Search found 162 matches

by Not Law
Mon Jan 22, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Transfer money to family members to take advantage of lower tax rates
Replies: 29
Views: 2390

Re: Transfer money to family members to take advantage of lower tax rates

The recipient of inherited stock get a stepped up basis because the actual value at the time of death is included in the deceased's estate for tax purposes. The "standard deduction" for the estate is now $11 million.
by Not Law
Sun Jan 21, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Going to one income-seeking testimonials
Replies: 97
Views: 3884

Re: Going to one income-seeking testimonials

When we did it in the 80's, the loss of "take home" pay was 50% of spouse's gross wage. Eliminating commuting costs, day care and other such expenses made it pretty much a break even situation.
by Not Law
Tue Jan 16, 2018 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Getting your spouse on the same page
Replies: 53
Views: 4991

Re: Getting your spouse on the same page

double comma level Is that 1 million or 10 million? I am hoping you actually meant latter even though that is not the correct definition of "double comma". If you are spending like no tomorrow with the former number, you are in rude surprise. I mean 1 million in 2014, spent some and now back at 1 m...
by Not Law
Fri Jan 12, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans after kid graduates?
Replies: 35
Views: 2171

Re: Pay off student loans after kid graduates?

I would make sure there is not a government or employer loan repayment program before shelling out money. Some teachers, doctors, etc. that work in certain places have loan forgiveness programs. And some employers offer a loan repayment incentive. Good reason to wait for a year or so before making t...
by Not Law
Fri Jan 12, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Getting your spouse on the same page
Replies: 53
Views: 4991

Re: Getting your spouse on the same page

double comma level Is that 1 million or 10 million? I am hoping you actually meant latter even though that is not the correct definition of "double comma". If you are spending like no tomorrow with the former number, you are in rude surprise. I mean 1 million in 2014, spent some and now back at 1 m...
by Not Law
Thu Jan 11, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Work affect social security benefit?
Replies: 6
Views: 489

Re: Work affect social security benefit?

A surviving spouse with a child under 16 can receive "caretaker" benefits which are subject to income limits. This is a benefit that has no bearing on one's future ability to obtain "retirement" benefits. So a 40 year old mother with an 11 year old can collect for five years, as long as income is le...
by Not Law
Thu Jan 11, 2018 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Getting your spouse on the same page
Replies: 53
Views: 4991

Re: Getting your spouse on the same page

I have been the primary manager for investing and long term planning. My spouse has left me to manage these things, not thinking of these funds as anything but "play money" - that is electronic blips that have no real meaning to our day to day lives. When our retirement accounts reached double comma...
by Not Law
Sun Jan 07, 2018 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgages, condos, insurance - escrow question
Replies: 7
Views: 231

Re: Mortgages, condos, insurance - escrow question

She is using the equity in her home as a means to live BEYOND her means. Unless you can convince her to live BELOW her means, your efforts will be futile.
by Not Law
Sat Jan 06, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Should I take this promotion?
Replies: 26
Views: 1963

Re: Should I take this promotion?

Ask the employer in advance to consider returning you to your happy place if the promotion does not work out. Give you an escape route. More than likely you will do just fine at the new level of responsibility.
by Not Law
Sat Jan 06, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting Assets in Divorce
Replies: 51
Views: 5026

Re: Splitting Assets in Divorce

Consider maintaining the home for the child, with each custodial parent moving in and out of the house for parenting time. Have an apartment on the side that either of you lives in when the other is at home with the child. Makes for a more stable childhood. You must have a lawyer familiar with draft...
by Not Law
Tue Jan 02, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security at age 62 perhaps?
Replies: 57
Views: 4920

Re: Social Security at age 62 perhaps?

I plan to live forever, so the choice is 75% of PIA forever, or 132% of PIA for forever minus 8 years.
by Not Law
Tue Jan 02, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: College scholarships: How much should I pencil in for my future students?
Replies: 54
Views: 2531

Re: College scholarships: How much should I pencil in for my future students?

Looking at current pricing, I am appalled. I had a full tuition scholarship when I started college in 1973. It was renewed as long as I maintained at least a 3.0 GPA. The first year's tuition was $210 per semester! Grad school began in 1977 with tuition at $750 per semester. The current tuition for ...
by Not Law
Sun Dec 31, 2017 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Creative gifting of property
Replies: 28
Views: 2174

Re: Creative gifting of property

Understand that the reason for the stepped up basis upon inheritance is that the gain is subject to the parent's estate tax. So a gift now applied to the $11 million is the same as inheriting the same. If everything adds up to more than $11m ($22m with properly drafted trusts), then the estate will ...
by Not Law
Thu Dec 28, 2017 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Absolute vs percentage saving
Replies: 13
Views: 1143

Re: Absolute vs percentage saving

It is all about what you expect to spend in retirement. At your age, your saving's rate is the best you can do, and that seems reasonable. As you get closer to retirement, you have to determine what your expected expenses are, and whether your savings can sustain them.
by Not Law
Thu Dec 28, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: How to financially assist DD to help continue her Obamacare
Replies: 54
Views: 3866

Re: How to financially assist DD to help continue her Obamacare

She can tax gain harvest up to the 138% of poverty level required to qualify for the ACA. When she files her taxes, this amount will be included in her MAGI even though the tax rate on the funds is 0%. I did this in 2012 and 2013 to make sure after the ACA that a sale would not push me over the cliff.
by Not Law
Wed Dec 27, 2017 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax 2017 - Medical deduction floor still at 10%
Replies: 11
Views: 663

Re: TurboTax 2017 - Medical deduction floor still at 10%

The bill was signed Friday of a long holiday weekend. I am shocked that the tax software companies have not already incorporated the entire bill into their software by now! I would certainly not rely on anything for at least a month, as there are many moving parts that need to be integrated, which t...
by Not Law
Sat Dec 16, 2017 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Tax gain harvesting
Replies: 29
Views: 3189

Re: Tax gain harvesting

In the run up to the ACA, we TGH'd about $30k in 2012 and $14k in 2013, with no federal taxes due. Prior to that from 2005 forward, we filled the 15% bracket with Roth conversions. With the ACA, Roth conversions add to MAGI, so to keep the subsidies in place, the Roth conversions have been minimal.
by Not Law
Sat Dec 16, 2017 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Can/Should early retiree avoid ACA tax credits?
Replies: 55
Views: 3685

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

Employers are required to pay into the unemployment insurance system and ultimately repay the benefits paid out. So a self employed individual who is allowed to take unemployment as a seasonal worker would be charged by the unemployment agency to recoup the payments.
by Not Law
Thu Dec 14, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: We had a pretty successful 2017
Replies: 15
Views: 2068

Re: We had a pretty successful 2017

Withdrew $65k from retirement funds for living expenses, account balances are still $100k higher than they were on January 1st.
by Not Law
Thu Dec 14, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: What is a Reasonable Retirement Cost of Living?
Replies: 47
Views: 5589

Re: What is a Reasonable Retirement Cost of Living?

What you currently spend less those costs that will be gone by the time you retire.
by Not Law
Thu Dec 14, 2017 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Account Stolen by Identity theft
Replies: 392
Views: 58408

Re: Retirement Account Stolen by Identity theft

Transamerica was a fiduciary. It failed in its duty to protect your father's funds. Once it became satisfied that it made a mistake (father's affidavit), it made good on the account. Based on the mishandling, I would expect your father will receive a 1099R showing a taxable distribution from his IRA...
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: 55
Views: 3685

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: 10
Views: 1323

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: 658

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 Consumer Issues
Topic: Save all this money, what do you splurge on?
Replies: 193
Views: 16785

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: 2699

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: 1495

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: 517

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: 642

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: 2333

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: 896

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: 3301

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: 3548

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: 142
Views: 20828

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: 4589

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: 9703

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: 9071

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: 2608

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: 10291

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: 2716

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: 2645

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: 2709

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: 642

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: 1622

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: 1865

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: 7929

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: 3299

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: 1091

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: 1091

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...