Search found 1174 matches

by powermega
Wed Apr 01, 2020 5:42 pm
Forum: Personal Consumer Issues
Topic: Online / Gun Dealer Recommendations
Replies: 73
Views: 6031

Re: Online / Gun Dealer Recommendations

Go to a good indoor range (look up GSSF 4 and 5 star ranges) and find one near you that is hopefully still open. Get instruction and rent several pistols to find one that fits your hands and points and shoots well for you. Glocks are great pistols but there may be others that "fit" you better. Semi...
by powermega
Thu Mar 12, 2020 12:10 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 5678

Re: Total Bond Market Down >4%

I remember Bogleheads like Larry Swedroe making the case that intermediate treasuries are a better bond allocation than the total bond market. It's during times like these that it's easy to understand his point. Corporate bonds have a higher correlation to the stock market than treasuries. Treasurie...
by powermega
Thu Feb 27, 2020 3:16 pm
Forum: Personal Investments
Topic: What's your TLH trigger/timing?
Replies: 23
Views: 2083

Re: What's your TLH trigger/timing?

Our IPS says to sell all losing positions in early December. We rebalance in early January, so that's when we would repurchase positions. I don't care enough to use a swap fund.
by powermega
Thu Feb 20, 2020 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Basic HSA question
Replies: 14
Views: 1341

Re: Basic HSA question

That is my understanding too. Ok, that makes sense.... With the rising costs of health care though every year, by the time I am actually retired I think I will need every dollar in that account for actual medical expenses so I don't see myself being too worried about saving receipts now... That's w...
by powermega
Thu Feb 06, 2020 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Surrender Flexible Premium Variable Life Policy?
Replies: 10
Views: 455

Re: Surrender Flexible Premium Variable Life Policy?

I'm not going to discuss whether you should keep the policy or not, just how you could avoid taxes with it... A first step you could do would be to withdrawal your tax basis ($300k), which would be tax-free. This will reduce your face amount and cash value. You could then also request a face decreas...
by powermega
Thu Feb 06, 2020 12:06 pm
Forum: Personal Investments
Topic: How much REIT in portfolio?
Replies: 50
Views: 3236

Re: How much REIT in portfolio?

10% of our equity allocation goes to REITs. We also have a single rental property.
by powermega
Wed Feb 05, 2020 9:00 am
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5475

Re: Allan Roth: Schwab is now a huge threat to Vanguard

In my ideal world.....I could direct index/ invest every bit of income immediately... via fractional shares. This platform would create free and seamless tax loss harvesting.... the platform would also have a checking account tied to it, where I could keep whatever level of cash I wanted for everyd...
by powermega
Wed Jan 29, 2020 5:18 pm
Forum: Personal Investments
Topic: AXA Advisor - VUL and Term Insurance
Replies: 36
Views: 1425

Re: AXA Advisor - VUL and Term Insurance

This post has a couple of errors: 1. You can take withdrawals from a VUL policy, not just loans. 2. If the VUL policy is a Modified Endowment Contract (MEC), then the withdrawals would come from gain first, then basis. I'm quite sure that the policy that being proposed is not a MEC, in which case t...
by powermega
Wed Jan 29, 2020 4:01 pm
Forum: Personal Investments
Topic: AXA Advisor - VUL and Term Insurance
Replies: 36
Views: 1425

Re: AXA Advisor - VUL and Term Insurance

DO NOT INVEST IN VUL!!! Variable Universal Life Insurance, basically, is an investment vehicle where the death benefit amount is variable, based on the investment returns. But what happens is that, when you contribute $10k into the fund, for example, some $800 is taken out for "mortality charges" a...
by powermega
Tue Jan 28, 2020 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 11
Views: 944

Re: Whole Life Insurance

With whole life, there are two components of the cash value and death benefit: the Base portion, and the paid-up additions (PUA) portion. You can withdrawal from the PUA, but not the Base. You'll get PUA in the policy from policy dividends (if your dividend option is to buy PUA), and from paying pre...
by powermega
Tue Jan 28, 2020 6:40 pm
Forum: Personal Investments
Topic: how to sell shares tax-smart?
Replies: 14
Views: 851

Re: how to sell shares tax-smart?

I think Schwab's "Tax Lot Optimizer" method is generally good, especially if you're talking about realizing some kind of gain with the sale of position(s). Short-term Losses: Lots reflecting short-term losses are sold first, from greatest short-term loss to least short-term loss. Long-term Losses: L...
by powermega
Mon Jan 27, 2020 11:15 am
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 3559

Re: Inherited IRA or Traditional. ex advisor not helpful

I know this covers his RMD for the year, but my next question is since the money was put into Primerica and it was over $8000 do I now have an issue with being over the 2019 contribution limit for an IRA of $6000 and if so what would the steps be to fix this? When the money was transferred to Prime...
by powermega
Sat Jan 25, 2020 6:17 pm
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5475

Re: Does Schwab's growth threaten Vanguard's domination (article)

Would you supply more details. Like if I have say 3 lots each with fractional shares can I sell just the fractional parts of all three at one time assuming I'm using specific ID cost basis method? The recent scenario I had was that I was swapping out SLYV and IJS for VBR in qualified accounts at Sc...
by powermega
Sat Jan 25, 2020 9:12 am
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5475

Re: Does Schwab's growth threaten Vanguard's domination (article)

According to a Schwab spokesperson quoted in an ETF.com article, the fractional shares initiative will only apply to stocks, at least in 2020. Last week I set up a reinvest dividends option on an ETF at Schwab. Will find out in a few weeks what the true story is. Schwab has had the ability to reinv...
by powermega
Fri Jan 24, 2020 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: HSA receipts
Replies: 64
Views: 3697

Re: HSA receipts

I don't see the point in hassling over small receipts. Health care expenses are a major part of retirement expenses. I can't see how it would be hard to blow through an HSA when you're racking up the kind of health care expenses you'll see in your 60s, 70s, and 80s.
by powermega
Fri Jan 24, 2020 3:00 pm
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 3559

Re: Inherited IRA or Traditional. ex advisor not helpful

Like Alan said above, it's rare but sometimes custodians do make a mistake in the creation of the inherited IRA. I do think you need to elevate this issue beyond the normal customer service level since your adviser is not responding to your calls. Like others have said, an inherited IRA cannot be ro...
by powermega
Fri Jan 24, 2020 1:32 pm
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 5475

Re: Does Schwab's growth threaten Vanguard's domination (article)

I agree with Alan's point in the article that the ability for fractional shares opens up the capability for direct index investing. This would be a feature that is only relevant to taxable investment accounts, but it has the ability to allow enormous tax-loss harvesting and essentially zero cost ind...
by powermega
Thu Jan 23, 2020 9:37 am
Forum: US Chapters
Topic: Sad news: LadyGeek's husband has passed
Replies: 352
Views: 26575

Re: Sad news: LadyGeek's husband has passed

Very sorry to hear about your loss LadyGeek. Thank you for sharing all of this with us. My thoughts and prayers are with you and your family.
by powermega
Wed Jan 22, 2020 4:40 pm
Forum: Personal Investments
Topic: Should I move my 401k funds from VTIVX (Target Ret. 2045) to VTSAX/others? Based on ER
Replies: 8
Views: 513

Re: Should I move my 401k funds from VTIVX (Target Ret. 2045) to VTSAX/others? Based on ER

The difference between the VTTHX (2035 TDF) and its weighted average components is about 0.07%. In other words, it works out to $70 for every $100k you have invested. Whether that's important to you is really up to you. I like the TDFs because of the simplicity and lack of rebalancing needed. Like t...
by powermega
Sat Jan 18, 2020 12:55 pm
Forum: Personal Investments
Topic: Incorrect basis in Roth IRA
Replies: 7
Views: 756

Re: Incorrect basis in Roth IRA

Like 123 said above, tax qualified accounts (IRAs, 401ks, etc) do not have a notion of cost basis. Some custodians might keep track of the cost basis and gain/loss in those accounts, but it's really meaningless. There are no taxable events for transactions that occur within one of these accounts. W...
by powermega
Sat Jan 18, 2020 12:48 pm
Forum: Personal Investments
Topic: Need help on deciding regarding VULs
Replies: 29
Views: 1309

Re: Need help on deciding regarding VULs

The deal with VUL is that, while the growth within the wrapper is tax free, when you withdraw it is considered as earnings distributions first and return of capital last. In other words, opposite of taxable investment. This is incorrect (usually). If the life insurance policy is not a Modified Endo...
by powermega
Fri Jan 17, 2020 5:13 pm
Forum: Personal Investments
Topic: Incorrect basis in Roth IRA
Replies: 7
Views: 756

Re: Incorrect basis in Roth IRA

Like 123 said above, tax qualified accounts (IRAs, 401ks, etc) do not have a notion of cost basis. Some custodians might keep track of the cost basis and gain/loss in those accounts, but it's really meaningless. There are no taxable events for transactions that occur within one of these accounts.
by powermega
Thu Jan 16, 2020 11:54 am
Forum: Personal Investments
Topic: Target funds and others in my 401k
Replies: 6
Views: 532

Re: Target funds and others in my 401k

Roughly half of our entire portfolio is in one of the Vanguard target date funds (TDF). The TDF is really just a composite fund of 5 other broad market funds. We also invest in those individual component funds as well. Overall, about 85% of our entire portfolio is either in the TDF itself or in the ...
by powermega
Mon Jan 13, 2020 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Which Tax Software
Replies: 23
Views: 2410

Re: Which Tax Software

I've used TurboTax for years.
by powermega
Fri Jan 10, 2020 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional PPO vs. HSA/HDHP
Replies: 19
Views: 767

Re: Traditional PPO vs. HSA/HDHP

Your'e free to copy and edit my PPO vs HDHP/HSA spreadsheet. The first step is to simply compare the plans by themselves, and you can see where the break even point is between the two. The next step is to get the FSA/HSA portion of the comparison if you're interested. All cells in grey are formula c...
by powermega
Fri Jan 10, 2020 12:50 pm
Forum: Personal Investments
Topic: Where do you keep your Emergency Funds? How is it invested?
Replies: 139
Views: 11627

Re: Where do you keep your Emergency Funds? How is it invested?

We keep our emergency fund in two savings accounts. One account is Discover Bank that earns a decent rate (currently 1.7%), and the bulk of the money is there. We also have a smaller part of the emergency fund at a local credit union that has a local branch open 6 days a week. We have the local acco...
by powermega
Wed Jan 08, 2020 7:46 am
Forum: Personal Investments
Topic: Inherited Roth and RMD
Replies: 20
Views: 1274

Re: Inherited Roth and RMD

Alan S. wrote:
Tue Jan 07, 2020 9:38 pm
Mom wouldn't have an RMD due because this is a Roth IRA.
Thanks for the informative response Alan. Glad to know the OP can get caught up with the IRS that easily. Definitely a brain fart on my part with Mom's RMDs from a Roth IRA,
by powermega
Tue Jan 07, 2020 8:56 pm
Forum: Personal Investments
Topic: Inherited Roth and RMD
Replies: 20
Views: 1274

Re: Inherited Roth and RMD

It sounds like the account has been properly re-titled for you (the "FBO..." part of the account name). If your mom was over 70.5 years old when she died in 2012, then she should have had an RMD due for 2012. If she didn't already take that RMD before she died, then you would have been required to t...
by powermega
Sat Jan 04, 2020 9:27 pm
Forum: Investing - Theory, News & General
Topic: VTSAX & VTIAX Dividends
Replies: 19
Views: 2330

Re: VTSAX & VTIAX Dividends and Interest payouts

The interest portion and some of the dividends would be taxed as ordinary income. Most of the dividends should be "qualified dividends" and taxed at 15%.
by powermega
Sun Dec 29, 2019 11:56 am
Forum: Personal Consumer Issues
Topic: Skiing
Replies: 48
Views: 4636

Re: Skiing

Like others have said, if you're going to buy anything it should be the boots. Spend the extra money to see a good boot fitter and get a quality pair of boots. The boots are the most important gear, much more important than the skis. Don't bother buying any skis/bindings; rent those for at least a c...
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: 1246

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: 1246

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: 7206

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: 703

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: 1526

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: 1515

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: 1526

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: 926

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: 2796

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: 1181

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: 1959

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: 2111

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: 3298

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: 1445

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: 1876

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: 2697

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: 2697

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: 1635

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: 2739

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: 3504

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...