Search found 1283 matches

by trueblueky
Wed Jul 18, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: In defense of short-term treasuries
Replies: 112
Views: 6244

Re: In defense of short-term treasuries

We've had a significant period where short-term bonds were the best. More recently we've had a significant period of time where long-term bonds were the best. One can try to guess which might work best in the future or one can try to split the difference in some way by, say, owning "intermediate" t...
by trueblueky
Tue Jul 17, 2018 10:02 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11155

Re: Why is leveraging property good but leveraging stocks bad?

Until recently, home values had never fallen nationally. You mean other than in the national housing crashes of 1890, 1915, 1942, 1978, and 1987? Housing prices didn't reach their 1915 levels again until 1945. 30 years just to break even. Housing prices didn't reach their 1890 levels again until 20...
by trueblueky
Tue Jul 17, 2018 7:54 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11155

Re: Why is leveraging property good but leveraging stocks bad?

You can play around with language and no categories are precise. However: 1) I don't think a mortgage on the house you live in is "good," it's more of a "necessary evil." 2) Is a mortgage on the house you live in "leverage?" It's debt, it's borrowing, but is it "leverage?" A dictionary defines "lev...
by trueblueky
Mon Jul 16, 2018 12:17 pm
Forum: Personal Consumer Issues
Topic: TripAdvisor "Points" & "Levels" ?
Replies: 8
Views: 587

Re: TripAdvisor "Points" & "Levels" ?

ResearchMed wrote:
Sun Jul 15, 2018 5:21 pm

Do people really fall for this?

That is, do people really post to get "more points"?
"A soldier will fight long and hard for a bit of colored ribbon" -- Napoleon
by trueblueky
Sun Jul 15, 2018 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Are Credit Cards Actually Convenient?
Replies: 65
Views: 3693

Re: Are Credit Cards Actually Convenient?

I always use credit card at gas pumps. That way, I don't need to go inside and wait behind six suckers buying lottery tickets.
by trueblueky
Fri Jul 13, 2018 6:51 pm
Forum: Personal Consumer Issues
Topic: When does frugal cross the line to cheapskate?
Replies: 136
Views: 9467

Re: When does frugal cross the line to cheapskate?

I think Sidney suggested that "Thrift is the fuel of magnificence." At some point our thrifty habits should enable some splash-out, if not for ourselves, then for loved ones and friends. Also, give to charitable causes we actually care about ourselves--not because other people we need to impress sa...
by trueblueky
Wed Jul 11, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: RMD from Inherited IRA
Replies: 12
Views: 1243

Re: RMD from Inherited IRA

Don't include those forms with your 1040 next year; the IRS will already have them, and we don't want to confuse things by having it entered twice. You should receive a 1099 with the $126 plus your normal RMD from the inherited IRA. The 1099 will not show those as separate items. These will go on yo...
by trueblueky
Mon Jul 09, 2018 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Soon to retire Fed in the TSP
Replies: 20
Views: 1485

Re: Soon to retire Fed in the TSP

October?
If you have a large annual leave balance, you could have an income spike that spikes your taxes as well. Why not January?
by trueblueky
Mon Jul 09, 2018 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: RMD from Inherited IRA
Replies: 12
Views: 1243

Re: RMD from Inherited IRA

I see the issue you are talking about. That subtract 1 is buried deep in the 590 publication. That one line changes everything. I guess I have not done it right for a while. But I also looked back at 2017 taxes and my error is about $70 under withdrawal for this inherited RMD. (my guess) So this er...
by trueblueky
Mon Jul 09, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Rental Income and SS - Unearned Income?
Replies: 3
Views: 636

Re: Rental Income and SS - Unearned Income?

Earned income counts against your SS benefit, depending on your age.

http://www.ssa.gov/pubs/EN-05-10069.pdf
by trueblueky
Sun Jul 08, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: 58 yr old divorced female, BH newbie, needs help consolidating retirement portfolio
Replies: 9
Views: 1362

Re: 58 yr old divorced female, BH newbie, needs help consolidating retirement portfolio

After you transfer the stock in the taxable account, look at how much you can sell without paying taxes on the long-term capital gain. I think getting out of individual stocks is more important than Roth conversions at this point. The Roth is for future tax. Getting out of individual stocks is to re...
by trueblueky
Sun Jul 08, 2018 7:46 am
Forum: Investing - Help with Personal Investments
Topic: US:International allocation ratio
Replies: 18
Views: 1458

Re: US:International allocation ratio

I read several studies mentioned above and decided 1/3 was best for me. Since I'm 60/40 forever, that ends up 40% US, 20% International, 40% Bond (no international bond). Simple enough for me.
by trueblueky
Sun Jul 08, 2018 7:41 am
Forum: Personal Finance (Not Investing)
Topic: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?
Replies: 9
Views: 1275

Re: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?

Thank you for your responses. I had no idea that it would be 85% instead of 100%. The 15% that is tax exempt is analagous to your "basis" in IRA terms. It represents the approximate average % that a taxpayer made in after tax FICA contributions of the total expected benefits received in their lifet...
by trueblueky
Sat Jul 07, 2018 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Which route for older adult with no retirement?
Replies: 19
Views: 2391

Re: Which route for older adult with no retirement?

Xerxes_65 wrote:
Sat Jul 07, 2018 8:55 am

B. Do I have to report the money I deposit to the IRS? So for 2018 if I deposit the $5500 will I have to report this amount?
Yes. When you file your taxes, you note that you contributed to a Roth, which may qualify you for Savers Credit, lowering your income tax.
by trueblueky
Sat Jul 07, 2018 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 2839

Re: Can you help me figure out how much emergency fund $ I REALLY need?

I've heard some say 3 months expenses, and I've heard some say 6 months expenses should be available in your checking. I spend about $5,000/month encompassing everything, but that's also at my current lifestyle where we aren't in a major financial crash/I'm well employed earning a good income. If a...
by trueblueky
Wed Jul 04, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to Roth tax due with no other taxable income
Replies: 3
Views: 573

Re: Convert IRA to Roth tax due with no other taxable income

Married Filing Jointly, add half of your Social Security to other income to determine how much of SS is taxable. If that amount is less than $32,000, none is taxed. With $12,000 in SS, you can have $26,000 in other income without any SS being taxed. The standard deduction MFJ is $24,000. If your goa...
by trueblueky
Sun Jul 01, 2018 7:54 am
Forum: Investing - Help with Personal Investments
Topic: All-cash, or part-cash, payment for house?
Replies: 11
Views: 1249

Re: All-cash, or part-cash, payment for house?

Consider the cost at the same risk level . Presumably, you have a portfolio containing both stocks and bonds, even if all the bonds are in your 401(k). Thus, you have the following options, if you are considering, say, a $250K house: A: Put $50K down which is currently in cash. B: Pay the full $250...
by trueblueky
Tue Jun 26, 2018 1:48 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

$40,000 of income with $30,000 coming from Social Security does not put a Single in 22% marginal rate. True, but $30K coming from SS plus income from other sources (e.g., tIRA withdrawal) puts the marginal rate on the other income as shown in the chart. $30K from SS plus $10K from other income does...
by trueblueky
Tue Jun 26, 2018 1:25 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

(assume individual, not married) Let's assume I get the maximum SS, around 30k/year Let's assume I get distribution from pre-tax 401k 10k/year (in case it was not clear, I plan to invest part on pre-tax) This is 60k, so I'm already in 22% tax bracket ... Do my number make sense? Not exactly. $30K +...
by trueblueky
Mon Jun 25, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Yes.. I'm just talking about tax bracket (marginal, on your last dollar) for taxable income. What scenario are you thinking about? What marginal rate would you expect for a retiree with no pension or traditional accounts, but a very large Roth account? Zero federal because even two large SS would n...
by trueblueky
Mon Jun 25, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Yes.. I'm just talking about tax bracket (marginal, on your last dollar) for taxable income. What scenario are you thinking about? What marginal rate would you expect for a retiree with no pension or traditional accounts, but a very large Roth account? Zero federal because even two large SS would n...
by trueblueky
Sat Jun 23, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: Trust the process
Replies: 1
Views: 584

Trust the process

https://alphaarchitect.com/2018/06/21/trust-the-process/ Good analysis of a variety of strategies. For me, 60/40 with 1/3 of stocks in international; gradual conversion to Roth up to the top of 12%; have a mix of taxable, tax-deferred, tax-free when RMD and DW's SS begin. Stay the course = Trust the...
by trueblueky
Sat Jun 16, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation for free-lancers
Replies: 23
Views: 1933

Re: Taxation for free-lancers

Hi BHers, DW would be starting a freelancing job that will potentially pay her $1000 or more a month. We are married filing jointly. I had a couple of questions that it would be great if you could a answer: 1. Can my wife continue to file a joint return with me? Or does it make sense to file separa...
by trueblueky
Fri Jun 15, 2018 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Taxation for free-lancers
Replies: 23
Views: 1933

Re: Taxation for free-lancers

Hi BHers, DW would be starting a freelancing job that will potentially pay her $1000 or more a month. We are married filing jointly. I had a couple of questions that it would be great if you could a answer: 1. Can my wife continue to file a joint return with me? Or does it make sense to file separa...
by trueblueky
Tue Jun 12, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Income Tax question (1041)
Replies: 2
Views: 296

Estate Income Tax question (1041)

This question concerns the income tax for an estate, not estate tax. I am working on the Form 1041 for a deceased relative, whose will said the estate would pay state inheritance tax. Vice the heirs paying it individually. That has been done. 1041 instructions say not to include inheritance tax on t...
by trueblueky
Sun Jun 10, 2018 3:47 pm
Forum: Personal Consumer Issues
Topic: The effect of a difficult last name on employment prospects...
Replies: 43
Views: 3640

Re: The effect of a difficult last name on employment prospects...

When I got married, some of my family encouraged me to assume my wife's last name instead of her taking mine. I have a four syllable Eastern European last name that isn't pronounced like it's spelled. Even as a young man, my maternal grandfather encouraged me to change my name at my earliest conven...
by trueblueky
Mon Jun 04, 2018 7:05 am
Forum: Investing - Help with Personal Investments
Topic: TSP Advice - Retiring Soon
Replies: 18
Views: 1621

Re: TSP Advice - Retiring Soon

Rollover a portion of the TSP to a Traditional IRA and do Roth conversions to the top of the 12% or 24% bracket, depending on what you expect your marginal rate will be after age 70. +1 Exactly what I am doing. I moved a lump sum to tIRA and am converting to the top of 12% (was 15% when I started) ...
by trueblueky
Mon Jun 04, 2018 6:27 am
Forum: Personal Finance (Not Investing)
Topic: The high probability of low-probability events
Replies: 6
Views: 854

The high probability of low-probability events

https://www.thesimpledollar.com/the-hig ... ty-events/

Trent Hamm uses this to promote emergency funds: Many things could go wrong. Each is unlikely. Together, it is likely one will.
by trueblueky
Mon Jun 04, 2018 6:19 am
Forum: Personal Finance (Not Investing)
Topic: Escrow income, Lehman Brothers - where to include, which fed'l tax form(s)? Plus CP11 help, plz.
Replies: 3
Views: 387

Re: Escrow income, Lehman Brothers - where to include, which fed'l tax form(s)? Plus CP11 help, plz.

Good day, all, We file married jointly, a 1040, standard deduction - both of us being older than 65 with our house paid off years ago. The Lehman Brothers holding notes/corporate bonds were inherited from my wife's dad who died Feb 2007. The inheritance came to us via Edward Jones, Oct 2007 – no pr...
by trueblueky
Wed May 30, 2018 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of inherited house by estate: tax question
Replies: 15
Views: 1373

Re: Sale of inherited house by estate: tax question

My Mom passed away on 11/1/17. Estate went into probate. I'm the executor. We estimated her house had a value of $315,000 on the probate inventory without doing a formal appraisal (we were nowhere close to any form of inheritance tax or a change in the probate listing fees--so the precise value did...
by trueblueky
Wed May 30, 2018 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Schwab Purchased Money Funds, CDs, Bonds, ... best yield after tax
Replies: 21
Views: 2076

Re: Schwab Purchased Money Funds, CDs, Bonds, ... best yield after tax

Agree. The new tax law makes the formula after-tax yield = yield*(1 - state tax rate - federal tax rate) for people at both ends -- those who have too few deductions to make itemizing worthwhile, and those who have already reached $10,000 in SALT.
by trueblueky
Wed May 30, 2018 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Schwab Purchased Money Funds, CDs, Bonds, ... best yield after tax
Replies: 21
Views: 2076

Re: Schwab Purchased Money Funds, CDs, Bonds, ... best yield after tax

Options are: 1) Savings Accounts (tops out at ~1.5% interest currently, e.g. Ally / Sallie Mae / Barclays) 2) CDs (3 month: ~1.66%, 9 months: ~1.955%, 1 year: ~2.15%) 3) U.S. Treasuries (3 month: ~1.22%, 6 months: ~1.85%, 9 months: ~1.96%, 1 year: ~2.12%) 4) Schwab's SWOXX (~1.17%) 5) Schwab's SWKX...
by trueblueky
Mon May 28, 2018 7:23 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I still do not understand how assuming "You will likely be in a lower tax bracket in retirement" is bad idea. If you end up being wrong, smile and be happy! What am I missing? That some people are likely to have a combination of taxable investment income, taxable SS, or pension sufficient to fill u...
by trueblueky
Fri May 25, 2018 7:25 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

While getting money into a Roth has other advantages as well, if we assume static conditions, paying 22% now to be in similar (22% or 24%) bracket in 18 years does not seem like a big gain. It's not a big gain, but the cost of typing one number instead of another into web site box for "amount to co...
by trueblueky
Wed May 23, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 8181

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

Another option, is to put the 1.5 in a Vanguard Money Market and buy a 250,000 one year brokered CD for 250,000. FDIC insured and paying about 2.25% at this time. Then wait until July, when the Fed is expected to raise rates again and purchase another 250,000 one year Cd at a higher rate. Then ever...
by trueblueky
Tue May 22, 2018 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Retiring in early 2019.
Replies: 30
Views: 2807

Re: Retiring in early 2019.

Thanks trueblueky. Yes conservative. I dont have years on my side to recover stock market losses at this point in my life. I was planning on doubling my stock market exposure from 200k to 400k when I transfer my 401k to Fidelity. The part about CDs vs Bonds I was questioning myself on. When interes...
by trueblueky
Mon May 21, 2018 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in early 2019.
Replies: 30
Views: 2807

Re: Retiring in early 2019.

Retiring 1Q2019. Right now I'm all in cash 1.2M with brokered CDs and various bank accounts. 200K in 401k Target fund. Needing around $3200/month in addition to SS age 61 (widow) and small pension. Suggestions on how to achieve what I need and not draw down and run out. Thanks all. I enjoy this for...
by trueblueky
Sun May 20, 2018 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 8181

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

Hello everyone, I am brand new here but have already learned so much by reading the philosophy adopted by those on this board. I could use some collective wisdom. My story: I am a 42 years old and my husband unexpectedly passed away a month ago. We received 1.5 million from his life insurance polic...
by trueblueky
Sat May 19, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 48904

Re: "Why 97% of People Don't Use 529 College Savings Plans."

In our state at the time, we could contribute in 2010 and take the state tax break. Withdraw that in 2011 tax-free while also contributing for 2011 and getting another state tax break. Top rate 8.8%. You bet we contributed every year while two children went through college. I didn't see any downside.
by trueblueky
Thu May 17, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Federal Govt Retirees
Replies: 20
Views: 1431

Re: Question for Federal Govt Retirees

Fully research health insurance choices and options BOTH as a retiree BEFORE and AFTER medicare. Make 100% sure you are insured on the federal plan for 5 years as well as dependents. [A friend of mine was hit with this when he retired and had been on his wife's - not federal - insurance ] I know fe...
by trueblueky
Thu May 17, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

By the way, the 401K became popular when the most companies went away from the DBP aka pensions. It is very rare to find good pensions with good 401K plans (and match etc). So definitely your case is very rare. Another factor is that the limits to tax deferred contributions had been quite low thirt...
by trueblueky
Thu May 17, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Question for Federal Govt Retirees
Replies: 20
Views: 1431

Re: Question for Federal Govt Retirees

-- but remember that the health insurance will no longer be pretax Hadn't heard that before. It is the law for all, not just feds. Health insurance can be pretax from salary. It cannot be pretax from pension. Another caveat on delayed pension is that there is no inflation protection during the year...
by trueblueky
Wed May 16, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35801

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

If you currently file using married brackets, at some point the survivor of you or your spouse will be filing using single brackets and your rate may be higher. Agree. Since retiring, we are in our lowest tax bracket ever. We went from 25% federal and 8.8% state to 15% (now 12%) federal and 0% stat...
by trueblueky
Wed May 16, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Bicycle insurance? when you're in the roadway like a car
Replies: 38
Views: 3329

Re: Bicycle insurance? when you're in the roadway like a car

A female relative was hit by a left-turning motorist while she was walking across the street in the crosswalk with the light. Her auto insurance covered the expenses, and the accident reflected on her driving record. This, in a no-fault state. She was surprised that her auto insurance covered her wh...
by trueblueky
Wed May 16, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Federal Govt Retirees
Replies: 20
Views: 1431

Re: Question for Federal Govt Retirees

I'm in exactly the same boat with about 1 year left having just had a birthday this month (I never thought birthdays would matter so much after turning 21!). I don't know about notification of management - I would ask HR that question or hopefully someone else will know the answer. My management he...
by trueblueky
Wed May 16, 2018 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Federal Govt Retirees
Replies: 20
Views: 1431

Re: Question for Federal Govt Retirees

Apply for the pension estimate now! It will give you a chance to review the records your agency has on your service and to correct any mistakes or omissions. Military service, temporary service, service in multiple agencies, a mix of FERS and CSRS or a mix of law enforcement and non-law enforcement ...
by trueblueky
Wed May 16, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Advice for Federal Employee
Replies: 10
Views: 993

Re: Financial Advice for Federal Employee

Steelerfan, You don't need to pay for advice. Figure your military retirement, future FERS retirement, future Social Security, approximate future value of TSP. See what your retirement income would be for various retirement dates. Pick the appropriate L Fund and leave it alone. There are places whe...
by trueblueky
Tue May 15, 2018 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 3085

Re: Do you know your marginal tax rate?

...This is the effective tax rate, not the marginal tax rate. Or even a better description would be “average tax rate for the year”. Agree it’s not the marginal tax rate. The accounting world has specific meanings for certain terms. "Effective tax rate" is accountant speak for average tax rate for ...
by trueblueky
Mon May 14, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Advice for Federal Employee
Replies: 10
Views: 993

Re: Financial Advice for Federal Employee

Steelerfan, You don't need to pay for advice. Figure your military retirement, future FERS retirement, future Social Security, approximate future value of TSP. See what your retirement income would be for various retirement dates. Pick the appropriate L Fund and leave it alone. There are places wher...
by trueblueky
Mon May 14, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is Whole Life Insurance Worth It?
Replies: 54
Views: 4239

Re: Is Whole Life Insurance Worth It?

Term is 100% profit for the insurance company
Except for the whole policyholder dying thing.

That's gotta cut into profits.