Search found 1631 matches

by ryman554
Sat Mar 16, 2024 4:21 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 163
Views: 15035

Re: Great news! No more agent commission

I always thought there should be some sort of tiered or floating commission, such that if a selling agent got me (the seller) a price over a certain level, the commission percent would be higher. That would motivate both the seller and the agent to get the best price. So if I had a million dollar property, the agent could get 35%, say, of anything over a million, and, say, a smallish commission on the basic million dollar target. There ought to be some sort of algorithm. Maybe it's a job for AI... (Isn't this how hedge funds work?) You don't need the new rules for this. Seller's fees were always negotiable. We did exactly this when we sold our house. We knew what it would go for. We also wanted to sell quickly. So we listed low to get buye...
by ryman554
Thu Mar 07, 2024 9:33 am
Forum: Investing - Theory, News & General
Topic: Argument against people that say stock market is rigged, so don’t invest in it
Replies: 80
Views: 5448

Re: Argument against people that say stock market is rigged, so don’t invest in it

... Of course in real life, organized legal gambling is only honest in the sense that the casino isn't stealing from you by using inside information or rigging games. But it is still taking money from you by shaving the odds. State lotteries are probably honest in the sense of doing what they say they will do, but even in Idaho, the payout percentage is only 78.53%, so if they take in $1 million in bets, they pay out only $785,300 in jackpots. .... It doesn't matter. All of this is being shaved off a thick wad of real money, new money, money that is coming into the stock market ecosystem from business profits and being shared with me . I am still better off making putting $10,000 in the stock market and having a subtly rigged system steal ...
by ryman554
Mon Mar 04, 2024 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Not understanding taxes and why I owe money
Replies: 50
Views: 4807

Re: Not understanding taxes and why I owe money

I made the mistake of not paying quarterly estimated taxes this year and got a $300 penalty. I am starting to make Roth conversions and thought I could just pay what I owed at the end of the year. Now, I know. This year, I will have significant capital gains. I am going to try to use the IRS estimator to get in front of it this time. If you are doing roth conversions, just do them near the end of the year so you can estimate the taxes you are currently underwithheld, plus the roth conversion. Or do at the beginning of the year and use the amount you underpaid last tax year. Whatever, you can estimate what you were/will be behind. Withhold from the roth conversion the amount of taxes you know you're behind (including any you would have to p...
by ryman554
Mon Mar 04, 2024 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

I know some folks go after the download version to file multiple (federal) returns -- up to 5. Tho the state files are extra. Fine.

For some reason, I prefer online. Yeah I'm the customer, but.... Let's say that I want to start filing my folks returns at they enter their last years. No better way to get an idea of what accounts are where while they are still alive. Can this be done using a *second* login and using the same "free turbotax" offer?
by ryman554
Mon Mar 04, 2024 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Not understanding taxes and why I owe money
Replies: 50
Views: 4807

Re: Not understanding taxes and why I owe money

I made the mistake of not paying quarterly estimated taxes this year and got a $300 penalty. I am starting to make Roth conversions and thought I could just pay what I owed at the end of the year. Now, I know. This year, I will have significant capital gains. I am going to try to use the IRS estimator to get in front of it this time. If you are doing roth conversions, just do them near the end of the year so you can estimate the taxes you are currently underwithheld, plus the roth conversion. Or do at the beginning of the year and use the amount you underpaid last tax year. Whatever, you can estimate what you were/will be behind. Withhold from the roth conversion the amount of taxes you know you're behind (including any you would have to p...
by ryman554
Fri Mar 01, 2024 8:30 pm
Forum: Personal Investments
Topic: ESPP Question: Understanding $25k limit w/ price resetting
Replies: 7
Views: 1050

Re: ESPP Question: Understanding $25k limit w/ price resetting

I'm not sure I understand the question.

You can buy $25k of non-discounted stock based on the price at the grant date (start of offering period). If the period resets (price goes down), the grant date moves. If the period does not reset, the grant date stays the same.

So, whatever the 25k / (price at grant date) is is the maximum number of shares purchasable. (which means at most 21250 of cash invested! if the stock goes down, it's less).

Did I misunderstand your query?
by ryman554
Wed Feb 28, 2024 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalties IRA to ROTH Conversion
Replies: 49
Views: 4303

Re: Underpayment Penalties IRA to ROTH Conversion

You are missing an idea. Assuming you have the entire 25k handy to pay for the taxes come march... Simply do an indirect Roth conversion and withhold the 25k from the conversion. Using the 25k laying around, complete the indirect conversion/rollover. Now your taxes are paid via withholding, which is timely no matter the timing. Note the 1 per 365 days restriction and 60 day time limit. Tho it can be done same day on the phone. No messing with estimated taxes Thanks for this discussion. Is there a 10% penalty on the withholding if one is under age 59.5? Or does the 60 day Roth process eliminate that? If under 59.5, you will be charged a 10% penalty on any money withheld and not replaced by new money. Withholding is a withdrawal, after all!
by ryman554
Tue Feb 27, 2024 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalties IRA to ROTH Conversion
Replies: 49
Views: 4303

Re: Underpayment Penalties IRA to ROTH Conversion

An indirect conversion is one in which you withdraw money from the traditional IRA either directly into a normal bank account or the broker sends you a check made out to "Patrick Scott." If you then contribute money to a Roth IRA marked as a conversion within 60 days you've made an indirect conversion. One thing to be careful us is that when a distribution is made from a traditional IRA the broker will sometimes (maybe always?) withhold some of the distribution for taxes. If you want to convert the whole distribution you then need to contribute the full amount, including what was withheld for taxes, to the Roth IRA. The amount withheld for taxes counts as a distribution, so if you're under 59.5 years old you will owe a penalty if...
by ryman554
Tue Feb 27, 2024 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalties IRA to ROTH Conversion
Replies: 49
Views: 4303

Re: Underpayment Penalties IRA to ROTH Conversion

Greetings, We are going to do a IRA to ROTH conversion of $140,00 probably on March 27, 2024. We estimate that most of the conversion will be at the 22% tax rate. We have filed our 2023 tax return and are getting an IRS refund of $8,000. If I understand correctly, if I wish to avoid any underpayment penalties, I should pay the additional taxes by/before 04/15/2024. Our 2024 tax return (income, withholding, etc.) will be essentially the same as the 2023 tax return before including the $140,000 distribution. I realize that for 2024 there is an increase in the standard deduction and the tax brackets. Question 1: Does the fact that we overpaid in 2023, allow us an extended grace period, i.e., allow us to pay the additional IRA to ROTH conversi...
by ryman554
Mon Feb 26, 2024 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalties IRA to ROTH Conversion
Replies: 49
Views: 4303

Re: Underpayment Penalties IRA to ROTH Conversion

diy60 wrote: Sun Feb 25, 2024 8:01 pm
ryman554 wrote: Sun Feb 25, 2024 7:23 pm [Note the 1 per 365 days restriction and 60 day time limit. Tho it can be done same day on the phone. No messing with estimated taxes
1 per 365 days restriction does not apply to Roth conversions. The 60 day time limit is correct.
Really? I can do multiple indirect Roth conversions per "year?"

I'll be darned, yes you can. Thanks for correcting me! https://www.investmentnews.com/industry ... rule-62437
by ryman554
Sun Feb 25, 2024 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalties IRA to ROTH Conversion
Replies: 49
Views: 4303

Re: Underpayment Penalties IRA to ROTH Conversion

Greetings, We are going to do a IRA to ROTH conversion of $140,00 probably on March 27, 2024. We estimate that most of the conversion will be at the 22% tax rate. We have filed our 2023 tax return and are getting an IRS refund of $8,000. If I understand correctly, if I wish to avoid any underpayment penalties, I should pay the additional taxes by/before 04/15/2024. Our 2024 tax return (income, withholding, etc.) will be essentially the same as the 2023 tax return before including the $140,000 distribution. I realize that for 2024 there is an increase in the standard deduction and the tax brackets. Question 1: Does the fact that we overpaid in 2023, allow us an extended grace period, i.e., allow us to pay the additional IRA to ROTH conversi...
by ryman554
Mon Feb 19, 2024 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Best way to exchange $1000 worth of yen for Japan trip?
Replies: 48
Views: 4311

Re: Best way to exchange $1000 worth of yen for Japan trip?

Thanks for all the kind replies and good suggestions. I'll probably just convert $100-200 worth of yen with a Japanese coworker and bring the cash for the trip. Any extra cash, if ever need, will be withdrawn inside Japan and we'll try to use up all the cash just before heading back to U.S. Please take the advice of those on this thread. Only exchange $$ when you arrive. I suppose doing with a co-worker is a ton better than the bank, but you literally get the best rates withdrawing currency ( in this case yen) as you arrive from an ATM. Not a currency exchange counter. And definitely don't price it in USD. Always in the local currency. You will need a suica/pasmo/icoca card for transit. They must be purchased and loaded with cash. These ar...
by ryman554
Sun Feb 18, 2024 1:56 pm
Forum: Investing - Theory, News & General
Topic: Settlement time for stock trades going to T+1 this year
Replies: 22
Views: 3565

Re: Settlement time for stock trades going to T+1 this year

At t+1, that's effectively mutual fund timing, yes?

Sell, next business day can move cash?

Same becomes true for free ride violations: I can always buy something else day of sale, but now only need to wait to next business day to sell otherwise I get put in the penalty box..
by ryman554
Wed Feb 14, 2024 9:47 am
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 260
Views: 22875

Re: Tax Deferred : Taxable : Tax Free

21.6%:14.8%:63.6% But it's skewed as I include in the tax free my basis in the taxable account. Only about 23% of the tax-free is in roth/HSA/529.
so...
21.6%:63.8%:14.6% by account type.
by ryman554
Wed Feb 14, 2024 9:32 am
Forum: Personal Investments
Topic: ESPP & being double taxed
Replies: 9
Views: 1696

Re: ESPP & being double taxed

I keep hearing to be super careful about reporting your ESPP sales in Turbo Tax that you are not double taxed, and you need to adjust your cost basis to account for this. Am I correct in assuming this only applies if the ordinary income from ESPP sales has been reported on your W2? My company did NOT report this on my W2 (I even checked with them to be sure), so in my eyes I have not yet been taxed on this. So I don't need to be worried about being double taxed. Is that a correct assumption? These are qualified dispositions (held for 2 years) if that makes a difference. EDIT: you had a qualifying distribution. Unwanted note to you: don't let the tax tail wag the dog. Sell ESPP right away and lock in your gains (and fund your next ESPP with...
by ryman554
Wed Feb 14, 2024 8:47 am
Forum: Personal Investments
Topic: How to remove IRA cash deposits prior to 8606 form
Replies: 6
Views: 635

Re: How to remove IRA cash deposits prior to 8606 form

...I've been contributing to it with cash post tax deposits. $6000 in 2022, $6500 in 2023, and $3700 in 2024. Yep. What they said. You need to review your tax returns for 2022 and 2023. You still have $3300 of space in 2024, assuming you are under 55 by the end of the year. Did you deduct the 2022 and 2023 on your tax return? (schedule 1, line 20 for 2023) And can/will you deduct in 2024? You can if you make less than betwen 80 to 136k. Go look it up. IF SO, Then all of your money is pretax. Convert it all to the 401(k) IF NOT, You want to do a roth conversion of 15800 first (you can also contribute 3700 and convert the 19500, but the additional conversion can be done later). The reason you want to do this is it grows tax free AND you have...
by ryman554
Mon Feb 12, 2024 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Help handling foreign tax credit for 2023 personal income taxes
Replies: 3
Views: 554

Re: Help handling foreign tax credit for 2023 personal income taxes

Add up your foreign fund dividends. Maybe CG as well(?)
by ryman554
Sun Feb 04, 2024 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Best bank for international ATM withdrawals
Replies: 44
Views: 4154

Re: Foreign ATM fee reimbursement

I have a few foreign trips coming up in 2024. Cancun for Spring break and a few countries in Asia in the summer. I plan to use my BofA premium rewards visa card for most of my spending. This card does not charge a foreign exchange fee. I will need some local cash as well. There seem to be layers and layers of fees associated with foreign ATM withdrawals. Out of Network fees, ATM surcharge and currency conversion fees according Google. I use Ally as my primary checking account but I also have access to Chase Private Client checking account, CitiGold checking and Fidelity taxable account and CMA account. I think they all reimburse some ATM fees. I already have a Chase and a Citi debit card. I dont' think I have a Fido debit card. What is the...
by ryman554
Sun Jan 28, 2024 8:56 pm
Forum: Personal Investments
Topic: Roth Conversion and (2nd time) double checking what an investment advisor has said
Replies: 22
Views: 2056

Re: Roth Conversion and (2nd time) double checking what an investment advisor has said

I had considered this option, but I do have some long-term bonds that I would take a hit on if I could sell them. I was also a bit hesitant to move all my money from my t-IRA to my TSP. However, I was mulling your exact option. Right now, I think I will take the option someone else suggested and save up money to pay taxes and do a couple conversions after I retire, but before I take SSA benefits. Of course, I may change my mind and do as you say later this year. Thanks again for all the input! Ben What kind of hit? Not capital gains. If selling the bonds will put you "underwater", what's keeping you from just buying the same stuff (or a LT bond fund) once in the 401(k)? If you didn't have the LT bonds today, would you buy them? I...
by ryman554
Sun Jan 28, 2024 12:31 pm
Forum: Personal Investments
Topic: Roth Conversion and (2nd time) double checking what an investment advisor has said
Replies: 22
Views: 2056

Re: Roth Conversion and (2nd time) double checking what an investment advisor has said

cresive wrote: Sun Jan 28, 2024 10:52 am Thank you everyone for your excellent replies and insightful information. This is exactly what I needed and I appreciate you guys/gals for the help.

Ben
The standard way to segregate pre tax and after tax in a traditional IRA is to roll pretax into a 401(k). This does not follow pro rata rules, as only pretax can go into a 401(k).

Can you not do this?

You certainly can sell your bonds on the secondary market (and take whatever interest rate hit), roll into 401(k).and rebuy them. Or funds.
by ryman554
Sun Jan 28, 2024 12:17 pm
Forum: Personal Investments
Topic: Fidelity wont rollover my 401(k)
Replies: 25
Views: 2992

Re: Fidelity wont rollover my 401(k)

Schwab deposited my roth check but returned my pretax check saying it contained after-tax money in it. There must be something more to this story. How would Schwab know this? I was wondering the same. I always get a paper check. There's nothing on it which claims what the sources are. Maybe there is some back office communication we don't know about... But to the OP: I would go login to your net benefits and look at your last couple of statements. They should have your sources listed. See if you have any after-tax sources stuff -- and make sure that the amount sent to the Roth is the sum of your Roth account and your after tax contributions. After tax growth can and should go to traditional IRA. I'll second the previous suggestion to get i...
by ryman554
Sun Jan 28, 2024 12:13 pm
Forum: Personal Investments
Topic: Fidelity wont rollover my 401(k)
Replies: 25
Views: 2992

Re: Fidelity wont rollover my 401(k)

lazynovice wrote: Sun Jan 28, 2024 10:30 am You can then (usually) do a rollover into a Fidelity IRA which you can then do a trustee to trustee transfer to Schwab.
This is the definitive answer when rolling out of a fido 401k. Get it electronically into a fido IRA (Roth or otherwise) based on your sources. (Pre/after tax or Roth)

Then transfer (or don't) to Schwab.
by ryman554
Sun Jan 28, 2024 10:21 am
Forum: Personal Investments
Topic: Fidelity wont rollover my 401(k)
Replies: 25
Views: 2992

Re: Fidelity wont rollover my 401(k)

mhalley wrote: Sun Jan 28, 2024 10:10 am Have they put the money back into the 401k so you don’t exceed the 60 day indirect rollover rule? If not, You should qualify for an automatic waiver due to this being a financial institution problem. I would imagine you need to contact hr at your old employer.
https://www.irs.gov/retirement-plans/re ... equirement
All 401(k) rollovers to different institutions require Paper checks. Paper checks made to fidelity FBO silversurfer24 are not indirect transfers, so the 60 day limit likely does not apply
by ryman554
Sun Jan 28, 2024 6:03 am
Forum: Personal Investments
Topic: E-trade vs Fidelity - which one offers good performance reporting
Replies: 3
Views: 592

Re: E-trade vs Fidelity - which one offers good performance reporting

I'll be that guy: what do you need performance reporting for?

Chasing performance is a good way to get poor. I mean, I love seeing that I've made (and not lost) money over time, but what actionable information do I get other than entertainment?

Buy the market and you don't need to track performance. You barely need to look at your accounts to see if you have enough.

If you are tilting/picking winners isn't the time to research before you buy? And then stick with the strategy?
by ryman554
Wed Jan 24, 2024 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

Yes, when I get to the TT site from Fidelity.com it shows $0, but when I log into my TT account and go to the pay section, it shows the 20% off price instead of free. It could be an artifact that I had already entered the majority of my 2023 tax data before the offer was getting applied. Hopefully Fidelity can figure it out, I will be annoyed if they tell me I have to clear my 2023 return and start over for some reason. You do not. I had the 20% off. My return mostly done. Applied the "free". Updated in cart. So, it's *possible* to do. But you need to a) go to the TT from fidelity and login (hopefully the first time!) and b) go to pay *from that window*. All I can say is that did it for me. Glad it worked for you but it's still s...
by ryman554
Wed Jan 24, 2024 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

volstagg wrote: Wed Jan 24, 2024 10:07 am Yes, when I get to the TT site from Fidelity.com it shows $0, but when I log into my TT account and go to the pay section, it shows the 20% off price instead of free. It could be an artifact that I had already entered the majority of my 2023 tax data before the offer was getting applied. Hopefully Fidelity can figure it out, I will be annoyed if they tell me I have to clear my 2023 return and start over for some reason.
You do not. I had the 20% off. My return mostly done. Applied the "free". Updated in cart. So, it's *possible* to do. But you need to a) go to the TT from fidelity and login (hopefully the first time!) and b) go to pay *from that window*. All I can say is that did it for me.
by ryman554
Wed Jan 24, 2024 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

I also got the link back in my Fidelity account and it says 0 on the TT page (online version) but when I jump to pay at the end to lock it in, it's still showing $89. Like last month. Happening to anyone else? I have the same problem. Contacted Fidelity tech support and they are supposed to be looking into it. Told me they'd get back to me in 3-4 days, so maybe next week I'll have an answer. Did you click through the link again or just see if your price changed? I had the same problem as yourself back in December (+59 for state!), so when the offer showed up (again) yesterday, I clicked through to my almost complete tax return, went to print center, and observed the $0 everywhere and (finally) locked in the price. So, in bugzilla terminolo...
by ryman554
Sun Jan 21, 2024 5:00 pm
Forum: Investing - Theory, News & General
Topic: Dumb Question - Figuring out your number????
Replies: 20
Views: 2504

Re: Dumb Question - Figuring out your number????

FWIW, $40,000 X 35 years=$1.4M not $1M. Your need of $40K after pensions will be less once you subtract SS income. I my opinion, $1.4M is a better target goal. You are forgetting growth. The 4% "rule" (Trinity study, updated by early retirement now website) give you roughly 25X expenses, inflation adjusted as "sustainable" in perpetuity (over 30 years). Truthfully, it's perpetual withdrawal rate is closer to 30x, but that seems compatible with OP withdrawal rate. OP is definitely on track. Well, I didn't say he was not on track. I was referring to OP's comments of $40,000 X 35 years. Don't forget OP did not factor in SS income. Yes, I agree OP is on track. I was referring to the common 4% rule, which the OP likely used ...
by ryman554
Sun Jan 21, 2024 1:20 pm
Forum: Investing - Theory, News & General
Topic: Dumb Question - Figuring out your number????
Replies: 20
Views: 2504

Re: Dumb Question - Figuring out your number????

Social Security We are able to collect SS along with our pensions and will probably do so at 62 in attempt to enjoy life and travel while we still can I’m not sure that makes sense to me. By claiming Social Security at 62 you were giving up a fair amount of longevity insurance. To replace that longevity insurance from your portfolio will cost more than what you gain claiming Social Security early. Why? The OP already has 2 other "inflation" adjusted pensions. The combined value (likely > 110k) looks to be close to their desired expenses, already with a ton of sloo built in. Their portfolio can function as one heck of a emergency fund. I have no problem with them taking SS early. It might not be mathematically optimal, but longevi...
by ryman554
Sun Jan 21, 2024 1:15 pm
Forum: Investing - Theory, News & General
Topic: Dumb Question - Figuring out your number????
Replies: 20
Views: 2504

Re: Dumb Question - Figuring out your number????

Cash is King wrote: Sun Jan 21, 2024 12:11 pm FWIW, $40,000 X 35 years=$1.4M not $1M. Your need of $40K after pensions will be less once you subtract SS income. I my opinion, $1.4M is a better target goal.
You are forgetting growth. The 4% "rule" (Trinity study, updated by early retirement now website) give you roughly 25X expenses, inflation adjusted as "sustainable" in perpetuity (over 30 years). Truthfully, it's perpetual withdrawal rate is closer to 30x, but that seems compatible with OP withdrawal rate.

OP is definitely on track.
by ryman554
Tue Jan 16, 2024 3:04 pm
Forum: Personal Consumer Issues
Topic: Global Entry Application turnaround times?
Replies: 57
Views: 8068

Re: Global Entry Application turnaround times?

When I checked my Global Entry last June, I saw it didn't expire till May 2024 but I could renew up to a year early, so I did. I submitted my renewal last June. I assume that's why mine is still pending. Will see! Speculation: They *definitely* prioritize folks who will be traveling/returning. Anecdote 1: renewed my daughter three months before her expiry. Had a international trip returning on her day of expiry. Conditionally approved three days before return flight. Did (re)enrollment on entry. Anecdote 2: renewed my son while on an international trip, six months before his expiry. Conditionally approved within a couple of days, two days before return flight. Did (re)enrollment on entry. So, if you're traveling and coming back to the USA,...
by ryman554
Mon Jan 15, 2024 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Gifting partner highly appreciated stock from taxable account
Replies: 16
Views: 2160

Re: Gifting partner highly appreciated stock from taxable account

She would pay the cap gains at her cap gain rate, but how does this relate to other income? Does it add to her total income? I guess I'm thinking the LT cap gains are treated and paid separately and not added to other ordinary income sources that are taxed at her income tax bracket rate? This article explains how all the income stacks: https://www.kitces.com/blog/long-term-capital-gains-bump-zone-higher-marginal-tax-rate-phase-in-0-rate/ Even though I *knew* all of this, that's a *wonderful* article. Not to derail this thread, but is there a worksheet in the wiki that's updated (or can be updated easily) with the various threshold levels and SS (which I admit to knowing little of) tax ramifications so one can plan for/avoid bump regions (a...
by ryman554
Thu Jan 11, 2024 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Taxes for selling house
Replies: 3
Views: 508

Re: Taxes for selling house

But both need to be living 2 out of last 5 years.

Yes, you get full 500k exemption.
by ryman554
Thu Jan 11, 2024 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA Contribute - Now What?
Replies: 5
Views: 333

Re: Excess Roth IRA Contribute - Now What?

My wife and I each contributed the max of $6500 to our Roth IRA accounts in 2023. We did it by contributing monthly equally throughout the year. This year income wise turned out substantially better than expected so now we made too much to directly contribute to a Roth. My first action was to re characterize the money that was in our Roth's to a traditional IRA. That was completed in the 2023 calendar year. We each had roughly $7500 in our Roth IRA accounts for 2023 due to earnings, all deposits and earning were re characterized to our Vanguard traditional IRA's. Now I don't know my options of what to do with that money in the traditional IRA's? Can I go right back and convert them to our Roth's (backdoor)? If I do that, can I only do $650...
by ryman554
Thu Jan 11, 2024 9:14 am
Forum: Personal Investments
Topic: When should I start changing my stock and bond ratios?
Replies: 40
Views: 6070

Re: When should I start changing my stock and bond ratios?

When should I start changing my stock and bond ratios? Overall portfolio composition of 80% stock and 20% bond. Briefly, I'm 48 and wife is 47. No kids. No debts. We own our residence and some other real estate. I'd like to retire around age 55, with maybe some part time work at that point. I recognize that I need to start increasing the balance of my bonds and cash, but I'm not ready to walk away from market opportunity over the next 10-15 years. A 20% market downturn wouldn't be devastating for us, and I think that we could absorb a couple of years living on our cash if it hits within 2-3 years of retirement. I challenge the assertion that you must need to start increasing the non-real-growth part of your portfolio, as that is what bonds...
by ryman554
Wed Jan 10, 2024 1:17 pm
Forum: Personal Consumer Issues
Topic: Board Games for Two in 2024
Replies: 52
Views: 6337

Re: Board Games for Two in 2024

The OP is back after some consulting with my spouse. First off, thanks for all the suggestions offered. I will say we have played a lot of cribbage, which is a fine game; and while I've learned there are many variations, I think we're looking to launch in a different direction. The games that initially caught her eye were: 7 Wonders Duel Targi Splendor For Targi, she had a hard time figuring what it was about, and if the game play was fun, but the Tuareg setting was what made it stand out. She also looked at Pandemic, but wasn't sure it would be fun. Azul was another one, but it wasn't currently available on Amazon. I think her biggest question, and a very valid one, concerns replayability. Of these, and perhaps others listed (and not list...
by ryman554
Sat Jan 06, 2024 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

Was basking in the glow of receiving my free TurboTax from Fidelity earlier today. But, the buzz quickly wore off when I received my inherited IRA distribution check in the mail this afternoon. Sadly, the check did not reflect my request (from several weeks ago) that Fidelity route 99% of my distribution to offset fed and state taxes. Called the super secret Bat Phone 800 number to contact a private client group representative. She quickly confirmed with the back office that someone had dropped the ball on my prior request. She indicated that they will cancel the check and re-do things, but I need to call them back in “a couple days” to make that happen. I appreciate that “things” happen, but part of me thinks Fidelity should spend less ti...
by ryman554
Wed Jan 03, 2024 8:07 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 1177
Views: 204298

Re: Year 2000 retirees using the '4% rule' - Where are they now?

UPDATE Using the global 60/40 portfolio in the OP, our year 2000 retirees using the '4% rule' would now have a nominal portfolio balance of $901,453, which is $591,724 adjusted for inflation. This means that they still have nearly 15 years of withdrawals after encountering three of the worst bear markets in history in the first ~20 years of retirement. Interesting. . . . Question: 1 Would this hold true proportionately for a portfolio valued at 3 mi.? 5 mil? Assuming expenses and portfolio scaled the same, yes. Better to think of it as starting with 1 (where 1 = $1M in this case) and extracting 0.04 (inflation adjusted) each year. Note the nominal value of the portfolio stands at ~86.7% (47.5% inflation adjusted) of starting value, but the...
by ryman554
Sun Dec 24, 2023 1:32 am
Forum: Investing - Theory, News & General
Topic: Projecting investment balance in Excel
Replies: 9
Views: 1708

Re: Projecting investment balance in Excel

That looks right to me. I do something similar in my spreadsheet. Just keep in my mind that any given random sequence of historical returns could be absurdly high or low. So in my opinion this approach is best used in a Monte Carlo simulation, running 10k results or so and taking the average. No, the average (median is better) is not what you want in this situation. Better of getting quartiles/95/5/max/mins as you will want to protect against the tail. Sampling from historical distribution from a system that is chaotic (as the market seems to be)... Is perhaps proper. But using the OP personal historical database is lilely both biased (moving asset allocations) and incomplete (why only over OP investment time) for this. The idea has merit,...
by ryman554
Sun Dec 17, 2023 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred Compensation | 37% Bracket | 4 Years to Retirement
Replies: 22
Views: 3085

Re: Deferred Compensation | 37% Bracket | 4 Years to Retirement

milktoast wrote: Sat Dec 16, 2023 11:17 am I think NQDC can be a good idea in the top bracket.

But do not contribute outside of top marginal bracket.
I'm using mine a lot lower than that not to defer income per se, but to a bare minimum to get a 5% company match on my deferred funds above the IRS 401(k) limit.

Turns out to be about 1-2k/year deferreal plus equal matching I can "assign" to an S&P fund. Don't need the money. Doesn't move the needle much. Can get the $$ after 2 years due timing. So, like a ESPP, it's pretty low risk for a mostly guaranteed 50%(25%?) rate of return. I'll have to pay marginal rate taxes on the match and growth, but I'll almost certainly come out ahead.
by ryman554
Fri Dec 15, 2023 9:10 am
Forum: Personal Investments
Topic: Does this ESPP stock transaction trigger Wash Sale ?
Replies: 6
Views: 685

Re: Does this ESPP stock transaction trigger Wash Sale ?

Are the stocks in Step 3 the same stocks as in Steps 1 & 2? No the step 3 are different individual stocks. Step 1 are employer stocks ESPP and step 2 are fully vested RSU’s of same employer stock. Stocks are fungible. So vesting RSU will wash ESPP sales, and vice versa. purchases ESPP shares at a discount will wash nearby RSU sales. Step 1 is not a wash.. You vest and sell. You didn't buy more company stock in +/-30 days. Step 2 you're selling gains. A wash sale only happens if you are replacing stock you sold at a loss. Step 3 -- unless you have some of your company stock over there, there is nothing substantially identical. Again, you are selling. The only possible wash would be step 3 (selling company stock that is down in wife acco...
by ryman554
Wed Dec 13, 2023 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

Bumping because I have the same problem. I can't find a place to escalate, have you? I'm planning to give it until early Jan or so. If it's not fixed by then I'll email my assigned advisor at Fidelity. Worst case we can always purchase the desktop version for $5. I remember there were similar issues last year for a few weeks that seem to have corrected itself. r/fidelityinvestments on Reddit is another potential place to escalate. EDIT: IT WORKED! I tried again and the total showed as $0. May be it's fixed at their end now. I successfully checked out and received a confirmation email as well. Lucky you, I qualify and sped through it but still showing $89 at the very end for me. Will wait some more... Just a suggestion worth trying: open br...
by ryman554
Wed Dec 13, 2023 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

pakle wrote: Tue Dec 12, 2023 7:41 pm
fetch5482 wrote: Tue Dec 12, 2023 3:30 pm
ryman554 wrote: Tue Dec 12, 2023 3:20 pm Bumping because I have the same problem. I can't find a place to escalate, have you?
I'm planning to give it until early Jan or so. If it's not fixed by then I'll email my assigned advisor at Fidelity. Worst case we can always purchase the desktop version for $5. I remember there were similar issues last year for a few weeks that seem to have corrected itself. r/fidelityinvestments on Reddit is another potential place to escalate.

EDIT: IT WORKED! I tried again and the total showed as $0. May be it's fixed at their end now. I successfully checked out and received a confirmation email as well.
Lucky you, I qualify and sped through it but still showing $89 at the very end for me. Will wait some more...
Yep, same here.
by ryman554
Tue Dec 12, 2023 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

I only had the 20% offer until yesterday, but the following showed up on my summary page of "all accounts" today: https://i.ibb.co/NTNvvCX/Screenshot-2023-12-12-at-8-22-36-AM.png For folks who have not yet received it, don't loose hope. Seems like they are gradually rolling it out! Usually however, each year when this offer shows up, I click the link, login to my intuit account, complete the basic information (usually imported from previous year). Then I click File on the Left-side and complete the checkout of $0 to lock in the price. This year however, for whatever reasaon the discount down to $0 does not show up. I hope this will fix itself in a few days. https://i.ibb.co/xf4Xm8k/Screenshot-2023-12-12-at-8-30-56-AM.png Bumping ...
by ryman554
Tue Dec 12, 2023 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity free Turbotax 2023
Replies: 434
Views: 153853

Re: Fidelity free Turbotax 2023

Ugh!

I finally got the link, but since I started a return (but came nowhere near checking out) just to see where my taxes were as I was unsure of my withholdings and needed some time to recover if things went sideways... it's not showing me the $0 online. Only a $40 discount. Any way to reset the account, or talk to someone online?
by ryman554
Sat Dec 09, 2023 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4273
Views: 1072126

Re: Share your net worth progression

July 2003: ~$30-50k. (Left academia) Dec 2011: ~$600k (Left first job, ~50% in home equity) Aug 2013: ~$850k (Left second job, ~50% in home equity, but have a different house now) Dec 2014: >$1.1M (hit my first million, ~50% in home equity) Dec 2016: >$1.5M (Left third job in meantime, still ~50% in home equity) Today: ~$1.9M, thanks to bull market, finally < 50% home equity and member of two comma club I got lucky with a house. The rest was (mostly) saving every raise and the market run-up since 2011. Changing jobs boosted income, and therefore, savings rates. It's been a while 30: July 2003: ~$30-50k. (Left academia) 39: Dec 2011: ~$600k (Left first job, ~50% in home equity) 40: Aug 2013: ~$850k (Left second job, >50% in home equity, but...
by ryman554
Sat Dec 09, 2023 1:51 pm
Forum: Personal Investments
Topic: Selling funds before capital gains distribution
Replies: 31
Views: 4783

Re: Selling funds before annual capital gains distribution

You pay tax on any capital gains distributed to you. If you sell before they do the distribution (which may or may not be effective on 12/15), you don't get it. So you don't pay tax on it. If you are going to sell, anyhow, probably doesn't matter too much, as the fund will lose value in the amount of capital gains.

The fact that VTSAX is better performing is not a good reason to switch to it vs. POGRX. That's an excellent way to always sell low and buy high.

There is a reason you bought it. What has changed in your financial situation (beyond VTSAX "does better") to make you change your position?
by ryman554
Fri Dec 08, 2023 9:33 am
Forum: Personal Investments
Topic: Contribute to ESPP or mega-backdoor Roth?
Replies: 33
Views: 3071

Re: Contribute to ESPP or mega-backdoor Roth?

If you sell immediately then I don't see why you can't do both. OP did say that due to the lower income of wife, after maxing out the 401(k), the rest of the paycheck deductions can only go either towards ESPP or MBDR. Given that the contributions to either must come from paychecks only, this is a very valid constraint. Her takehome is pretty close to zero after all the deductions, so we can't max out both options. For the first six months, yes, this is true. After selling (and recouping the investment and profit), since money is fungible, one can budget and respend the ESPP contributions every six months. Therefore, there is no reason why the OP could not do MBR and ESPP by the middle of next year. OP still makes 90% (effective APR) on th...
by ryman554
Wed Dec 06, 2023 9:07 am
Forum: Personal Investments
Topic: What to do with $1.6 million immediately after house sale
Replies: 21
Views: 3121

Re: What to do with $1.6 million immediately after house sale

Pay any estimated taxes due based on your capital gain. After that we would need a bigger picture of your overall finaces. Money market funds are paying well for now. I would talk to an accountant about calculating a Safe Harbor federal (and state if applicable) amount and pay that as a quarterly estimated tax payment in December. This. You will owe taxes on part of that money. Definitely not all 1.6M. But take a guess If you have a (traditional) IRA, you could also take a withdrawal of the amount of your estimated taxes/safe harbor and withhold 100% for the federal and state taxes. Then turn around and put it back in with proceeds of your $1.6M. that's an indirect rollover, and you can only do one of those per 365 days. I did this for my ...
by ryman554
Sat Nov 25, 2023 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage almost paid off... now what?
Replies: 22
Views: 3820

Re: Mortgage almost paid off... now what?

Definitely check with your county. Property taxes can be due on something other than an annual basis. Yeah, our property tax is due twice a year, and not exactly 6 months apart either. Payments are large enough that we have to make sure to budget for them. Do what I do and create a savings account for large lumpy sums like this. I used to have $7k property tax payments twice yearly. So, I just sent in 1k/month over to that account. Pulled back in the money as I needed to pay it. Now that my tax payment is $6k/year, I just send over $500/month. Were I to have a similar lumpy payment, I would do the same thing. It's all mental accounting, but does help to make sure that I'm staying mostly on budget on a monthly level when I do my yearly check.