Search found 2355 matches

by trueblueky
Tue Feb 20, 2024 5:55 pm
Forum: Investing - Theory, News & General
Topic: Any studies to refute dividend yield & chill?
Replies: 161
Views: 12097

Re: Any studies to refute dividend yield & chill?

I'm looking for papers that have looked specifically into SWRs in the context of an stock dividend, income-focused portfolio. First, I would advise you stop looking at SWR. There are, in my opinion, better ways to make withdrawals that guarantee you won't run out of money before you plan to do so. Search VPW, ABW and TPAW on this forum for some very good examples. Unfortunately, nearly all articles out there having to do with decumulation start with the presumption of SWR. It makes the math easy. Secondly, spending only dividend yield is troublesome. No guarantee it will keep up with inflation, companies often cut their dividends during times of stress, and it often takes a much larger investment to produce the same sort of income that oth...
by trueblueky
Thu Feb 15, 2024 4:35 am
Forum: Personal Investments
Topic: Draw down IRA
Replies: 19
Views: 2296

Re: Draw down IRA

I wonder of the OP's question is whether to draw down a pre-tax IRA even if not required to take RMDs or in excess of RMDs. I've wondered this myself. I have large taxable accounts and a large IRA and smaller Roth. I've assumed I should use the taxable and let the TIRA ride until mandatory RMDs. It would obviously better for my heirs if I took IRA distributions and left them the Taxable and Roth. I wouldn't do it to benefit my heirs, but I have wondered for myself if spreading out the TIRA distributions over a longer period would reduce the ultimate tax burden. You need to know the brackets to determine that. It's an individual situation. Are you in 12% bracket now, but will be in 22% at age 73 because of RMD? (25% if tax rates revert unde...
by trueblueky
Tue Jan 30, 2024 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax - 1099DIV Form - Foreign Tax Paid - Young Retiree Question
Replies: 6
Views: 852

Re: Turbo Tax - 1099DIV Form - Foreign Tax Paid - Young Retiree Question

Because you have more than $600 MFJ, you must use Form 1116.
Irs.gov
Forms and instructions
Form 1116 instructions.
by trueblueky
Thu Jan 11, 2024 5:36 am
Forum: Personal Investments
Topic: If You Are Retiring/Retired: How are you estimating your real annual returns going forward?
Replies: 141
Views: 21222

Re: If You Are Retiring/Retired: How are you estimating your real annual returns going forward?

MrCheapo wrote: Wed Jan 10, 2024 8:09 am
luminous wrote: Wed Jan 10, 2024 7:57 am I am conservative and estimate zero real returns. Some years I’ll get more, some years less. I also use Monte Carlo simulations to see a wider variety of possible outcomes.
That could lead to over-saving for retirement and inherently working longer than needed.
I don't know if there is over-saving in retirement for most people. What's my expiration date? What's DW's? How much will the final year cost?

If I go first, more for DW. If she goes first, more for the kids.
by trueblueky
Sat Jan 06, 2024 3:13 pm
Forum: Investing - Theory, News & General
Topic: 2024 Hedge Fund contest
Replies: 156
Views: 26773

Re: 2024 Hedge Fund contest

MoFoMe
a 20/20 hedge fund
(20% AUM + 20% of any gain -- it's win-win, baby!)

Short
TSLA

More people lost money shorting Tesla in 2023 than any other stock. Poor market timing. This is the year.
by trueblueky
Thu Jan 04, 2024 1:49 pm
Forum: Investing - Theory, News & General
Topic: RMD 2024
Replies: 20
Views: 3282

Re: RMD 2024

GaryA505 wrote: Wed Jan 03, 2024 4:10 pm
Namashkar wrote: Tue Jan 02, 2024 2:48 pm Is there a timed approach to take RMD? My Rollover IRA account consist of one holding, the Total Bond Market Admiral shares, and the required RMD is 13.5K. As of now I am intending to take in-kind transfer to my taxable brokerage account. Please help.

Thanks,
Is this your first-year RMD (do you turn 73 in 2024)? If so, keep in mind that you may delay the 2024 RMD withdrawal until April 1, 2025.
Then you're taking two RMDs the same year because the 2025 RMD must be withdrawn by December 31, 2025.

For some people, it might make sense. For others who are clear on their taxes, it might make sense to take part of your 2024 RMD during 2024 and the rest in 2025/
by trueblueky
Sun Dec 31, 2023 12:34 pm
Forum: Personal Investments
Topic: For those with TSP, do you use bonds at all or just G fund?
Replies: 22
Views: 2750

Re: For those with TSP, do you use bonds at all or just G fund?

I haven't begun RMD. I moved some money from TSP to Schwab tIRA several years ago to facilitate Roth conversions.

By 73, I plan to have only G in TSP, only stocks in Roth and taxable, and use the tIRA for rebalancing. I'm staying 60/40.
by trueblueky
Mon Dec 25, 2023 4:39 pm
Forum: Personal Investments
Topic: Greedy/Stupid [Retiree Asset Allocation]
Replies: 46
Views: 8979

Re: Greedy/Stupid

You've won.
If you went 100% stock, and it fell by 50%, you'd be at 22.5x, which is not a win. I wouldn't take any more risk than you do now.
by trueblueky
Sun Dec 24, 2023 8:11 am
Forum: Personal Investments
Topic: Cost Basis- Minimum Tax Method
Replies: 17
Views: 1327

Re: Cost Basis- Minimum Tax Method

Short-term capital loss from largest to smallest.
Long-term capital loss from largest to smallest.
Short-term zero gain or loss.
Long-term zero gain or loss.
Long-term capital gain from smallest to largest.
Short-term capital gain from the smallest to largest.
Each category is exhausted before moving to the next. If the cost of the original share is unknown, we'll treat the cost basis as zero.
Absent any other information, this makes sense for many people.

Know your own tax situation. Are you near another bracket, IRMAA tier, ACA cutoff, SS cliff?

Do you have existing long-term capital loss carryover? (I have seen individuals with more than they'll ever use.)

You must know basis. Using zero is not a solution.
by trueblueky
Fri Dec 22, 2023 12:25 pm
Forum: Personal Investments
Topic: funds for memory care
Replies: 15
Views: 2198

Re: funds for memory care

How soon is the future? If it's fairly soon, CDs are fine.
by trueblueky
Thu Dec 14, 2023 4:27 pm
Forum: Personal Investments
Topic: Roth conversions - Pay taxes now vs. let the IRA grow over time
Replies: 22
Views: 1976

Re: Roth conversions - Pay taxes now vs. let the IRA grow over time

For us, it's this simple. We have room in the 12% bracket now. When DW's social security and my RMDs begin (or when either of us die), we will no longer be in the 12% bracket. The next bracket is 22% today and scheduled to return to 25% in a few years.

Taxes are on sale, at least for us. YMMV.
by trueblueky
Thu Dec 14, 2023 7:09 am
Forum: Personal Investments
Topic: Trust account with large capital gains and dinosaur companies... need advice
Replies: 9
Views: 1399

Re: Trust account with large capital gains and dinosaur companies... need advice

If you're wanting to unwind these individual positions and primarily be in a stock index fund, do these 4 things: 1) Halt reinvestment of distributions so these positions don't get bigger by that source 2) Look up the capital gain/loss of each holding and try to offset gains with losses. You may go a step farther and look at the cost basis of each lot that was purchased to sell only those shares that are at a loss by setting the cost basis method to specific identification (if the cost basis method is not already set to that). See the Wiki article on Tax Loss Harvesting . 3) When you're out of losses to offset gains, start selling the shares with the smallest gains. Be mindful of the estimated capital gains tax dollar amount for the year. ...
by trueblueky
Tue Dec 12, 2023 5:21 am
Forum: Personal Investments
Topic: US citizen expatriating cash
Replies: 39
Views: 4195

Re: US citizen expatriating cash

OK, I am not going to have a discussion on political possibility of US instability. What you are asking is essentially a tax question. You are asking how you can comply with US law. The most important thing is probably to comply with Report of Foreign Bank and Financial Account (FBAR). On your tax return, you are asked if you have foreign account and then they ask if you have accounts that have over $10K. Real estate may be exempt from FBAR. You might run into other issues. For example, if you own foreign mutual funds, you may get slapped with Passive Foreign Investment Company (PFIC). You are taxed by the US no matter where you live, so you will probably need to figure out if the country you are planning to stay at has a tax treaty with t...
by trueblueky
Sat Dec 09, 2023 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: How much would you pay to convert $10,000 to a Roth?
Replies: 48
Views: 6091

Re: How much would you pay to convert $10,000 to a Roth?

I'c pay $1200 to convert $10,000. We are in the 12% bracket now. Taxes are on sale.

We'll be in 22% marginal (or 25% after the current law expires) when RMDs begin, DW starts Social Security, or one of us dies.
by trueblueky
Thu Dec 07, 2023 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security is getting less advantageous
Replies: 258
Views: 223805

Re: Delaying Social Security is getting less advantageous

z3r0c00l wrote: Thu Dec 07, 2023 6:20 am Only 58% of American males live to 75. 45% live to 80.
That's from birth. You don't make the decision at birth. You make it each year (or month), starting at age 62. Your life expectancy at the time you decide is what matters. If you're married, your spouse's too.

Also, one never knows how much the final year will cost. I'll likely leave a lot on the table just in case.
by trueblueky
Thu Dec 07, 2023 6:21 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security is getting less advantageous
Replies: 258
Views: 223805

Re: Delaying Social Security is getting less advantageous

Sometimes, when I look at a problem, I like to relax an assumption and see where it takes me. In the case of SS, imagine if they allowed you to delay taking SS past 70 (obviously your benefit grows for every year you wait). Would you do it? Would you postpose till 75? 80? As you come closer to the average death age, I imagine people would pass. So, given delaying till any age, how would would determine the best age to postpone till? You can always argue longevity insurance is increased the more you wait. I imagine the answer lies with your personal expenses and savings. Is 70 optimal for everyone who wants to delay? My guess is no. For me 70 is a good age to start SS.I have more health problems after having covid this year so wouldn’t go l...
by trueblueky
Sat Nov 25, 2023 12:32 pm
Forum: Personal Investments
Topic: Niece is Recieving Life Insurance Lump Sum $1M
Replies: 153
Views: 17829

Re: Niece is Recieving Life Insurance Lump Sum $1M

She told me last night that she wanted her daughter to be set up for life. So, although this isn't a super large payout, relatively speaking, a 6 figure investment when she's young could give substantial growth and provide income in the years to come. I'd be curious to know what the father wanted the money to be used for. Also, $1M for a 13 y.o. is a tremendous amount of money. Is she a saver or spender? Hopefully the former and assuming it's well invested now and in the future, she'll probably be able to live a great lifestyle (maybe close to ~$100k in annual withdrawals with some guardrails). She may never need to work a day in her life... If you know how to invest $1million to generate $100k annually, please share the details. VTSAX. If...
by trueblueky
Sat Nov 25, 2023 6:28 am
Forum: Personal Investments
Topic: Niece is Recieving Life Insurance Lump Sum $1M
Replies: 153
Views: 17829

Re: Niece is Recieving Life Insurance Lump Sum $1M

She told me last night that she wanted her daughter to be set up for life. So, although this isn't a super large payout, relatively speaking, a 6 figure investment when she's young could give substantial growth and provide income in the years to come. I'd be curious to know what the father wanted the money to be used for. Also, $1M for a 13 y.o. is a tremendous amount of money. Is she a saver or spender? Hopefully the former and assuming it's well invested now and in the future, she'll probably be able to live a great lifestyle (maybe close to ~$100k in annual withdrawals with some guardrails). She may never need to work a day in her life... If you know how to invest $1million to generate $100k annually, please share the details.
by trueblueky
Thu Nov 23, 2023 7:46 pm
Forum: Personal Investments
Topic: 401k to Roth IRA Conversion Concerns
Replies: 30
Views: 3645

Re: 401k IRA to Roth IRA Conversion Concerns

Roth conversion at 12% rate is definitely a no-brainer. I would leave some amount in the Traditional IRA though, to take care of medical expenses; should you incur large medical expenses in a given year, you could withdraw from Traditional IRA to pay for them, and 92.5% of such medical expenses are tax deductible -- with the net effect of you paying a 7.5% tax on such withdrawals (or less, depending on other deductions you may have). I would say ballpark of $300k in Traditional IRA. Convert to Roth only any amounts above that threshold. Edited to add: I came up with that $300k as standard deduction for a single * 20 years. If your spouse will inherit this Trad IRA after you visit Peter at the Pearly Gates, the RMD from this Trad IRA will u...
by trueblueky
Fri Nov 17, 2023 9:16 pm
Forum: Personal Investments
Topic: TSP immediate annuity rate
Replies: 16
Views: 2841

Re: TSP immediate annuity rate

Rather than an annuity, you can have TSP make monthly payments of whatever amount you want. You can change it later if you want (can't do that with an annuity). When you hit 73, you must take the RMD. If your requested monthly amount is not enough, they'll plus it up at the end of the year.

Agree that you already have an annuity, so you probably don't need another. Putting all your money in annuities ties up your money.
by trueblueky
Sat Nov 11, 2023 5:43 am
Forum: Personal Investments
Topic: What percentage of your monthly income would you feel provide
Replies: 38
Views: 5096

Re: What percentage of your monthly income would you feel provide

Before I retired,I looked at my pay stub and asked, "What happens to this item when I retire?"

Pension contribution ends
401k contribution ends
FICA ends
Health insurance continues
Federal income tax decreases
State income tax ends (many states do not tax retirement income)
Etc.

That gave me a net number to compare to the pension.
by trueblueky
Fri Nov 10, 2023 6:18 pm
Forum: Personal Investments
Topic: tax efficient way to rebalance inherited brokerage account?
Replies: 30
Views: 2903

Re: tax efficient way to rebalance inherited brokerage account?

A440 wrote: Fri Nov 10, 2023 1:10 pm
crefwatch wrote: Fri Nov 10, 2023 8:29 am There are usually no capital gains of any kind after the Basis is reset.
It has been several months since the basis has been reset, as it took several months for the funds to be distributed.
The executor could have chosen an alternate valuation date, as much as six months after death.
by trueblueky
Thu Nov 09, 2023 8:42 am
Forum: Personal Investments
Topic: What is your total accumulation number, how did you come to it. No Judgements!
Replies: 404
Views: 73674

Re: What is your total accumulation number, how did you come to it. No Judgements!

MrCheapo wrote: Thu Aug 03, 2023 11:08 am
mikejuss wrote: Thu Aug 03, 2023 10:50 am If your annual expenditure is $100,000, you probably don't need $9.5 million to retire at 55, and maybe not even half that amount.
The devils in the details. of that $9.5M more than a 1/3 of it can vanish overnight if our pension system goes bust or SS goes bust. I know these are very unlikely to occur, but the guilt of being a burden on my kids is too great.

And nearly another 1/3 is properties to pass to the kids. Lots of states have super high property prices far beyond the regular worker to afford.
As long as the elderly vote, Social Security won't go bust.
by trueblueky
Thu Nov 09, 2023 6:08 am
Forum: Personal Investments
Topic: With RMDs now Taken at 75 - Do They Really Affect Your Fiscal Planning?
Replies: 92
Views: 9428

Re: With RMDs now Taken at 75 - Do They Really Affect Your Fiscal Planning?

Roth conversions to reduce RMDs is for my wife, to prevent her from being pushed into a higher tax bracket by RMDs and associated increase in the amount of SS benefits that are taxable when she has to file as a single. Otherwise, I'm not sure I would do more than Roth conversions to the top of the 12 or 15% bracket. This would be more to avoid some taxes on SS benefits. I'll never be below the 15% bracket, and before I claim SS benefits, taking more from tax deferred does not affect how much of the SS benefits are taxed because I have none. This. I convert to Roth to the top of 12%. When DW's Social Security starts, or one of us dies, or RMDs begin, we will be in 22% forever (or until the tax code reverts and we're in 25% forever). That ma...
by trueblueky
Fri Nov 03, 2023 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversions and Roth spending -- big picture vs spreadsheet "certainty"
Replies: 46
Views: 4631

Re: Roth conversions and Roth spending -- big picture vs spreadsheet "certainty"

Does it make sense to say that a good goal is to smooth my taxes over my lifetime? The goal for Roth conversions is generally to lower the tax bill over the life of the portfolio (including heirs). It doesn't make sense that you would convert at 22% now, and then have 0% taxes at age 80+. You would be giving up what could be 12% tax years. If your heirs are in high tax brackets, it could make sense to leave them mostly Roth money, or assets that get a step up in basis (house, brokerage). Any medical expenses over 7.5% of gross income come out of taxable accounts tax free. Don't pay 22% now, when you could pay 0% later. Charitable donations can come out of taxable accounts tax free as well. Same as above. Any medical expenses over 7.5% of i...
by trueblueky
Sun Oct 15, 2023 6:18 am
Forum: Personal Finance (Not Investing)
Topic: Improving the TSP [for current participants]
Replies: 587
Views: 92370

Re: Improving the TSP [for current participants]

MichDad wrote: Wed Oct 11, 2023 9:12 am
rkhusky wrote: Wed Oct 11, 2023 7:48 am I would prefer the TSP keep the current ER and use the money to improve the usability of the website, improve customer service, and improve security.
I follow many of the FRTIB meetings and can assure you that system and account security is the single most discussed topic. It’s also subjected to constant in-house and outside audits.

That said, I disagree that the FRTIB should maintain its current expense ratios. In my honest opinion, the TSP ERs should be lower than those of Vanguard’s and Fidelity’s largest index funds.

MichDad
Corporations can choose to lose money on some products. I imagine some expense ratios are set below cost to attract new investors. "Zero" expense ratio gets paid for somewhere.
by trueblueky
Mon Sep 25, 2023 7:56 pm
Forum: Personal Investments
Topic: REIT's & Dividends
Replies: 12
Views: 2048

Re: REIT's & DIVIDENDS

You understand that part of the distribution from a REIT is a return of capital? Slowly, your entire investment is returned to you. After that, the "return of capital" is income. If you sell, you can have a huge capital gain.

REITs are complicated. YMMV.
by trueblueky
Mon Sep 25, 2023 5:19 am
Forum: Personal Investments
Topic: Which is a safer investment: Treasuries or CDs?
Replies: 31
Views: 4489

Re: Which is a safer investment: Treasuries or CDs?

TheRoundHeadedKid wrote: Mon Sep 25, 2023 4:14 am Treasuries are safer. With CD deposits, banks loan part of it to the government by buying Treasuries anyway. Also makes loans to businesses and consumers, which are riskier. FDIC can run out of money if there is a large enough bank run or failure. It will then have to borrow money from US Treasury Department.
I was struck by your tagline. What AA does that give?
by trueblueky
Thu Sep 07, 2023 6:33 pm
Forum: Personal Investments
Topic: Managing Fixed Income in Portfolio
Replies: 7
Views: 1346

Re: Managing Fixed Income in Portfolio

Why do you have bonds in Roth?
by trueblueky
Tue Aug 29, 2023 12:28 pm
Forum: Personal Investments
Topic: Beneficiaries for Vanguard Traditional IRA's
Replies: 24
Views: 2006

Re: Beneficiaries for Vanguard Traditional IRA's

Could you designate DW as primary beneficiary, then children and estate in some proportion as secondary? Having the charities' portion go thru the estate won't hurt the charity.
by trueblueky
Sun Jun 18, 2023 1:38 pm
Forum: Personal Investments
Topic: Disappointed in TSP
Replies: 85
Views: 9222

Re: Disappointed in TSP

You double your investment immediately. Put in 5%, and your employer (that's the rest of us) adds 5%.
by trueblueky
Sat Jun 03, 2023 2:27 pm
Forum: Personal Investments
Topic: Advice on handling a big windfall
Replies: 28
Views: 2972

Re: Advice on handling a big windfall

The deferral of student loans will end this summer. If you have income-based payments, look at what that does to your cash flow. Then look at what will happen when the windfall is included in income. Probably best to pay it off as soon as the deferral ends.

Do a mock tax return to see how many thousands you'll owe in federal income tax next year. If it's all long-term, figure 20% + 3.8%, so about a fourth of the $2 million is not yours. I'd make a quarterly estimated payment up to the 110% level.
by trueblueky
Thu May 18, 2023 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to PA from MD for tax reasons
Replies: 54
Views: 4869

Re: Moving to PA from MD for tax reasons

Elsebet wrote: Thu May 18, 2023 12:55 pm
Jim21713 wrote: Thu May 18, 2023 11:02 am Our children are in MD, VA, and NY and are important to us so we are not moving very far by going to PA, maybe 15 or 20 miles further north.
One thing to consider that doesn't involve taxes, do you need to live near an airport so your children can fly to visit you or do they always drive? If you need air service you may consider residing near the larger cities (Pittsburgh, Philadelphia, Harrisburg). The smaller regional airports can be spotty or lose their commercial flights; Erie is losing their twice daily flights to/from ORD in June 2023.
You can live in PA and access BWI or Dulles, depending where in PA.
by trueblueky
Thu May 18, 2023 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to PA from MD for tax reasons
Replies: 54
Views: 4869

Re: Moving to PA from MD for tax reasons

Look at the settlements just across the state line in PA off I-83 (Shrewsbury, New Freedom, Stewartstown). There's a reason the houses are there, not in MD.

Does that reason apply in your case?
by trueblueky
Thu May 18, 2023 1:54 pm
Forum: Personal Investments
Topic: Recheck your "Open Social Security" plan. Discount rates have changed a lot which could have a big impact.
Replies: 57
Views: 11804

Re: Recheck your "Open Social Security" plan. Discount rates have changed a lot which could have a big impact.

I'm waiting until age 70 to draw SS because: I expect my wife to outlive me and I want her to have the highest payout possible. I have a few streams of income and I don't want to pay tax on SS until I have to draw it. I used "Maximize my Social Security " calculator and the "Open" social security calculator and both recommendations ended up pretty close. I am CSRS (federal pension). DW will start SS at 70, which maximizes her income when I'm gone. She will receive about 61% of my COLA'd pension. (I receive about 90% by buying the spousal annuity. She will get 55% of the unreduced amount.) We'll look again when she gets closer. Since her birthday is midyear and taxes are full-year, it may make sense to start at the begin...
by trueblueky
Tue May 02, 2023 7:17 pm
Forum: Personal Investments
Topic: FDIC protection for CDs in broker accounts??? -confusing
Replies: 18
Views: 2204

Re: FDIC protection for CDs in broker accounts??? -confusing

Alan S. wrote: Tue May 02, 2023 5:05 pm FDIC limits often are increased at the time of a banking crisis, often accompanied by high inflation. The last increase (to 250k) was in October, 2008 and we all know what happened then. Prior to that in 1974 and 1980 in an extended period of very high inflation.

Perhaps the current parallel conditions with the inconvenient emergency FDIC actions will trigger another limit increase.
Limit???

All account holders at Silicon Valley Bank got all their money. Ditto First Republic.
by trueblueky
Sun Apr 30, 2023 6:38 am
Forum: Personal Investments
Topic: Anyone else divide their investments up into multiple portfolios?
Replies: 130
Views: 14366

Re: Anyone else divide their investments up into multiple portfolios?

I was going to post a more detailed overview of my final plan but instead I am just going to say the plan is complete, it includes an LMP/TIPS ladder that will extend to 85, and I am now if the process of implementing the details. I have what I think is a similar plan but my TIPS ladder will only extend until I collect SS at 70. I have an overall asset allocation of 65/35 but have specific assets in mind to be used over the years. I turn 59.5 in May and am retiring at the end of May. We will move from company health insurance to ACA in June. Our Roth accounts are only about 5% of the portfolio. For the rest of 2023, I have T bills maturing to support monthly expenses. In 2024 and 2025, I have stock in a taxable account that I will sell. Th...
by trueblueky
Mon Apr 24, 2023 5:52 pm
Forum: Personal Investments
Topic: generating cash for RMD
Replies: 24
Views: 2558

Re: generating cash for RMD

You probably have the option of taking your RMD as an in-kind transfer. So you’d move shares that are equal in value to your RMD amount into a taxable account, rather than having to sell anything. If it's not possible to do an in-kind transfer out of the tax deferred account (that can be a problem with some types of accounts or custodians, even if it's not for TIRAs), then sell in the tax deferred account (no tax due). Then take the RMD, and buy whatever you sold in the taxable account. You can buy the full amount if you have the RMD taxes paid elsewhere, or you can have those taxes withheld. Or you can buy just the "after tax" amount of the "same holding(s)". After all, that "pre-tax" holding was only partly ...
by trueblueky
Mon Apr 24, 2023 3:42 pm
Forum: Personal Investments
Topic: generating cash for RMD
Replies: 24
Views: 2558

Re: generating cash for RMD

You probably have the option of taking your RMD as an in-kind transfer. So you’d move shares that are equal in value to your RMD amount into a taxable account, rather than having to sell anything. If it's not possible to do an in-kind transfer out of the tax deferred account (that can be a problem with some types of accounts or custodians, even if it's not for TIRAs), then sell in the tax deferred account (no tax due). Then take the RMD, and buy whatever you sold in the taxable account. You can buy the full amount if you have the RMD taxes paid elsewhere, or you can have those taxes withheld. Or you can buy just the "after tax" amount of the "same holding(s)". After all, that "pre-tax" holding was only partly ...
by trueblueky
Sat Apr 15, 2023 5:19 am
Forum: Personal Investments
Topic: I-bonds and E-bonds from deceased parent
Replies: 8
Views: 1778

Re: I-bonds and E-bonds from deceased parent

See IRS Pub 559 for options on tax treatment.

https://www.irs.gov/publications/p559
by trueblueky
Fri Apr 14, 2023 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: 2022 Traditional IRA Contribution Question
Replies: 8
Views: 775

Re: 2022 Traditional IRA Contribution Question

Do you trust them to get it completed by the 18th (this year's deadline)?

Maybe do online now, then check Monday and call if needed.
by trueblueky
Sat Mar 18, 2023 12:33 pm
Forum: Personal Investments
Topic: Bond Allocation to TSP G Fund
Replies: 23
Views: 2177

Re: Bond Allocation to TSP G Fund

Hello! I'm a new federal government employee and am considering allocating the entirety of my bond allocation to the G Fund. My rationale is that the G fund is zero risk and so this would let me tweak the remainder of my portfolio towards riskier investments, while keeping my overall risk the same. Both my spouse and I are in our mid 40s and we have one child in elementary school. The total portfolio amount is mid six figures. Some questions: 1. Is this plan reasonable? Yes. 2. My existing allocation is 60/40. How far can I modify this while keeping the overall risk the same - 65/35, 70/30, 75/25? I'm not sure how I would go about calculating this. Part of the risk of the F fund or any fund that holds corporate bonds is that, while F may n...
by trueblueky
Wed Mar 08, 2023 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Sold inherited home, 1099-S, Turbotax
Replies: 12
Views: 2026

Re: Sold inherited home, 1099-S, Turbotax

Mother passed in 2011, property went through probate 12/10/2021 giving joint ownership to my sister and I. Property sold for 90K on 4/4/2022, the entire proceeds minus $750 (my half of the probate fee) went to my sister. I received a 1099-S with "Box 2 Gross Proceeds" showing 750 and Boxes 4 - 6 are empty. I'm using Turbotax Deluxe and the guidance takes me to "Investment Income" questions. Having never done this before and with a high probability of never doing it again, I would like to have some confidence that I am entering the right information: https://lh3.googleusercontent.com/d/1HasczsgzgLWvOr73nScHGETv-PXlzOui "Date acquired" - 12/10/2021 - the date probate completed. "Sales proceeds" - 750 -...
by trueblueky
Fri Mar 03, 2023 9:05 pm
Forum: Personal Investments
Topic: Advising and guiding aging parents
Replies: 16
Views: 1780

Re: Advising and guiding aging parents

I'm actually working with both my parents and my mother-in-law to try and help navigate their retirement years. My parents are both retired teachers and most of their fixed income from their teacher pensions cover their monthly expenses and then some. They are cash flow positive with about another $350,000 in retirement accounts. I know their asset allocations and they are pretty much set up about 60% in stock and 40% in bonds and both of them are in their late seventies. I'm not too concerned about them but I just want to reallocate there Investments so that they continue to grow while minimizing the risk. Their money is spread out between Vanguard Total stock market, Vanguard Total Bond market, and a small percentage in international sto...
by trueblueky
Fri Mar 03, 2023 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: 1041: Schedule K-1 (TurboTax Business)
Replies: 16
Views: 1198

Re: 1041: Schedule K-1 (TurboTax Business)

Assume you received a K-1 with the deduction, what would you do with it?
by trueblueky
Thu Mar 02, 2023 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: The job was okay. The money was nice. But you retired anyway. How did it go?
Replies: 173
Views: 24806

Re: The job was okay. The money was nice. But you retired anyway. How did it go?

I always admired the people who walked away in time.

Jim Brown of the Cleveland Browns left after nine years at the top of his game.

Johnny Unitas, who stayed too long, had a nothing season with San Diego.

One of bosses could have worked as senior VP for any Defense contractor when he retired. Instead, he chose a position with Red Cross blood division, which I'm certain paid far less.

Bobby Richardson left the Yankees at 31 to become a college coach back home.

Tom Brady stayed too long, hurting the team's transition to the next generation.

Do you have something to go to? When you have enough, and have had enough, it's time.
by trueblueky
Thu Mar 02, 2023 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: California income tax on nonresident
Replies: 5
Views: 1044

Re: California income tax on nonresident

... I was a fed and never filed state income tax for a state where I was TDY. I understand consultants, pro athletes, etc. prorate their income among states. No one I knew in the federal workforce did that. ... Professional athletes are on the radar screen so they have to comply with the law. They earn large salaries, there aren't many of them, and the taxing authorities know who they are and where they are. I know that Goldman Sachs tracks it. Someone from their Texas office came to New York to give a talk, and brought a junior colleague who said that she doesn't like to come to New York for morning events because it means she has to come in the day before and be taxable in New York for an extra day. Fly in Sunday, meeting on Monday, fly ...
by trueblueky
Sat Feb 25, 2023 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: California income tax on nonresident
Replies: 5
Views: 1044

California income tax on nonresident

DS works remotely for a federal office in CA. DS does not live in CA. Does he need to count the days spent in the state for work (maybe ten days a year for conferences, other meetings)? Then divide the salary 10/260th of the annual?

The agency started him at SF locality pay and CA withholding. Agency-wide that changed that this year to locality pay is based on your remote site and no CA withholding.

I was a fed and never filed state income tax for a state where I was TDY. I understand consultants, pro athletes, etc. prorate their income among states. No one I knew in the federal workforce did that.

Is it days of work in CA? (10/260) Or days in CA? (10/365)
by trueblueky
Tue Jan 24, 2023 9:11 pm
Forum: Personal Investments
Topic: 2-Fund portfolio inside a TSP
Replies: 20
Views: 2841

Re: 2-Fund portfolio inside a TSP

dave.m wrote: Tue Jan 24, 2023 9:18 am I’d like to only invest in the US funds (not the I Fund) inside my TSP. What’s the best way for me to accomplish this?

Am I correct that about 80% of equities should be in the C Fund and the other 20% be in the S fund?

Should I be using only one of the G or F funds or a mix? And if it’s a mix, at what percentage should that be?
Correct. 80/20 or 75/25 is appropriate mix of C/S.