Search found 1353 matches

by trueblueky
Wed Nov 07, 2018 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: RMD questions
Replies: 10
Views: 700

Re: RMD questions

You cannot combine the RMD from that inherited IRA with the others. Calculate each RMD separately. You may choose to take the combined RMD for the tIRA and SEP IRA from either. You must take the inherited IRA RMD from the inherited IRA. The calculation from the inherited IRA is different. Someone mu...
by trueblueky
Wed Nov 07, 2018 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: RMD questions
Replies: 10
Views: 700

Re: RMD questions

I will turn 70 towards the end of this year (2018). Question 1- According to the RMD for IRA Withdrawal calculator at Charles Schwab my first RMD is due in April 2020. The calculator states: You must take your first RMD by April 1 of the calendar year after you turn 701⁄2. Thereafter, you must take...
by trueblueky
Fri Nov 02, 2018 8:54 am
Forum: Investing - Theory, News & General
Topic: Bonds vs CDs
Replies: 39
Views: 4342

Re: Bonds vs CDs

Thank you all. Qns for you @trueblueky and @jeffyscott 1."And 1 year Treasury is at 2.67%, significantly better than that 11 month CD rate." How and where can I buy say $10K worth of 1 year treasuries? 2. "Three-month treasuries pay more and do not incur state income tax." - Same question as above ...
by trueblueky
Thu Nov 01, 2018 10:25 pm
Forum: Investing - Theory, News & General
Topic: Bonds vs CDs
Replies: 39
Views: 4342

Re: Bonds vs CDs

First post here. Ally Bank has a 2.1% No Penalty 11 month CD. How does this compare to Bonds? I haven't purchased Bonds before and am hoping to learn from more experienced investors about when to consider Bonds vs CDs. I expect interest rates will go up a bit again in 2019 but given the No Penalty ...
by trueblueky
Wed Oct 31, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Easy retirement income method.
Replies: 20
Views: 3772

Re: Easy retirement income method.

It seems one of the biggest risks of a probability SWR strategy is sequence of return. The problem arises when you are forced to sell stocks or bonds at a loss (market crashed, interest rates are rising). My idea is to set up my accounts to sweep all dividends and interest into my cash account. If ...
by trueblueky
Wed Oct 31, 2018 4:24 pm
Forum: Personal Consumer Issues
Topic: Good Non-Boring Boglehead Cars Under $30k
Replies: 247
Views: 16798

Re: Good Non-Boring Boglehead Cars Under $30k

Criteria: - Street price under $30k - Reliable - Fun driving dynamics (please no Corolla/Prius-type recommendations) - Support for Android Auto/Apple Carplay (either available now, or coming soon) - Can be new or used, but nothing over 3 years old What do you recommend? I recommend a boring car. * ...
by trueblueky
Wed Oct 31, 2018 4:17 pm
Forum: Personal Consumer Issues
Topic: USPS - Informed delivery - complain on missing items?
Replies: 53
Views: 3215

Re: USPS - Informed delivery - complain on missing items?

Our big complaint is they can't get hold mail right. A couple of months ago, I sent hold mail request thru the USPS website, received confirmation, said specifically "I will pick up hold mail" plus checked that box. Returned to find box crammed full with mail. Complained to postmaster. She said I co...
by trueblueky
Mon Oct 29, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax Long Term Gains and Short Term Losses
Replies: 4
Views: 426

Re: Capital Gains Tax Long Term Gains and Short Term Losses

Just based on general principle, why would one not always want to: 1) TLH any capital losses as soon as it's viable, short or long 2) Delay realizing any capital gains as long as possible, short or long Short term capital losses are only more valuable than long term if you have short term gains you...
by trueblueky
Sun Oct 28, 2018 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: setting up a cd ladder
Replies: 10
Views: 1458

Re: setting up a cd ladder

hi, i want to set up a cd ladder. schwab has a 1 month cd at 1.96, 3 month at 2.11, 6 month at 2.3, 9 month at 2.45 and 12 month at 2.70. is there any spread i should look for, between the intervals that makes this a better way to figure which dates-/interest rates to choose? i was going to break t...
by trueblueky
Wed Oct 24, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Lump sum pension vs. annual annuity
Replies: 12
Views: 1683

Re: Lump sum pension vs. annual annuity

www.immediateannuities.com will let you figure whether a lump sum or annuity is better. Put in the lump sum amount to see how much annuity that would buy.
by trueblueky
Wed Oct 24, 2018 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: What keeps you up at night?
Replies: 56
Views: 6069

Re: Retirees: What keeps you up at night?

We have enough. The kids have educations and jobs and the capability to have enough. We have $500,000 each in LTC insurance and good health insurance.

Lengthy Alzheimer care is something I worry about. Probably 25% chance for me given its prevalence on one side of my family. Less likely for DW.
by trueblueky
Tue Oct 23, 2018 5:41 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 226
Views: 19460

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

You're making assumptions about what is going to happen. Maybe it will go the way you think, or maybe they will be inspired by the way things are done in some other countries and address the problem in a way that isn't good for you. "A bird in the hand" is a valid approach - you just take the money...
by trueblueky
Fri Oct 19, 2018 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 and W2 from the same employer
Replies: 11
Views: 1076

Re: 1099 and W2 from the same employer

I've had a Tax Aide client who was W-2 for lawn care and 1099 for pest control with the same company. No reason to believe the IRS cared. Their computers could certainly see that both came from the same EIN every year. Dept of Labor might care. You will owe self-employment Medicare (plus SS if you h...
by trueblueky
Sat Oct 13, 2018 7:29 pm
Forum: Personal Consumer Issues
Topic: Lost Power for 24 hours - what food to toss?
Replies: 49
Views: 3516

Re: Lost Power for 24 hours - what food to toss?

Here's a cheap test for needed future outages: Freeze a cup of water now. Place a penny on it. When you open the freezer after a power outage, where is the penny? If it hasn't fallen to the bottom, your meat hasn't thawed. It seems easier to touch the meat to see if it has thawed. Say you were gone...
by trueblueky
Sat Oct 13, 2018 12:34 pm
Forum: Personal Consumer Issues
Topic: Lost Power for 24 hours - what food to toss?
Replies: 49
Views: 3516

Re: Lost Power for 24 hours - what food to toss?

Here's a cheap test for needed future outages:

Freeze a cup of water now. Place a penny on it. When you open the freezer after a power outage, where is the penny? If it hasn't fallen to the bottom, your meat hasn't thawed.
by trueblueky
Sat Oct 13, 2018 11:35 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 226
Views: 19460

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

Never heard of "Mad Fientist", but Bill Bernstein has this to say: Below the age of 65, 2% spending rate is bulletproof, 3% is probably safe, and 4% is taking chances. Above 5%, you're taking an increasing serious risk of dying poor. (For each five years above 65, add perhaps half a percentage poin...
by trueblueky
Mon Oct 08, 2018 5:07 pm
Forum: Investing - Theory, News & General
Topic: pension vs lump sum payment
Replies: 12
Views: 1024

Re: pension vs lump sum payment

See immediateannuities.com to compare.
by trueblueky
Fri Oct 05, 2018 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: How much effort to close an estate and is it worth it?
Replies: 13
Views: 1460

Re: How much effort to close an estate and is it worth it?

He was family, and it needs to be done.

That's all I would need to know.
by trueblueky
Wed Oct 03, 2018 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: With random sources of income, how do you know what you have to pay taxes on?
Replies: 12
Views: 848

Re: With random sources of income, how do you know what you have to pay taxes on?

2.) Kroger, Walmart, etc. surveys on their receipts that says you can enter a contest to win like $3,000 cash/check or gift cards. They should send you a 1099. You are required to report it even if they don't. Isn't that like a lottery/sweepstakes? Which is form W-2G? Yes, if it's a lottery.
by trueblueky
Wed Oct 03, 2018 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: With random sources of income, how do you know what you have to pay taxes on?
Replies: 12
Views: 848

Re: With random sources of income, how do you know what you have to pay taxes on?

Obviously I know with full time and part time jobs you have to pay taxes. But what about miscellaneous forms of income? I've always been confused about that. Is there a way you can dumb it down or give a general rule of thumb? Some examples: 1. Userfeel.com website or websites like it where you can...
by trueblueky
Wed Oct 03, 2018 12:33 pm
Forum: Personal Consumer Issues
Topic: Thinking of moving to Texas, Iowa, Idaho, or North Carolina
Replies: 216
Views: 15508

Re: Thinking of moving to Texas, Iowa, Idaho, or North Carolina

Iowa has a 9% state income tax. Texas has none. Iowa taxpayers can deduct their federal income tax from their income. So if your effective (not marginal) federal rate is 20%, you are paying Iowa on 80% of your income. This reduction in taxable income is a separate line available whether you itemize...
by trueblueky
Tue Oct 02, 2018 9:58 pm
Forum: Personal Consumer Issues
Topic: Thinking of moving to Texas, Iowa, Idaho, or North Carolina
Replies: 216
Views: 15508

Re: Thinking of moving to Texas, Iowa, Idaho, or North Carolina

For the children, Iowa. Much better schools.
by trueblueky
Mon Oct 01, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: How much should I keep in cash ?
Replies: 7
Views: 1130

Re: How much should I keep in cash ?

I believe six months is wise. This does not have to be all in a savings account. If the event that would cause you to need six months of expenses is a layoff, then those expenses would be spread over six months. A rolling ladder of six-month treasuries or CDs could work. If you are certain you could...
by trueblueky
Fri Sep 28, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2838

Re: Are social security (and Medicare) taxes affected by the standard deduction

A different but related question: Standard deduction is $24K MFJ, and is indexed for CPI Taxability of Social Security starts at 32K MFJ, is not indexed for CPI What happens if/when St Deduction exceeds Taxability of Social Security lower limit (assume current law is made permanent in 2026 for disc...
by trueblueky
Fri Sep 28, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 139
Views: 8819

Re: Physical Banking - Any benefits anymore?

A lot of the complaints in this thread, like ridiculous interest rates, about banks would go away if the people used credit unions instead. +1 It costs $5 to belong to my credit union, which I get back if I leave. I'll leave it to the quants to calculate the opportunity cost on that. I get medallio...
by trueblueky
Wed Sep 26, 2018 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA - fund(s) choice
Replies: 13
Views: 806

Re: Inherited IRA - fund(s) choice

You didn't provide the age of the deceased. RMD can be a high percentage if inherited from a non-spouse who is as old as I hope to be when I pass. :) Your plan looks good for now. "Your annual distributions are spread over your single life expectancy (determined by your age in the calendar year fol...
by trueblueky
Sat Sep 22, 2018 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 139
Views: 8819

Re: Physical Banking - Any benefits anymore?

This week I talked about banking with my German students and most said they haven't seen a paper check in over 20 years. They were a bit amused and surprised that Americans actually still write checks. I've only used on-line banking since I've lived in Germany. I have a physical bank in the States ...
by trueblueky
Fri Sep 21, 2018 7:17 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 31
Views: 2099

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

Not allowed. Makes sense. I see why that would be restricted. When someone inherits a Roth IRA and the estate is under the estate tax threashold his it passed on compleatly tax free to the beneficiaries? When you inherit a traditional IRA, you must take a required minimum.distribution each year. It...
by trueblueky
Fri Sep 21, 2018 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 31
Views: 2099

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

The Federal Retirement Thrift Investment Board announced a few months ago that it expected to implement the liberalized withdrawal rules in September 2019, about one year from now. I’m trying to wait until then before I begin making Roth conversions from my TSP account. In the meantime, we’re makin...
by trueblueky
Wed Sep 19, 2018 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3756

Re: General 2018 Tax Question

I think it would be more accurate to say I was being a bit sarcastic. Tax preparers who charge "by the form" will get a benefit. Other than that, it's probably not much different. I agree with both comments. I’m an AARP volunteer tax preparer and as far as I can tell, only one line of the 70+ line ...
by trueblueky
Mon Sep 17, 2018 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Universal Life Insurance
Replies: 30
Views: 1766

Re: Whole Life vs Universal Life Insurance

+1 to all the above advice.

Let me add that no one on this forum will make a penny advising you. Their motives are pure.
by trueblueky
Sun Sep 16, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for Tax Reduction moves this year
Replies: 11
Views: 1319

Re: Looking for Tax Reduction moves this year

If you have other capital assets with unrealized losses you can sell them and use the loss to reduce the capital gain. +1 Take long-term capital losses. See if you can donate, have elective surgery, pay 2019 state/local taxes early, etc. IF that will increase itemized deductions and those are above...
by trueblueky
Sun Sep 16, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes Paid on Savings Account
Replies: 9
Views: 1345

Re: Taxes Paid on Savings Account

We need to know the state. Some states allow a local tax on earned income -- PA and KY come to mind. This allows the city to raise funds from commuters who use the city's streets, fire, police, etc., but who live in the suburbs. Some states have a local tax that is figured as a line on the state tax...
by trueblueky
Sun Sep 16, 2018 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: How did you decide when to retire?
Replies: 54
Views: 8277

Re: How did you decide when to retire?

Youngest finished college in June 20xx with no debt. That July took me over another year of work. Retired in August same year, age 60. DW and I relocated to be near our only surviving parent.

So, a mix of family and financial factors.
by trueblueky
Fri Sep 14, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: FERS why it is so low.
Replies: 12
Views: 1877

Re: FERS why it is so low.

There are a lot of misconceptions with regards to federal employment, and especially, retirement. I've had people think it was like the military or police and you could retire after 20 years. I wish! At one time there was the CSRS and that plan was generous although it presented the "golden handcuf...
by trueblueky
Wed Sep 12, 2018 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: FERS why it is so low.
Replies: 12
Views: 1877

Re: FERS why it is so low.

Three-legged stool:

* Social Security (maybe 1/3 of your final salary -- high earners receive a lower percentage of a higher salary history; low earners, more)
* FERS -- 1/3 of your high-three salary at age 62 with 30 years of service
* TSP -- depends on how much you save
by trueblueky
Wed Sep 12, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity, Schwab, or Vanguard
Replies: 61
Views: 4287

Re: Fidelity, Schwab, or Vanguard

DW had a tIRA with Schwab from her days with MegaCorp. Never any pressure. When I wanted to convert some TSP into Roth IRA (a two-step process: first TSP to tIRA, then tIRA to Roth), Schwab was helpful. They understood what I was doing, why, and that I wanted the accounts self-directed. No pressure....
by trueblueky
Fri Sep 07, 2018 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: RE: Help with Mom's Taxable account
Replies: 11
Views: 1026

Re: RE: Help with Mom's Taxable account

SS is the only income she receives and I'm not sure the amount (I don't believe she worked at all after age 35 or so). My stepfather was the sole income provider and he retired about a year or so ago. With that said, what would you recommend she invest in? Recommend providing a better picture of th...
by trueblueky
Thu Sep 06, 2018 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Dad's Finacial Paperwork
Replies: 8
Views: 1113

Re: Dad's Finacial Paperwork

The IRS has three years from the date a return is filed or is due, whichever is later, to audit or ask for more money. After that, they cannot. At the same time, you cannot amend a return after that date. The exceptions are fraud, significant underreported income, failure to file. Example, tax fili...
by trueblueky
Thu Sep 06, 2018 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Dad's Finacial Paperwork
Replies: 8
Views: 1113

Re: Dad's Finacial Paperwork

The IRS has three years from the date a return is filed or is due, whichever is later, to audit or ask for more money. After that, they cannot. At the same time, you cannot amend a return after that date. The exceptions are fraud, significant underreported income, failure to file. Example, tax filin...
by trueblueky
Fri Aug 31, 2018 7:45 pm
Forum: Investing - Theory, News & General
Topic: Possible Change to RMDs? [Executive order]
Replies: 47
Views: 6236

Re: Possible Change to RMDs? [Executive order]

Here it is: https://www.whitehouse.gov/presidential-actions/executive-order-strengthening-retirement-security-america/ Lots of examine this and study that. This order doesn't change anything, yet. DOL will conduct the studies and post draft changes for comment at some point. Updating the life tables...
by trueblueky
Mon Aug 27, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Pensions and retirement savings rate
Replies: 30
Views: 2616

Re: Pensions and retirement savings rate

Agreed. I guess my question is more about practical thoughts on retirement saving in light of also having a pension. Nate79 provided the approved solution. So, it'll take a little work to figure out a SWAG on the amount to save in addition to your pension contribution. More than 30 years ago, I wor...
by trueblueky
Sat Aug 25, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2375

Re: Which bond index fund best in taxable acct?

I would not hold a taxable bond fund in a taxable account at a tax rate of 32%. You could consider holding all bonds in tax-deferred. Or you could hold 50% VG California Intermediate Tax-Free along with 50% VG Intermediate Tax-Free in taxable as your bond holding. This would reduce the state tax wh...
by trueblueky
Fri Aug 24, 2018 8:09 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2375

Re: Which bond index fund best in taxable acct?

I would not hold a taxable bond fund in a taxable account at a tax rate of 32%. You could consider holding all bonds in tax-deferred. Or you could hold 50% VG California Intermediate Tax-Free along with 50% VG Intermediate Tax-Free in taxable as your bond holding. This would reduce the state tax whi...
by trueblueky
Fri Aug 24, 2018 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: SALT: IRS issues proposed regs for State Tax Credit for Donation
Replies: 62
Views: 6163

Re: SALT: IRS issues proposed regs for State Tax Credit for Donation

I'm not too surprised that the Treasury would try to stop this, but I am (a little) surprised that all of the existing programs in place would most likely go away as well. For several years, many states (regardless of political predominance) have allowed contributions to college tuition programs in...
by trueblueky
Fri Aug 17, 2018 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 52
Views: 2600

Re: How to Treat "Negative" Basis in Nondeductible IRA

There is a concept of negative basis, such as when a partnership owes more than its assets. However, I can't see negative basis in an IRA. When you have fully depreciated an asset, there's no more depreciation. When a REIT has returned all your basis through its periodic return of capital, the decre...
by trueblueky
Tue Aug 14, 2018 1:37 pm
Forum: Personal Consumer Issues
Topic: Retire in Florida or Alabama?
Replies: 107
Views: 8224

Re: Retire in Florida or Alabama?

Alabama has income tax and a 4% up to 5% sales tax. https://www.tax-brackets.org/alabamataxtable Florida has no income tax and a 6% up to 7% sales tax. Cheers In terms of overall affordability Alabama ranks #5, Florida #27. Statewide affordability is probably not relevant to the choice of whether t...