Search found 140 matches

by Not Law
Sun Dec 10, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Can/Should early retiree avoid ACA tax credits?
Replies: 34
Views: 2038

Re: Can/Should early retiree avoid ACA tax credits?

I prefer the Roth conversion which gets funds totally outside the tax system. Use of those funds will not affect ACA credits down the road. I do not see an ethical issue. The tax code is what it is. You are allowed to deduct things on schedule A, regardless of your net worth. You are entitled to Soc...
by Not Law
Sun Dec 10, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Help with ACA problem
Replies: 7
Views: 771

Re: Help with ACA problem

I spent a lot of time studying the threshold issues in 2013. One "qualifies" for subsidies between 138% and 400% of poverty. The penalty for exceeding 400% is the repayment of all subsidies received. At the lower end, the ACA was designed for those below 138% to be eligible for medicaid and therefor...
by Not Law
Sat Dec 09, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and Rental Income from Live-In Significant Other
Replies: 8
Views: 582

Re: Taxes and Rental Income from Live-In Significant Other

I agree you are sharing living expenses and the "rent" you receive would not be considered income. Contrast that with setting aside a certain portion of your home for a boarder, where you would be able to depreciate that percentage of the home, but which would also be subject to recapture upon sale.
by Not Law
Sat Dec 09, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Save all this money, what do you splurge on?
Replies: 155
Views: 10118

Re: Save all this money, what do you splurge on?

Funding Roth IRAs for my grandchildren.
by Not Law
Wed Dec 06, 2017 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Lowering real estate agent costs when selling?
Replies: 34
Views: 2568

Re: Lowering real estate agent costs when selling?

I sold a house FSBO. Realtor lived across the street. I told her that I would pay 3% if she brought a buyer. Folks she was working with wanted to see our house. She refused to show it - told them to call us themselves. They did, we sold it to them, and the realtor across the street got nothing. The ...
by Not Law
Sun Dec 03, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: How will i be taxed when switching jobs?
Replies: 25
Views: 1405

Re: How will i be taxed when switching jobs?

Withholding tables essentially take your annualized income, less your standard deduction and exemptions and assume your tax is as per the tax tables. Divide that by the number of annual pay periods and that is what is withheld. So, you need to declare additional dependents if you file a schedule A w...
by Not Law
Sun Dec 03, 2017 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Which RMD table does a surviving spouse use....
Replies: 5
Views: 493

Re: Which RMD table does a surviving spouse use....

Please note that a beneficiary spouse can opt to take the funds in a beneficiary IRA. There are no RMDs until the decedent would have turned 70.5, and there is no 10% penalty for early withdrawals (unlike if it were a rollover IRA). Especially helpful if the surviving spouse is well below the 59.5 t...
by Not Law
Sun Dec 03, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: moved to another state in 2017 -- best tax software?
Replies: 6
Views: 576

Re: moved to another state in 2017 -- best tax software?

You can purchase a second state for the 2017 tax year. Turbo Tax will offer that when you indicate that you have a second state return to file.
by Not Law
Sun Dec 03, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 23
Views: 2198

Re: Social Security Spousal Benefit

Our numbers: Higher earner 62, PIA ~$2400 ($3150 at 70), so spousal benefit is ~$1200. Lower earner almost 65, PIA at 66 is ~$1000 ($1320 at 70). Plan is for lower earner to take benefit at FRA(66), then bump up to $1200 at just before 73 when high earner takes at 70. Low earner could forego the $1k...
by Not Law
Thu Nov 30, 2017 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Taxes
Replies: 6
Views: 826

Re: Social Security Taxes

While in the "hump", for every dollar earned, you have to pay taxes on $1.85.
by Not Law
Sat Nov 18, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Why did Vanguard drop TurboTax?
Replies: 16
Views: 3188

Re: Why did Vanguard drop TurboTax?

I always wonder how much more information these electronic filing platforms provide the IRS than my mailed in forms provide. I cannot file electronically because of the infinite loop associated with ACA premiums (for a self employed person) and MAGI. I use tax preparation software, but I always chec...
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: 3408

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: 19000

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: 4447

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: 9342

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: 8696

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: 2461

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: 9777

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: 2521

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: 2584

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: 2610

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: 591

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: 1487

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: 1692

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: 7570

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: 3085

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: 1007

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: 1007

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: 1337

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: 1489

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: 1337

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: 1489

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: 1489

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: 25562

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: 3999

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: 5762

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: 527

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: 5989

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: 4797

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: 2209

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: 990

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: 4635

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: 9458

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: 4565

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: 3999

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: 2210

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: 2210

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: 1386

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: 4408

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: 8368

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.