Search found 8795 matches

by FiveK
Tue May 26, 2020 9:34 pm
Forum: Personal Investments
Topic: First post - any advice appreciated
Replies: 6
Views: 426

Re: First post - any advice appreciated

Tax Filing Status: Single Tax Rate: currently a resident ~ 57k income. 5.25% state. In residency starting this year, will start 403b and HSA contributions. No employer matching. Given your likely career income profile (i.e., eventually much higher than $57K/yr), Roth contributions now may be best f...
by FiveK
Tue May 26, 2020 9:20 pm
Forum: Personal Investments
Topic: Roth contributions/ tax filings
Replies: 4
Views: 260

Re: Roth contributions/ tax filings

Blkdmax wrote:
Tue May 26, 2020 7:36 pm
Can I just sell my shares, take he tax hit on my small $8 profit and act like it never happened?
Or you could have the broker recharacterize the contribution from Roth to traditional.
by FiveK
Tue May 26, 2020 4:29 pm
Forum: Investing - Theory, News & General
Topic: Future Marginal Tax Rate Estimator (post from Reddit)
Replies: 9
Views: 449

Re: Future Marginal Tax Rate Estimator (post from Reddit)

There was a long back and forth in the reddit about whether one should include some amount of future contributions when estimating balances at retirement. Not doing so provides a hedge against a shorter-than-expected career, skipping some contribution years, etc., all of which can be voluntary or in...
by FiveK
Tue May 26, 2020 3:59 pm
Forum: Investing - Theory, News & General
Topic: Future Marginal Tax Rate Estimator (post from Reddit)
Replies: 9
Views: 449

Re: Future Marginal Tax Rate Estimator (post from Reddit)

One critique of the calculator (and by extension, the methodology on the wiki page) is that it assumes the entire dividend yield in retirement will be subject to the user's marginal rate. Isn't it the case that at least some portion of dividends will likely be taxed at the lower capital gains rates...
by FiveK
Tue May 26, 2020 3:02 pm
Forum: Investing - Theory, News & General
Topic: Future Marginal Tax Rate Estimator (post from Reddit)
Replies: 9
Views: 449

Re: Future Marginal Tax Rate Estimator (post from Reddit)

Also good to see that spreadsheet author's post, Mythbusting FIRE taxes (why "effective" tax rates are misleading), that explains at some length why the marginal vs. marginal (instead of marginal vs. effective) approach to analyzing Roth vs traditional is correct.
by FiveK
Tue May 26, 2020 1:49 pm
Forum: Investing - Theory, News & General
Topic: Future Marginal Tax Rate Estimator (post from Reddit)
Replies: 9
Views: 449

Re: Future Marginal Tax Rate Estimator (post from Reddit)

Nice. One can quibble about any shortcut tool, but if this helps some people then great!
by FiveK
Mon May 25, 2020 10:12 pm
Forum: Personal Investments
Topic: Maxed Out all Retirement Accounts, keep extra cash in savings or invest??
Replies: 5
Views: 918

Re: Maxed Out all Retirement Accounts, keep extra cash in savings or invest??

See Prioritizing investments and Investment Order for suggestions.

They are generic and thus may not fit everyone, but are probably appropriate for most.
by FiveK
Mon May 25, 2020 10:07 pm
Forum: Personal Investments
Topic: About to Transition Vanguard MF Account to Brokerage: Advice?
Replies: 5
Views: 399

Re: About to Transition Vanguard MF Account to Brokerage: Advice?

I know some have had issues, but it was a complete non-event for us. We did nothing - just let Vanguard do it automatically. Here's hoping the same for you.
by FiveK
Mon May 25, 2020 9:33 pm
Forum: Personal Investments
Topic: Calculating today's spending from the future money
Replies: 8
Views: 604

Re: Calculating today's spending from the future money

Would this logic make sense? If we wanted to tack that income on at the end to have no loss in income in retirement, would this be the calculation in today's dollars? I 'd have to earn $101k after taxes. Not quite that much if you start now, invest some additional amount per year, and let compoundi...
by FiveK
Mon May 25, 2020 4:00 pm
Forum: Personal Investments
Topic: CA tax treatment of HSA
Replies: 18
Views: 800

Re: CA tax treatment of HSA

This account is provided through my employer, so I am not sure if I can move. Is there a way to do it without incurring extra taxes? Yes, you may transfer funds from one HSA to another without incurring any taxes. Call Fidelity (or whatever company you want to receive the funds) and they will be ha...
by FiveK
Mon May 25, 2020 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Want to retire, help please.
Replies: 10
Views: 1851

Re: Want to retire, help please.

mark_in_denver wrote:
Mon May 25, 2020 2:52 pm
firecalc says no problem, But I would like to receive your thoughts. Thank you!
Are we good to go?
Sure looks that way.

Your likely marginal tax rate in retirement seems high enough that making Roth contributions while you still have earned income to allow them would be useful.
by FiveK
Mon May 25, 2020 3:02 pm
Forum: Personal Investments
Topic: CA tax treatment of HSA
Replies: 18
Views: 800

Re: CA tax treatment of HSA

However, for the fund sale, unfortunately HealthEquity is not reporting cost basis, so I have no idea whether it is a capital gain or loss. I am planning to just report it as a gain to be safe. If it's only a few dollars of tax, it may not be worth the effort, but using $0 for the cost basis means ...
by FiveK
Mon May 25, 2020 2:50 pm
Forum: Personal Investments
Topic: CA tax treatment of HSA
Replies: 18
Views: 800

Re: CA tax treatment of HSA

1. Yes 2. Probably won't matter, but amending first is good. 3. Unrealized capital gains are not taxed. Other investment gains, such as interest, capital gain distributions, etc., are taxed. See california hsa unrealized capital gain - Google Search 4. As a capital gain or loss, depending on what it...
by FiveK
Mon May 25, 2020 1:32 pm
Forum: Personal Investments
Topic: Calculating today's spending from the future money
Replies: 8
Views: 604

Re: Calculating today's spending from the future money

$50k today at 4% nominal returns for 18 years is about $101k. Obviously it is all estimates based on returns, so hard to say. As already noted, using estimated real returns might make the mental gymnastics easier. After you estimate the future value in today's dollars, multiply by whatever you deem...
by FiveK
Mon May 25, 2020 1:14 pm
Forum: Forum Issues and Administration
Topic: How search a two-word phrase?
Replies: 7
Views: 586

Re: How search a two-word phrase?

You can't do what you seek using the forum's advanced search, but you can using the "Google..." search box at the upper right of many forum pages.
by FiveK
Mon May 25, 2020 1:09 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth IRA Taxes
Replies: 5
Views: 324

Re: Backdoor Roth IRA Taxes

I’ve been aware of Backdoor Roth’s for a while.... Then you may know what follows, but just in case: - Form 8606 applies to an individual, not a couple. If the pre-tax IRA balance is only in one spouse's name, the other spouse may use the backdoor Roth process without incurring pro-rata taxation. -...
by FiveK
Mon May 25, 2020 12:13 pm
Forum: Personal Consumer Issues
Topic: Proxy vote Michigan
Replies: 5
Views: 510

Re: Proxy vote Michigan

Unless this is something unusual: no.
by FiveK
Sun May 24, 2020 11:53 pm
Forum: Personal Investments
Topic: Taxable instead of tax deferred
Replies: 7
Views: 771

Re: Taxable instead of tax deferred

WhatsIRR wrote:
Sun May 24, 2020 10:17 pm
Am I off track for skipping IRAs in favor of taxable? Should I look at backdoors more even if I expect our tax bracket to go down?
Yes and yes.

Never say never, but the odds of Roths becoming taxable are probably slim to none.
by FiveK
Sun May 24, 2020 10:11 pm
Forum: Personal Investments
Topic: Time until money doubles
Replies: 26
Views: 2532

Re: Time until money doubles

Are you implying that I'm taking on a lot more volatility for not enough returns to make it worthwhile? Risking a lot more for just 1% returns? "Just 1%" accumulates over time. To a first approximation, you'll have n% more if your returns are 1%/yr better for n years. E.g., 30% more after 30 years....
by FiveK
Sun May 24, 2020 7:43 pm
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1791

Re: Roth + Time vs Pretax + tax

I ran those numbers, and it propels them into a higher tax bracket post retirement, mostly due to the 8% real return assumption. So in that case, putting a higher proportion of savings into Roth provides a benefit, which levels off at 58% pre-tax and 42% Roth. That's the split that pushes post-reti...
by FiveK
Sun May 24, 2020 3:05 pm
Forum: Personal Investments
Topic: Traditional 401k and Roth 401k Combination?
Replies: 20
Views: 726

Re: Traditional 401k and Roth 401k Combination?

Thank you, great link retiredat50 although I don't quite understand all of it and will have to continue to read it and research. If you post the part(s) you find confusing, someone can probably explain - and then, depending on circumstances, the wiki itself might get modified to help future readers.
by FiveK
Sun May 24, 2020 3:00 pm
Forum: Personal Investments
Topic: When I start doing a Roth Conversion...
Replies: 22
Views: 1251

Re: When I start doing a Roth Conversion...

I mean, I understand we'll be taxed on the conversion IN, but I thought it would be at 15% and this post is saying that isn't true. That it'll actually be at 30%. As others have noted, "it depends...". You can check your own marginal tax rate for various amounts of traditional to Roth conversions b...
by FiveK
Sat May 23, 2020 3:08 pm
Forum: Personal Investments
Topic: Which funds and allocations for accounts?
Replies: 12
Views: 560

Re: Which funds and allocations for accounts?

maybethisone, welcome to the forum.

1. Ouch - those are terrible. But see Expensive or mediocre choices.

2. Prioritizing investments and Investment Order and Tax-efficient fund placement.

3. Up to you.

4. Is Getting started - Bogleheads all review?
by FiveK
Sat May 23, 2020 2:22 pm
Forum: Personal Investments
Topic: New investor trying to understand tax loss harvesting
Replies: 5
Views: 272

Re: New investor trying to understand tax loss harvesting

titan2020 wrote:
Sat May 23, 2020 2:16 pm
I understand in other scenarios i may benefit from the sale, but in the 2 scenarios i listed the outcome is the same right?
Your analysis is correct.
by FiveK
Sat May 23, 2020 1:43 pm
Forum: Personal Investments
Topic: New investor trying to understand tax loss harvesting
Replies: 5
Views: 272

Re: New investor trying to understand tax loss harvesting

Your analysis is correct.

Consider the same facts, except you don't sell at the end of the year, and you have no other capital gains or losses. How does that impact your taxes?
by FiveK
Sat May 23, 2020 12:33 pm
Forum: Personal Investments
Topic: Retirement Portfolio Review
Replies: 6
Views: 647

Re: Retirement Portfolio Review

Thanks for your response and the links to the wiki page, FiveK. I do expect to only have a two year window of 12% due to RMDs. I'm not sure I understand what the "break-even withdrawal" rate is showing though. Could you clarify? In short, the simplest traditional vs. Roth advice is "if your tax rat...
by FiveK
Sat May 23, 2020 4:19 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1791

Re: Roth + Time vs Pretax + tax

Always do pretax until you're forced to do Roth .... First, let me say I think that Roth has many more positives and whatever math you want to use, Roth is better. :D I don't understand what you are noting here. The two quotes seem to me to disagree. I don't get the smile face. Yes, they sure do di...
by FiveK
Sat May 23, 2020 2:59 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1791

Re: Roth + Time vs Pretax + tax

JustinR wrote:
Fri May 22, 2020 10:34 pm
Always do pretax until you're forced to do Roth....
Rxwolf wrote:
Sat May 23, 2020 2:43 am
First, let me say I think that Roth has many more positives and whatever math you want to use, Roth is better.
:D
by FiveK
Sat May 23, 2020 2:36 am
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1791

Re: Roth + Time vs Pretax + tax

Important assumptions are that their income is level over a long period of years and that the tax laws won't change. Other assumptions: - Ignored state taxes - Ignored net investment income tax - 85% of Social Security would be taxable for this couple across all of the strategies - Standard deducti...
by FiveK
Fri May 22, 2020 10:59 pm
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1791

Re: Roth + Time vs Pretax + tax

JustinR wrote:
Fri May 22, 2020 10:34 pm
...because you can pay 0% taxes on all of it if you plan correctly.
Of course that depends on the definition of "correctly" which is at best subjective and, for many, unachievable or undesirable.
by FiveK
Fri May 22, 2020 10:29 pm
Forum: Investing - Theory, News & General
Topic: Roth + Time vs Pretax + tax
Replies: 37
Views: 1791

Re: Roth + Time vs Pretax + tax

Eagle33 wrote:
Fri May 22, 2020 10:21 pm
Why no mention of that Social Security may be taxed with tIRA withdrawals and not with rIRA withdrawals?
Perhaps because that's only one part of the overall marginal tax calculations that determine whether traditional or Roth provides the best result.
by FiveK
Fri May 22, 2020 8:07 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 33
Views: 4642

Re: Taxable Account - a Swiss Army Knife for Savers

I'm never sure if Bogleheads are tax averse in general (ie. opposed to paying tax in general) or simply looking for tax optimization. For the vast majority, likely the latter. ...I've seen my taxation grow by leaps and bounds, and from that perspective, I've welcomed it every step of the way since ...
by FiveK
Fri May 22, 2020 7:55 pm
Forum: Personal Investments
Topic: Looking for a Roth IRA with rebalancing. (Hegdefundie adventure)
Replies: 19
Views: 979

Re: Who do you use for your Roth IRA?

I made the assumption that some may have limited investing options, not have the choice of picking the ETFs/stocks I want. As if they were similar to some 401ks in that regard. An IRA can't hold everything a taxable account can (see The Dos and Don’ts of IRA Investing for some discussion), but comm...
by FiveK
Fri May 22, 2020 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Radiologist here needing help regarding cross-state teleradiology work/taxes
Replies: 21
Views: 1376

Re: Radiologist here needing help regarding cross-state teleradiology work/taxes

Q2: If you had no physical presence for employment in another state, you won't owe tax to that state even if the 1099-NEC (used to be 1099-MISC) has another state's address for the employer. Of course, if the teleradiology company withholds another state's tax you'll need to file to get it back, so ...
by FiveK
Fri May 22, 2020 7:11 pm
Forum: Personal Investments
Topic: Looking for a Roth IRA with rebalancing. (Hegdefundie adventure)
Replies: 19
Views: 979

Re: Who do you use for your Roth IRA?

Don't know about your specific criteria, but in answer to the thread title, "for various reasons, Fidelity, Schwab, and Vanguard."
by FiveK
Fri May 22, 2020 4:43 pm
Forum: Personal Investments
Topic: Retirement Portfolio Review
Replies: 6
Views: 647

Re: Retirement Portfolio Review

See Other than Vanguard, Boglehead-style for some Fidelity funds you could use. If you will pay 22% (or higher) marginal rates for the rest of your life (other than perhaps a two year window of 12%), then doing conversions at 22% (and paying the tax from cash on hand) is favorable. See the discussio...
by FiveK
Fri May 22, 2020 4:36 pm
Forum: Personal Investments
Topic: Strategy for selling single stock
Replies: 6
Views: 508

Re: Strategy for selling single stock

1&3) Up to you. If your strategy is to move from individual stocks to index funds, this could be a good time to do so. 2) If you don't want to sell them all, that is a good way to start. If you think the individual stock gains going forward from now will exceed index fund gains, you could keep the s...
by FiveK
Fri May 22, 2020 1:09 pm
Forum: Personal Investments
Topic: Open Social Security strategy results question
Replies: 55
Views: 3684

Re: Open Social Security strategy results question

Got a little lost here. Looking at the charts in the wiki, I thought the worst case of a 40.7% hump is only in the single case (not the MFJ case). I have some of the calculations from those charts in my spreadsheet, but not all of them. So, wasn't sure. Probably need to play around with the total t...
by FiveK
Thu May 21, 2020 10:26 pm
Forum: Personal Investments
Topic: Open Social Security strategy results question
Replies: 55
Views: 3684

Re: Open Social Security strategy results question

So, I was trying to say in my previous post that if I'm going to be already past the point of the hump, it may make sense to just withdraw (or convert to Roth) to the top of the 12% bracket. Does that make sense? Yes. If your "unavoidable" income puts you past the hump, such that your marginal rate...
by FiveK
Wed May 20, 2020 8:02 pm
Forum: Personal Investments
Topic: Newly retired Roth Conversion help
Replies: 6
Views: 731

Re: Newly retired Roth Conversion help

Hi, for the following newly retired couple that I'm helping, I got tripped up with social security taxation and what might be optimal for Roth conversions going forward and am looking for some guidance. Age: He's 69 and she's 64, living in CA His pension: $22k/yr Her pension: $23k/yr His social sec...
by FiveK
Wed May 20, 2020 7:40 pm
Forum: Personal Investments
Topic: John Handcock 401k vs Taxable Vanguard
Replies: 3
Views: 217

Re: John Handcock 401k vs Taxable Vanguard

Reading between the lines, you won't be with the new employer for multiple decades. In that case, despite having Expensive or mediocre choices, the 401k may be better. See the discussion at that link to evaluate for your specific situation.
by FiveK
Wed May 20, 2020 4:27 pm
Forum: Investing - Theory, News & General
Topic: Ditch 401K for Roth to reduce taxation of SS Benefits
Replies: 18
Views: 1491

Re: Ditch 401K for Roth to reduce taxation of SS Benefits

I may not have stated my case clearly. We are looking to reduce taxes on SS benefits that we hope to collect in retirement. One can do that, but it might be better to increase spendable income in retirement instead. there is a certain income threshold at which 50% of the SS benefits become taxable ...
by FiveK
Wed May 20, 2020 2:21 pm
Forum: Personal Investments
Topic: HSA, Inflation and reimbursements
Replies: 4
Views: 259

Re: HSA, Inflation and reimbursements

Some people will pay cash for medical expenses and save the receipts with the idea of reimbursing themselves later on down the line. However, due to inflation, wouldn't that be actually more costly? Reimbursing yourself $200 twenty years after the medical expense nets you a considerable loss. If th...
by FiveK
Wed May 20, 2020 2:08 pm
Forum: Investing - Theory, News & General
Topic: Ditch 401K for Roth to reduce taxation of SS Benefits
Replies: 18
Views: 1491

Re: Ditch 401K for Roth to reduce taxation of SS Benefits

Our effective tax rate (tax/AGI) for CY2019 is 20%. Your current effective tax is not particularly relevant. The question is your current *marginal* rate and how it compares with your expected tax in retirement. +1 Ceeshrek, an effective 20% rate implies a marginal 32% rate. Given your current acco...
by FiveK
Wed May 20, 2020 4:05 am
Forum: Personal Finance (Not Investing)
Topic: Multiple Roth IRAs for rollovers
Replies: 4
Views: 318

Re: Multiple Roth IRAs for rollovers

Is there any advantage/disadvantage in opening multiple Roth IRAs to facilitate this? Whatever is easier for you. Follow-up question. Do people do their After-tax 401k to Roth IRA conversions once a year, or more often? Depends on what the plan allows and/or charges, and personal preference If you ...
by FiveK
Wed May 20, 2020 1:53 am
Forum: Personal Investments
Topic: Open Social Security strategy results question
Replies: 55
Views: 3684

Re: Open Social Security strategy results question

The general concept that many of us use is to keep our Taxable Income fairly level each year from retirement until you die, so the taxes would be relatively level each year. That is not always the best strategy. For example: A single taxpayer with SS = $35,000 and RMD = $30,000 wishes to take (in a...
by FiveK
Tue May 19, 2020 4:49 am
Forum: Investing - Theory, News & General
Topic: Formula for % of Income?
Replies: 14
Views: 1518

Re: Formula for % of Income?

I have $155k in my retirement account after 23 years saving 14% of salary / including 9% employer match adding 2% a year. I currently make $55k. ... I always expected a 3.5% return on a 50/50 allocation. 23 years ago my salary was $33k. Back-of-the-envelope calculation using the formula for the Fut...
by FiveK
Tue May 19, 2020 4:44 am
Forum: Personal Investments
Topic: Open Social Security strategy results question
Replies: 55
Views: 3684

Re: Open Social Security strategy results question

markcoop wrote:
Mon May 18, 2020 10:17 pm
Any SS calculators allow you to play around with Roth conversions/I-bond redemptions?
Any of the better ones mentioned in US and state income tax calculator - Bogleheads.org should get the SS benefit taxability correct.