Search found 957 matches

by billfromct
Sat Aug 24, 2019 3:37 am
Forum: Investing - Theory, News & General
Topic: Ok to transfer $$ from UTMA to custodial Roth IRA?
Replies: 9
Views: 554

Re: Ok to transfer $$ from UTMA to custodial Roth IRA?

I'm a little confused about your second question. *there is a $500 required college fee *the $500 fee is being paid from money in your daughter's UTMA (Uniform Transfer to Minors Act) account (not a 529 plan account), which is her account, her money, not your money *you are taking that $500 payment ...
by billfromct
Fri Aug 23, 2019 6:15 pm
Forum: Personal Consumer Issues
Topic: Honda CRV, Accord, or Toyota RAV?
Replies: 25
Views: 1700

Re: Honda CRV, Accord, or Toyota RAV?

What about the Subaru Forester? All Subarus have all wheel drive. It's also less expensive than the all wheel drive RAV4 & CRV. Consumer Reports rates it the highest compact SUV ahead of the RAV4 & CRV & mentioned that it is the best SUV for older people because it is easiest to enter & has great dr...
by billfromct
Mon Aug 19, 2019 5:05 pm
Forum: Personal Investments
Topic: Invest or pay off student loans?
Replies: 41
Views: 1670

Re: Invest or pay off student loans?

I didn't see any mention if you have a Roth IRA or if you have a tax deductible IRA, but you should fund a "back door" Roth IRA if you don't already have one & don't have a tax deductible IRA. With 30-35 years for a Roth to grow tax free & taken out state & Federal tax free after age 59.5, it's a no...
by billfromct
Mon Aug 19, 2019 12:07 am
Forum: Personal Investments
Topic: investing strategy
Replies: 4
Views: 654

Re: investing strategy

What do you mean, "annually put $130,000 into defined benefit plan"?

I thought "a defined benefit plan" is a company/institution pension.

bill
by billfromct
Sat Aug 17, 2019 10:16 pm
Forum: Personal Consumer Issues
Topic: Best price/timing to buy 2019 Toyota Corolla Hatchback?
Replies: 18
Views: 1810

Re: Best price/timing to buy 2019 Toyota Corolla Hatchback?

My son was interested in buying a leftover 2019 Corolla. I checked "the Google" to see when the new 2020 Corollas will be at the Toyota dealers & several Toyota dealer websites said March 2019. I have not contacted any dealers to confirm this, but it seemed strange. I also checked when the 2020 RAV4...
by billfromct
Sat Aug 17, 2019 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Can SS benefits continue to increase if still working after claiming?
Replies: 10
Views: 1204

Re: Can SS benefits continue to increase if still working after claiming?

If working while collecting SS & under the full retirement age (66 plus a couple months now), $1 will be subtracted (don't know how SS does this) for every $2 over $17,640 of earned income. I believe your SS monthly payment will be adjusted when you hit full retirement age to take this into account....
by billfromct
Fri Aug 16, 2019 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Helping with mother's finances after father's passing
Replies: 14
Views: 935

Re: Helping with mother's finances after father's passing

What about SS?

Was your father collecting SS?

Who was the higher wage earner?

If your father was the higher wage earner, have you looked into survivor benefits?

bill
by billfromct
Wed Aug 14, 2019 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Overwhelmed with Social Security and Medicare Benefits for DM
Replies: 9
Views: 1255

Re: Overwhelmed with Social Security and Medicare Benefits for DM

How much does your mother make per year? If she is under her full retirement age (I believe 66 years & 2 months) & earning over $17,640 while collecting SS, SS will claw back $1 for every $2 over that $17,640 earned income figure. I guess SS will find out her income a year or 2 after she files her i...
by billfromct
Tue Aug 13, 2019 5:47 am
Forum: Personal Investments
Topic: Can having wealthy parents be a justification for a more aggressive investment strategy?
Replies: 97
Views: 7091

Re: Can having wealthy parents be a justification for a more aggressive investment strategy?

My late 20/early 30 kids are 100% stocks in their retirement accounts with about 15% of their total financial assets in fixed income in their taxable accounts, where they can get at the money if needed. I have recommended to them to move to their retirement account fixed income allocation starting i...
by billfromct
Sun Aug 11, 2019 7:20 pm
Forum: Personal Investments
Topic: Catch up Contributions
Replies: 10
Views: 762

Re: Catch up Contributions

The company that I worked for had 2 separa contribution set ups, regular 401k % contribution for each paycheck & another for the "catch up" % contribution.

I usually had my "catch up" 401k contribution done by May or June to get it out of the way.

bill
by billfromct
Sun Aug 11, 2019 3:18 am
Forum: Personal Investments
Topic: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?
Replies: 67
Views: 6201

Re: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?

The S&P 500, or it's predecessor before 1957, has had a positive return in 75% of the years between 1940 to 2016. Of course past returns is no guarantee of future results. When you time the market, you have to be right twice, when to get out & when to get back in. You are trying to time the market a...
by billfromct
Sat Aug 10, 2019 6:51 am
Forum: Personal Investments
Topic: which fund for bond allocation
Replies: 5
Views: 518

Re: which fund for bond allocation

I wouldn't choose the high yield bond fund (junk bond fund) due to where we are in the economic cycle. Junk bond funds usually fall very hard during recessions. The Vanguard junk bond fund fell 21% in 2008, but rebounded 39% in 2009. I do have about 25% of my Rollover IRA fixed income allocation in ...
by billfromct
Fri Aug 09, 2019 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 401(k)
Replies: 5
Views: 394

Re: Individual 401(k)

According to "the Google", form 1099-C is for "cancellation of debt".

I think it may be a stretch to call that earned income.

If my memory serves me correctly, when my daughter was an independent contractor, she got form 1099-MISC from the government agency she provided services for.

bill
by billfromct
Wed Aug 07, 2019 9:33 pm
Forum: Personal Investments
Topic: Any way to get more money into a ROTH for a behind investor
Replies: 15
Views: 1123

Re: Any way to get more money into a ROTH for a behind investor

As others have said, if you are self employed (1099 income) & don't have any other employees (I think you can have your spouse work in your business), a Solo 401k is probably a good fit. You can set one up with Vanguard with either a Roth Solo 401k (contributions are not tax deductible, but growth i...
by billfromct
Wed Aug 07, 2019 10:09 am
Forum: Personal Investments
Topic: Maxing out ROTH IRA, also have taxable currently, keep it or go tax deferred?
Replies: 14
Views: 981

Re: Maxing out ROTH IRA, also have taxable currently, keep it or go tax deferred?

If you are self employed (1099 income), it would probably be better to open a Solo 401k. I'm not familiar with SEP IRAs, so I can't comment on them. At Vanguard you can open a tax deductible or Roth Solo 401k. My daughter opened a Solo 401k (Roth) about 5 or 6 years ago when she was an contract work...
by billfromct
Tue Aug 06, 2019 9:17 pm
Forum: Personal Investments
Topic: Inheriting Large IRA, Need Advice
Replies: 9
Views: 962

Re: Inheriting Large IRA, Need Advice

You may not be able to contribute to a tax deductible IRA in the future, especially once you start receiving RMDs from your inherited IRA. There may be some big changes for RMDs in inherited IRAs, but that can't be discussed until it becomes law, if it becomes law. The ability to contribute to a tax...
by billfromct
Tue Aug 06, 2019 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Medigap Plan Advice
Replies: 15
Views: 970

Re: Medigap Plan Advice

FIREchief, I don't know if I would be "subject to insurance underwriting" if I switched from employer retirement health insurance to a Medigap plan. Spirit Rider, according to the Medicare website about the Medicare Part D penalty: "You may owe a late payment penalty if for any continuous period of ...
by billfromct
Mon Aug 05, 2019 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap Plan Advice
Replies: 15
Views: 970

Re: Medigap Plan Advice

It's my understanding that Plan F (Medigap) will not be available for anyone reaching the age of 65 in 2020 or later. My understanding is that it you are 65 in 2019 or earlier, you can get Medicare Plan F (Medigap) anytime in the future. I have a retirement health plan from my employer & I wanted to...
by billfromct
Wed Jul 31, 2019 12:40 pm
Forum: Personal Consumer Issues
Topic: Travel German alpine and Swiss Alp. Please review
Replies: 22
Views: 1286

Re: Travel German alpine and Swiss Alp. Please review

You're buying the car & dropping it off in Zurich to be shipped home, right? You're not renting the car, right? I did part of a similar trip (some of the same overnight stays) in June; 2-3 nights in each location. Landed in Munich, then Salzburg, St Gilgen, Kaprun (next to Zell am See; I wished I st...
by billfromct
Tue Jul 30, 2019 4:55 pm
Forum: Personal Investments
Topic: Help for a relative
Replies: 17
Views: 1348

Re: Help for a relative

I would think having $500k in assets would have a much larger impact on getting Medicaid or any other state or Federal aid.

If she went into a nursing home, she would have to spend down her assets (to $2,000?) to qualify for Medicaid nursing home aid.

bill
by billfromct
Tue Jul 30, 2019 4:48 pm
Forum: Personal Investments
Topic: Help for a relative
Replies: 17
Views: 1348

Re: Help for a relative

Was she previously married for 10 years if divorced? Is she a widow?

There may be some SS spousal or survivor benefits if the the above applies.

As mentioned, if she can wait until age 70, she can get the highest SS benefit that is adjusted for inflation for the rest of her life.

bill
by billfromct
Mon Jul 29, 2019 6:28 am
Forum: Personal Investments
Topic: Stay at Home Mom with 1099 Retirement Question
Replies: 11
Views: 990

Re: Stay at Home Mom with 1099 Retirement Question

Wouldn't 1/2 the self employment tax be $1,606.50 not $1,484 ($21,000 x 07.65%) to be subtracted from the $21,000 gross receipts to determine the potential Solo 401k contribution? So self employment income to determine the amount that could be contributed to a Solo 401k would be $19,393.50 ($21,000-...
by billfromct
Fri Jul 26, 2019 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone ever used the 60 day rollover from their IRA?
Replies: 22
Views: 1245

Re: Has anyone ever used the 60 day rollover from their IRA?

Are Federal taxes withheld on a 60 day IRA rollover? I vaguely remember something about 10% or 20% of an IRA withdrawal is withheld for Federal taxes. As others have noted the original mutual fund company doesn't know or care if you are taking the IRA money out as a withdrawal or a 60 day rollover t...
by billfromct
Fri Jul 26, 2019 5:57 am
Forum: Personal Finance (Not Investing)
Topic: Help with Edward Jones Advisory solutions
Replies: 36
Views: 2965

Re: Help with Edward Jones Advisory solutions

I haven't memorized the 150-200 Vanguard mutual fund symbols yet, so I don't know what VASIX is and I'm too lazy to look it up. Can't they buy a low cost Vanguard ETF or two that is the equivalent of VASIX? I believe that the Vanguard ETF expenses are between .05%-.20% ( just a guess), so at least t...
by billfromct
Fri Jul 26, 2019 4:35 am
Forum: Personal Investments
Topic: 60/40 Portfolio Rebalance During Recessions/Down Market
Replies: 15
Views: 1710

Re: 60/40 Portfolio Rebalance During Recessions/Down Market

I'm retired, with about 90% of my financial assets in my retirement funds, so there are no tax issues with rebalancing. When I retired, I set up my retirement asset allocation so I had about 10 years of withdrawals in fixed income, which came out to be 36% fixed income, 64% stocks. To make it simple...
by billfromct
Wed Jul 24, 2019 1:18 am
Forum: Personal Investments
Topic: Help for parents
Replies: 6
Views: 1048

Re: Help for parents

There is a lot of information you haven't disclosed, like: -is your father's business incorporated or is he self employed, he being the only employee? -if the only employee, does he have a Solo 401k? -does your father's business offer a retirement plan? -same questions about your mom -what retiremen...
by billfromct
Mon Jul 22, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Donate land for a tax break?
Replies: 12
Views: 711

Re: Donate land for a tax break?

How much property tax are you paying on this land?

bill
by billfromct
Fri Jul 19, 2019 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Employed baby: approach to taxes and investing
Replies: 11
Views: 2032

Re: Employed baby: approach to taxes and investing

If you really want to supercharge your child's Roth retirement accounts, you can open an individual (solo) Roth 401k with the child's 1099 self employment income (I believe net income after expenses - 1/2 self employment taxes). If paid via 1099, self employment taxes (employee & employer SS & Medic...
by billfromct
Fri Jul 19, 2019 9:36 am
Forum: Personal Investments
Topic: Vangaurd Money Market Question
Replies: 12
Views: 928

Re: Vangaurd Money Market Question

If the Vanguard MM Fund is not in a tax sheltered retirement account (IRA, 401k, etc), you pay state & Federal taxes on the monthly interest you receive. I believe that the Vanguard MM Fund is about 25%-27% U.S. government securities so that income, 25%-27% of the total interest, would be exempt fro...
by billfromct
Thu Jul 18, 2019 11:10 pm
Forum: Personal Investments
Topic: How to Contribute if Employer Doesn't Offer Traditional IRA
Replies: 23
Views: 1578

Re: How to Contribute if Employer Doesn't Offer Traditional IRA

If I was in my early 20s with 40-45 years before retirement, I would max out my Roth IRA contributions in order to grow my Roth assets tax free with the ability to take out my Roth retirement investments state & Federal tax free after age 59.5. You need to build up some retirement tax diversity (Rot...
by billfromct
Thu Jul 18, 2019 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Survivor Benefits
Replies: 6
Views: 746

Re: Social Security Survivor Benefits

If a person is still working, under SS full retirement age (about 66 years & 10 months for someone born in 1959), $1 for every $2 of SS benefits is withheld if earnings are over $17,640. So it doesn't make sense to collect SS if under full SS retirement age & working full time or making over $17,640...
by billfromct
Sun Jul 14, 2019 3:23 pm
Forum: Personal Investments
Topic: Passive vs active for parent's retirement
Replies: 19
Views: 1531

Re: Passive vs active for parent's retirement

This would be a big mistake because the EJ sales people will probably put your parent's funds into high cost (high expense ratio) funds and/or funds with "loads" or sales charges. Funds that have "loads" or sales charges take between 4.75%-5.25% off the top of the contribution. So if you initially c...
by billfromct
Sun Jul 14, 2019 1:55 pm
Forum: Personal Investments
Topic: Help me grow my dad's retirement fund, review my plan
Replies: 10
Views: 793

Re: Help me grow my dad's retirement fund, review my plan

The $20 Vanguard maintenance fee is waived if he signs up for e-delivery for all Vanguard correspondence (statements, confirmations, annual reports, etc.). I would start the Vanguard account so he can eventually have all his investments with one company & he will be able to roll over his 401k into a...
by billfromct
Sun Jul 14, 2019 8:47 am
Forum: Personal Investments
Topic: Grandparent 529s
Replies: 29
Views: 2263

Re: Grandparent 529s

I don't understand the negative issues either as long as you don't over fund the 529 account. I had 529s for both my kids & had checks made out directly to the university from the 529 trustee for direct university expenses. I paid $4,000 of tuition each year directly to take advantage of the America...
by billfromct
Sun Jul 14, 2019 3:02 am
Forum: Personal Investments
Topic: Investing/Savings Account for Kids
Replies: 11
Views: 877

Re: Investing/Savings Account for Kids

You can take out the contributions (not the earnings) of a Roth IRA tax & penalty free for any reason. I wouldn't recommend this since a Roth IRA is one of the best retirement savings plans available, especially starting when you are young. A Roth IRA will allow years of tax free growth as well as s...
by billfromct
Sat Jul 13, 2019 8:54 pm
Forum: Personal Investments
Topic: Roth IRA - Suggestions Needed
Replies: 9
Views: 848

Re: Roth IRA - Suggestions Needed

The ability to contribute to a regular Roth IRA starts to phase out when your modified adjusted gross income (MAGI) hits $122k for a single person in 2019. You could "recharacterize the contribution" as bulaxtus suggested & do the backdoor Roth IRA contribution mcraepat9 said. Charitable contributio...
by billfromct
Fri Jul 12, 2019 6:27 am
Forum: Personal Investments
Topic: Investiment advice
Replies: 11
Views: 1069

Re: Investiment advice

You don't mention anything about college savings for your children. The 10 year old has 12 years before finished with college expenses & the 15 year old has 7 years before finished with college expenses. With that time frame, you may want to open an allocation appropriate 529 college savings program...
by billfromct
Tue Jul 09, 2019 7:21 am
Forum: Personal Investments
Topic: Guidance for Newbie
Replies: 10
Views: 546

Re: Guidance for Newbie

You say your gross income is "approx 134k per year" so your simplistic modified adjusted gross income (MAGI) would be about $115k ($134k-$19k) You would have to add in other income such as interest income, dividends, capital gains (probably not much if you sold your Tesla stock), etc. to get the act...
by billfromct
Mon Jul 08, 2019 1:58 pm
Forum: Personal Investments
Topic: Where to Begin
Replies: 9
Views: 1204

Re: Where to Begin

If I were 29 years old with 30-35 years until retirement & in the 24% Federal tax bracket, I would put all of my 401k contributions into the tax deductible account & open Roth IRA if you qualify. You need to build up some tax diversity in your retirement accounts. The ability to contribute to a regu...
by billfromct
Mon Jul 08, 2019 10:37 am
Forum: Personal Investments
Topic: Tax Planning Advice Please
Replies: 21
Views: 1570

Re: Tax Planning Advice Please

I don't know if this has been covered, but the ability to fund a traditional tax deductible IRA starts to phase out for a single person when your MAGI hits $64k & you can't contribute anything when your MAGI hits $74k, if you are covered by a retirement plan at work, which you are if you contributed...
by billfromct
Fri Jul 05, 2019 5:08 am
Forum: Personal Investments
Topic: the vangurd advisor sent to me
Replies: 8
Views: 1754

Re: the vangurd advisor sent to me

I have my 40% fixed income IRA allocation in Short Term Corporate Bond Index (40% of my bond allocation) & Intermediate Term Corporate Bond Index (60% of my bond allocation). I take my IRA required minimum distribution (RMD) from my short term bond fund & reallocate as needed. A little stretch for y...
by billfromct
Thu Jul 04, 2019 9:22 pm
Forum: Personal Investments
Topic: Prime Money Market or Total Bond Market
Replies: 63
Views: 7055

Re: Prime Money Market or Total Bond Market

The Prime MM Fund should track (up or down interest rate movement) the fed funds rate with a 30-60 day lag because the Prime MM "average maturity" is 31 days and the "weighted average life" is 60 days. So if the Fed lowers interest rates by .25%, the Prime MM fund "7 day SEC yield" should reflect th...
by billfromct
Wed Jul 03, 2019 8:40 pm
Forum: Personal Investments
Topic: Placing all portfolio BOND holdings in Roth IRA?
Replies: 23
Views: 1752

Re: Placing all portfolio BOND holdings in Roth IRA?

If I were 21 years old with 40-45 years until retirement, I would be 100% stocks in my retirement accounts; at least into my mid/late 30s or later. You can have your fixed income allocation in your taxable accounts where you can get at it if needed. I believe bond fund interest rates would be a good...
by billfromct
Tue Jun 25, 2019 7:28 pm
Forum: Personal Investments
Topic: Mother's Portfolio - Need Help
Replies: 15
Views: 1244

Re: Mother's Portfolio - Need Help

I believe that the 2015 legislation said that if you apply for SS benefits and were born after 1 January 1954, you would get the higher of your own SS benefit or spousal benefit (does not apply to survivor benefits), whichever was higher. My understanding was that the 2015 legislation did not apply ...
by billfromct
Mon Jun 17, 2019 1:00 am
Forum: Personal Finance (Not Investing)
Topic: Looking for help with my parents' finances - dad's death, RMDs, social security
Replies: 35
Views: 3083

Re: Looking for help with my parents finances - dads death, RMD’s, social security

One thing to be aware of is that if your mom works while receiving SS benefits (survivor or her own) and makes over $17,640 (2019 figure & goes up a little each year), $1 of SS will be reduced for every $2 over the $17,640 figure, if under her full retirement age for SS benefits. You mentioned that ...
by billfromct
Fri Jun 14, 2019 11:32 pm
Forum: Personal Investments
Topic: Bond Fund Question - Charles Schwab / Vanguard
Replies: 8
Views: 1108

Re: Bond Fund Question - Charles Schwab / Vanguard

Earlier in the year Vanguard lowered the minimum dollar amount to open an Admiral fund from $10,000 to $3,000 for many index funds. This essentially eliminated the Investor share class of those index funds. So now you can no longer open an Investor share fund for those index funds. VBTLX, the Admira...
by billfromct
Thu Jun 13, 2019 10:30 am
Forum: Personal Consumer Issues
Topic: Renting a car in Europe across countries
Replies: 22
Views: 1358

Re: Renting a car in Europe across countries

I'm in Fussen, Germany right now. Our trip is/was: Munich, Salzburg, St Gilgen, Kaprun (next to Zell am See), Innsbruck, Fussen, Garmisch, then back to Munich. One thing you may want to check out is Burg Hohenwerfen on your way from Salzburg to Zell am See. It's the castle where the movie Where Eagl...
by billfromct
Thu Jun 13, 2019 1:07 am
Forum: Personal Investments
Topic: Emergency Fund in VOHIX
Replies: 3
Views: 745

Re: Emergency Fund in VOHIX

With an average duration of 6.5 years, the Ohio Long Term Tax Exempt Fund seems more like an intermediate bond fund, than a long term bond fund. Duration measures bond prices if interest rates rise or fall. My understanding is that if interest rates rise by 1%, the value of the bonds will fall by 6....
by billfromct
Wed Jun 12, 2019 3:24 pm
Forum: Personal Investments
Topic: I think I found someone to ask about retirement plans....
Replies: 24
Views: 4409

Re: I think I found someone to ask about retirement plans....

You won't be able to take spousal SS benefits. Spousal SS benefits were eliminated a few years ago unless you were born before 2 January 1954. Also SS benefits do not increase after age 70. If you wait until age 72, you are missing out on 2 years of SS benefits for no added increase in future SS inc...
by billfromct
Tue Jun 11, 2019 1:00 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 2022

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

I just checked mysolo401k.net & it appears they charge $550 to set up the Solo 401k then charge a $125 annual fee. It sounded like they work through Fidelity, Schwab, E-Trade, & TD Ameritrade. So I guess Fidelity, Schwab, etc. will charge their own fees on the funds that are invested in. (Edit:. I m...