just bent 90 degr...
by JW-Retired
Mon Jul 10, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?
Replies: 29
Views: 1657

Re: Yet another pension thread -- take partial lump sum w/reduced annuity or normal annuity?

MisterBill, Take the annuity with the 100% survivor benefit to delay your SS until 70 so as to make your SS maximum for your widow if you pass first. Social security is by far the best annuity because it is taxed much less than pensions, so making that income bigger is tax friendly. Trading more SS ...
by JW-Retired
Sat Jul 08, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Help family member with finances
Replies: 19
Views: 1339

Re: Help family member with finances

This term is new to me. Is the survivor's benefit for SS or the pension or both? My understanding is that she's getting $19k/year for the rest of her life from the pension. As for SS, I really don't know. Will have to get in touch with her. It was basically half hers so the pension got split in the...
by JW-Retired
Sat Jul 08, 2017 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help family member with finances
Replies: 19
Views: 1339

Re: Help family member with finances

Current Income: $28,200 = $9,000 from Starbucks + $19,200 from ex-husband's pension Location: Oregon Doesn't look like she is paying zero tax now. Using my favorite tax calculator, that taxable pension income means she will be in the 15% bracket and owe about $2200 in federal tax. Plus Oregon has a...
by JW-Retired
Sat Jul 08, 2017 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone use ANNUITIES for SOME of their retirement funds?
Replies: 61
Views: 4221

Re: Does anyone use ANNUITIES for SOME of their retirement funds?

I chose to take my employers non-qualified savings plan funds as a 5-year annuity. The idea was to use it as a bridge to age 70 social security. A reasonable plan, but it turned out I retired so late we didn't need a bridge. The catch was, once chosen years back the term couldn't be changed. Oh well...
by JW-Retired
Tue Jul 04, 2017 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Retirement question - withdraw pretax or post tax money first?
Replies: 40
Views: 3118

Re: Retirement question - withdraw pretax or post tax money first?

DKD, I see in an earlier thread you are 58 & you are thinking to take social security fairly early. If you are drawing SS and also the age 70 mandatory $100k+ RMDs from your $2M+ tax deferred, the tax on the RMD is going to be quite high. Depends on all your numbers, but I probably would try to ...
by JW-Retired
Mon Jul 03, 2017 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Traditional 401(k) vs Roth 401(k)
Replies: 5
Views: 447

Re: Traditional 401(k) vs Roth 401(k)

If you are single and had a $50k gross salary, I don't think your Roth 401k was a mistake at all. Most of what you were putting in the Roth would have been taxed at only 15% anyway. If your salary is now up to $70k the contribution is probably going to be all in the 25% bracket so I agree you should...
by JW-Retired
Mon Jul 03, 2017 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Our $101K "Problem" <--that much in cash savings
Replies: 16
Views: 2153

Re: Our $101K "Problem" <--that much in cash savings

1. Open a taxable account: my wife is very leary of this, we could try to talk through it more. I think we could balance our 100% stocks in retirement with something safer that generates some income taxed better for us in the 15% tax bracket .......... Why leery? Does she think you will take up day...
by JW-Retired
Sun Jul 02, 2017 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Question
Replies: 12
Views: 1487

Re: Social Security Question

Thanks it makes sense to me now. If she's collecting at age 62, she would get half of what I would get if I were collecting at age 62. At age 64 she'd collect have of what I would collect if I were collecting at age 64. And it doesn't make any difference how long I wait to collect, her payments are...
by JW-Retired
Sun Jul 02, 2017 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rollover an exiisting IRA to my current 401K account?
Replies: 49
Views: 3156

Re: Should I rollover an exiisting IRA to my current 401K account?

She proposed that I should convert my account into WellsFargo FundSource plan. With this FundSource plan, I will be paying 1% fee, but will have lower costs on the mutual funds. I am trying to decide whether I should rollover this IRA into my current 401K account. My rationale is: - I don't mind th...
by JW-Retired
Sun Jul 02, 2017 9:46 am
Forum: Investing - Theory, News & General
Topic: 401k and RMD, confused about what to do...
Replies: 13
Views: 953

Re: 401k and RMD, confused about what to do...

Any bogleheads in retirement currently facing this? I understand the math about it being favorable for normal withdrawals, but when me and wife are forced to withdraw a certain amount due to RMD and add SS money on top of that, how does it work? Yes, enduring this now. It's a good retirement proble...
by JW-Retired
Sun Jul 02, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: 401k and RMD, confused about what to do...
Replies: 13
Views: 953

Re: 401k and RMD, confused about what to do...

We are not eligible for IRA or RothIRA due to income limits and both me and my wife contribute maximum to our 401ks. If we continue to max out the 401k for the next 30 years @ $16000 per individual per year, and assume 7% rate of return, it looks like the net value will be ~ $5 million total? and w...