Search found 2355 matches
- 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...
- 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...
- 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.
Irs.gov
Forms and instructions
Form 1116 instructions.
- 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?
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.
- 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.
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.
- Sat Jan 06, 2024 3:05 pm
- Forum: Investing - Theory, News & General
- Topic: 2024 BOGLEHEAD CONTEST REGISTRATION
- Replies: 579
- Views: 37971
- Thu Jan 04, 2024 1:49 pm
- Forum: Investing - Theory, News & General
- Topic: RMD 2024
- Replies: 20
- Views: 3282
Re: RMD 2024
Then you're taking two RMDs the same year because the 2025 RMD must be withdrawn by December 31, 2025.GaryA505 wrote: ↑Wed Jan 03, 2024 4:10 pmIs 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.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,
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/
- 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 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.
- 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.
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.
- 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
Absent any other information, this makes sense for many people.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.
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.
- 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.
- 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.
Taxes are on sale, at least for us. YMMV.
- 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. ...
- 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...
- 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.
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.
- 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
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.
- 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...
- 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...
- 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.
- 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...
- 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.
Agree that you already have an annuity, so you probably don't need another. Putting all your money in annuities ties up your money.
- 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.
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.
- 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?
The executor could have chosen an alternate valuation date, as much as six months after death.
- 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!
As long as the elderly vote, Social Security won't go bust.MrCheapo wrote: ↑Thu Aug 03, 2023 11:08 amThe 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.
- 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...
- 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...
- 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]
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.MichDad wrote: ↑Wed Oct 11, 2023 9:12 amI 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
- 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.
REITs are complicated. YMMV.
- 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?
I was struck by your tagline. What AA does that give?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.
- 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?
- 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.
- 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%.
- 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.
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.
- 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
You can live in PA and access BWI or Dulles, depending where in PA.Elsebet wrote: ↑Thu May 18, 2023 12:55 pmOne 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.
- 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?
Does that reason apply in your case?
- 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...
- 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
Limit???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.
All account holders at Silicon Valley Bank got all their money. Ditto First Republic.
- 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...
- 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 ...
- 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 ...
- Sat Apr 15, 2023 5:19 am
- Forum: Personal Investments
- Topic: I-bonds and E-bonds from deceased parent
- Replies: 8
- Views: 1778
- 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.
Maybe do online now, then check Monday and call if needed.
- 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...
- 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 -...
- 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...
- 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?
- 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.
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.
- 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 ...
- 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)
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)
- 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
Correct. 80/20 or 75/25 is appropriate mix of C/S.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?