Bogleheads.org

Soon2BXProgrammer

Looks like the forms will be delayed until December

https://fsapartners.ed.gov/knowledge-ce ... sa-process

Soon2BXProgrammer

lets just rename the acronym

Financial Independence Enabling Choose Your Own Adventure

FIECYOA

It sure rolls off the tongue. And it is a great click bait slogan

Soon2BXProgrammer

The best things about it are that it encourages thrift, long term financial planning, independent-mindedness and entrepreneurship. Agree The worst things about it from my perspective are: 1. it glorifies hedonistic retirement and leisure, About half of the FIRE world focuses on FI not the RE.. Most FI people I know in real life, do something constructive. Some of its paid, and some of its charity work. They had been so driven that they can NOT do nothing. The worst things about it from my perspective are: 2. incentivizes people to leave employment right at the time when they are best positioned to contribute through their education and professional experience (also right at the time when work can be most rewarding), It doesn't make them qu...

Soon2BXProgrammer

guyfromct wrote: ↑Sun Mar 26, 2023 10:07 am
Soon2BXProgrammer wrote: ↑Sun Mar 26, 2023 10:01 am
guyfromct wrote: ↑Sun Mar 26, 2023 10:00 am
Mike Scott wrote: ↑Sun Mar 26, 2023 9:54 am Why do you care so much about the choices that other people make?
Since many of them are vocal about and push an idea that can potentially have adverse consequences why not have an opinion. The corollary is do you not say anything if a neighbor paints their home a garish shade? It’s not hurting you, but you likely have an opinion.
but how is it different then the YOLO crowd?
They’re wrong too, just not many YOLO types on this forum.

My point is... You do not need to agree with them... They do not need to agree with you.

Soon2BXProgrammer

guyfromct wrote: ↑Sun Mar 26, 2023 10:00 am
Mike Scott wrote: ↑Sun Mar 26, 2023 9:54 am Why do you care so much about the choices that other people make?
Since many of them are vocal about and push an idea that can potentially have adverse consequences why not have an opinion. The corollary is do you not say anything if a neighbor paints their home a garish shade? It’s not hurting you, but you likely have an opinion.

but how is it different then the YOLO crowd?

Soon2BXProgrammer

The concept of FIRE gets thrown a lot, but it seems lo largely be baloney. I saw someone posting on here about retiring early, their withdrawal rate, which seemed high in general and especially for a potentially 60 year retirement The difference between being successful for 30 years and successful for 60 years is almost nothing. This article helps show that: https://www.kitces.com/blog/the-problem-with-fireing-at-4-and-the-need-for-flexible-spending-rules/ The real question ends up being, when do you know you can ratchet up spending. On the flip side, FIRE attracted me because I am the sole earner for my family, and I don't want to do software engineering forever. Therefore, it gives me the space to do whatever I want, even if that ends up...

Soon2BXProgrammer

The concept of FIRE gets thrown a lot, but it seems lo largely be baloney. I saw someone posting on here about retiring early, their withdrawal rate, which seemed high in general and especially for a potentially 60 year retirement The difference between being successful for 30 years and successful for 60 years is almost nothing. This article helps show that: https://www.kitces.com/blog/the-problem-with-fireing-at-4-and-the-need-for-flexible-spending-rules/ The real question ends up being, when do you know you can ratchet up spending. On the flip side, FIRE attracted me because I am the sole earner for my family, and I don't want to do software engineering forever. Therefore, it gives me the space to do whatever I want, even if that ends up...

Soon2BXProgrammer

YERER01 wrote: ↑Wed Mar 22, 2023 10:04 pm must have side burner for occasional outdoor cooking.

a dedicated $50 propane burner has a lot more btu's then the side burner. Gives lots of options to boil big pots, etc.

Soon2BXProgrammer

edgeagg wrote: ↑Fri Mar 17, 2023 12:58 pm Be nice to meet up now that spring is in the air here and people are coming out of hibernation. How about meeting mid-April in Bellevue or thereabouts?
Perhaps if you are interested, respond to this thread and we can get a count after which we can decide dates+exact locations?
ea

I'm interested. Depends on the exact date, we have spring break stuff scheduled.

Soon2BXProgrammer

neurosphere wrote: ↑Thu Mar 16, 2023 10:09 am
But there was no Part II filled out to specifically report the amount of the Roth conversion.

I am pretty sure this is an error of the preparer not clicking the right box of "what happened with the money", I would think this would be caught though thinking about why is the 1099-R coded as 2 (early distribution, exception applies) meaning no penalty which means the preparer should be asking why there is no penalty. (If it is like the other 1099-Rs I've seen for backdoor Roth contribution & conversions)

Nothing on the 1099-R signifies it was a Roth conversion, so unless the person tells the preparer that, they won't know to fill out part 2....

Soon2BXProgrammer

10% nominal (TSP G Fund, Vanguard Intermediate Muni Bond Fund) 10% inflation indexed (Schwab TIPS ETF, individual TIPS at Treasury Direct, I bonds) Nothing magic about any of that. Lots of reasonable bond allocations. Thanks, I was just curious if you were doing anything with long or short duration individual bonds and TIPS. The TSP G fund is sort of special. It is a 1-4 day duration bond fund but with a intermediate term yield. Effectively one can consider it mostly liability matched (for a wide range of durations) or a free lunch most of the time ( except when the yield curve is inverted). Technically it is a nominal but it since it doesn't lose money due to duration in rising rates, it is very responsive to when rates rise due to inflat...

Soon2BXProgrammer

Potentially unintended consequences in Iowa:

https://www.waukonstandard.com/articles ... ct-certain
https://naturalresourcereport.com/2023/ ... ily-farms/

Soon2BXProgrammer

TheTimeLord wrote: ↑Thu Mar 09, 2023 8:32 am

If we are talking about me specifically, I am fine at 0% real.

Then you have a lot of flexibility in choosing an asset allocation and which risks you want to take vs mitigate.

If TIPS can get you there, then the question comes down to how much volatility are you willing to accept for a higher legacy value.

Soon2BXProgrammer

Serious question, if I am someone who needs 4% annually to make my financial plan work out should I ignore the 10 year hitting 4% or 30 year at 3.9% to maintain some arbitrary equity allocation? At the very least should I consider 5 years at 4.35% guaranteed. When it comes to planning, most of the time it isn't nominal returns that matter, but real returns. If a plan needed a 4% return, it might have needed a 2% real return. So.. it probably still needs a 2% real return. (which happens to be a higher number now.) Therefore you probably still need the equity risk premium to reach that real return number. Yes, real rates are what matters in the end so are we saying since we don't know what the real rate of return will be for Nominals then on...

Soon2BXProgrammer

TheTimeLord wrote: ↑Wed Mar 08, 2023 5:58 pm Serious question, if I am someone who needs 4% annually to make my financial plan work out should I ignore the 10 year hitting 4% or 30 year at 3.9% to maintain some arbitrary equity allocation? At the very least should I consider 5 years at 4.35% guaranteed.

When it comes to planning, most of the time it isn't nominal returns that matter, but real returns. If a plan needed a 4% return, it might have needed a 2% real return. So.. it probably still needs a 2% real return. (which happens to be a higher number now.) Therefore you probably still need the equity risk premium to reach that real return number.

Soon2BXProgrammer

vrr106 wrote: ↑Tue Mar 07, 2023 2:52 pm I am still a long way from collecting SS but wanted to see what opensocialsecurity would recommend. My spouse and I are 4 years apart in age and have had very similar compensation for 20ish years now and therefore similar PIA.
It recommends my spouse starts collecting at age 62 and I start 4 years later at age 70. What would the rationale for this be? All my planning has assumed collecting at 70 for each of us

The age 62 is a first to die annuity.
The age 70 is a second to die annuity.

Soon2BXProgrammer

arf1410 wrote: ↑Thu Mar 02, 2023 5:05 pm I did an initial run thru TT, knowing that my 1099's might get updated. The 1099 was downloaded from Fidelity, directly to TT. The 1099 has now been updated by Fidelity. Will TT let me download again? If so, will it overwrite the existing data, or will I wind up with duplicate data in TT?

if you go in and delete the 1099, then click import again, it should update.

Soon2BXProgrammer

I know someone who committed to something like this but they asked for a revision that their 90 day notice was "nonbinding" and only upon delivering the 2 week notice can the company consider it binding.

Soon2BXProgrammer

I'm a bit ahead of you on my journey. I am a ChFC, RICP and 70% done with a Masters Science in Financial Planning.

I did have a practice for a bit, but then i took another software engineering job.. But i'm not sure how long that will last.

The "work experience" on the ChFC is easier to quantify then the CFP. but they are the same set of classes. (plus one), so one can get the designation to use, while waiting for hte CFP.

I might or might not ever get the CFP.. I am grumpy about the organization.

Soon2BXProgrammer

There are options out there...

Especially if your a member of an organization or someone who would qualify for a diversity scholarship..

Example

https://info.xyplanningnetwork.com/cfp- ... ip-program

Soon2BXProgrammer

retire2022 wrote: ↑Mon Feb 20, 2023 6:47 pm
Soon2BXProgrammer wrote: ↑Mon Feb 20, 2023 4:30 pm
iim7V7IM7 wrote: ↑Mon Feb 20, 2023 6:13 am I am surprised 126 reads and no one can answer?
Can you restate your question in a concise manner?
iim7V71M7 is saying 126 views (reads) but no responses so far.

And I'm asking for the TLDR version of the question.

Soon2BXProgrammer

iim7V7IM7 wrote: ↑Mon Feb 20, 2023 6:13 am I am surprised 126 reads and no one can answer?

Can you restate your question in a concise manner?

Soon2BXProgrammer

Hi BH Experts, we are exploring renting then selling our second home. We have owned since 2017 and never rented it out. We would like to start renting it out full-time in 2024, then eventually selling it in 2025 or 2026 (after 1 or 2 years of rental) using a 1035 Exchange to upgrade to an another HCOL / vacation area. We intend on renting out there of course, but may also explore making it a primary residence or second home after a couple of years of renting it full-time, depending on a lot of different factors (undecided at this time, as lots up in the air between now and then). Does anyone have any legit experience with this, and if so, can you explain the tax consequences at each of the following stages: 1. Rent full-time in 2024, then ...

Soon2BXProgrammer

One can basically simulate it today, if the 401k has "in plan Roth conversions". (assuming no vesting requirements on employer contributions) Just convert the employer contributions after they show up. So I view this as an "administrative simplification" then a real new feature. (based on the plan, but the new feature will be based on plan availability) That's a good point, so maybe employers who currently offer in-plan Roth conversions will be among the first to adopt Roth contributions. Maybe employers who do eventually adopt Roth contributions will add Roth conversions if they don't already have that feature. I think in-plan Roth conversions are pretty rare today, and there could be a large number of employers and pl...

Soon2BXProgrammer

Hello, My dentist recommended I get Invisalign for a lower front tooth that is getting pushed out by another tooth. Cost is about $4,000 out of pocket even with my insurance. Due to cost and also the sacrifice that comes with having to wear the Invisalign many months, wanted to see if you have used Invisalign and your experience good or bad? Are there other good alternatives besides Invisalign? I am tempted to leave my crooked tooth but also take a chance that it could fall out later in life according to my Dentist. Thank you. My 12 year old has loved Invisalign, and it worked well for her. Pretty speedy. I was successful in negotiating a substantial cash discount for accelerated payment above the negotiated rate, since they offered a paym...

Soon2BXProgrammer

White Coat Investor wrote: ↑Fri Feb 17, 2023 4:47 pm
count damoney wrote: ↑Fri Feb 17, 2023 10:59 am
Can anyone weigh in on the taxation of that match?? Does it get included in your W2 income?

Yes. It's still going to be a tax deduction for the employer and somebody has to pay tax on it.

I agree. One can basically simulate it today, if the 401k has "in plan Roth conversions". (assuming no vesting requirements on employer contributions)

Just convert the employer contributions after they show up.

So I view this as an "administrative simplification" then a real new feature. (based on the plan, but the new feature will be based on plan availability)

Soon2BXProgrammer

alexbogle wrote: ↑Mon Feb 13, 2023 7:27 pm I just wish the TDA and lively representatives hadn't told me about a fee that they aren't even charging :/

Up thread I mentioned the other work around is to do a partial transfer.

I transferred all my "VT" holdings and left $17 of cash in TD.. which then i transfered to lively.. and then had fidelity pull the $17 from lively instead.....

Soon2BXProgrammer

GoRoth123 wrote: ↑Sat Feb 11, 2023 1:18 pm Hello,

I would like to obtain my CFP but I lack the work experience required. Does it make sense for me to try for the exam first or do both at the same time? Thanks.

I haven't sat for the CFP exam iteslf.. i have the ChFC which is the same curriculum as the CFP and one more class, but the work experience is much more "flexible".

Well.. i also have the RICP... and 70% of a Masters in Financial Planning as well. (its in progress).

Soon2BXProgrammer

rich126 wrote: ↑Sun Feb 05, 2023 12:41 pm And I guess since my brother and I were named beneficiaries of the IRA (50/50) that I use my date of birth and he uses his date of birth for his RMD?

Has the account been split and transferred into two separate Inherited IRA? and if so when?

Soon2BXProgrammer

FIREGuy88 wrote: ↑Thu Feb 02, 2023 9:53 am Is Vanguard's Recommendation For International Exposure Still ~60% VTI / ~40% VXUS?

I hold US / ex-US at market cap rates, which does happen to be roughly at 60/40, but I allow free float.

I don't hold any ex-US bonds.. my bonds are very conservative (quality, duration, etc) because I don't hold many of them.

Soon2BXProgrammer

I'll be making our annual HSA contribution soon to Lively and then transfer everything over to Fidelity shortly after that. The irony being that Lively had to do away with fees a few years back because they were losing customers and now appears they are willing to risk that again. Texas, a minor process issue to note. Fidelity asks for a current statement from Lively (or any provider really) before initiating the transfer. We funded Lively the first week of Jan 2023. Our last Lively statement was Dec 2022 showing a zero balance (because we put everything into TD). In both transfers (mine and spouses) it required a delay and a follow up call with Fidelity support to confirm that a) we wanted them to initiate a transfer from Lively and b) th...

Soon2BXProgrammer

David Jay wrote: ↑Wed Feb 01, 2023 7:54 pm If the accounts have not been annuitized then I would recommend that your mother move those accounts away from the insurance company to a brokerage firm. It is likely costing her 2.5% - 3% per year to keep the funds in the annuity.

This will also simplify any estate issues.

Even if it is NOT annuitized, if she is making withdrawals based on a guaranteed minimum withdrawal benefit, it is pseudo annuitized, but not actually annuitized, therefore one has to decide if they are ok with giving up that guarantee.

I'm just saying, without understanding the features of the annuity, its hard to make a blanket statement. (but you are probably right)

Soon2BXProgrammer

This is NOT my flowchart nor my practice.. but just sharing to give an idea.. And this hasn't been updated based on the proposed regulations..

https://static.twentyoverten.com/5d2527 ... d-2022.pdf

but I think this chart is mostly right (as far as i know with the proposed regulations), with the exception of needing to know if the decedent was past their required beginning date, and therefore the beneficiary is subject to RMDs. (i'd have to really study it to confirm)

(just sharing this as a reference and an idea)

Soon2BXProgrammer

emanuel_v19 wrote: ↑Wed Feb 01, 2023 10:51 pm I was also interested. Do people not meet anymore?

I *think* the pandemic happened, and the the Seattle lead moved to another city.

Soon2BXProgrammer

mydknyght wrote: ↑Tue Jan 31, 2023 8:17 pm Hello everyone!

My name is Jesse. I just joined the Bogleheads forum and wanted to say hello. I live in Seattle proper and would love to meet up some time.

Welcome. Hopefully at some point another meetup will be scheduled and some of us will get together again.

Soon2BXProgrammer

AnnetteLouisan wrote: Paging!

The approach I take to invite people to a conversation is: (Note this is not including the post_id= time= variables on purpose, that are part of a normal quote, because they give the "arrow" back to the previous topic, etc.)

Code: Select all

[quote=AnnetteLouisan user_id=178907]
Paging!
[/quote]

Of course you have to edit to have the right name and user_id.. This works for people who have their PM's full, but depending on their notification settings they might or might not get an email. It will show up in their "notifications" after they log in.

Soon2BXProgrammer

Triple digit golfer wrote: ↑Thu Jan 26, 2023 6:50 am Let's say one's asset allocation is:

30% U.S. stocks
30% International stocks
40% U.S. bonds

If the portfolio drifts to the below, to which fund would you make your next contribution?

29% U.S. stocks
31.5% International stocks
39.5% U.S. Bonds

Thank you.

As i invest in US/International at market cap rates. I let them fluctuate and I would put the money in bonds.

Even if I didn't Stock/Bond allocation is more important to me, then the US/International.

Soon2BXProgrammer

My apologies, but I thought the questions that I asked were pretty specific, but to add, this is about FERS only and questions related to the SF3106 Form. There is only about $26K in Cumulative Retirement (FERS)(My Contributions), which makes doing a retirement annuity kind of a moot point. I believe the money should be taken out and put elsewhere to keep making money for the next 7 years, but that's just me. This forum is valuable, because it doesn't answer your question you asked. It asks you the questions that you might consider asking yourself. If you take your contributions out, you lose access to all the "agency contributions" that actually fund the deferred FERS pension. So one needs to do a lump sum analysis of what the p...

Soon2BXProgrammer

Why don’t you get credit for the 22 years in the military toward your CS time? I know many who have done that. It takes time (like 12 months for paperwork to be routed around for signatures), but may be very worth it in the end. In addition, you can pay a deposit of 1.3% of the pay you received for your military service plus annual interest for the 7 years since you left the military to receive an annuity of 1% of highest pay x 29 years of service. It might end up to be about $10,000. Again, do the math to see if it's worth it. If your high 3 average pay is $50,000, that is $14,500 per year. if you buy the military time back, then my understanding is you have to give up your military retirement pay, to get the CS retirement pay for the sam...

Soon2BXProgrammer

Are you sure getting a FERS refund is better then taking a deferred retirement at 62 with more then 5 years of service?

A FERS refund you only get YOUR money contributions, but a deferred retirement is partially funded by the government.

Soon2BXProgrammer

cobra911 wrote: ↑Sat Jan 21, 2023 3:10 pm Retirement Tax Planning/Strategy Software Packages

It isn't clear, are you looking to do tax planning for a single year? Or are you trying to model lifetime tax burden to see if it makes sense to do things like a Roth conversion and how that will impact 20 years down the road?

Soon2BXProgrammer

bltn wrote: ↑Sun Jan 22, 2023 12:34 am So, in the example above, counter signaling is a way to stand out, as someone important.

I wear jeans as a form of appropriate dress for one in working middle class. I think there is a benefit to being a face in the crowd. No expectations.

I think prominence or fame is a something of a hardship.

My interpretation of counter signaling was apparently opposite of what you describe.

Ah yes.. there is signal (successful OR fake it to you make it), blend in (don't look at me, which doesn't work if you are supposed to be the rain maker), and counter signal (successful so the rules do not apply OR i'm just a delinquent).

Soon2BXProgrammer

I would suggest you have your new custodian submit an account transfer to health equity (partial leaves account open or full closes account).. and never take custody of funds.

Soon2BXProgrammer

Particularly if earnings start to disappoint? How bad do earnings have to be before bond yields rise (causing the bonds you hold to fall in value), because companies profitability is suffering and the investment grade bonds become "Fallen Angels" due to credit downgrades? It's not really earnings so much as the deteriorating financial condition of the company as judged by an agency. The review process is opaque. The fallen angel anomaly has a great story, though. It happens because many investment managers operate under rules to limit corporate bond investments to investment-grade bonds. So the yield will be temporarily higher than it "should" be post-downgrade, assuming the company is not a dumpster fire. Of course, so...

Soon2BXProgrammer

BoomBustInvest wrote: ↑Fri Jan 20, 2023 5:37 pm Particularly if earnings start to disappoint?

How bad do earnings have to be before bond yields rise (causing the bonds you hold to fall in value), because companies profitability is suffering and the investment grade bonds become "Fallen Angels" due to credit downgrades?

Soon2BXProgrammer

mouth wrote: ↑Sat Jan 21, 2023 3:14 pm
Soon2BXProgrammer wrote: ↑Sat Jan 21, 2023 10:23 am
mouth wrote: ↑Sat Jan 21, 2023 8:46 am With a Military pension + disability (both COLA'ed) I'm at $74k gross today
If your talking about VA disability, it isn't taxable. So only your taxable pension part counts.
yup, I'm aware of that. I am the dumb today. So to amend my numbers (and I'll do it in my post after this) my Pension is $53k + my eventual $43k SS which still puts my above McQ's $95k "course rule"

No worries, I've had plenty of head smacking moments myself.

Soon2BXProgrammer

mouth wrote: ↑Sat Jan 21, 2023 8:46 am With a Military pension + disability (both COLA'ed) I'm at $74k gross today

If your talking about VA disability, it isn't taxable. So only your taxable pension part counts.

Soon2BXProgrammer

The downside of this approach is when you contribute to an employer HSA plan via payroll deduction you won't pay FICA tax on those wages used to fund the account if it is part of the company 125 cafeteria plan. So lets say you fund $7500/yr that's a (7.5%) $570 reduction in tax liability less your annual account fees you would be ahead by using the company plan. Fidelity mention it in the HSA link below. So I deduce from your comment that if your income is above the social security limit ($167,000 for 2023), then there is really no advantage to payroll deduction and you could just opt to open an independent HSA, say Lively or Fidelity. Could someone please verify this please? Are there any other advantages for going to payroll deduction HS...

Soon2BXProgrammer

scalawag73 wrote: ↑Fri Jan 20, 2023 1:20 pm I was rejected by both NY Life and Mutual of Omaha for long term care insurance because of a health condition -- myopericarditis

WoW2012 wrote: Paging Wow2012

WoW2012, do you know if one can qualify for a hybrid product with myopericarditis?

( Example for readers: https://www.newyorklife.com/products/lo ... asset-flex )

Soon2BXProgrammer

secondcor521 wrote: ↑Tue Jan 17, 2023 11:40 pm So in about 10 months in October 2023, a student would complete a FAFSA for the 2024/2025 school year using 2022 tax returns. The student's Pell Grant would be partially determined by the 2022 AGI in relation to the 2022 FPL.

Is that correct?

That is aligned to my recollection of my reading of the bill.

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