Search found 1476 matches

by trueblueky
Wed Jun 12, 2019 7:36 am
Forum: Investing - Theory, News & General
Topic: Downsides of VPW?
Replies: 101
Views: 6741

Re: Downsides of VPW?

As I see it VPW and other PMT() based schemes have two main downsides: First VPW is blind to risk aversion. Most people care more about a consumption decline of 50% than a consumption increase of 50%. To guard against a drastic consumption decline I suspect you should use a lower assumed rate of re...
by trueblueky
Tue Jun 11, 2019 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Real-world marginal rate > 100% MFJ no children, AGI $38,000 reflects $2000 contribution to IRA. Tax before credit is $1403 per tax table. Couple receives savers credit of $1000. Tax = $403. MFJ no children, AGI $38,001 reflects $2000 contribution to IRA. Tax before credit is still $1403. Couple re...
by trueblueky
Tue Jun 11, 2019 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Trying to keep the ball moving forward with the edits. We still do not have unanimous agreement on the appropriate definition of marginal rate. I still feel, strongly, that we should stick to the commonly used "small" definition as opposed to coming up with our own. I think the "no original researc...
by trueblueky
Mon Jun 10, 2019 3:32 pm
Forum: Investing - Theory, News & General
Topic: CD vs Treasury Spread
Replies: 13
Views: 1908

Re: CD vs Treasury Spread

Treasuries are exempt from state income tax. CDs are not. While I believe that difference is obscured by other, larger differences, it is real and measurable for an individual selecting which to purchase. We use tax-equivalent yield in discussing municipal bond funds vs other bond funds. Why not here?
by trueblueky
Sun Jun 09, 2019 1:15 pm
Forum: Personal Investments
Topic: IRA and taxable account
Replies: 13
Views: 1148

Re: IRA and taxable account

Good advice.
Do you have an emergency fund of six months' expenses? If not, recommend keeping some cash equivalent in taxable.
by trueblueky
Wed Jun 05, 2019 3:44 pm
Forum: Investing - Theory, News & General
Topic: Dividends: The Basics
Replies: 6
Views: 887

Re: DIVIDENDS: THE BASICS

Bonds pay interest, stocks pay dividends. The primary difference is how they are taxed.
Also, credit unions say they pay dividends. The IRS says they pay interest. Go with the IRS.
by trueblueky
Wed Jun 05, 2019 3:28 pm
Forum: Investing - Theory, News & General
Topic: Dividends: The Basics
Replies: 6
Views: 887

Re: DIVIDENDS: THE BASICS

Could someone please explain to me the basics of dividends? Questions: -Why do some mutual funds pay dividends monthly vs quarterly vs annually? -A dividend seems to be written as a $ amount, what does this mean exactly? -Do all dividends automatically reduce the “share price” of a mutual fund? -Do...
by trueblueky
Tue Jun 04, 2019 9:03 pm
Forum: Investing - Theory, News & General
Topic: Downsides of VPW?
Replies: 101
Views: 6741

Re: Downsides of VPW?

I think the biggest downside of VPW, for some people, is the potential for significant income changes from year to year. This can be an issue for folks who have always used a strict biweekly/monthly/yearly budget, and match cash flows of income/outgo. We've been on a highly variable, bonus based sa...
by trueblueky
Sun Jun 02, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

rkhusky wrote:
Sun Jun 02, 2019 9:21 pm
Lee_WSP wrote:
Sun Jun 02, 2019 7:31 pm
Sure. Tell give me the estimated hump in your situation and what you're choices are. We can work through it together.
$20K pension, $30K SS, $60K Roth/Traditional IRA withdrawal. Contribution tax rate is 15%.
Single or MFJ?
by trueblueky
Thu May 30, 2019 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Brokerage for small HOA
Replies: 17
Views: 765

Re: Brokerage for small HOA

Wow! So no experience with using a brokerage to buy treasuries and federally insured CDs for an HOA? I did not understand the objection to treasuries. Enlighten me please. Schwab requires $250,000 for an organizational account. I was checking with other providers on that. Maybe it's not practical fo...
by trueblueky
Thu May 30, 2019 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Brokerage for small HOA
Replies: 17
Views: 765

Brokerage for small HOA

Our home owners association accumulates money in a reserve fund to pay for capital needs, such as an eventual clubhouse new roof, that are not annual expenses. The funds are in low six figures as we just completed resurfacing the road and clubhouse parking. This money has been in CDs at the same loc...
by trueblueky
Wed May 29, 2019 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Naming beneficiaries for non-retirement accounts
Replies: 15
Views: 1233

Re: Naming beneficiaries for non-retirement accounts

I have my retirement funds named for beneficiaries, but not some non-retirement funds. My thinking is that having some money unaccounted for by named beneficiaries would cover my burial expenses, headstones and other things (rent while they're going through my things and emptying my residence), etc...
by trueblueky
Tue May 28, 2019 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Where are we with regard to reaching consensus on a definition of marginal? I still favor the "small" change definition, with "average" applying to rates on larger incremental contributions as in the Irregular Marginal Rates example. I believe FiveK and gilgamesh at one time favored the "any size" ...
by trueblueky
Mon May 27, 2019 10:28 am
Forum: Personal Investments
Topic: 529 withdrawal strategy for niece
Replies: 11
Views: 952

Re: 529 withdrawal strategy for niece

529 distributions from non parental plans can decrease financial aid eligibility, so it might be wise to wait. . Distributions from a 529 plan owned by anyone else will reduce eligibility for need-based aid by as much as 50% of the amount of the distribution. The grandparent can wait until after Ja...
by trueblueky
Sun May 26, 2019 1:20 pm
Forum: Personal Investments
Topic: 529 withdrawal strategy for niece
Replies: 11
Views: 952

Re: 529 withdrawal strategy for niece

^^ Agree. A student gets four tax years of American Opportunity Credits. Typical college lasts five tax years as an academic year crosses two tax years. One goal is to make sure the maximum credit is received for four years. Often, the first semester will have one-time scholarships from local busine...
by trueblueky
Fri May 24, 2019 11:22 am
Forum: Personal Finance (Not Investing)
Topic: [Proposed changes to 401(k) and IRAs]
Replies: 67
Views: 2745

Re: House votes to change RMDs to 72

https://www.latimes.com/business/la-fi- ... story.html

Here's another source if the WSJ paywall gets you.

For me, this would mean one more year before RMD start.
by trueblueky
Thu May 23, 2019 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Savers Credit has a cliff: MFJ AGI $38,500, $1000 in 401k yields $500 Savers Credit MFJ AGI $38,501, $1000 in 401k yields $200 Savers Credit $1 of additional income means $300 more tax (or $300 less credit, if you prefer that way of stating it). Added: Going from $38,499 to $38,500 costs $6 addition...
by trueblueky
Mon May 20, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Section entitled "Social Security" last paragraph, should where it says "18%" be " 10%"? Great effort. I don't think so. Take a look at the "heat map" plots I posted to the Social Security taxation page . The 22.2% bump has either 18% (single) or 18.5% (married) rate below it, when you're either in...
by trueblueky
Sun May 19, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Section entitled "Social Security" last paragraph, should where it says "18%" be " 10%"?

Great effort.
by trueblueky
Sun May 19, 2019 11:52 am
Forum: Investing - Theory, News & General
Topic: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion
Replies: 51
Views: 4029

Re: Pre-RMD Retirement Sweet Spot - Accelerating IRA Withdrawals vs. Roth Conversion

Age 56 onward ... We expect no real portfolio growth, tax brackets are indexed, my pension drops 50% if I croak first, one of 2 SS's goes away with demise of one of us. So we're not Roth converting to pay more taxes sooner in favor of enjoying retirement to the fullest in the best earlier years. Yo...
by trueblueky
Sun May 19, 2019 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Aiming to Retire End of 2019 - Abit Scared
Replies: 45
Views: 5704

Re: Aiming to Retire End of 2019 - Abit Scared

I agree with the sentiment that the most important scenarios to consider are the scary ones people don't want to think about: 1) you get hit by a bus tomorrow and she lives 40 more years, the last 10 in assisted living of some type 2) one of those carcinogens gets you, you have an expensive fight wi...
by trueblueky
Sun May 19, 2019 10:05 am
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3585

Re: Tricky Roth IRA Questions

.................................................... I just double checked, I guess my Roth IRA is not as old as I thought. Looks like I opened it in 2017. So according to my calculation it becomes qualified on 1/1/2022 Did you open it by April 15, 2017? In that case, you can count it as made for 2...
by trueblueky
Sun May 19, 2019 8:15 am
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3585

Re: Tricky Roth IRA Questions

Will your Roth 403b still be non-qualified when you separate from service? Will your Roth IRA still be non-qualified when you separate from service? If yes to both, here is what I think will happen. The contributions to Roth 403b will flow into the basis (contributions) in the Roth IRA. The earning...
by trueblueky
Sat May 18, 2019 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

fyre4ce, This page is great. Fyre4ce/Marginal tax rate I believe QBI deserves its own page. REIT dividends and PTP income shown as 199A count. The 20% QBI deduction is limited to the lesser of: * 20% of the taxpayer's QBI, plus 20% of the taxpayer's qualified REIT dividends and publicly traded partn...
by trueblueky
Sat May 18, 2019 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 384
Views: 13532

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Overall, this looks very good. Thanks to you and the team for your hard work in putting this together. I have only skimmed the article so far. I had a really hard time with this paragraph: "By inspection of just the tax bracket structure, his future marginal rate would be 22%, the same as today, so...
by trueblueky
Thu May 16, 2019 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: How do I value wife's pension?
Replies: 23
Views: 1840

Re: How do I value wife's pension?

https://www.immediateannuities.com and plug in your numbers. This will give you a number.
by trueblueky
Wed May 15, 2019 6:59 pm
Forum: Personal Investments
Topic: CPA advice needed for selling two homes in 2019
Replies: 30
Views: 1344

Re: CPA advice needed for selling two homes in 2019

Two documents will help you. HUD-1 is the settlement sheet that shows how much seller and buyer each contributed to the various closing costs. You may also receive a 1099-S from the real estate broker (maybe soon after closing, maybe in January, maybe not at all - this doesn't seem to be very standa...
by trueblueky
Wed May 15, 2019 6:27 pm
Forum: Personal Investments
Topic: CPA advice needed for selling two homes in 2019
Replies: 30
Views: 1344

Re: CPA advice needed for selling two homes in 2019

Use Worksheet 3, Pub 523. Since you are selling both houses in 2019, you might run the numbers for electing the first house as the one to take the exclusion vs. electing the second one (would need to live there until November to meet the two-year requirement, unless you qualify for an exception). A...
by trueblueky
Wed May 15, 2019 4:53 pm
Forum: Personal Investments
Topic: CPA advice needed for selling two homes in 2019
Replies: 30
Views: 1344

Re: CPA advice needed for selling two homes in 2019

Use Worksheet 3, Pub 523. Since you are selling both houses in 2019, you might run the numbers for electing the first house as the one to take the exclusion vs. electing the second one (would need to live there until November to meet the two-year requirement, unless you qualify for an exception). An...
by trueblueky
Wed May 15, 2019 3:01 pm
Forum: Personal Investments
Topic: CPA advice needed for selling two homes in 2019
Replies: 30
Views: 1344

Re: CPA advice needed for selling two homes in 2019

Hello all, My family has recently run into an odd situation that involves possibly selling two homes this year. I’ll try to give the pertinent details below, and I am ultimately looking for tax advice. I am married filing jointly, and we live in CA. Household income around $90k. We may have a recen...
by trueblueky
Tue May 14, 2019 2:06 pm
Forum: Personal Investments
Topic: RMD timing question
Replies: 5
Views: 562

Re: RMD timing question

If I turn 70 in August 2019, thus reach 70.5 in February 2020, is my first RMD due in 2020 or 2021, the year after I turn 70.5? If I am understanding the IRS language correctly, the requirement is to take the RMD no later than April 1 of the year following the year I turn 70.5, which means the firs...
by trueblueky
Sun May 12, 2019 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Delinquent tax filing - how to account for carryover losses?
Replies: 14
Views: 757

Re: Delinquent tax filing - how to account for carryover losses?

Thanks for the helpful comments. Another question: am I correct that I’d pay any taxes due on this refund in 2019? In other words, I don’t have to also restate my 2017 and 2018 returns to account for “income” from this 2016 refund because the refund/income wasn’t received until 2019? So I can just ...
by trueblueky
Sun May 12, 2019 7:13 pm
Forum: Investing - Theory, News & General
Topic: TSP RMD's
Replies: 38
Views: 3576

Re: TSP RMD's

Starting 9/15, the TSP will allow unlimited partial withdrawals/rollovers. That means you can multiple direct traditional TSP -> Roth IRA rollovers in any size and frequency you want. Any rollovers from any qualified plan to any other plan/account must be in cash. I don't understand why you think o...
by trueblueky
Sun May 12, 2019 12:48 pm
Forum: Investing - Theory, News & General
Topic: TSP RMD's
Replies: 38
Views: 3576

Re: TSP RMD's

The way I understand TSP is that it is not an IRA. So to convert I have to roll my TSP into my tIRA at another firm, then roll it into my ROTH. You misunderstand. The TSP is a 401k plan, but that does not prevent you from doing a direct rollover from either the tradtional 401k account or the design...
by trueblueky
Sat May 11, 2019 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Roth IRA
Replies: 17
Views: 1413

Re: Inherited Roth IRA

If the Roth is Qualified (5+ years, owner > 59.5), when the owner dies, it remains Qualified. I’m not sure of the status if the owner < 59.5 when deceased, but I suspect it would still be Qualified. Per IRS, the death of the original owner is an exception to 59.5 rule. Dying is as good as aging, in...
by trueblueky
Sat May 11, 2019 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Fed Employee/Retirement Issues
Replies: 24
Views: 1815

Re: Fed Employee/Retirement Issues

Stop taking annual leave. The lump sum you get for it helps a lot while waiting for your full pension to start. Unless you can convert them to overtime at your agency, burn all your comp time, travel comp, credit time. Years of service are counted in whole months with excess days lost. You have x ye...
by trueblueky
Mon May 06, 2019 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Worth claiming life insurance death benefit?
Replies: 31
Views: 3431

Re: Worth claiming life insurance death benefit?

Check was $535 which included $35 in interest (no idea how they calculated that). Donated it all to Alzheimer's. How did you deal with the check? Did you deposit it into the estate account or your personal account? In our case, there was no explanation of how much is death benefit and how much is i...
by trueblueky
Mon May 06, 2019 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Worth claiming life insurance death benefit?
Replies: 31
Views: 3431

Re: Worth claiming life insurance death benefit?

I had insurance company contact me about an aunt who had died 20 years earlier. She would have been 100+ had she still been alive. I made sure it was a legitimate company. Uncle predeceased her. They had no children. All her 11 siblings had passed. The insurance company said their rules moved the be...
by trueblueky
Sun May 05, 2019 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: New article: Taxable account
Replies: 15
Views: 1848

Re: Soliciting feedback on new Wiki article: Taxable account

Great initiative.

199A income in a taxable account may qualify for QBI -- 199A from a REIT or master limited partnership, for instance.

Credit unions refer to their interest as dividends; however, this income is reported to you on 1099-INT and should be reported by you as interest on Form 1040.
by trueblueky
Sat May 04, 2019 12:42 pm
Forum: Investing - Theory, News & General
Topic: Wouldn't this make Traditional IRA far superior to Roth?
Replies: 82
Views: 7827

Re: Wouldn't this make Traditional IRA far superior to Roth?

When we were working, we paid federal tax at 25% marginal rate plus 8% state, making .25(1 -.08) + .08 = 31% marginal overall. I contributed to TSP (no Roth option for most of those years) and DW to tIRA. In retirement, we pay 12% federal and no state, so I am converting to Roth to the top of 12%. I...
by trueblueky
Thu May 02, 2019 10:12 pm
Forum: Personal Investments
Topic: Retirement Tax Questions - more detail
Replies: 11
Views: 1151

Re: Retirement Tax Questions - more detail

I just turned 59 ½. I retired last year at 58. Mental sharpness started failing and thought it best to give up work. I have 3 months of living funds in checking account. I should have close to max on Social Security and may start taking that at 62. Going through Divorce and we have already settled ...
by trueblueky
Thu May 02, 2019 9:53 am
Forum: Personal Finance (Not Investing)
Topic: job related relocation and real estate cap gain tax exemption
Replies: 8
Views: 434

Re: job related relocation and real estate cap gain tax exemption

Regarding deprecation, I only claimed deprecation in the most recent tax return, I missed doing so in earlier years. Is there any way to address/rectify that? Or did I leave that money on the table but now have to pay taxes on recaptured depreciation? https://www.irs.gov/forms-pubs/about-form-1040x...
by trueblueky
Wed May 01, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: job related relocation and real estate cap gain tax exemption
Replies: 8
Views: 434

Re: job related relocation and real estate cap gain tax exemption

Hello Bogleheads, I started renting my house 4 years ago when I moved to a different state to take up a new job. I am now thinking of selling the house. I expect to realize a 400K gain on the sale. Question is: does a job-related move give me an exemption from paying taxes on the gain I make on the...
by trueblueky
Tue Apr 30, 2019 9:36 pm
Forum: Investing - Theory, News & General
Topic: WSJ--How Schwab Ate Wall Street
Replies: 82
Views: 9415

Re: WSJ--How Schwab Ate Wall Street

I merged dwickenh's thead into a similar discussion. The combined thread is in the Investing - Theory, News & General forum. My post uses Schwab as an example, but my real question was whether it was common knowledge that a brokerage could make 57% of it's revenue just from the spread on clients mo...
by trueblueky
Mon Apr 29, 2019 4:39 pm
Forum: Investing - Theory, News & General
Topic: WSJ--How Schwab Ate Wall Street
Replies: 82
Views: 9415

Re: Schwab article in WSJ today

I would be curious to here comments from Bogleheads that use Schwab. Do they push higher cost products on clients who are not financially savvy. As I approach retirement, I want my wife to have access to an advisor if I am unable to perform this task. DW has had a Schwab tIRA for 30+ years. Nice ma...
by trueblueky
Sun Apr 28, 2019 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Taxes: marginal rate now vs effective rate in retirement
Replies: 198
Views: 9580

Re: Taxes: marginal rate now vs effective rate in retirement

Regarding the above section in bold: if one lives in Tax Table land, $1 can mean $0 additional tax or $12 additional tax or something between. This is because the tax table is in $50 increments. Accordingly, those who live in Tax Table land should use $50 increments. One can have taxable income of ...
by trueblueky
Sat Apr 27, 2019 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes: marginal rate now vs effective rate in retirement
Replies: 198
Views: 9580

Re: Taxes: marginal rate now vs effective rate in retirement

It doesn’t matter what action it is, and how many tax brackets it crosses (and tax credits it may affect) - by definition the average taxes paid for that action is what’s called ‘marginal tax rate’ That is incorrect. Marginal tax rate is the tax rate on the margin or the edge, i.e. the last dollar ...
by trueblueky
Sat Apr 27, 2019 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: How to define wealth
Replies: 51
Views: 4776

Re: How to define wealth

"Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery." -- Dickens
by trueblueky
Sat Apr 27, 2019 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Is ACH Billpay risky?
Replies: 41
Views: 3130

Re: Is ACH Billpay risky?

I push recurring monthly bills. I push irregular bills (e.g., doctor) as well. I don't write many checks. I pay the city water bill, which fluctuates by up to six dollars from one month to the next, automatically by credit card. I get that bill in advance of the payment. I do not pay with cell phone...