Search found 1144 matches

by powermega
Thu May 30, 2019 12:43 pm
Forum: Personal Investments
Topic: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?
Replies: 12
Views: 1150

Re: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?

This sounds like a whole life (WL) policy. Another possible explanation for the NCV to exceed the NDB is that the dividends are being used to accumulate at interest. When a policy holder does this, it's basically the same as diverting the dividends into a savings account where it accumulates interes...
by powermega
Tue May 28, 2019 3:59 pm
Forum: Personal Investments
Topic: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?
Replies: 12
Views: 1150

Re: On Life Insurance, Can the Net Cash Value Exceed the Death Benefit?

Normally, the Net Cash Value (NCV) will always be less than the Net Death Benefit (NDB), with the NCV eventually becoming equal to the NDB when the policy reaches the Maturity Age. I suppose it could be possible to have a very temporary situation where a premium that has been received has been credi...
by powermega
Mon Feb 25, 2019 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Nervous about locking up money in SPIA
Replies: 101
Views: 6638

Re: Nervous about locking up money in SPIA

With your low concern for your heirs, you should consider a Life Only SPIA. It would have a greater payout than any Life With Period Certain, and certainly more than a Period Certain Only option. It is also possible to buy an inflation adjusted SPIA, or at least one that has a known annual adjustmen...
by powermega
Sun Jan 27, 2019 6:11 pm
Forum: Personal Investments
Topic: Schwab ETF vs Mutual Fund
Replies: 9
Views: 516

Re: Schwab ETF vs Mutual Fund

In a taxable investment account, go with the ETF. Better tax efficiency, and greater portability (transfer in kind) to other accounts.
by powermega
Fri Jan 04, 2019 8:32 am
Forum: Personal Investments
Topic: Orphaned Roth IRA
Replies: 19
Views: 1453

Re: Orphaned Roth IRA

Invest in the same 3-fund investments you have in your 401k. The rIRA allocation could be identical to your Roth 401k. FWIW, I would also suggest that you start contributing to the rIRA too. It seems that your income is above the regular contribution limit, but the Backdoor Roth conversion is still ...
by powermega
Thu Jan 03, 2019 10:36 pm
Forum: Personal Investments
Topic: Vanguard Deposit Slips Incorrectly Fitting into Their Postage Paid Envelopes
Replies: 17
Views: 1389

Re: Vanguard Deposit Slips Incorrectly Fitting into Their Postage Paid Envelopes

I completely agree with the Vanguard rep. You should link your checking account electronically so you don't have to bother with sending checks in the mail. ACH transfer is much faster and far more secure.
by powermega
Tue Jan 01, 2019 10:37 am
Forum: Personal Investments
Topic: Orphaned Roth IRA
Replies: 19
Views: 1453

Re: Orphaned Roth IRA

I don't understand why the rIRA cannot be contributed to any more. What am I missing?
by powermega
Mon Dec 31, 2018 1:03 am
Forum: Personal Finance (Not Investing)
Topic: Another Annuity Question
Replies: 14
Views: 874

Re: Another Annuity Question

SPIAs only make sense if you get some kind of life contingent option. That is the area where insurance and annuities can gain advantages for policy holders by using pools of annuitants and giving you "mortality credits" in the calculation of the SPIA payout. The fixed period only SPIAs don't make a ...
by powermega
Thu Dec 20, 2018 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2300

Re: Northwestern 65 Life - Keep it or dump it?

You should be able to have the dividends pay the premium from here on out. Think of it as a bonus death benefit and a possible source of withdrawals or loans in an emergency.
by powermega
Mon Dec 03, 2018 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA
Replies: 16
Views: 1042

Re: Inherited IRA

bsteiner: understood, however: let's say I invest in individual stocks and build up a 3 million dollar portfolio. If this is in a taxable account, the only time I would be subject to taxes is on a capital gains basis when selling shares. Naturally, this is after-tax, so there is that, but my maximu...
by powermega
Mon Nov 26, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Why should annuities NOT be held in tax-deferred accounts?
Replies: 23
Views: 1876

Re: Why should annuities NOT be held in tax-deferred accounts?

The discussion about where to put an annuity (qualified vs. non-qualified accounts) is really only relevant for an accumulation annuity that you're adding money to, and not an immediate annuity (SPIA) that you're getting a payout from. There is nothing wrong with buying a SPIA with qualified money i...
by powermega
Mon Nov 26, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: LastPass Questions
Replies: 27
Views: 1923

Re: LastPass Questions

DW and I use LastPass Premium and share all of our logins. Works well for us.
by powermega
Mon Aug 13, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio experiment
Replies: 19
Views: 3003

Re: Schwab Intelligent Portfolio experiment

Regarding the "friction" of having many taxable transactions and the effect of tax reporting... It seems that having some kind of online tax preparation is essential with these robo portfolios. As long as you can import the Schwab 1099 and generate the Schedule D automatically, who cares if there a ...
by powermega
Sun Mar 25, 2018 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Should I hold or dump my whole life policy
Replies: 21
Views: 1300

Re: Should I hold or dump my whole life policy

I would keep the policy and also keep the divided option to buy paid up additions (PUA). When you eventually die, the total death benefit will be much more than $50k. An inforce reprojection will show you this. My father was given a paid up whole life policy with a face amount of $5k when he left th...
by powermega
Sat Jan 20, 2018 10:48 pm
Forum: Personal Investments
Topic: HSA
Replies: 16
Views: 1793

Re: HSA

Every January, as part of our rebalancing event, we invest the amount of the HSA that exceeds the annual deductible. Then we make qualified withdrawals during the year. Not interested in keeping receipts for future use. We understand that keeping the receipts and paying 100% out of pocket is financi...
by powermega
Thu Nov 30, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 30
Views: 2617

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Dottie57 wrote:
Thu Nov 30, 2017 11:48 am
If the SPIA is purchased within a ROTH, is none of the money taxable?
Correct. None of the income for a SPIA purchased with a Roth IRA is taxable. 100% excluded.

I'll edit my post above to make sure I'm talking about tax-deferred qualified money...
by powermega
Thu Nov 30, 2017 11:36 am
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 30
Views: 2617

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

SPIAs purchased with tax-deferred qualified money (trad. IRA, 401k, etc) will generate income that is 100% taxable. SPIAs purchased with tax-free qualified money (Roth IRA) will generate income that is 100% tax-free. SPIAs purchased with non-qualified money is a little more interesting. The original...
by powermega
Fri Oct 27, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Storing of important Information - account numbers, SSN, etc...
Replies: 21
Views: 1568

Re: Storing of important Information - account numbers, SSN, etc...

We use LastPass to store all kinds of information like that.
by powermega
Tue Aug 15, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance policy on toddler
Replies: 19
Views: 2660

Re: Life insurance policy on toddler

The part about the policy having $180k guaranteed for education expenses sounds fishy to me. It there truly is some kind of guarantee for that, it could be worth keeping the policy for that reason. Otherwise it would make more sense for the parents to bail out of the policy and fund their own Roth I...
by powermega
Mon Aug 14, 2017 11:56 am
Forum: Personal Investments
Topic: Do you manage your asset allocation like a Target Fund?
Replies: 23
Views: 3341

Re: Do you manage your asset allocation like a Target Fund?

This is exactly what we do. Every January we rebalance our entire portfolio to match that of the 2035 TDF, along with a couple of tilts (REITs, SCV). Along the way our 401k contributions buy the TDF itself. The TDF funds themselves make up about 50% of our entire portfolio, and the components of the...
by powermega
Fri Aug 11, 2017 1:39 pm
Forum: Personal Consumer Issues
Topic: Project Fi phone
Replies: 26
Views: 3109

Re: Be aware of Project Fi phone buy service

OP, when talking on the phone (no speaker phone), try covering up the small microphone hole that is above your finger print sensor and below the camera on the back of your phone.
by powermega
Tue Aug 01, 2017 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Non-emergency recurring expenses
Replies: 9
Views: 1336

Re: Non-emergency recurring expenses

We have a savings account that we use as something of an expense escrow account. The amount has to be big enough to care about ($300), and should occur 1-4 times per year. Monthly expenses just fit within the monthly budget. The kinds of expenses we have allocated in this account are the various ins...
by powermega
Mon Jul 31, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: 1035 Annuity Exchange
Replies: 9
Views: 958

Re: 1035 Annuity Exchange

I think most annuities are going to have a minimum initial lump sum premium amount that is greater than the amount you're considering. I don't think you'll find an annuity, let alone a low-cost annuity, that will take a single $2k premium. Also, be sure that the new term insurance is in place before...
by powermega
Fri Jul 28, 2017 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 14
Views: 1659

Re: Roth conversion tax question

The top of the 15% MFJ 2017 federal tax bracket is $75,900. It sounds like your property tax deduction amount is less than the standard deduction amount of $12,700, so the property tax amount should be irrelevant. You'll have $4050*2= $8100 in exemptions too. With a $3k capital loss, that should off...
by powermega
Wed Jul 26, 2017 5:07 pm
Forum: Personal Investments
Topic: Why not Schwab instead of Vanguard?
Replies: 68
Views: 9056

Re: Why not Schwab instead of Vanguard?

I have accounts at both Vanguard and Schwab, and I am happy to have them both. With Vanguard, I have access to a wide variety of low-cost index funds, including the Target Date funds. At Schwab, I don't have quite the breadth of fund/ETF selection (can't buy Vangard TDF without heavy costs), but I h...
by powermega
Wed Jul 26, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance as a tax diversification strategy
Replies: 39
Views: 3308

Re: Life insurance as a tax diversification strategy

Your contribution is 100% tax free when withdrawn. The earnings if loaned, gather interest against the death benefit. Serious question - have you seen a lot of whole life policies that allow you to withdraw cash value without cancelling the policy? My experience is that in most cases the only way t...
by powermega
Tue Jul 25, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as a tax diversification strategy
Replies: 39
Views: 3308

Re: Life insurance as a tax diversification strategy

Given the information provided, your friends don't have a life insurance need. They should not be buying life insurance of any kind. Unless they have a special situation (ex: having to support a special needs child (adult)), permanent life insurance is almost always a bad idea. The "tax free" income...
by powermega
Mon Jul 24, 2017 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Discover(card) Now Offers Free Social Security Number Alerts
Replies: 16
Views: 2553

Re: Discover(card) Now Offers Free Social Security Number Alerts

Thanks for sharing this. I just signed up myself. The service will monitor Experian for any new accounts with your SSN, and also if your SSN appears on some sites that sell/share that kind of information. Free service, so I thought I might as well take advantage. My credit report is frozen with all ...
by powermega
Thu Jul 13, 2017 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: PersonalCapital.com help
Replies: 22
Views: 2722

Re: PersonalCapital.com help

In the past, I've seen something like this when PC loses a connection with a mortgage. The mortgage gets treated as if it's $0, which results in a spike in my net worth. It usually gets resolved pretty quickly too.
by powermega
Wed Jun 28, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: To keep my Whole Life Insurance Policy or not
Replies: 8
Views: 860

Re: To keep my Whole Life Insurance Policy or not

Get the term policy issued first if you really feel that you need insurance now. Without kids and being that young, it's debatable that you even have an insurance need. With the old WL policy, you likely have a loss on this policy. Have you paid five or six $12k premiums? That would mean that your t...
by powermega
Mon Jun 26, 2017 4:26 pm
Forum: Personal Investments
Topic: Need Help With Annuities Sold to Parents
Replies: 6
Views: 1533

Re: Need Help With Annuities Sold to Parents

First of all, welcome to the board! I hope you find this site to be the wealth of information and wisdom I have found it to be. The annuity has a death benefit of $668k and a surrender value of $280k? Was that death benefit stated actually the original death benefit that was expected at the time of ...
by powermega
Mon Jun 26, 2017 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Need your help to pick life insurance carrier :)
Replies: 22
Views: 2545

Re: Need your help to pick life insurance carrier :)

You cannot extend a term policy after the term is up without going through medical underwriting. On the other hand you can convert to permanent without a medical exam.. I believe you are incorrect about this. Term policies are normally sold as continuing beyond the initial level premium duration (t...
by powermega
Fri Jun 23, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Need your help to pick life insurance carrier :)
Replies: 22
Views: 2545

Re: Need your help to pick life insurance carrier :)

We have our policies with Protective. I really like the feature where the face amount decreases after the level term period while keeping the premium constant. Other term policies keep the face amount level and let the premiums go up. It is typical that one has a decreasing need for life insurance a...
by powermega
Wed Jun 14, 2017 11:37 am
Forum: Personal Investments
Topic: Rebalancing and Taxable Account
Replies: 15
Views: 2022

Re: Rebalancing and Taxable Account

I don't think it's good that you have your tax-deferred qualified accounts maxed out at 100% bonds. You should consider US savings bonds or tax-free bond funds in your taxable account.
by powermega
Mon Jun 12, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Rental Property Repairs - Whose to Pay?
Replies: 32
Views: 4428

Re: Rental Property Repairs - Whose to Pay?

JMO, but I believe those are both the landlord's responsibility. If the carpet guys charged extra for the stains in the carpet, that could be something taken from the tenant's deposit.
by powermega
Fri Jun 09, 2017 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Small tax refund or owing taxes?
Replies: 35
Views: 3737

Re: Small tax refund or owing taxes?

Our tax planning tries to shoot for a federal income tax payment due between $500-$1k. At that rate we usually have a state income tax refund to balance that out.
by powermega
Fri Jun 02, 2017 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Lump Sum or Annuity
Replies: 8
Views: 1475

Re: Lump Sum or Annuity

Check out https://www.immediateannuities.com/ to compare your annuity quote against what you could do on your own. I entered a male, age 60, with payments beginning in 5 years and a $75700 premium. It quoted me $507 for the Life Only option, which would be comparable to what you were offered. Sounds...
by powermega
Fri Jun 02, 2017 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Term Life insurance with living benefits
Replies: 2
Views: 551

Re: Term Life insurance with living benefits

What you described is a rider that goes by many names, including the "accelerated death benefit rider", or "terminal illness rider", etc. Usually this rider is free on policies and I'm a little surprised your existing policy doesn't have it. If the additional insurance term is still applicable to yo...
by powermega
Fri Jun 02, 2017 9:40 am
Forum: Personal Investments
Topic: Advice with a whole life policy
Replies: 9
Views: 1333

Re: Advice with a whole life policy

4) Most likely you will conclude the best approach is to 1035-exchange most or all of the WL policies into a low-cost variable annuity as sold through Vanguard or Fidelity. i) Invest it in a low-expense portfolio from the available menu and hold that until its value equals your basis carried over i...
by powermega
Thu Jun 01, 2017 9:51 am
Forum: Personal Consumer Issues
Topic: Using LastPass to Manage Passwords
Replies: 40
Views: 6181

Re: Using LastPass to Manage Passwords

tech_arch wrote:I personally wouldn't login to anything on a device I do not own and control.
This post is worth repeating.
by powermega
Wed May 31, 2017 10:36 pm
Forum: Personal Consumer Issues
Topic: Using LastPass to Manage Passwords
Replies: 40
Views: 6181

Re: Using LastPass to Manage Passwords

We have used LP for years now, and have been very happy users. We pay the $12/year for the premium version too. Both of us use LP across all of our devices (about 7 total). I especially love the integration with my phone, both the browser and other apps. We keep our master password printed out on a ...
by powermega
Tue May 30, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Parental life insurance: Surrender or sell?
Replies: 13
Views: 1965

Re: Parental life insurance: Surrender or sell?

We need more information. How old is the life insurance policy? What is the current net cash value? What is the purpose of the life insurance (what is your dad's need)?
by powermega
Thu May 25, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cancel my whole life policy?
Replies: 80
Views: 12117

Re: Should I cancel my whole life policy?

I don't believe a 1035 exchange would be possible unless the surrender value is greater than the minimum lump sum premium for an annuity. That minimum premium could be a number like $10k.
by powermega
Mon May 22, 2017 12:08 pm
Forum: Personal Investments
Topic: At crossroads with Annuity
Replies: 21
Views: 2644

Re: At crossroads with Annuity

I think the "easiest" decision would be to exchange the annuity to a low-cost annuity provider like Vanguard (there are others too). This has the effect of putting off your decision. I believe that this annuity could be best used to buy a SPIA/DIA to act as an additional pension with your SS income...
by powermega
Fri May 19, 2017 4:41 pm
Forum: Personal Investments
Topic: At crossroads with Annuity
Replies: 21
Views: 2644

Re: At crossroads with Annuity

I think the "easiest" decision would be to exchange the annuity to a low-cost annuity provider like Vanguard (there are others too). This has the effect of putting off your decision. I believe that this annuity could be best used to buy a SPIA/DIA to act as an additional pension with your SS income....
by powermega
Wed May 17, 2017 3:15 pm
Forum: Personal Investments
Topic: Getting out of a Riversource VUL Policy...what are my options?
Replies: 1
Views: 484

Re: Getting out of a Riversource VUL Policy...what are my options?

I know this is your third post here, but anyway... Welcome to the board! I hope you find this site to be the wealth of information and wisdom I have found it to be. If one is trying to use a VUL as an investment, one should try to jam as much money up front into the policy with the smallest face amo...
by powermega
Tue May 16, 2017 8:25 pm
Forum: Personal Consumer Issues
Topic: Switch from iPhone to Google Fi and Pixel?
Replies: 37
Views: 7066

Re: Switch from iPhone to Google Fi and Pixel?

If you're a Comcast customer, you could wait until they roll out their network, which has per-GB pricing like Fi, but can use any phone. The underlying network is Verizon. Who knows exactly when it will be working, but it was supposed to be by mid-summer. Only available to current Comcast customers,...
by powermega
Thu May 11, 2017 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: My plan to use policy loans to fund first five years of retirement
Replies: 61
Views: 5446

Re: My plan to use policy loans to fund first five years of retirement

Why not take withdrawals first? If your policy is not a Modified Endowment Contract (MEC), then you can take tax-free withdrawals from the policy as long as you have tax basis remaining in the policy. At that point, you could switch over to taking loans. This strategy is commonly known as a "switch ...
by powermega
Sun May 07, 2017 8:20 am
Forum: Personal Investments
Topic: Life insurance as retirement policy
Replies: 22
Views: 2961

Re: Life insurance as retirement policy

This does not look like a well designed policy. Should you guys decide that you don't want to keep the policy, the best course of action is to simply stop paying premiums. The policy will lapse pretty quickly after you do that, but at least you'll have coverage for a short time after you stop the pr...
by powermega
Thu May 04, 2017 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle large variable expenses?
Replies: 16
Views: 1550

Re: How to handle large variable expenses?

We have a separate savings account (separate from our emergency fund) that we use as something like an expense escrow account. For all of the expenses that are at least annual, but less frequent than monthly, we deposit money into the account to cover those expenses. For example, the property tax on...