Search found 107 matches

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: 3462

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: 263

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: 271

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: 271

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: 796

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: 796

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: 796

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: 2643

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 take the m...
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: 4069

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 I us...
by heerekj1
Sat Jan 19, 2019 9:27 am
Forum: Personal Investments
Topic: Wire $50K Out of the Country
Replies: 15
Views: 1618

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: 274

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...
by heerekj1
Tue Dec 11, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: IRS on making QCD by check from IRA
Replies: 14
Views: 978

Re: IRS on making QCD by check from IRA

The Kiplinger article states that you need to be 70.5 in order to make a QCD. I looked at the tax document and I do not see it explicitly stated. Is it implicit somewhere?
by heerekj1
Mon Dec 10, 2018 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Want to help me figure how much I can convert to Roth?
Replies: 27
Views: 2499

Re: Want to help me figure how much I can convert to Roth?

I assume you are saying your total income subject to US taxes is $14K. Your standard deduction will be $24K. Thus you can convert $10K and pay zero taxes or $19K additional and pay $1,905. Just look up what the taxes would be on your adjusted gross income using the federal tax table to determine how...
by heerekj1
Tue Dec 04, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: transfer 401k to IRA transaction delays
Replies: 11
Views: 442

Re: transfer 401k to IRA transaction delays

Two weeks seems a little long but it does take some time. I transferred from my employer sponsored 401K at Vanguard to a personal IRA at Vanguard when I retired and it took some time. Most of the time, I believe, was for Vanguard to get the paperwork from my employer. I don't believe I was in a cash...
by heerekj1
Tue Oct 23, 2018 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Determining net worth and spending
Replies: 10
Views: 1244

Re: Determining net worth and spending

I agree with the michaejc70 that you should not include the rental properties as assets in your VPW calculations. Also I don't treat VPW as a spending plan but a withdrawal plan. I keep track of, and accumulate, the difference of what I could spend based on VPW and other streams of income and what I...
by heerekj1
Sat Oct 06, 2018 8:40 am
Forum: Personal Finance (Not Investing)
Topic: A strategy to pay off home at retirement?
Replies: 57
Views: 4645

Re: A strategy to pay off home at retirement?

Have you considered downsizing? We bought a house in a lower cost of living area by refinancing our house and then paid everything off when we sold and moved.
by heerekj1
Wed Sep 26, 2018 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Testing validity of Monte Carlo Simulators
Replies: 34
Views: 2349

Re: Testing validity of Monte Carlo Simulators

I did not trust what others were providing so I wrote my own simulator. It basically confirmed what others have done. That said, I don't understand how one could confirm that their individual performance would match the simulation. As you note they produce a wide range of results and you choose the ...
by heerekj1
Sat Sep 01, 2018 10:47 am
Forum: Personal Finance (Not Investing)
Topic: IRA/Roth withdrawal error
Replies: 5
Views: 354

Re: IRA/Roth withdrawal error

Thanks for the help. It was supposed to be a withdrawal and I did a conversion. The Roth has existed for over 10 years. I realize that I owed taxes in either case.
by heerekj1
Sat Sep 01, 2018 8:57 am
Forum: Personal Finance (Not Investing)
Topic: IRA/Roth withdrawal error
Replies: 5
Views: 354

IRA/Roth withdrawal error

This week I made a mistaken IRA withdrawal. I meant to exchange approximately $40K from my Vanguard IRA to the Prime Money Market in my taxable brokerage account. I ended up depositing it in my Roth IRA instead. I am 67 and retired. Can I just move the money from the Roth to the taxable account? Is ...
by heerekj1
Mon Jul 23, 2018 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Essential/Nominal/Actual Spending
Replies: 4
Views: 788

Re: Essential/Nominal/Actual Spending

Thanks for your replies. I think I am fine. Our pension+ss covers our essential spending as listed: insurance, utilities, food, cloths, transportation, medical. If we continue to stay in our lane and not think too much about the portfolio, we will be fine.
by heerekj1
Sat Jul 21, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Essential/Nominal/Actual Spending
Replies: 4
Views: 788

Essential/Nominal/Actual Spending

I have been reading the posts about how to manage investment allocation to cover expenses and I am confused as to how to separate and how to account for expenses. Situation: retired for about 2 years(current age 67.5). Wife has a CSRS pension and I plan on taking SS at 70. We have been spending mone...
by heerekj1
Thu Jan 25, 2018 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Question on unified estate tax credit
Replies: 4
Views: 328

Re: Question on unified estate tax credit

yes i understood a max of 60k.

so i fill out this form every year i go above the exclusion or every year once i start?

thanks for the info
by heerekj1
Thu Jan 25, 2018 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Question on unified estate tax credit
Replies: 4
Views: 328

Question on unified estate tax credit

My sons are working on first home purchases and need help with the down payment. It is my understanding that we (my wife and I) can gift them 15K each year and not owe gift tax. They will probably need more than that for the down payment. I understand that I can gift more than that in any one year a...
by heerekj1
Tue Dec 19, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Mentally loosening the strings
Replies: 36
Views: 4509

Re: Mentally loosening the strings

I have at least half of your problem. I am a saver and my wife is not but she let me control retirement investments so we have an adequate money. I order to "make" me spend money on vacations and to have enough to cover expenses I set up separate savings accounts at Ally and put money from pension a...
by heerekj1
Fri Nov 10, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Re: Where am I and where am I going?

I continue to think about reducing my risk and am sort of torn by it. I have been investing for about 40 years and have seen a lot of ups and downs and the market seems to come back within a couple years. I probably have 20-25 years of life expectancy based on my family tree so that is a lot of time...
by heerekj1
Thu Nov 09, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Re: Where am I and where am I going?

I sort of treat the Life Strategy Income fund as a cash equivalent and I am trying to cover the expenses until 70 using the cash. Once I get to RMD time I will settle on some sort of cash "need" and then probably mimic my tax advantaged asset allocation in my taxable allocation. I think that the ind...
by heerekj1
Thu Nov 09, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Re: Where am I and where am I going?

I am currently withdrawing 80K from tIRA and rolling over 50K to Roth. This keeps me in the 25% tax bracket.
by heerekj1
Thu Nov 09, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Re: Where am I and where am I going?

To "sandtrap" Do you understand how the back testing was done? I wrote my own monte-carlo simulation using Case-Shiller data to confirm that my stated method works. It doesn't look like the back-testing method uses monte-carlo simulations so what method does it use? It looks like initial percentage ...
by heerekj1
Thu Nov 09, 2017 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Re: Where am I and where am I going?

To "hand". What would be the method to "discount your assets"? As it is I was not planning on spending more than my accumulated overages at any one time. Sum of yearly((Pensions + SWR) - (Spending + Taxes)). If I do have grandchildren I would not fully fund the 529's at one time. Michigan allows a m...
by heerekj1
Thu Nov 09, 2017 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Re: Where am I and where am I going?

I will have to think about that. I went from an inflation adjusted 4% method because I did not think it took enough advantage of market gains or accounted for market losses. The VPW appears to take more advantage of market gains then the method I fell into. Are there people out there with 10-15 year...
by heerekj1
Thu Nov 09, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Where am I and where am I going?
Replies: 16
Views: 2177

Where am I and where am I going?

Thanks again for help in the past. Age 67. Married. I have been retired for 2 years. Residence in Michigan. I am feeling pretty smug about my financial situation. In the past when I have been smug I am usually missing something I should be doing so I would like others to check me out. Plan: I plan o...
by heerekj1
Tue Oct 17, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: 529 Savings - Is it enough?
Replies: 38
Views: 5010

Re: 529 Savings - Is it enough?

As others have said, it depends on the school. I offered my children to pay the in state tuition + room + board for any public university in the state and to contribute the equivalent to any college they went to. I was advised to continue to fund my retirement instead of a college fund. At the time ...
by heerekj1
Sat Oct 14, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: what to do with 403b plan after retirement
Replies: 5
Views: 719

Re: what to do with 403b plan after retirement

I had a 403B plan with Vanguard through my employer. Upo retirement, I rolled it into an IRA. I contacted Vanguard and they created a new tIRA and Roth IRA (part of the 403b had Roth 403B funds). They contacted my employer then did the rollover. A month or so later I transferred the little bits I ha...
by heerekj1
Fri Sep 29, 2017 8:10 am
Forum: Personal Finance (Not Investing)
Topic: How much liquid Cash to Keep in Savings
Replies: 35
Views: 7719

Re: How much liquid Cash to Keep in Savings

It depends on what the money is for. My level of comfort has changed over time. Now that I am not working(retired) I seem to have a desire to have more cash on hand than I ever did while working. But it is being used to get me to 70 for SS and for spur of the moment purchases. I bought the lot next ...
by heerekj1
Sun Aug 27, 2017 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover a 403b
Replies: 4
Views: 715

Re: Rollover a 403b

I don't know about your specific plan but I had what was called TIAA Traditional with TIAA-CREF which required me to purchase an annuity at retirement. They had an option which allowed me to convert that at 10% a year. After 10 years it was complete and I transferred the balance to a 403B with Vangu...
by heerekj1
Tue Aug 15, 2017 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 8495

Re: Plan for making child pay for part of college

We essentially did what you propose for both children. We said that we would pay tuition/room and board for 4 years but no more than the best public university in the state. They would need to cover the cost above that. With a spreadsheet they were able to focus on whether going to a beach/party/pri...
by heerekj1
Tue Jul 25, 2017 1:43 pm
Forum: Personal Investments
Topic: Sum of cash to invest
Replies: 5
Views: 864

Re: Sum of cash to invest

Already retired. I am keeping what I call "cash" in Vanguard's Life Strategy Income (VASIX) in a taxable account. I make monthly scheduled transfers to my checking account to cover expenses. Currently the one year return is 3.15%. I believe the fund is 90% bonds.
by heerekj1
Tue Jul 11, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on spending in retirement
Replies: 1
Views: 635

Thoughts on spending in retirement

I am 66.5 and have been retired for 1.5 years. We are in the fortunate position of having enough income to more than cover our expenses. The income includes pension and a SWR from my IRAs and later my SS. The expenses include lots of travel and optional purchases. We seem to have a lot in our retire...
by heerekj1
Thu May 18, 2017 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Question on process for trust beneficiaries
Replies: 7
Views: 840

Re: Question on process for trust beneficiaries

My sons are successor trustee's to the trust. I am looking for what process do they follow upon our deaths. When they go to sell assets: house, cars, etc. Do they just go ahead an do it knowing they have the legal right to do that or do they need to do something to make it possible. My bank accounts...
by heerekj1
Thu May 18, 2017 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Question on process for trust beneficiaries
Replies: 7
Views: 840

Question on process for trust beneficiaries

I have set up a revocable trust in Michigan with my wife and I as trustees and my two sons as co-beneficiaries. I have moved my house and bank account into the trust and in the process of moving my brokerage account into the trust. My question is, when both of us have passed, what is the process for...
by heerekj1
Mon May 01, 2017 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 209
Views: 23085

Re: Federal Retiree Health Care with/Medicare

My wife is happy with BCBS. We travel a lot, both US and non-US. My wife has had multiple joint surgeries and BCBS has covered most of it. So I don't think finding a cheaper health insurance is an option. We are indeed in a higher income bracket (because of Roth rollovers) and will remain there once...
by heerekj1
Sun Apr 30, 2017 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retiree Health Care with/Medicare
Replies: 209
Views: 23085

Re: Federal Retiree Health Care with/Medicare

My experience: I became eligible for Medicare in December of 2015 and initially signed up for parts A and B. My was retired from the U.S. Senate and we had health insurance through FEHB. We used BCBS of Michigan. Because there was no COLA on Social Security that year, new enrollees to Medicare part ...
by heerekj1
Fri Mar 24, 2017 9:51 am
Forum: Personal Finance (Not Investing)
Topic: What online bank do you use?
Replies: 99
Views: 17252

Re: What online bank do you use?

I have used Ally Bank for about 3 years and am satisfied. They don't have many ATMs but you are refunded for about 4 withdrawals per billing period which works for me. You are limited to the number of free transfers from your savings accounts to 6 (I think). Only ran into that when I was setting up ...
by heerekj1
Thu Mar 23, 2017 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Pretirement
Replies: 18
Views: 3182

Re: Pretirement

Not sure what you mean but we lived for a year on what we thought would be our retirement income to confirm that we could do it. I then worked part-time for 3 years. I retired last year, and covering expenses with wife's pension and $30K per year from IRA until I reach 70 and begin SS.
by heerekj1
Wed Jan 25, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Finances and Signficant Other/Future finances
Replies: 18
Views: 2454

Re: Finances and Signficant Other/Future finances

We have been married for 43 years and we tried multiple approaches over the years. I am the saver and she is the spender. I made sure we saved for retirement and she makes sure we spend to have the experiences. "Adventcha before Dementcha" What we do now has worked for about 5-10 years. We keep mult...
by heerekj1
Wed Jan 25, 2017 10:43 am
Forum: Personal Consumer Issues
Topic: Cell service abroad, what did I do wrong
Replies: 29
Views: 3109

Re: Cell service abroad, what did I do wrong

Thanks for the info. I should have stopped at a more mainstream supplier at the airport. In my defense. We flew into Sydney and needed to catch the connection to Hobart. There was a vodaphone booth at international arrivals but it had a long line and I needed to make the connection. Once I was out o...
by heerekj1
Tue Jan 24, 2017 2:38 pm
Forum: Personal Consumer Issues
Topic: Cell service abroad, what did I do wrong
Replies: 29
Views: 3109

Cell service abroad, what did I do wrong

This is not so much a complaint but an observation that it was much more difficult to do than I expected and I wonder what I did wrong. In the end I got cellular data service and it was quite useful and I am glad I did. Phone: iPhone 6s, provider: Consumer Cellular, phone is unlocked when used outsi...
by heerekj1
Wed Jan 18, 2017 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 36547

Re: Annual Vacation Budget

We are retired and our children are grown but still single. While the children were small we spent very little on vacation. Family visits were most of it. For the last few years of working and into retirement we have budgeted about 24K per year. We have scheduled larger vacations, taking the two kid...
by heerekj1
Tue Dec 06, 2016 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Is Federal Health Benefits Program A Good System?
Replies: 31
Views: 3340

Re: Is Federal Health Benefits Program A Good System?

I worked for a private employer and my wife worked for the Federal government. Our health insurance was through my employer. About 8 years ago we switched to the federal program and there was no significant difference in cost. I only switched because my employer only indicated that they intended to ...