Search found 1081 matches

by billfromct
Fri May 22, 2020 6:23 pm
Forum: Personal Investments
Topic: How to invest Inherited IRA
Replies: 12
Views: 580

Re: How to invest Inherited IRA

Don't know if anyone mentioned it, but make sure you have Federal & state income taxes withheld so you get a surprise come tax filing time.

bill
by billfromct
Fri May 15, 2020 8:31 pm
Forum: Investing - Theory, News & General
Topic: Updated Vanguard Purchase Policy
Replies: 16
Views: 1741

Re: Updated Vanguard Purchase Policy

After you log into your Vanguard account, in the upper right corner, under "Search the site" box, type "Request deposit slips" and it will take you to the site where you can order deposit slips.

I've used this process to order IRA & Prime Money Market deposit slips.

bill
by billfromct
Sat May 09, 2020 6:51 pm
Forum: Investing - Theory, News & General
Topic: Best fixed income options
Replies: 30
Views: 2901

Re: Best fixed income options

The Vanguard High Yield Corporate Bond Fund Admiral shares (junk bonds) is currently paying 5.87% interest (30 day SEC yield, according to the Vanguard website). Of course, the interest is not guaranteed & the payment could decrease if the bond companies stop paying the interest payments. Your MIL w...
by billfromct
Sat May 09, 2020 8:48 am
Forum: Personal Investments
Topic: College age kid wrecked his car...
Replies: 113
Views: 6040

Re: College age kid wrecked his car...

Collision insurance doesn't cover damages if you hit a deer. Comprehensive insurance covers you if you hit a deer as well as broken glass for your car, if you have it. I hit a deer about 6 years ago & was surprised that collision didn't cover it, but comprehensive did cover. The deductible was the s...
by billfromct
Sat May 02, 2020 4:40 pm
Forum: Personal Investments
Topic: 26 Y.O. Portfolio Review
Replies: 21
Views: 1507

Re: 26 Y.O. Portfolio Review

If I was in my mid/late 20s, with 30-35 years until retirement, I would be 100% stocks in my retirement accounts, with my fixed income allocation in my taxable account, where you can get at it if needed; at least until you get into your 40s. I looked at the returns of the S&P 500 (or predecessor bef...
by billfromct
Thu Apr 30, 2020 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Survivor's Benefits
Replies: 5
Views: 496

Re: Social Security Survivor's Benefits

The kid's SS survivor benefits started in the mid 199O's & I don't know if the same SS rules or recommendations were in place at the time. If they were, SS never said anything during the several times I was audited. Maybe the person (as I said, I was audited several times) that received my spreadshe...
by billfromct
Wed Apr 29, 2020 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Survivor's Benefits
Replies: 5
Views: 496

Re: Social Security Survivor's Benefits

I managed my kid's SS survivor benefits back from the mid 90's to the late 2000's. Make sure you document where the money is spent or saved/invested for your child. I put each monthly SS amount received in a spread sheet with how it was invested or spent. Everything was saved/invested except when my...
by billfromct
Wed Apr 29, 2020 3:53 pm
Forum: Personal Investments
Topic: Helping Mom with her finances in Arizona
Replies: 9
Views: 770

Re: Helping Mom with her finances in Arizona

What is your mother's age? Was her husband's SS higher then her SS? If so, she may be able to get a higher SS payment through SS survivor benefits. Why did the bank "recommend selling the last of her IRA"? With interest rates going down, I wouldn't be surprised if money market fund annual returns go...
by billfromct
Sun Apr 26, 2020 10:14 am
Forum: Personal Investments
Topic: Law School Savings Account
Replies: 15
Views: 893

Re: Law School Savings Account

Looking at the Ally Bank high yield CDs, the 3 month high yield CD is paying .5% & the 6 month high yield CD is paying .75%.

As retired@50 indicated, keep it where it is. I highly doubt you will find anything better with your 4-5 month time frame.

bill
by billfromct
Sat Apr 25, 2020 11:38 pm
Forum: Personal Investments
Topic: Mother has only $85K to sustain her
Replies: 81
Views: 8118

Re: Mother has only $85K to sustain her

The 10 year rule only applies if a person was divorced & wanted to collect SS survivor benefits from an ex spouse without remarrying before age 60. I don't know if collecting SS survivor from an ex spouse would have any impact on collecting SS survivor benefits from a current (deceased) spouse. I be...
by billfromct
Wed Apr 22, 2020 8:58 pm
Forum: Personal Investments
Topic: AAPL MSFT GOOG AMZN ???
Replies: 85
Views: 6472

Re: AAPL MSFT GOOG AMZN ???

You don't mention what other retirement funds you may have. You may want to put 5 or so years of distributions (the money you will need to take out in retirement) in short/intermediate term bond funds so you don't have to sell stocks during a bear market. I have 8-10 years of required minimum distri...
by billfromct
Wed Apr 22, 2020 5:55 pm
Forum: Personal Investments
Topic: Advice for my father
Replies: 17
Views: 1502

Re: Advice for my father

I would also put $3,000-$5,000 in the Vanguard MM fund. It's paying .75% now & he would be able to write checks if over $250. He could also tie the Vanguard MM Fund to his checking account & transfer money back and forth if needed. He may want to have the VASIX dividends/interest automatically depos...
by billfromct
Sat Apr 18, 2020 9:06 pm
Forum: Investing - Theory, News & General
Topic: Corp Bond ETF VCIT Maturity Dates
Replies: 27
Views: 974

Re: Corp Bond ETF VCIT Maturity Dates

I own the mutual fund equivalent of VCIT, VICSX (Vanguard Intermediate Corporate Bond Index), in my rollover IRA. Approximately 53% of the fund's assets are Baa rated bonds, which are one level above junk status. Since these are bond index funds, they must hold the bonds in the index. The funds can'...
by billfromct
Tue Apr 14, 2020 6:52 am
Forum: Personal Investments
Topic: Help a Recent College Grad Decide When to Invest
Replies: 7
Views: 478

Re: Help a Recent College Grad Decide When to Invest

You don't mention if you have a Roth IRA or earned income in 2019, but if you had earned (W2) income in 2019 & have not contributed to a Roth IRA for 2019, you have until the 2019 tax filing date (now 15 July 2020) to open or fund that 2019 Roth IRA.

bill
by billfromct
Mon Apr 13, 2020 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: non-deductible IRA vs ROTH
Replies: 12
Views: 577

Re: non-deductible IRA vs ROTH

Contributing to a non deductible IRA (not being used for a backdoor Roth IRA) is the best way to turn long term capital gains (normally taxed at 15% or 20%) to ordinary income, which you would probably be taxed at 22%, 24%, 32% or higher when taken out in retirement. Of course, it would depend on yo...
by billfromct
Wed Apr 08, 2020 2:27 pm
Forum: Personal Investments
Topic: 403b or IRA? Recommended firm?
Replies: 10
Views: 417

Re: 403b or IRA? Recommended firm?

I think the child tax credit is $2,000 per child under 17, not $4,000.

And $500 for other qualifying dependents.

I don't have any kids under 17, but this is what I saw checking "the Google".

Google "child tax credit 2020".

bill
by billfromct
Mon Apr 06, 2020 6:48 pm
Forum: Personal Investments
Topic: Help for 21 year old sister
Replies: 9
Views: 1163

Re: Help for 21 year old sister

Just a "watch out". She may or may not owe capital gains taxes when selling VBTLX (Total Bond Market Index). She will have to report the sale on her 2020 tax return, so just something to be aware of during 2020 tax filing time. She will be able to get the tax information from the Vanguard website wh...
by billfromct
Sat Apr 04, 2020 3:44 pm
Forum: Personal Investments
Topic: Beating the market with less risk using these 6 ETfs [Portfolio Review]
Replies: 42
Views: 2898

Re: Anything wrong with this?

Haven't memorized all the ETF ticker symbols yet.

You may get some responses if you listed the fund names along with the ticker symbols.

bill
by billfromct
Fri Apr 03, 2020 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Received strange social security deposit
Replies: 16
Views: 2034

Re: Received strange social security deposit

Musicmon said:. "But I strongly suggest calling the 800 IRS number."

You mean the SS "800" phone number, right?

I believe this is a SS issue not a Federal IRS income tax refund issue.

bill
by billfromct
Thu Apr 02, 2020 8:39 pm
Forum: Personal Investments
Topic: Portfolio Review Request, Thank you!
Replies: 16
Views: 636

Re: Portfolio Review Request, Thank you!

If you have earned income in 2019 (I would think you do if you received the stipend in 2019 & I believe you get a W2 from school), you can fund $6,000 for your 2019 Roth IRA up to the date you have to file your 2019 taxes. I don't know if the 2019 IRA contribution date extended to July 15th like the...
by billfromct
Wed Apr 01, 2020 5:47 pm
Forum: Investing - Theory, News & General
Topic: Howard Marks - high yield bonds
Replies: 9
Views: 839

Re: Howard Marks - high yield bonds

I had the Vanguard High Yield Bond fund in my Rollover IRA last year (about a 16% return in 2019). I got out of the High Yield fund earlier in the year when the YTD return was about -1.5%. I guess sometimes it's better to be lucky than smart. I think it's too early to get back in now because lower r...
by billfromct
Mon Mar 30, 2020 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Question(s)
Replies: 8
Views: 667

Re: Social Security Question(s)

You can get onto the SS website under your SS number & it should tell you the estimated SS benefit you will receive at age 62 (about 75% of full retirement age), full retirement age (probably age 67) & age 70 (about 124% of your full retirement age). Those estimated SS numbers are based on you recei...
by billfromct
Mon Mar 30, 2020 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Do children need a social security number in order to receive a child payment under the recently passed stimuls package?
Replies: 16
Views: 1289

Re: Do children need a social security number in order to receive a child payment under the recently passed stimuls pack

I believe a child will not receive the $500 payment. I also believe that 1 payment will be deposited per family. The money will be deposited to the checking account that the IRS has on file for a normal Federal tax refund. If no checking account is on file, a check for the total amount will be sent ...
by billfromct
Sat Mar 28, 2020 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Can the spouse of a non-US citizen (currently claiming Social Security) claim spousal benefits in the event of his death
Replies: 6
Views: 571

Re: Can the spouse of a non-US citizen (currently claiming Social Security) claim spousal benefits in the event of his d

Could you get ahold of old U.S. Federal tax forms for the years you lived in the U.S.?

That would validate your U.S. domicile & marriage status.

I don't know if you can get old copies from the IRS.

bill
by billfromct
Fri Mar 27, 2020 7:09 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard only allow ETF accounts now?
Replies: 17
Views: 1418

Re: Does Vanguard only allow ETF accounts now?

Why would you open a "new" Roth IRA account with Vanguard if you & your wife already have a Roth IRA with Vanguard?

bill
by billfromct
Tue Mar 24, 2020 6:23 pm
Forum: Personal Investments
Topic: Move old 401K?
Replies: 7
Views: 249

Re: Move old 401K?

Why would a 40 year old person move an old 401k to a high cost annuity? Even the Vanguard annuity funds have ERs of .35%-.60%. I would tend to keep things simple & roll the old 401k into your new employer low cost 401k plan. It's tough to beat an S&P 500 index with a .015% ER; add the small cap & mi...
by billfromct
Tue Mar 24, 2020 4:33 pm
Forum: Personal Investments
Topic: Move my stock index funds to cash?
Replies: 10
Views: 1401

Re: Move my stock index funds to cash?

You say, "It (cash cushion) would last several years without having to touch the IRAs." Of course at age 71, you're taking Required Minimum Distributions (RMDs) from your IRAs, right? I'm also 71 with my birthday early in the year & I've taken 2 RMDs (2019 & 2020) from my rollover IRA. I take the RM...
by billfromct
Thu Mar 19, 2020 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Actual Layoff: Just Need Some Positive Reassurances
Replies: 42
Views: 4108

Re: Actual Layoff: Just Need Some Positive Reassurances

Can you max your 401k contribution now so you can put as much into retirement savings & lower your MAGI for this year?

When I was working my company allowed a maximum of 50% contribution into an employee's 401k.

bill
by billfromct
Wed Mar 18, 2020 10:24 pm
Forum: Personal Investments
Topic: Rookie question on 401K contributions and changes
Replies: 4
Views: 198

Re: Rookie question on 401K contributions and changes

So you're planning to retire at about age 55? I believe the Target Retirement Funds are designed to coincide with the anticipated year of retirement. The 2035 Target Retirement Fund allocation is now 80% stocks/20% bonds (domestic & international for both stocks & bonds). My understanding is that th...
by billfromct
Sat Mar 14, 2020 4:01 pm
Forum: Personal Investments
Topic: Seeking Investment Advice for Mother
Replies: 13
Views: 520

Re: Seeking Investment Advice for Mother

Since she has very little in her retirement accounts for her age, I would recommend she open a Roth IRA & contribute $7,000 (since she is over 50) for the 2019 tax year & another $7,000 for the 2020 tax year. She has until 15 April 2020 (tax filing date) to contribute to her 2019 Roth IRA. A Total S...
by billfromct
Fri Mar 13, 2020 11:53 am
Forum: Investing - Theory, News & General
Topic: Taking Social Security in a down market
Replies: 13
Views: 1373

Re: Taking Social Security in a down market

How old is your wife? Is your wife taking SS now? I believe if your wife is taking SS & you were born before 2 January 1954, you can take SS spousal benefits (1/2 of her benefit) then claim your own higher benefit at age 70. Or this may be something your wife could do if she was born before 2 Januar...
by billfromct
Thu Mar 12, 2020 7:12 am
Forum: Personal Investments
Topic: Help! I think I screwed up...
Replies: 15
Views: 1920

Re: Help! I think I screwed up...

When do you need to use this money? Time may allow you to ride out this bear market. Do you have any money in a money market fund for emergencies? The Total Bond Market Index can be used for emergencies, but a money market fund for some amount would be a lot more convenient. If I was 28 years old wi...
by billfromct
Wed Mar 11, 2020 5:50 pm
Forum: Personal Investments
Topic: Should I dump my corporate bond fund???
Replies: 6
Views: 677

Re: Should I dump my corporate bond fund???

That's interesting that VCIT was down 2.53% while it's equivalent mutual fund (VICSX) was down 1.08% today. Probably the biggest issue with these 2 funds is the amount of "near junk" (Baa, investment grade that is 1 level above junk) bonds in the fund, approximately 57.1% of assets. I have the Vangu...
by billfromct
Tue Mar 10, 2020 5:31 pm
Forum: Personal Investments
Topic: Vanguard.com determing Roth IRA contributions vs earnings
Replies: 4
Views: 304

Re: Vanguard.com determing Roth IRA contributions vs earnings

I thought Roth IRAs were established by the Taxpayer Relief Act of 1997 & 1998 was the first year for Roth IRA contributions.

bill
by billfromct
Sat Mar 07, 2020 5:06 pm
Forum: Personal Investments
Topic: Move Ed Jones to Vanguard, best way?
Replies: 10
Views: 899

Re: Move Ed Jones to Vanguard, best way?

If you're in the 10% tax bracket (0-$9,700 of taxable income), I believe that any long term capital gains up to the top of the 12% tax bracket ($9,700-$39,475 taxable income) will be tax free. You could run some 2020 "what ifs" in a tax calculator to check. With the $12k standard deduction, you coul...
by billfromct
Wed Mar 04, 2020 1:37 am
Forum: Investing - Theory, News & General
Topic: Do paid, AUM-style, advisors actually hand pick all those funds to match the client?
Replies: 27
Views: 1564

Re: Do paid, AUM-style, advisors actually hand pick all those funds to match the client?

According to Portfolio Visualizer, Vanguard Wellington (VWENX, about 65% stocks/35% bonds) went from $5M to $12.3M from January 2010 to February 2020.

Plus you would save $500k-$1M (I'm too lazy to calculate the actual number) in AUM fees over the 10 years.

But tax preparation is extra.

bill
by billfromct
Tue Mar 03, 2020 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: My Spreadsheet error caused MAGI > 2019 IRMMA
Replies: 8
Views: 545

Re: My Spreadsheet error caused MAGI > 2019 IRMMA

How do you know what the 2021 IRMAA (Income Related Monthly Adjustment Amount) numbers will be since your 2019 MAGI determines your 2021 IRMAA penalty bracket. What 2020 inflation rate are you using to adjust the 2020 IRMAA numbers to determine the 2021 IRMAA bracket number? The 1st 2020 IRMAA brack...
by billfromct
Mon Mar 02, 2020 9:05 pm
Forum: Personal Investments
Topic: Inherited IRA Investing
Replies: 11
Views: 687

Re: Inherited IRA Investing

Did she pass away in 2019 or 2020?

If she passed away in 2020, you have to take all the money out within 10 years based on the new rules from the Secure Act which was passed in 2019 but became effective in 2020.

bill
by billfromct
Fri Feb 28, 2020 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Making sure my family is taken care of (from a money perspective) if I die
Replies: 18
Views: 1319

Re: Making sure my family is taken care of (from a money perspective) if I die

I would have the taxable investment accounts separate so if one parent dies, the cost basis would be bumped up to the value at date of death so there would not be any capital gains if liquidated at time of death. I bought a mutual fund with my spouse as joint tenents with right of survivorship in th...
by billfromct
Fri Feb 28, 2020 9:06 pm
Forum: Personal Investments
Topic: Questions on moving 2 accounts to Vanguard for retired parents (tax efficiency, dividends..)
Replies: 3
Views: 194

Re: Questions on moving 2 accounts to Vanguard for retired parents (tax efficiency, dividends..)

You would not want to have municipal Federal tax free bonds in the "rollover traditional IRA" because the IRA distributions would be taxed as ordinary income. Normally, the interest rate of municipal bonds is lower than the same duration Treasury or corporate bonds.

bill
by billfromct
Thu Feb 27, 2020 5:20 pm
Forum: Personal Investments
Topic: Need help getting in...
Replies: 10
Views: 544

Re: Need help getting in...

The difference in VTI & VTSAX is that VTI (the ETF) has an expense ratio that is 1 basis point (1/100th of 1 percent) less than the mutual fund (VTSAX).

VTI ER is .03% while the ER for VTSAX is .04%.

The other differences are explained in the post by Living Free.

bill
by billfromct
Tue Feb 25, 2020 5:11 pm
Forum: Personal Investments
Topic: retirement portfolio help for my sister
Replies: 9
Views: 733

Re: retirement portfolio help for my sister

It was mentioned that she could wait to claim SS until age 70 & increase her SS monthly payment by 8% for each year she waits to file at age 70. I don't think it was mentioned that she could apply for spousal SS benefits (50% of her husband's SS benefit) now, then apply for he own higher benefit at ...
by billfromct
Fri Feb 07, 2020 8:33 pm
Forum: Personal Investments
Topic: Is it worthwhile to contribute to 401k without match
Replies: 29
Views: 2822

Re: Is it worthwhile to contribute to 401k without match

You don't say if you're single or married, but if you are single, you may not be able to contribute to a tax deductible IRA. The IRS says that if you are "covered by a retirement plan at work" (401k, pension, etc), the ability for a single person to contribute to a tax deductible IRA starts to phase...
by billfromct
Thu Feb 06, 2020 8:15 am
Forum: Personal Investments
Topic: Received inheritance, starting my financial planning journey
Replies: 14
Views: 1806

Re: Received inheritance, starting my financial planning journey

You have until you file your 2019 tax return (could be as late as mid April 2020) to make your 2019 Roth IRA contribution. You will have 35-40 years for that Roth IRA to grow tax free & be able to take money out of your Roth IRA state & Federal tax free after age 59.5. There are income restrictions ...
by billfromct
Wed Feb 05, 2020 8:37 pm
Forum: Personal Investments
Topic: Use IRA to pay student expenses & also claim IRA credit (deduction?)
Replies: 2
Views: 228

Re: Use IRA to pay student expenses & also claim IRA credit (deduction?)

Alan S. mentioned that if you take money out of an IRA (I'm assuming a tax deductible IRA) for qualified educational expenses, you would not have to pay the 10% penalty. But you would have to pay Federal income tax (probably state income tax as well) on the amount you take out of the tax deductible ...
by billfromct
Tue Feb 04, 2020 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Not going on the last leg of the flight
Replies: 32
Views: 3444

Re: Not going on the last leg of the flight

I think in the old days, this was called "hidden city ticketing".

bill
by billfromct
Mon Feb 03, 2020 3:52 pm
Forum: Personal Consumer Issues
Topic: Skiing Frugally
Replies: 45
Views: 4605

Re: Skiing Frugally

Some NE ski areas have "end of season" passes. For me this is the best time to go: less crowded, warmer, usually good cover, etc. Mt Wachusett (Central Mass) has an "end of season" pass that starts the Monday before March 1st until they close down, normally mid-April, with the adult price of about $...
by billfromct
Fri Jan 31, 2020 9:34 pm
Forum: Personal Investments
Topic: First Job:Question on 401k, backdoor roth & taxable Savings
Replies: 9
Views: 539

Re: First Job:Question on 401k, backdoor roth & taxable Savings

VINIX is an S&P 500 index and VSMPX is a Total Stock Market Index. The S&P 500 is included in the Total Stock Market Index.

Just go with the Total Stock Market Index, VSMPX.

bill
by billfromct
Fri Jan 31, 2020 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Married in 2019 - Standard vs. Itemized Deductions
Replies: 7
Views: 887

Re: Married in 2019 - Standard vs. Itemized Deductions

Isn't the SALT deduction $10,000 maximum whether single or filing married, while the 2019 married standard deduction is $24,400? If that is correct, you would have to have $14,400 of other deductions to beat out the $24,400 Federal married standard deduction. I'm no tax expert so you may want to che...
by billfromct
Wed Jan 29, 2020 7:32 am
Forum: Investing - Theory, News & General
Topic: Why dividends are useful
Replies: 55
Views: 3920

Re: Why dividends are useful

I thought "qualified" dividends (dividends from most US companies) & long term capital gains are taxed at the same Federal tax rate, with some qualifiers.

bill