Search found 145 matches

by heerekj1
Mon Feb 22, 2021 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Cash: a survey
Replies: 95
Views: 6135

Re: Cash: a survey

1) Cash is currently 8.5%. I include checking, savings, MM, and short term bonds. 2) About 5 years of expenses 3) I am retired for 5 years, taking SS, no RMD until next year One of the thing that has surprised me is that I seem to have a psychological need to have cash around. I never had that need ...
by heerekj1
Fri Feb 05, 2021 11:43 am
Forum: Personal Finance (Not Investing)
Topic: I have FEHB. Do I need Medicare Part B?
Replies: 11
Views: 775

Re: I have FEHB. Do I need Medicare Part B?

I retired in 2016 at 65 had FEHB and decided not to apply for Medicare Part B. I determined that with Roth conversions we would be in the high income bracket and would remain there once RMD's started. The premium would have been about $9,000 as previously mentioned. The co-pays and the out of pocket...
by heerekj1
Sat Oct 31, 2020 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Can I use savings to replace withholding in Roth conversion?
Replies: 11
Views: 1001

Re: Can I use savings to replace withholding in Roth conversion?

This year I did a Roth conversion. I placed the estimated taxes(110% of last years taxes) in a savings account and scheduled the withdrawals thru the federal electronic tax payment site. It has worked fine so far. I only had to schedule once so it was easy. I wish Ally payed more in interest but it ...
by heerekj1
Wed Sep 23, 2020 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Retirement re-planning for 50+
Replies: 30
Views: 3495

Re: Retirement re-planning for 50+

22twain thanks. The income limits before IRMAA kick in are fairly high so I wouldn’t say most Roth conversions need to be done before applying for Medicare Part B, there’s plenty of opportunity after applying depending on specific situation but I do agree it is good to be aware of the issue. Thanks...
by heerekj1
Tue Sep 22, 2020 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement re-planning for 50+
Replies: 30
Views: 3495

Re: Retirement re-planning for 50+

22twain thanks. The income limits before IRMAA kick in are fairly high so I wouldn’t say most Roth conversions need to be done before applying for Medicare Part B, there’s plenty of opportunity after applying depending on specific situation but I do agree it is good to be aware of the issue. Thanks...
by heerekj1
Sun Sep 20, 2020 10:54 am
Forum: Personal Consumer Issues
Topic: Retiring to Canada
Replies: 54
Views: 4752

Re: Retiring to Canada

You can be a dual citizen of the US & Canada. Never had to surrender my Canadian passport when I became a US citizen. If you retire in Canada and don't renounce your US citizenship you'll have to file taxes in both countries. You'll wait in line for healthcare though you can purchase supplement...
by heerekj1
Sun Sep 20, 2020 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Retirement re-planning for 50+
Replies: 30
Views: 3495

Re: Retirement re-planning for 50+

At least two things you should think about: 1) If you plan on signing up for Medicare part B you should do most of your financial selling and Roth conversions 2 years before you apply because those can significantly increase what you need to pay for Medicare Part B. 2) You should have significant am...
by heerekj1
Thu Sep 17, 2020 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Yet Another Question on Tax Safe Harbor
Replies: 3
Views: 233

Re: Yet Another Question on Tax Safe Harbor

Yes. I meant 2020 taxes and 110% of 2019 taxes. Thanks.
by heerekj1
Thu Sep 17, 2020 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Yet Another Question on Tax Safe Harbor
Replies: 3
Views: 233

Yet Another Question on Tax Safe Harbor

On the Federal Tax Payment site (EFTPS) I scheduled 4 equal quarterly payments which along with pension withholding was 110% of my 2020 Federal taxes. I took a larger Roth Conversion and I estimate I will owe an additional $10K in federal tax. The EFTPS site appears to let me make an additional paym...
by heerekj1
Wed Sep 16, 2020 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking of moving/emigrating to Canada
Replies: 35
Views: 4909

Re: Thinking of moving/emigrating to Canada

I did not mean to imply that I planned to take advantage of Canada's National Health Service. We would have private insurance thru BCBS. I do wonder if there is some option for paying for service. I was in Australia for 3 months last year and had two health issues and they have a single payer system...
by heerekj1
Wed Sep 16, 2020 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Thinking of moving/emigrating to Canada
Replies: 35
Views: 4909

Re: Thinking of moving/emigrating to Canada

Thanks for the info. I have done the drive from Sarnia to Niagara multiple times. The Toronto/Hamilton traffic is terrible.
by heerekj1
Tue Sep 15, 2020 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Thinking of moving/emigrating to Canada
Replies: 35
Views: 4909

Thinking of moving/emigrating to Canada

We are thinking of moving to Canada and am am looking for references: books, advisors, etc. We are both retired and would not be looking for employment. Questions I have include: Qualifications: My son and his wife are also considering this. They are in their late 30's and work for big Pharma and be...
by heerekj1
Sat Sep 05, 2020 9:53 am
Forum: Personal Finance (Not Investing)
Topic: What is Best Path to Buy House in Retirement
Replies: 4
Views: 889

Re: What is Best Path to Buy House in Retirement

I don't know if the math works out for your situation. We were moving from a HCOL to a MCOL area. We refinanced our current home and used the money to pay for the second home. We then sold our house and used the proceeds to pay off the 1st house and remodel the 2nd house. I don't remember the costs ...
by heerekj1
Wed Aug 12, 2020 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: CFP - One-Time Consultation (to Generate Plan), Worth It?
Replies: 22
Views: 1098

Re: CFP - One-Time Consultation (to Generate Plan), Worth It?

I used a fee-only financial planner when I and my wife were about 55. I did it to confirm for myself that what I was doing was mostly correct and to give my wife someone she could ask questions about my plans. She did not try to sell us anything. Suggested some minor tweaks. It made me feel more com...
by heerekj1
Sat Aug 08, 2020 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for resources
Replies: 4
Views: 340

Re: Looking for resources

Use a Fitbit. Wife is awaiting hip revision so doesn't walk much.

I would not think I would need or be eligible for public assistance. We live in a small town in a short season resort area with a few options.
by heerekj1
Sat Aug 08, 2020 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Looking for resources
Replies: 4
Views: 340

Looking for resources

My wife and I are both 69 and I am thinking I should do some planning for the eventual need for long term care. I am looking for references to resources that might help with that. I googled it and got hits for long term care insurance and elder care lawyers. So I am probably not stating my query cor...
by heerekj1
Wed Jul 29, 2020 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Michigan 529: deductions, rollovers, and K-12 expenses
Replies: 25
Views: 1353

Re: Michigan 529: deductions, rollovers, and K-12 expenses

Sorry to beat a dead horse. If I make semi-regular contributions to my Michigan 529 plan and at the end of 15 years I have $100K of contributions and $50K of growth. I make a $15K non-qualified withdrawal. MESP informs me the $10K was part of my original contribution and thus not subject to tax or p...
by heerekj1
Tue Jul 28, 2020 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Michigan 529: deductions, rollovers, and K-12 expenses
Replies: 25
Views: 1353

Re: Michigan 529: deductions, rollovers, and K-12 expenses

So, if I understand correctly. I contribute 10K in 2020 and receive a $435 tax deduction and then decide in 2035 that I am going to spend the money for a non-deductible education expense, I need to: 1) pay a 10% penalty on the investment growth, 2) pay income tax on the investment growth, and 3) red...
by heerekj1
Tue Jul 28, 2020 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Michigan 529: deductions, rollovers, and K-12 expenses
Replies: 25
Views: 1353

Re: Michigan 529: deductions, rollovers, and K-12 expenses

I did not mean to imply that a non-qualified distribution would not be taxed. I just meant that Michigan would not try to recover the tax deduction I took earlier when I made the contribution.
by heerekj1
Mon Jul 27, 2020 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Michigan 529: deductions, rollovers, and K-12 expenses
Replies: 25
Views: 1353

Re: Michigan 529: deductions, rollovers, and K-12 expenses

I am contributing to a Michigan 529 plan to my son and it is intended for a potential grandchild. I checked with the Michigan Education Savings Program as to whether I would have to pay back the tax deduction if I did not have a grandchild and used the money for other purposes. They told me that the...
by heerekj1
Sat Jul 18, 2020 6:55 am
Forum: Personal Finance (Not Investing)
Topic: For those of you who moved when you retired, when did you sell your home relative to when you retired?
Replies: 15
Views: 1746

Re: For those of you who moved when you retired, when did you sell your home relative to when you retired?

We found a home in an area we were going to retire to. We did a cash out refinance on old house and used the cash to purchase the new home. We were living in a HCOL area and had a good deal of equity in the house. We rented our new house to the previous owner while their house was being built. Once ...
by heerekj1
Fri Jun 12, 2020 8:47 am
Forum: Personal Finance (Not Investing)
Topic: How calculate my tax withholding for last year
Replies: 21
Views: 1082

Re: How calculate my tax withholding for last year

If your disability insurance was paid with after tax money then the amount should not be taxable income. I think!
by heerekj1
Thu May 14, 2020 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Considering a move to Australia
Replies: 3
Views: 670

Re: Considering a move to Australia

Good points, thanks for info.
by heerekj1
Thu May 14, 2020 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Considering a move to Australia
Replies: 3
Views: 670

Considering a move to Australia

Very various reasons which I will not go into we are considering a move to Australia(after the pandemic is over). My youngest son moved to Australia 8 years ago and now has citizenship there. My only other child is also considering moving to Australia. It is my understanding that we would qualify fo...
by heerekj1
Tue Apr 21, 2020 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Increasing tax withholdings to avoid penalties
Replies: 11
Views: 540

Re: Increasing tax withholdings to avoid penalties

I have tax withheld from my wife's federal pension and no tax withheld from my SS. I figure out what a 110% of last years taxes were, subtract the amount withheld, subtract the overpayment (if any), and divide by 4. I schedule 4 withdrawals from a savings account on the federal online tax payment si...
by heerekj1
Sat Mar 07, 2020 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Changing jobs, to roll over 403b or not?
Replies: 5
Views: 330

Re: Changing jobs, to roll over 403b or not?

You can also roll-over the old 403b to an IRA or Roth IRA(if you have Roth money in the 403b plan). You can roll it over to the new 403b plan if the investment options are good. I had Vanguard roll-over my 403b plans and TSP when my wife and I retired. I wanted to make sure I severed the relationshi...
by heerekj1
Wed Feb 26, 2020 9:49 am
Forum: Personal Investments
Topic: Super Lazy portfolio, just VSMGX? [Vanguard LifeStrategy Moderate Growth]
Replies: 94
Views: 14965

Re: Super Lazy portfolio, just VSMGX? [Vanguard LifeStrategy Moderate Growth]

I switched from a three fund (70/30) portfolio plus cash to a VSMGX plus cash portfolio at the beginning of the year. It made the instructions about handling the portfolio at my death much easier (stay the course).

I also wanted to spend less time watching the market. It has not worked yet.
by heerekj1
Tue Feb 18, 2020 1:36 pm
Forum: Non-US Investing
Topic: Saving for Education in Australia
Replies: 4
Views: 423

Saving for Education in Australia

I am a US resident. My son is a US expat with Australian citizenship and plans to stay. My daughter in-law is a UK expat with Australian citizenship. I have been investing for two years in a 529 plan for future grandchildren. I get a small tax deduction for investing and and earnings in the fund are...
by heerekj1
Mon Feb 17, 2020 11:51 am
Forum: Personal Investments
Topic: 529 tax implication to successor owner
Replies: 1
Views: 209

529 tax implication to successor owner

I have 529 plans set up for my two adult sons as beneficiaries and and my wife as successor owner. As soon as and if we get grandchildren I plan on making the grandchildren the beneficiaries and my sons the successor owners. It is unlikely that we will be alive to see these potential grandchildren g...
by heerekj1
Thu Feb 13, 2020 8:04 am
Forum: Personal Investments
Topic: Ally Bank buckets are operational
Replies: 6
Views: 1247

Re: Ally Bank buckets are operational

I have 10 savings accounts and 2 checking accounts at Ally that I have used as buckets for money to go for a long time. Are the new buckets at Ally still limited to 6 withdrawals per month of the underlying savings account? I have savings accounts for medical, travel, etc.. and routinely go over 6 t...
by heerekj1
Sun Feb 02, 2020 11:57 am
Forum: Personal Investments
Topic: Help me not make a costly mistake
Replies: 16
Views: 2163

Re: Help me not make a costly mistake

Welcome to the forum. My wife retired from the U.S. Senate about 8 years ago. We moved our money from TSP to a Vanguard IRA and it was simple to do. Just contacted Vanguard. We did that to consolidate our assets in one place but leaving them with TSP would have been fine. I would not be afraid of ma...
by heerekj1
Sat Feb 01, 2020 10:28 am
Forum: Personal Investments
Topic: Reinvest dividends in tIRA?
Replies: 6
Views: 466

Reinvest dividends in tIRA?

Sorry if this has been asked before. I am 69, converting some tIRA funds to Roth, and spending down my taxable account to pay taxes and cover expenses not covered by CS pension and SS. I find myself with less cash than I am comfortable with. I am considering converting some of VSMGX to a short term ...
by heerekj1
Fri Jan 24, 2020 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Prepping for retirement 3 yrs out - what to do?
Replies: 39
Views: 3870

Re: Prepping for retirement 3 yrs out - what to do?

Make any modifications to your investments in your taxable account at least 2 years prior to becoming eligible for medicare so you are not subject to a higher premium when you start it. Also, if 3.7% is hard number that you must have, consider working longer to reduce that so you can make it a goal ...
by heerekj1
Mon Jan 20, 2020 4:40 pm
Forum: Personal Investments
Topic: How many months expenses held in cash in reirement
Replies: 46
Views: 2790

Re: How many months expenses held in cash in reirement

I have been retired for 4 years and I find that my budgeted expenses are mostly covered by pension and social security. I add another $1,500/month from cash to cover that. I have enough cash in the bank and taxable brokerage account to cover that. However, I have other expenses which are not very pr...
by heerekj1
Fri Nov 29, 2019 12:37 am
Forum: Personal Investments
Topic: Vanguard Life Strategy Moderate Growth
Replies: 18
Views: 2009

Re: Vanguard Life Strategy Moderate Growth

If I make the changes in the immediate future, prior to dividend and capital gains, will I still receive the capital gains and dividend due to this point for the fund currently owned?
by heerekj1
Thu Nov 28, 2019 2:58 am
Forum: Personal Investments
Topic: Vanguard Life Strategy Moderate Growth
Replies: 18
Views: 2009

Vanguard Life Strategy Moderate Growth

I just turned 69 and have been invested in basically a three fund portfolio at a 70/30 allocation for about 10 years. I have rebalanced every year.

I am thinking of going a little more conservative. What are the pros and cons of just putting the money in the vanguard moderate growth fund?
by heerekj1
Thu Nov 07, 2019 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: 2019 Tax Forms by hand or with help
Replies: 2
Views: 301

2019 Tax Forms by hand or with help

While I was working I did my own taxes with Turbo Tax. Because of a location change and moving to part time, I had a CPA doing it. I am now on glide path where it would seem my taxes should be easy do it. I will being doing an RMD in 2021 but am currently taking the equivalent value out and placing ...
by heerekj1
Fri Sep 27, 2019 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Efficient way of transferring Euro to USD
Replies: 19
Views: 1617

Re: Efficient way of transferring Euro to USD

A couple of years ago I used transferwise to transfer money to my son in Australia and was quite happy with it. I transfered about $45K and I think it ended up costing me $375. All my son had to do was give me the bank information and transferwise deposited it in the account. If you are transferring...
by heerekj1
Sun Jul 28, 2019 10:28 am
Forum: Personal Finance (Not Investing)
Topic: How to prepare for RMDs in excess of what’s needed?
Replies: 48
Views: 3866

Re: How to prepare for RMDs in excess of what’s needed?

I am also in my late 60's but I am not working. In the last few years I have been rolling over to a Roth the equivalent of what an RMD would be just so I can get used to the taxes and will not be shocked when the RMD is required. In my case, RMDs are also not required to cover needed expenses+ but a...
by heerekj1
Tue Jun 25, 2019 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Question on Roth partial rollover
Replies: 2
Views: 354

Question on Roth partial rollover

In previous years I have done partial rollovers from my tIRA to my Roth IRA. This year, because I got spooked by 2018Q4, I thought I needed to have more cash and so I took the money from my tIRA and put it in my taxable account. It would have made much more sense to move to cash but to put it in the...
by heerekj1
Wed Jun 19, 2019 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Which version of tax software do I need?
Replies: 4
Views: 305

Re: Which version of tax software do I need?

My CPA already filed for 2018. I was thinking I should buy the 2018 version so I could compare the CPA version and to have most of the information filled out for 2019.
by heerekj1
Wed Jun 19, 2019 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Which version of tax software do I need?
Replies: 4
Views: 305

Which version of tax software do I need?

For 35 years of employment I did my own return in TurboTax. When I moved and retired I had a local CPA do my return for 5 years and I am considering doing it myself again. So what version do I need? Retiree Income: CSRS Pension(wife), SS(me), IRA withdrawal, Interest from bank account, capital gains...
by heerekj1
Sun Apr 21, 2019 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Rethinking Asset Allocation
Replies: 10
Views: 869

Re: Rethinking Asset Allocation

Thanks to all. The total expenses include the taxes on the initial RMD. The expenses that I referred to as needing to be covered for 2, and 8 years were those total expenses less SS and pension. That said, even though I think I have my bases covered with stable funds, I will probably reduce my equit...
by heerekj1
Sun Apr 21, 2019 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Rethinking Asset Allocation
Replies: 10
Views: 869

Re: Rethinking Asset Allocation

With CSRS pension and SS we cover 77% of our routine spending and over 100% of our needs. With RMD we will cover 136% of our routine spending. Routine spending does not include new cars or the limited help we have given our children. During the crisis, I did not move money or change allocations. Of ...
by heerekj1
Sun Apr 21, 2019 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Rethinking Asset Allocation
Replies: 10
Views: 869

Rethinking Asset Allocation

I am 68 and have been retired for 3 years. I have had virtually the same asset allocation for 10-15 years. VGSLX - Vanguard REIT Index, 6% VBTLX - Vanguard Total Bond Index, 24% VTIAX - Vanguard Total International Stock Index, 20% VTSAX - Vanguard Total Stock Market Index, 50% I invested in the REI...
by heerekj1
Sun Mar 03, 2019 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Large One-Time Expenditures in Retirement
Replies: 24
Views: 2795

Re: Large One-Time Expenditures in Retirement

I have not really planned for large expenses. I am keeping track of how much we spend including taxes and comparing that to a SWR. I maintain a running total of the amount of underspent money. This is money that we can "safely" spend. I don't have a separate account for this. If I need to ...
by heerekj1
Fri Mar 01, 2019 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Should I switch my daily banking business to Ally?
Replies: 51
Views: 5203

Re: Should I switch my daily banking business to Ally?

I switched from Chase to Ally about 4 years ago. I also had salary & pension direct deposit at Chase. Left because they were not paying anything in interest. The change went smoothly but I had enough money to cover any overdrafts I might of gotten during the transition. The only hiccup was that ...
by heerekj1
Sat Jan 19, 2019 9:27 am
Forum: Personal Investments
Topic: Wire $50K Out of the Country
Replies: 15
Views: 1893

Re: Wire $50K Out of the Country

Based on recommendations here, I used transferwise last year to transfer 45K to Australia. It costs about $340. I was very satisfied with their customer support. You will need to provide additional forms of identification if you transfer more than 10K or have multiple transfers that add up to more t...
by heerekj1
Thu Dec 13, 2018 11:03 am
Forum: Personal Finance (Not Investing)
Topic: HSA & Medicare
Replies: 2
Views: 309

HSA & Medicare

This is probably just my ignorance but what is the logic behind not contributing being able to an HSA while on Medicare? I thought there was interest in pushing people to high deductible plans which enables HSAs. Our particular situation is retired, FEHP, BCBS, Medicare part A only. BCBS does not fo...