Search found 950 matches

by mhadden1
Mon Mar 25, 2024 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401(k) for Spouse & Roth 401(k) for me.
Replies: 2
Views: 294

Re: Traditional 401(k) for Spouse & Roth 401(k) for me.

johnpau wrote: Mon Mar 25, 2024 7:12 pm Tax bracket around 22%.

If you think you can defer taxes on contributions at 22%, and withdraw at 12%, that's a win. Defer and withdraw at 22%, a wash. Defer at 22% and withdraw > 22%, a loss. I was able to do the first one, it appears. :happy

Beyond that, there are good reasons to have some traditional and some Roth, rather than 100% of either.
by mhadden1
Mon Mar 25, 2024 7:48 pm
Forum: Personal Investments
Topic: Retired but low income
Replies: 10
Views: 2045

Re: Retired but low income

leeks wrote: Mon Mar 25, 2024 7:18 pm There is little harm in leaving a money market longer until you feel confident about next steps.
OP, the better money market funds are paying around 5% right now, so if all your assets right now could earn that much, the interest would exceed $25,000/year while those rates remain. With your low expenses, that much should keep you going in the near term. When MM rates do go down, it likely won't be all at once, so you should have enough time to make long term plans.
by mhadden1
Mon Mar 25, 2024 7:10 pm
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 130
Views: 8767

Re: Those complimentary dinners for retirees by investment advisors

Stinky wrote: Mon Mar 25, 2024 10:30 am The local financial planner annuity salesman who has the biggest presence on local TV and radio has taken a different tack than paying for restaurant meals. He hosts free seminars at local libraries and community centers. And he teaches a class at a local community college for which attendees actually need to pay an enrollment fee, so maybe he makes a few bucks there.
DW got an invitation for one of these in the US mail today. Also get the free dinner invites from time to time, so far have not accepted.
by mhadden1
Mon Mar 25, 2024 6:37 pm
Forum: Personal Investments
Topic: Need advice
Replies: 9
Views: 923

Re: Need advice

TexMike2005 wrote: Mon Mar 25, 2024 4:23 pm Bad news is I will owe taxes for that amount forgiven. The loan company has suggested that I start planning for this, as I will need a large sum of money to pay the taxes when the time comes.
What kind of forgiveness amount is upcoming? What tax bracket are you in? Will the forgiveness likely nudge you into a new bracket? Will it be subject to a state income tax?
by mhadden1
Sun Mar 24, 2024 9:34 am
Forum: Personal Consumer Issues
Topic: Need advice regarding replacing front door
Replies: 15
Views: 1301

Re: Need advice regarding replacing front door

tibbitts wrote: Sun Mar 24, 2024 9:17 am I can't imagine a door that blows in from the wind except in extreme conditions where other damage is done to the house. Lots of houses have doors that are 40 years old but don't blow open, so something else must be wrong.
I think something there is a problem with the lockset/strike plate that needs to be fixed. And, you could get more security by adding a double cylinder deadbolt.
by mhadden1
Thu Mar 21, 2024 10:06 pm
Forum: Personal Investments
Topic: Investment Questions for Elderly Widow.
Replies: 8
Views: 932

Re: Investment Questions for Elderly Widow.

sale of the rental properties should generate about $1,300,000 to $1,500,000 in additional funds--although that will probably happen over the next year or two. Is this what the sale of the rentals will net? Factoring in taxes on gains, depreciation recapture, and such... This is a ballpark estimate, yes. California is a community property state, and the rental properties were community property with a right of survivorship. So the basis of the properties was stepped up to the fair market value on the death of her spouse. As a result, the capital gains will be negligible. And I'm not sure, but I think this will wipe out the deprecation recapture as well. What will be left are selling expenses. Oh good, then with those total assets you shoul...
by mhadden1
Thu Mar 21, 2024 9:37 pm
Forum: Personal Investments
Topic: Investment Questions for Elderly Widow.
Replies: 8
Views: 932

Re: Investment Questions for Elderly Widow.

Redlee wrote: Thu Mar 21, 2024 5:37 pm sale of the rental properties should generate about $1,300,000 to $1,500,000 in additional funds--although that will probably happen over the next year or two.
Is this what the sale of the rentals will net? Factoring in taxes on gains, depreciation recapture, and such...
by mhadden1
Thu Mar 21, 2024 7:19 pm
Forum: Personal Consumer Issues
Topic: Seeking a Math Formula - buying wood for project
Replies: 8
Views: 626

Re: Seeking a Math Formula - buying wood for project

mhadden1 wrote: Thu Mar 21, 2024 7:07 pm tan(5) * 75 = 6.562
Uh, I guess really sin(5) = opp/hyp
sin(5) * 75 = 6.537

So much for overconfidence.
by mhadden1
Thu Mar 21, 2024 5:24 pm
Forum: Personal Investments
Topic: Highly Concentrated Position In Zero Cost Basis Holding
Replies: 23
Views: 1428

Re: Highly Concentrated Position In Zero Cost Basis Holding

DelMar wrote: Thu Mar 21, 2024 4:39 pm 1/4 is held in a regular brokerage account. I believe this minimizes the implications of my predicament. Unless I'm mistaken we can leave the approx. 175K of LLY resting in her regular brokerage account alone and await the sad day when the cost-basis is stepped-up.
You should figure out the basis for the brokerage shares. At least some are like to be due to dividend reinvestment with a bigger basis. But yeah, I looked and I had no idea that Lilly was up x 10 in 6 years. Wow.
by mhadden1
Tue Mar 19, 2024 1:27 pm
Forum: Personal Investments
Topic: Rebalancing Yearly in Taxable - how to LTCG?
Replies: 15
Views: 1331

Re: Rebalancing Yearly in Taxable - how to LTCG?

Many people arrange their portfolios so that rebalancing can occur entirely in tax-deferred accounts. Say, all Total Stock Market in taxable and Roth, TSM and other components in tIRA or 401k. That works well unless you don't have enough room.

Regarding short vs. long-term, it's definitely best to use specific identification of share lots in taxable, to avoid selling those with short-term gains. And, you can always wait a while - nothing sacred about rebalancing on a particular day or interval.
by mhadden1
Mon Mar 18, 2024 5:38 pm
Forum: Investing - Theory, News & General
Topic: Any thoughts on sector rotation - March 2024?
Replies: 20
Views: 1165

Re: Any thoughts on sector rotation - March 2024?

smooth_rough wrote: Mon Mar 18, 2024 4:52 pm Don't have crystal ball and can't forcast next year. But utilities are decent value right now for patient investor.
Which sector would you sell, to buy utilities?
by mhadden1
Mon Mar 18, 2024 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Considering a Career Change From Marketing to Financial Planning
Replies: 28
Views: 1872

Re: Considering a Career Change From Marketing to Financial Planning

roth evangelist wrote: Mon Mar 18, 2024 12:37 pm
lessismore22 wrote: Mon Mar 18, 2024 12:31 pm You don't make money unless your firm makes money. Your firm makes money by you selling commissionable products, or charging an AUM fee.

Will you be comfortable recommending an AUM agreement to end-users, that you yourself(being a Boglehead), would never pay?
Commissions no, but fee-only yes. So flat-fee, hourly, AUM fee, etc. I'm fine with.
My perception is that it's hard to monetize the desire to provide good quality financial advice. Easier if you don't care about the quality, or if you are too dense to know that you are doing people harm.
by mhadden1
Mon Mar 18, 2024 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Use RMD to pay taxes
Replies: 30
Views: 2576

Re: Use RMD to pay taxes

corn18 wrote: Mon Mar 18, 2024 9:35 am 1. Can I do that?
2. When should I do that?

It doesn't really matter to her when I do it because her income more than covers expenses.
You can withhold any time during the year, and satisfy IRS requirements, as long as you at least reach a safe harbor.

So far in retirement I have not paid federal estimates. I always check my situation in December, and if necessary I take an IRA distribution before year-end with the necessary withholding (99% sometimes) to get to a safe harbor.
by mhadden1
Sun Mar 17, 2024 12:08 pm
Forum: Investing - Theory, News & General
Topic: Awesome Portfolio: 20% Stocks..20% Bonds..20% Cash..20%Real Estate, 20%Gold
Replies: 45
Views: 5438

Re: Awesome Portfolio: 20% Stocks..20% Bonds..20% Cash..20%Real Estate, 20%Gold

Lucky2Invest wrote: Sun Mar 17, 2024 10:38 am
slondr wrote: Sun Mar 17, 2024 10:30 am By "Real Estate", do you mean a primary home, a rental property, an in-the-industry corporation like Zillow, or REIT equities?
Yes, he includes primary home as real estate, but says you can buy REITs to balance or if you don’t have a primary.
Hard to rebalance, especially with real real estate. Physical gold has transaction costs and storage. I looked at the gold fund GLD, ER of 0.4 - higher than any fund I own.
by mhadden1
Sat Mar 16, 2024 10:52 pm
Forum: Personal Investments
Topic: Does PNC Bank have a good reputation for financial advisors?
Replies: 10
Views: 1761

Re: Does PNC Bank have a good reputation for financial advisors?

wp32 wrote: Sat Mar 16, 2024 6:59 pm I sat with her through approximately four one hour sessions. The advisor seems to plug in numbers for retirement funding. I think he is uncomfortable with me bringing up up expenses and fees. His response is he is providing a service (to be compensated for).
After four hours, which must have been low-level torture, what did you gather about what the advisor wanted to put your wife in? Complicated and expensive stuff? Loaded funds, 12b-1 fees? And what did he say about expenses and fees? Did he disclose at all?
by mhadden1
Sat Mar 16, 2024 3:20 am
Forum: Personal Finance (Not Investing)
Topic: Student loan "refinance" with credit card balance balance transfer?
Replies: 15
Views: 896

Re: Student loan "refinance" with credit card balance balance transfer?

nostresshere wrote: Fri Mar 15, 2024 4:37 pm THERE IS NO WORK INVOLVED in this decision.

Apply for card and do the transfer. 20 minutes maybe?

Set your card to AUTOPAY the minimum each month, then put card away. Set calendar alert to pay it off a month before the new interest kicks in.

Really easy stuff to do.

And, for most folks, no tax issues.
Get a card with a spend bonus too. $200 or so worth of gravy. No tax on CC bonus.
by mhadden1
Sat Mar 16, 2024 1:15 am
Forum: Personal Investments
Topic: Moving Money Around? Seeking Advice for New Boglehead!
Replies: 9
Views: 1377

Re: Moving Money Around? Seeking Advice for New Boglehead!

drdaiquiri wrote: Sat Mar 16, 2024 12:05 am $80k next year when I leave teaching. I have only been making a decent income for two years, as I have been on a shoestring graduate student income for most of my adult life.
It looks like you will be finishing graduate school next year - if so, then your number one task is working on your career.

Good luck!
by mhadden1
Fri Mar 15, 2024 4:46 pm
Forum: Personal Investments
Topic: Evaluate Portfolio - Thank you in advance
Replies: 8
Views: 1077

Re: Evaluate Portfolio - Thank you in advance

I know a few of the ticker symbols but not many. Suggest you add the names to make it easier for people to evaluate.
by mhadden1
Fri Mar 15, 2024 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan "refinance" with credit card balance balance transfer?
Replies: 15
Views: 896

Re: Student loan "refinance" with credit card balance balance transfer?

tashnewbie wrote: Fri Mar 15, 2024 3:45 pm At most you're looking at $1000 interest rate arbitrage, before taxes. After taxes, you'll have what? Maybe $700.
I do this kind of thing when it suits me, and I get a favorable CC offer. I don't care about my credit score, and it does go down when I get new credit cards etc, but it seems to bob right back up. I like to get $700. I realize that for many people, $700 is just rounding error, not worth stopping the car if it blows out the window.
by mhadden1
Thu Mar 14, 2024 6:45 pm
Forum: Personal Investments
Topic: advice needed investing $700K
Replies: 8
Views: 1508

Re: advice needed investing $700K

Welcome to the forum!

I think your situation is complicated enough that, to get the best advice, you should post all your information using the format suggested in the Asking Portfolio Questions link.
by mhadden1
Thu Mar 14, 2024 6:14 pm
Forum: Personal Investments
Topic: Dividend Portfolio
Replies: 5
Views: 938

Re: Dividend Portfolio

38 stocks, divided among two IRA accounts and one regular account. My goal was to create an income stream to supplement a modest pension and some social security. The bad news, to me, is that riding herd on 38 single stocks seems kind of complicated. The good news is that you could invest some or all of your holdings in a few, very inexpensive, highly diversified index funds to get market returns. If you do so, you will be diversified among thousands of companies instead of 38 - and you will still receive some dividends. As you probably know, for the IRA accounts you can freely make any changes you want, without tax consequences. And, it sounds like you might have some losses in your taxable account, that could help mitigate any tax conseq...
by mhadden1
Wed Mar 13, 2024 11:03 pm
Forum: Personal Investments
Topic: Reducing Large Inherited Holding of a Single Stock
Replies: 18
Views: 2020

Re: Reducing Large Inherited Holding of a Single Stock

Thomas Benton wrote: Wed Mar 13, 2024 7:08 pm I recently changed jobs and moved from Vanguard to Fidelity, and my rep is pushing their specially managed account - taking over all of my inherited holdings (mostly small positions in only about ten different companies) and adding some cash to the pot. I believe the SMA fee would be .40.
Sounds like a pretty good deal for the rep, not so good for you.
by mhadden1
Wed Mar 13, 2024 9:53 pm
Forum: Personal Investments
Topic: Advice for my investments
Replies: 9
Views: 1252

Re: Advice for my investments

I am looking for investment advice, as I have been doing this on my own. What is a fair price to pay an advisor? My husband and I are 52/53 years old, we have sufficient emergency funds, no debt, our tax filing is married joint, I do not know our tax rate, we live in Georgia, no children, and we have about 3 million$ in Vanguard. I don't have a real answer to your question - but - $3 million is a lot. Are you unsatisfied with your results in some way? What do think you will require from an advisor? Does your husband feel the same way as you? One thing about traditional advisers is that they are costly. You might pay $30,000 in expenses to get the advice, maybe more. Does that seem like a good value? A last thing - you really should figure ...
by mhadden1
Wed Mar 13, 2024 7:54 pm
Forum: Personal Investments
Topic: 80 year old mother's retirement accounts
Replies: 23
Views: 2153

Re: 80 year old mother's retirement accounts

dwickenh wrote: Wed Mar 13, 2024 7:39 am
lakpr wrote: Wed Mar 13, 2024 1:35 am
ILikeFinances wrote: Tue Mar 12, 2024 8:34 pmAnd would I invest 80% in a bond index fund and 20% in total stock market? Should some of it go to an annuity?
Absolutely not, to the bolded portion. :shock: Are you / is your 80 year old Mom willing to take double digit losses in part of your "safe" assets? Have you taken a look at how bond index fund fared in 2022?

Or even how it fared from January 2024 till date?
Wow, so we should all stop using bond funds I guess......

Recency bias is strong.

I disagree with your opinion.

Dan
Some people were horribly disappointed when interest rates went up, and bonds went down.

I am still very hopeful that my bond funds with 6 year duration will perform as expected.
by mhadden1
Wed Mar 13, 2024 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule D -- Turbotax Premier
Replies: 21
Views: 1781

Re: Schedule D -- Turbotax Premier

jebmke wrote: Wed Mar 13, 2024 6:23 am
familythriftmd wrote: Wed Mar 13, 2024 6:19 am
Hyperchicken wrote: Tue Mar 12, 2024 11:06 pm The whole Schedule D is pretty much proceeds minus basis equals gains straight from 1099-B, and a couple check boxes. Amazing what people are prepared to pay to not do that themselves.
Well, this is what I mean in its essence; they are demanding a $50 premium for a measly schedule D. I'm not sure if there's a way to file the rest with TurboTax and then send the IRS a schedule D "a la carte".
Stuff like this is why I ditched TT many years ago.
Some years ago I reached a point where I had expectations of free filing, but encountered these upsell glitches with TT, as well as some other purportedly free packages. I've used FreeTaxUSA for a few years now, without issues.
by mhadden1
Wed Mar 13, 2024 1:21 pm
Forum: Personal Investments
Topic: Managing Mom's Investments
Replies: 17
Views: 1259

Re: Managing Mom's Investments

exodusNH wrote: Wed Mar 13, 2024 12:08 pm I wouldn't aggressively invest the funds.

Something as mundane as a fall could put her in assisted living for the rest of her life. She might need those funds as nice places are $10k+ per month.
+1
by mhadden1
Mon Mar 11, 2024 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: perfect credit rating, can’t use my credit
Replies: 18
Views: 2366

Re: perfect credit rating, can’t use my credit

theplayer11 wrote: Mon Mar 11, 2024 7:29 pm your denials don't make sense to me..what cc company? What inquiries were recent? I get 4-5 cc a year, mostly from Chase about 3 months apart.
I too often get several cards in a year for spend bonuses and/or 0% periods. I think my credit score is over 800, haven't bothered to look lately.
by mhadden1
Mon Mar 11, 2024 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: College degree worthwhile for marketing?
Replies: 124
Views: 8435

Re: College degree worthwhile for marketing?

Ladeedaw wrote: Mon Mar 11, 2024 3:58 pm Her arguments for leaving college:
She wants to "bet on herself" and try to do real estate. She feels like she can do really well financially.
She feels like she'll never use her degree.
She feels like she's wasting time with busy work in school and that it doesn't help her reach her potential.
She feels like my generation thinks college is a good idea, but that the world has changed and a college degree is no longer what it used to be.
1) She can bet after 3 semesters too.
2) She certainly won't use her degree if she doesn't have one.
3) Her untapped potential can be developed after 3 semesters.
4) Having no degree is exactly what it used to be.
by mhadden1
Mon Mar 11, 2024 5:04 pm
Forum: Personal Investments
Topic: Portfolio & Retirement Plan Review
Replies: 41
Views: 4513

Re: 401K Allocation - 80% VTSAX 10% VIGAX 10% VITAX?

Now if you are convinced that VIGAX and VITAX will offer outsized growth than the Total Stock Market Index over the coming years, I don't have an opinion on that, except that it is all the more reason to stuff those two index funds in a Roth account so that all that growth is yours and you don't have to share it with Uncle Sam. Thinking about this a little more... Why wouldn't Roth always be preferred with XX years left until retirement as all of the compounding growth is tax-free? The key is whether you can defer taxes at higher rate than the rate you will pay on withdrawals in retirement. For many/most people, this is true. For me, I deferred mostly in bracket 3, and in retirement I am paying in 1 or 2 right now. When I start SS at 70 an...
by mhadden1
Sun Mar 10, 2024 9:57 pm
Forum: Personal Investments
Topic: How to fix: same assets held in taxable and tax-advantaged accounts
Replies: 9
Views: 1068

Re: How to fix: same assets held in taxable and tax-advantaged accounts

I might use VEU(FTSE All World Ex-US) and VOO (S&P 500) in Roth.
by mhadden1
Sun Mar 10, 2024 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Not filing state return because of zero tax
Replies: 15
Views: 1186

Re: Not filing state return because of zero tax

OP here. Thanks for the responses, upon which I dig a little further. The language used by my state is "Were you required to file a federal Income Tax return which included income taxable by [the state]"? I only have a few thousand dollars of self-employment income. On my federal return, the taxable income (on line 15) is zero, so I assume zero income is taxable by the state? You had income. You are required to file federal return. You will have to file state return. If you don’t, your state may audit you. This didn't sound right to me so I looked at the IRS "who needs to file" page - the income threshhold for 2023 was $13,850. So the OP was not "required to file a federal Income Tax return which included income ta...
by mhadden1
Sun Mar 10, 2024 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Not filing state return because of zero tax
Replies: 15
Views: 1186

Re: Not filing state return because of zero tax

OP here. Thanks for the responses, upon which I dig a little further. The language used by my state is "Were you required to file a federal Income Tax return which included income taxable by [the state]"? I only have a few thousand dollars of self-employment income. On my federal return, the taxable income (on line 15) is zero, so I assume zero income is taxable by the state? You had income. You are required to file federal return. You will have to file state return. If you don’t, your state may audit you. This didn't sound right to me so I looked at the IRS "who needs to file" page - the income threshhold for 2023 was $13,850. So the OP was not "required to file a federal Income Tax return which included income ta...
by mhadden1
Sun Mar 10, 2024 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Not filing state return because of zero tax
Replies: 15
Views: 1186

Re: Not filing state return because of zero tax

My income is above the federal threshold, but it is so low that my state tax is zero. I use freetaxusa to file my tax return (unfortunately I cannot use Cash App Tax because it has no support for form 2210). It charges $17.99 for a state return. Can I choose to file the federal return only but not the state return? Will there be any negative consequences? Forgive me if I repeat an old question. it has been difficult to use keywords search to find threads on this particular topic. My guess is that if your income is below your state tax threshold, you are not required to file. Is that true for your state? In that case, you can use FreeTaxUSA and not file state. If you are required to file, does your state have a free online app for state inc...
by mhadden1
Sun Mar 10, 2024 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Helping children young active duty officers
Replies: 28
Views: 2609

Re: Helping children young active duty officers

klondike wrote: Sun Mar 10, 2024 2:23 pm I have 2 children one is an Air Force pilot, and the other is still in the Naval Academy wanting to be a naval aviator. As junior military officer, the pay is very low, i.e. O-1 starts at $45,912. I'm in a fortunate position to help them financially although they are far from financially struggling.
I am not ex-military but I live in an area with many ex-military people doing well in their second or follow-on careers. For your children, particularly with service academy educations, I would not doubt their ability to thrive.

Like you, I am starting to favor the idea of giving to my children with a warm hand, when they can really use it, as opposed to leaving a large legacy when they may be already in retirement.
by mhadden1
Sun Mar 10, 2024 2:20 pm
Forum: Personal Investments
Topic: Retirement Investment Advice
Replies: 31
Views: 3227

Re: Retirement Investment Advice

Very frugal living and donate in charity. Not including year by year, but savings started way back in 2008 and since then been life’s only focus has been saving as much as possible. Today’s Life’s biggest regret has been not investing since 2010 In stocks or mutual funds or in the market. When I see numbers like $5Mn or $11 Mn or higher numbers, I feel a serious missed opportunity and seriously curse myself of only focusing on savings. What is your goal? Just to have a big balance to look at? Or maybe, if your goal is to donate a lot to charity, I would definitely save hard in tax-deferred, then donate and never pay tax. Thank you. 1) My goal is to double/treble or May be more of my total Networth 2) Yes, charity is one of the components a...
by mhadden1
Sun Mar 10, 2024 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 24
Views: 1978

Re: Tax question

Younglearner wrote: Sun Mar 10, 2024 1:43 pm Thanks so much for the reply! A quick question though is that the scholarship income would not count as earned income for Roth ira purpose, correct? Or will I find out when I file my taxes?
The income that is the basis for Roth contributions is compensation for work, like wages that appear on a W-2 form, or earnings from self employment. I would expect the tax software should warn you about over-contributing in excess of your earned income - you could test that while you are entering your information.
by mhadden1
Sun Mar 10, 2024 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 24
Views: 1978

Re: Tax question

My goal is twofold: first, to learn more about the process of filing taxes, and second, to secure a refund of $60 that was withheld for federal taxes. For context, I earned approximately $4,000, so I shouldn’t owe federal taxes. Additionally, it appears that I won’t owe state taxes either, as I reside in Georgia where the standard deduction is around $5,000. Moreover, I contributed to a Roth IRA for minors and want to confirm whether I can contribute up to my gross income or if it’s based on net income (after FICA taxes)? Finally, how does scholarship impact taxation? I ask this because I got a 1K scholarship last year, and I was wondering how I have to file that. You can use free online tax software to file your federal return electronica...
by mhadden1
Sat Mar 09, 2024 4:51 pm
Forum: Personal Investments
Topic: Retirement Investment Advice
Replies: 31
Views: 3227

Re: Retirement Investment Advice

kv4052 wrote: Sat Mar 09, 2024 1:35 pm Very frugal living and donate in charity.

Not including year by year, but savings started way back in 2008 and since then been life’s only focus has been saving as much as possible.

Today’s Life’s biggest regret has been not investing since 2010
In stocks or mutual funds or in the market. When I see numbers like $5Mn or $11 Mn or higher numbers, I feel a serious missed opportunity and seriously curse myself of only focusing on savings.
What is your goal? Just to have a big balance to look at? Or maybe, if your goal is to donate a lot to charity, I would definitely save hard in tax-deferred, then donate and never pay tax.
by mhadden1
Sat Mar 09, 2024 4:40 pm
Forum: Personal Investments
Topic: Tax Managed accounts
Replies: 21
Views: 1563

Re: Tax Managed accounts

we live off my husbands income filing jointing he’s around 200k a year. I would contribute the yearly limit to a Roth IRA for you, going forward, invested in Total Stock Market. Put the rest, In taxable, in S&P 500. Your husband can adjust his 401k to achieve your desired family AA. Before April 15 you can make Roth contributions for 2023 and 2024, $6500 + $7000. Before jumping into a Roth IRA, OP may want to read up on the particulars since they do not appear to be earning income. E.g. here is info on spousal IRAs: https://www.investopedia.com/terms/s/spousal-ira.asp I think in a previous post the spouse is said to earn $200k - OP should for sure check all the rules in play, including having family wage income that is >= the Roth cont...
by mhadden1
Sat Mar 09, 2024 12:11 pm
Forum: Personal Investments
Topic: Tax Managed accounts
Replies: 21
Views: 1563

Re: Tax Managed accounts

mhadden1 wrote: Sat Mar 09, 2024 12:08 pm
Alongago wrote: Sat Mar 09, 2024 11:03 am we live off my husbands income filing jointing he’s around 200k a year.
I would contribute the yearly limit to a Roth IRA for you, going forward, invested in Total Stock Market. Put the rest, In taxable, in S&P 500. Your husband can adjust his 401k to achieve your desired family AA.
Before April 15 you can make Roth contributions for 2023 and 2024, $6500 + $7000.
by mhadden1
Sat Mar 09, 2024 12:08 pm
Forum: Personal Investments
Topic: Tax Managed accounts
Replies: 21
Views: 1563

Re: Tax Managed accounts

Alongago wrote: Sat Mar 09, 2024 11:03 am we live off my husbands income filing jointing he’s around 200k a year.
I would contribute the yearly limit to a Roth IRA for you, going forward, invested in Total Stock Market. Put the rest, In taxable, in S&P 500. Your husband can adjust his 401k to achieve your desired family AA.
by mhadden1
Sat Mar 09, 2024 11:21 am
Forum: Personal Investments
Topic: Parking place for college students early inheritance
Replies: 14
Views: 1336

Re: Parking place for college students early inheritance

kcinla wrote: Fri Mar 08, 2024 1:17 pm they will use the money as a downpayment for their first house. This house purchase concept has been followed through on already by older grandchildren, my son just happens to be the youngest.
Standard Boglehead advice on saving for a house, in the near/medium term, would involve something safe like treasuries, high yield savings, CDs. Medium to long might involve a small stock component. And I certainly know some people in their early 20s that I would trust with that gift, and some that I would not.
by mhadden1
Sat Mar 09, 2024 10:53 am
Forum: Personal Investments
Topic: Portfolio Advice - Helping Aging Parents
Replies: 10
Views: 847

Re: Portfolio Advice - Helping Aging Parents

Sometimes a bad market or something can cause bad feelings about the changes. Could be a reason to favor Vanguard PAS or something similar.
by mhadden1
Fri Mar 08, 2024 10:42 pm
Forum: Personal Investments
Topic: Wife's New Job, Expensive Funds
Replies: 13
Views: 1515

Re: Wife's New Job, Expensive Funds

Marketgardensb wrote: Fri Mar 08, 2024 6:25 pm 2. She also can pay $50 annually for a "self-directed brokerage account" with Schwab. Would that be a substitute for a these funds or just a taxable brokerage? She wasn't sure when I asked but I feel like it's just a taxable brokerage. Maybe I'm wrong?
Highly likely this is a Schwab Personal Choice Retirement Account or the equivalent, a "brokerage window". If so, for $50 that opens up all the choices at Schwab for fixed income and international, to use along with the very inexpensive Horizons stock fund.

My employer offered this 401k option and I used it for years, and in fact I still own the Schwab US Broad Market ETF, rolled into my IRA.
Check into the rules and conditions - you might find the option useful, too.
by mhadden1
Fri Mar 08, 2024 6:28 pm
Forum: Personal Investments
Topic: Checkup: I'm way behind. Hope for late bloomers?
Replies: 42
Views: 5476

Re: Checkup: I'm way behind. Hope for late bloomers?

If you continue with your good savings rate, you should build up a very nice nest egg by age 60 or 65. Experiment with retirement calculators online and project your future totals. Make an account on ssa.gov and look at your Social Security estimate. This enables you to take a crack at estimating your tax bracket in retirement, while taking Required Minimum Distributions. If it looks like you will be deferring tax in the 22% bracket or greater, and paying tax on withdrawals in a lower bracket, then you should prefer regular 401k. As the years ago by, you can monitor your situation and shift back toward Roth if necessary. And, sometimes there are lower income years before RMDs start, with opportunities for Roth conversions at a low tax rate.
by mhadden1
Fri Mar 08, 2024 5:53 pm
Forum: Personal Investments
Topic: Tax Managed accounts
Replies: 21
Views: 1563

Re: Tax Managed accounts

the_wiki wrote: Fri Mar 08, 2024 5:12 pm Do you also have retirement accounts? 401k, IRA etc? What is your goal for the money? Where is the 185k currently held?
If you are working, with a 401k, you can increase your contributions, probably to the max, and then spend from the $185k to compensate for your smaller take-home pay. Also, if working, you can probably contribute to a Roth IRA. In a few years you could move quite a bit into tax-advantaged accounts.

What tax bracket are you in? Right now $185k might generate about $8k - how much extra tax would be owed?
by mhadden1
Fri Mar 08, 2024 4:35 pm
Forum: Personal Investments
Topic: Moving Target funds out of Taxable
Replies: 13
Views: 1440

Re: Moving Target funds out of Taxable

I have a Vanguard 2045 Target fund in a taxable Vanguard account. I now understand that wasn't the best move tax wise, and moving forward I'll no longer contribute to that fund (rather a total stock market-type fund). However, is it best to keep the existing Target 2045 funds where they are, or should I transfer those funds into a new investment within the taxable account. Thanks Stop contributing is definitely the first move. Selling and buying new depends on the tax situation. If you can sell your 2045 without generating a lot of capital gains, go ahead and transition to something better, like Total Stock Market. Otherwise, do the best you can - maybe you will be "lucky" and a bad market will turn your gains to a loss. :(
by mhadden1
Fri Mar 08, 2024 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Pulling Out Retirement Early - Thoughts
Replies: 15
Views: 3115

Re: Pulling Out Retirement Early - Thoughts

I would not withdraw retirement funds except in a dire emergency - maybe to avoid bankruptcy?

If your credit is good you could put the furnace on a 0% credit card and have another 14 months or so to figure things out.
by mhadden1
Fri Mar 08, 2024 3:07 pm
Forum: Personal Investments
Topic: Finally ready to improve, consolidate and own my plan to retirement!
Replies: 50
Views: 4714

Re: Finally ready to improve, consolidate and own my plan to retirement!

Like most everybody else I did not look into all the tickers, and like most everybody else I think you should simplify down to something like 2 or 3 or 4 funds. Typically 401k plans offer a least one inexpensive S&P 500 or Total Stock Market fund, and some kind of bond index fund, that are appropriate to use. You could go ahead and do that, and put all TSM/500 in the Roths, since there are no tax consequences. I might keep the old 401k until a new job is found, which likely would provide a new 401k to roll to. Does that seem likely? How does the timeline look for getting a new job? If the new 401k turns out to offer poor fund choices, you could then decide to roll to an IRA. Regarding your taxable account, will this year likely be a low...