Search found 129 matches

by Not Law
Fri Oct 06, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: We're Debt Free (Except our House)!
Replies: 34
Views: 3119

Re: We're Debt Free (Except our House)!

I suggest considering the following: First, anything in taxed deferred funds, including whatever earnings, capital gains and dividends (even tax free government bonds) are taxed as ordinary income. Second, most earnings on taxable accounts are taxed at a lower long term capital gain/dividend rate. A...
by Not Law
Mon Oct 02, 2017 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: What age did you become debt free and what opportunities did it create?
Replies: 131
Views: 18256

Re: What age did you become debt free and what opportunities did it create?

Last car loan was paid off in 1988 at age 33 - I pay cash only for quality used cars. Student loans paid off in 1988. Credit cards used for rewards, paid in full every month since the early 90's (used GM card points to buy a new car for $4200 in 1995, Norwegian Cruise in the late 90's). Home mortgag...
by Not Law
Tue Aug 22, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: When have you achieved financial independence?
Replies: 27
Views: 4265

Re: When have you achieved financial independence?

How to make Scenario A work, assume 5% return. Some rounding for ease of explanation. Year 1 Start a Roth ladder, move $24k. First 10k is tax free, 10k at 10%, 4k at 15%. $1600 taxes by year 2 Withdraw $2k/ month from Taxable, average balance for the year is $88k, earns $4400. Beginning of year 2 st...
by Not Law
Sun Aug 20, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: ObamaCare 2018
Replies: 74
Views: 8752

Re: ObamaCare 2018

Just a few thoughts from someone who welcomed the ACA In 2013, pre ACA, our married couple monthly basic health insurance premium was over $1800. We could not switch policies, even with the same carrier, without invoking a pre-existing condition issue. Even without subsidies, the ACA would have redu...
by Not Law
Sun Aug 13, 2017 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Are we house poor? [Property Tax Madness]
Replies: 79
Views: 8236

Re: Property Tax Madness

If you and your neighbor have identical homes, and your tax base is lower, resulting in lower annual property taxes, most buyers would pick your home over the neighbor's at the same price for the lower taxes. Therefore, your house should command a higher price if it comes with lower taxes.
by Not Law
Sun Aug 06, 2017 5:05 pm
Forum: Local Chapters and Bogleheads Community
Topic: Celebrating 30 years with Vanguard!
Replies: 25
Views: 2246

Re: Celebrating 30 years with Vanguard!

I remember that first $500 check to the STAR fund in 1986. According to our personal performance at the Vanguard site, we have a 10% rate of return for the past 10 years, and 13.7% for the last 5 years. Can't complain about that!
by Not Law
Mon Jul 31, 2017 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate your retirement number
Replies: 95
Views: 9085

Re: How to calculate your retirement number

I have always looked at the 4%/25x figures as GOALS. Not a RULE. Once you reach the GOAL, then you have to assess your expenses, taking into account your other (future) income resources. I calculated NEEDS, and felt comfortable when my GOAL was twice my NEEDS. I take what I NEED and the balance keep...
by Not Law
Thu Jul 27, 2017 12:41 pm
Forum: Investing - Theory, News & General
Topic: Traditional IRA or ROTH
Replies: 38
Views: 2349

Re: Traditional IRA or ROTH

Another important consideration. A surviving spouse is likely to be thrust into a higher tax bracket, so taking advantage of lower rates to convert to Roth makes a lot of sense while there are still two of you.
by Not Law
Sun Jul 16, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: gaming the mortgage interest deduction
Replies: 18
Views: 2476

Re: gaming the mortgage interest deduction

Read up on "imputed interest" and the "safe harbor" rates.
by Not Law
Fri Jul 14, 2017 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Cheap source for basic will
Replies: 34
Views: 2405

Re: Cheap source for basic will

This is annoying. The OP thinks their needs will be met by NOT sharing their situation with a professional. Like deciding that you need a tooth pulled and looking for a guy with a pair of pliers, instead of asking a dentist why your tooth aches.
by Not Law
Wed Jun 14, 2017 5:45 am
Forum: Personal Finance (Not Investing)
Topic: valuing real estate for probate
Replies: 4
Views: 544

Re: valuing real estate for probate

Should be fine as long as the purchase was an arm's length transaction.
by Not Law
Mon Jun 12, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Use HELOC for tax benefit?
Replies: 10
Views: 1321

Re: Use HELOC for tax benefit?

Can you even make the contributions after April 18th?
by Not Law
Sun Jun 11, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Tax gain harvesting for kids' UTMA accts
Replies: 17
Views: 1546

Re: Tax gain harvesting for kids' UTMA accts

Tax gain harvesting allows for the immediate repurchasing of the stock. There is no 30 day reinvestment limit as in tax loss harvesting.
by Not Law
Thu Jun 08, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: How to deal with a personal finance cynic
Replies: 109
Views: 7037

Re: How to deal with a personal finance cynic

Our "new" car was 12 years old when I bought it (2002 model)! The one before that was only 9 years old (2003 model). We have never been in the 25% tax bracket. Our retirement accounts had about 100k at age 40, 500k at 50 (when I stopped contributing to retirement accounts), and double commas at 60. ...
by Not Law
Thu Jun 08, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Married filing separately vs staying single for tax savings
Replies: 31
Views: 2842

Re: Married filing separately vs staying single for tax savings

Don't forget that loan forgiveness is a taxable event. If $50,000 is forgiven, the borrower needs to add that to taxable income in the year of forgiveness. Just another cost to consider in the grand scheme of things.
by Not Law
Thu Jun 08, 2017 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: SS claim strategy younger spouse highest PIA
Replies: 10
Views: 930

Re: SS claim strategy younger spouse highest PIA

Based on the Kitlikoff example, W in this case would be entitled to $200 as a spousal "supplement" on top of whatever her benefit is, up to a maximum of $1200. Her age 70 benefit would be $1320, but she would forgo $1000 per month for 48 months to get the higher benefit. The difference in monthly be...
by Not Law
Thu Jun 08, 2017 10:44 am
Forum: Personal Finance (Not Investing)
Topic: SS claim strategy younger spouse highest PIA
Replies: 10
Views: 930

SS claim strategy younger spouse highest PIA

H 61 PIA about $2400/mo W 64 PIA about $1000/mo Plan is to delay H filing until 70 to maximize the survivor benefit, question is about when W should file. Since H is not filing, W would not be eligible for spousal benefit for 9 years. If she claims her own benefit now, I understand that her eventual...
by Not Law
Sun Jun 04, 2017 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Hire a lawyer to file for SSD?
Replies: 13
Views: 1227

Re: Hire a lawyer to file for SSD?

It is also important that you apply while you still have at least 40 quarters of qualifying earnings, with at least 20 in the ten years prior to filing. Basically you must have earned about $5000 per year for 5 of the last 10 years before filing. Putting off filing could make you ineligible.
by Not Law
Sun Jun 04, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Can anyone help re: calculating income for ACA eligibility?
Replies: 23
Views: 1362

Re: Can anyone help re: calculating income for ACA eligibility?

If you are married the 400% upper limit is about $64,000. Contribute to an IRA so you will be below the 400% threshold - below which your health premiums will be subsidized so your premium is about 9.5% of income, or about $500 per month, the rest is subsidized. Our premiums at the 139% level are ab...
by Not Law
Sun Jun 04, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Hire a lawyer to file for SSD?
Replies: 13
Views: 1227

Re: Hire a lawyer to file for SSD?

I agree with ww340. You do not need a lawyer when you first file. A lower level employee of SS will review your filing and make a preliminary decision. If you are denied, then you file an internal appeal, which then takes your case to someone higher up in the decision making process. If that appeal ...
by Not Law
Sun Jun 04, 2017 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Can anyone help re: calculating income for ACA eligibility?
Replies: 23
Views: 1362

Re: Can anyone help re: calculating income for ACA eligibility?

Someone suggested in another thread that you may be ineligible for ACA if COBRA coverage is available. The thread dealt with planning ones retirement for June so they would line up with a new calendar year at the end of 18 months of COBRA and avoid having two sets of co-pays, etc in a single calenda...
by Not Law
Sun Jun 04, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Can anyone help re: calculating income for ACA eligibility?
Replies: 23
Views: 1362

Re: Can anyone help re: calculating income for ACA eligibility?

See here for MAGI info: http://laborcenter.berkeley.edu/pdf/2013/MAGI_summary13.pdf Whatever your estimates are, you will be making a final adjustment based on actual income figures when you do your taxes next April. What you need to do in December, is manipulate your income to make sure your final ...
by Not Law
Sat Jun 03, 2017 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: KF's Worst Case Retirement Plan [KlangFool's]
Replies: 265
Views: 23868

Re: KF's Worst Case Retirement Plan [KlangFool's]

KlangFool, I was in a similar position 4 years ago. I began drawing from the "sacred" retirement funds to meet needs, rather than scramble to find more income from whatever source. And, not so surprisingly, the market has more than replaced whatever has been withdrawn. I suppose if there had been a ...
by Not Law
Fri Jun 02, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Plan Check, 2 Years out.
Replies: 25
Views: 3854

Re: Early Retirement Plan Check, 2 Years out.

Simply put, at age 70 you will have $5500 per month coming in and your current expenses are less than $4000 per month. With $1m+ in assets, you could draw over $5000 per month for 15 years and still have money left at age 70. Other than the pre-medicare health care conundrum you seem to be in good s...
by Not Law
Thu Jun 01, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Relative just bought a house in a hot market. Should I change my investment strategy?
Replies: 53
Views: 5514

Re: Relative just bought a house in a hot market. Should I change my investment strategy?

Invest in Flint or Detroit. You could pick up 10 houses for under $100,000. The market is so low it has nowhere to go but up!
by Not Law
Thu Jun 01, 2017 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Waiting Period for 457 rollover/distribution?
Replies: 6
Views: 475

Re: Waiting Period for 457 rollover/distribution?

What Alan S. said. Explore the benefits of leaving the funds in the 457 before rolling it over. Not only penalty free distributions prior to 59.5, but often the investments available are better than those one can get in an IRA - think stable value funds and institutional funds with lower fees than t...
by Not Law
Thu Jun 01, 2017 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: Is Flagship membership status worth a $50 [transaction] fee?
Replies: 40
Views: 5749

Re: Is Flagship membership status worth a $50 one time fee?

Getting into an attractive closed fund would be about the only reason I would liquidate otherwise attractive "non-vanguard" funds/stocks. Advisory services are pretty much meaningless robo/formula based advice.
by Not Law
Thu Jun 01, 2017 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Please critique my attorney's suggestions..
Replies: 28
Views: 4664

Re: Please critique my attorney's suggestions..

Living trusts are designed for tax avoidance when your estate will exceed the (now) $5 million plus exemption. Your wills can establish trusts upon your death, with all assets going to the trust until the kids are at least X years old. Your beneficiary designations can be spouse first then testament...
by Not Law
Thu Jun 01, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Employer going union, what happens with 401k
Replies: 19
Views: 2095

Re: Employer going union, what happens with 401k

As pointed out, she owns the dollars in the 401(k), which is probably a 403(b) which is the public sector equivalent of the private sector 401(k). That fund was likely in lieu of a pension, and the employer must have made contributions, since that is the only way immediate vesting would not occur. W...
by Not Law
Mon May 29, 2017 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Agent Orange compensation for Vietnam veteran
Replies: 4
Views: 955

Re: Agent Orange compensation for Vietnam veteran

The VA only allows a $10 attorney fee for benefit claims, so you will not find an attorney willing to take on a claim. The service agencies listed earlier will process the claim with no cost. And yes, about 4 years ago, it was decided that any Vietnam Veteran who died of heart issues was presumed to...
by Not Law
Mon May 29, 2017 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: When to start talking to older parents regarding their finances (and how to do it?)
Replies: 37
Views: 4454

Re: When to start talking to older parents regarding their finances (and how to do it?)

After my father died, I volunteered to do my mother's taxes. This allowed for lots of discussions as I filled out her (relatively simple) tax returns each year. Interestingly, she insisted on providing the IRS with a hand written return - she did not want to raise any suspicions with a change to sof...
by Not Law
Thu May 25, 2017 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 74
Views: 9178

Re: When does Saving become missing out on life?

I always looked at it that someday I would have to replace my current spending with savings and eventually Social Security - no pension available. So if I was spending $X,000 per month, I needed enough in savings to produce that amount in order to become financially independent (FI), and I saved eno...
by Not Law
Fri May 12, 2017 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Interested in lake property
Replies: 36
Views: 4416

Re: Interested in lake property

I moved funds last year from a Roth to buy out siblings for a lake house that I (and they) helped build in 1971 - my parent's retirement dream. The house was on the market for 6 years. When a low ball offer was acceptable to the siblings, it was not to me, so I bought them out. I can always sell it ...
by Not Law
Fri May 12, 2017 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: House Deed Covenant Enforceability
Replies: 43
Views: 3814

Re: House Deed Covenant Enforceability

The right to enforce the covenant goes to grandmother's heirs. If that is your parent, then it merges out of existence. If bankruptcy is not an option, you might consider loaning your parents the money and taking a mortgage on their home, despite the covenant. Otherwise, the parents need to seek a d...
by Not Law
Wed May 10, 2017 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: How to title a house for transfer to children after death
Replies: 14
Views: 2099

Re: How to title a house for transfer to children after death

Kids have only a future interest, which gets a stepped up basis upon the death of the original grantor(s) when their interest becomes fixed.
by Not Law
Wed May 10, 2017 11:03 am
Forum: Personal Finance (Not Investing)
Topic: How to title a house for transfer to children after death
Replies: 14
Views: 2099

Re: How to title a house for transfer to children after death

Quit claim to kids, retain a joint life estate AND a power of appointment (sometimes referred to as a "Ladybird" deed). Change of mind or circumstance? Simply exercise the power of appointment. Have an attorney prepare it to get it done right.
by Not Law
Sat Apr 29, 2017 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: calculating work related mileage as an employee
Replies: 10
Views: 1344

Re: calculating work related mileage as an employee

You are officially done with your employment duties when you leave the post office. So the unreimbursed mileage is 8 to the bank plus 4 more to the post office. The commute from your last duty station to home is not "work" mileage.
by Not Law
Tue Apr 18, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much on my taxes?
Replies: 32
Views: 4264

Re: Why do I owe so much on my taxes?

Read publication 15 (circular E). These are the instructions to the employer on withholding. Essentially the employers are required to withhold taxes at the annualized pay rate, assuming standard deduction and exemptions. Each employer assumes the same, so married filing joint with no kids will assu...
by Not Law
Tue Apr 18, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 83
Views: 8082

Re: Did anything surprise you in your 2016 taxes?

May MAGI was 139% of poverty level, so the December fine tuning came out almost perfectly for ACA subsidies! My goal was to stay between 138% and 150%. Now that I have this figured out, there is serious talk of changing things.
by Not Law
Fri Apr 14, 2017 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for College Question
Replies: 5
Views: 704

Re: Paying for College Question

One must be at least 62 for a reverse mortgage.
by Not Law
Thu Apr 13, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Will - what is complicated?
Replies: 72
Views: 4907

Re: Will - what is complicated?

gasdoc,

So if I were going into surgery, it would be OK with you if I self anesthetized? Because of course the professional probably went to some Caribbean wannabee medical school. And who also charges way too much for the value received.
by Not Law
Thu Apr 13, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: When need and want take different paths.......
Replies: 30
Views: 2614

Re: When need and want take different paths.......

When my mother (who had always driven a sensible car) was 80 she expressed an interest in getting a Mustang convertible, but knew it was not a need. I was assisting with her finances, and knew she could afford it, but she was reluctant to "waste" money on such an extravagance. I told her t...
by Not Law
Fri Apr 07, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting vs Tracking Expenses?
Replies: 42
Views: 3955

Re: Budgeting vs Tracking Expenses?

I have always tracked expenses on quicken since the 1980's. Any abnormal expense above $100 required a joint decision. We targeted retirement accumulations to provide for what we were spending, nothing to do with income. In the 90's, that included the house payment and college for the kids. (It was ...
by Not Law
Sat Apr 01, 2017 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Am I understanding self employment correctly?
Replies: 7
Views: 975

Re: Am I understanding self employment correctly?

If you pay for your own health insurance, you can add that to line 29 of the 1040 up to the full amount of your schedule C net income.
by Not Law
Sat Apr 01, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: order of retirement options
Replies: 4
Views: 657

Re: order of retirement options

Think in the long term as well. At age 70.5 RMD's have the potential of causing 85% of your Social Security to be taxed. And upon the first death, the surviving spouse will likely be thrust back into the 25% bracket. So while the short term tax savings might be attractive, it could be putting you in...
by Not Law
Sat Apr 01, 2017 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Will vs Living Trust
Replies: 59
Views: 5695

Re: Will vs Living Trust

You want to preserve a $2,000,000 estate, and you are not comfortable paying 0.1% of it on professionals to assure this happens?
by Not Law
Sat Mar 18, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: "Millionaire Next Door" Net Worth Formula
Replies: 173
Views: 20038

Re: "Millionaire Next Door" Net Worth Formula

So if one has a net worth of $1 million at age 50 should they be earning $200k per year?
by Not Law
Thu Mar 09, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Total Annual Expenses
Replies: 57
Views: 4795

Re: Total Annual Expenses

$36,000 per year for necessities - food, shelter, transportation, utilities. Could probably cut that by 1/3 if needed (cable, booze, etc.). Throw in another $12,000 for luxuries - vacations, supporting family, grandchildren (who we hope to help with college in September).
by Not Law
Wed Feb 15, 2017 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Silly math question [Percentage gain]
Replies: 10
Views: 1227

Re: Silly math question

The goal is subjective, not mathematical. So it is not a math question at all. You could say perhaps that you exceeded your goal by more than twice what you expected. But to try to be mathematically precise in a subjective goal is not logical.
by Not Law
Tue Feb 14, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: First time home buyer advice
Replies: 16
Views: 1762

Re: First time home buyer advice

FYI a family member reports that Well Fargo sent a letter saying PMI ~$40/month, won't automatically drop off until original LTV is 78%, 20 months from now - $800 total. Or she can pay WF a $550 fee right now to re-appraise to confirm she is at or below 80% to get the PMI dropped now. Another squeez...