Search found 125 matches

by iflyjetzzz
Thu May 30, 2019 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

Personally, my view is that once your children, grandchildren, etc. reach about age 30, if they are financially responsible enough to deal with full access to inherited accounts, they probably never will be. I did not come here for folksy family advice; I came here to solicit ideas to present to an...
by iflyjetzzz
Wed May 29, 2019 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

I think your desired goals are very risky. Besides not yet having some of your descendants not existing yet, nor know what the rules will be when they inherit, there are too many unknowns. Even your existing children may have a financial need to spend your Roth distributions after you die. For exam...
by iflyjetzzz
Wed May 29, 2019 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

willthrill81 wrote:
Wed May 29, 2019 6:42 pm
Also, you might want to consider the consequences of your heirs later believing that you're trying to 'rule them from the grave' would be and how that fits into your overall goal.
Well, that's exactly my intent. I want to ensure that my lifetime of savings isn't squandered in a few short years.
by iflyjetzzz
Wed May 29, 2019 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

But the totals are not really enough money to be worried about this. From your comments about multi generational wealth and skipping your grandchildren, I was expecting about 2 orders of magnitude greater networth. At the very least, well into federal estate tax territory. At your level, the costs ...
by iflyjetzzz
Wed May 29, 2019 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

Quick note - thanks for all of the replies thus far. Many angles that I haven't fully fleshed out are being discussed here. And Alan's post on new legislation tells me that I need to wait until the dust settles on that legislation before seeking any lawyer to set up trusts.
by iflyjetzzz
Wed May 29, 2019 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

I am sorry that just isn't 3 generational trust with expensive lawyers kind of money. The only way to get a 3 gen trust run how you want is to pay someone to do it and 500k isn't enough to convince a bank/trust company from what I have seen. That is one of my concerns - too small of an amount for s...
by iflyjetzzz
Wed May 29, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

If you're willing for a potentially large amount of your estate to go to your alma mater, why are you handcuffing your children (and possible next generation) in terms of RMD only? Are you concerned they will be irresponsible or wasteful with the inheritance? What if they, or one of their children ...
by iflyjetzzz
Wed May 29, 2019 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

With respect to the Roth IRA or any retirement plan, are you aware of the comprehensive retirement bills now moving through Congress with very high bi partisan support? The details of those bills cannot be discussed here as they are pending legislation, however you can review the possible extent to...
by iflyjetzzz
Wed May 29, 2019 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

Doesn't having a Roth IRA placed into a trust upon death negate the Roth? That would be counterproductive, as the goal is to have the money grow tax free for two generations. At this point, no estate tax implications. Current estate value (doesn't include wife's assets) is ~$1.7M ... $1.2M in Roth a...
by iflyjetzzz
Wed May 29, 2019 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2399

Estate planning - can I require only RMDs for inherited Roth IRA?

I have a large Roth IRA balance that I will split between two children. I want to require RMDs rather than lump sum or 5 year liquidation. Is there a way to structure this so that my children are required to take only the minimum RMD annually? In addition, I have a decent amount saved outside of ret...
by iflyjetzzz
Wed May 29, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: “Upsizing” are we foolish?
Replies: 80
Views: 10861

Re: “Upsizing” are we foolish?

Do it. This is a no-brainer. You have more than $3M saved; it's time to loosen the purse strings a little bit. My wife and had a new home built; completed March 2018. $570K for 2630SF single story; we sold our old two story home for $360K; it was ~3000SF. Wife is now 50; I'm 58. We have a bit less s...
by iflyjetzzz
Tue May 14, 2019 7:25 am
Forum: Personal Investments
Topic: refusing inheritance
Replies: 45
Views: 5296

Re: refusing inheritance

If your parents don't want to change their will/trust and refusing the inheritance creates negative results, you can gift your sibling $15k/yr without tax consequences. If you're married, both you and your spouse can gift $15k/yr ($30k/yr total) to your sibling. Reference: https://www.efile.com/tax/...
by iflyjetzzz
Mon Mar 11, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Rate
Replies: 97
Views: 7976

Re: Savings Rate

[My effective tax rate is substantially lower than I ever thought possible. We decided my wife should be a SAHM last year with one child. This year we will have 2 children. 2018 $28.3 per hour ($30.61 this year) I am a salary (58.4k)non-exempt from OT Gross: 84k (89k+ this year) AGI: 54k Taxable: 3...
by iflyjetzzz
Sat Mar 09, 2019 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Rate
Replies: 97
Views: 7976

Re: Savings Rate

I've never chosen a specific percentage of income. Most years it's probably been well over 40% of gross income. As to financial setbacks, I've been laid off twice (airline pilot; total of ~9 years laid off) and lost my pilot medical certificate for 3 years due to cancer. Those events ate into saving...
by iflyjetzzz
Sat Mar 09, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: [2018 tax return - How does it compare to previous years?]
Replies: 441
Views: 35351

Re: [2018 tax return - How does it compare to previous years?]

Our 2018 1040 line 10 shows a taxable income of ~$550K. Thanks in part to getting rid of the Pease and PEP phaseouts, our taxes were ~$25K lower than what they would have been under the previous tax code. We live in a low tax state (NV) so we weren't hurt by SALT limitations. For anyone thinking we ...
by iflyjetzzz
Sat Mar 09, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: 1099R tax problem
Replies: 3
Views: 554

Re: 1099R tax problem

Here's the response I received for reporting their software error: (amazing that a tax support person doesn't understand taxes) Hello, Thank you for contacting customer support. If you feel that your 1099-R is incorrect you will want to contact the issuer and receive a corrected form. 1099-R forms a...
by iflyjetzzz
Fri Mar 08, 2019 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: 1099R tax problem
Replies: 3
Views: 554

Re: 1099R tax problem

Yes, there is a problem here, probably an entry error. The 1099R is coded correctly for the transaction you indicated. The box 2a amount should be picked up as taxable by the tax program and it should also accept the Box 5 amount, and it apparently did not. You might go back and re enter the 1099R ...
by iflyjetzzz
Fri Mar 08, 2019 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: 1099R tax problem
Replies: 3
Views: 554

1099R tax problem

I'm hoping that some Bogleheads that are savvy on taxes will be able to assist me on this one. I opted to do a Roth conversion of ~$138,000 (taxable amount) in my 401K. In previous years, I had gotten both code E and G on my 1099Rs (one 1099R for each code). I had code E preloaded on the freetaxusa ...
by iflyjetzzz
Fri Dec 08, 2017 9:58 pm
Forum: Personal Consumer Issues
Topic: Save all this money, what do you splurge on?
Replies: 193
Views: 21322

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

Our big splurge is the house we're building. Base price $450K, added $125K in upgrades. Will build a really nice pool and landscaping - plan on spending another $150K or so. I realize we won't recover the money we're sinking into the house but we don't plan on moving for the next decade. I plan on s...
by iflyjetzzz
Fri Dec 08, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage as percentage of take-home pay
Replies: 79
Views: 11829

Re: Mortgage as percentage of take-home pay

The OP's question was looking for a meaningful number. He's trying to make an intelligent decision. You're house poor peers didn't. Since the OP is trying to ensure he doesn't do the same thing, I don't think advising him he needs to wait until he has enough assets to pay it off is appropriate for ...
by iflyjetzzz
Fri Dec 08, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions: how far should I go in 2017?
Replies: 15
Views: 1907

Re: Roth conversions: how far should I go in 2017?

Church Lady, my wife and I are in similar circumstances. We had a short dip in taxable income after we retired from the military and I used that time to convert most of our TIRAs and 401ks to Roths. Due to current salaries plus two military pensions, we are currently subject to Pease and PEP surtaxe...
by iflyjetzzz
Fri Dec 08, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Paying taxes with credit card?
Replies: 45
Views: 5293

Re: Paying taxes with credit card?

Living in a state without an income tax sounds good on paper, but you're probably getting charged more in property taxes and/or sales taxes. :wink: :mrgreen: ~$2.5K/yr on a house that appraises a bit north of $350K. 8.25% sales tax. I looked at all of that before we moved. I ruled out TX due to hig...
by iflyjetzzz
Fri Dec 08, 2017 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Acts of war term insurance?
Replies: 17
Views: 1974

Re: Acts of war term insurance?

The major mutual life insurance companies I referenced provide excellent value. I would not assume any of them would misrepresent what coverage they offer. Their corporate reputations precede them. Why would you call into question there credibility? Make a phone call or email and ask for a pdf of s...
by iflyjetzzz
Fri Dec 08, 2017 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Quit jobs to gain lower EFC [Expected Family Contribution]
Replies: 111
Views: 10974

Re: Quit jobs to gain lower EFC

I had no idea that divorce would lead to a lower EFC but, to answer your question, not in consideration for me. I love my wife, but not my job. And no, I'm not trying to "game" the system here. As I said in my original post, there is an ethical dilemma aspect to this consideration around the value ...
by iflyjetzzz
Fri Dec 08, 2017 4:33 am
Forum: Personal Finance (Not Investing)
Topic: Quit jobs to gain lower EFC [Expected Family Contribution]
Replies: 111
Views: 10974

Re: Quit jobs to gain lower EFC

I'll toss in a curveball. Ever consider getting divorced? Then have the person who earns the least have custody of the children with very little child support from the other; no alimony. Since you're trying to game the system, that may be a 'better' solution.
by iflyjetzzz
Fri Dec 08, 2017 4:26 am
Forum: Personal Finance (Not Investing)
Topic: Paying taxes with credit card?
Replies: 45
Views: 5293

Re: Paying taxes with credit card?

Of course it's too much trouble for most people to buy tax software and do their taxes. I'm going to buy tax software, do my own taxes, and buy dog food anyways, so I might as well get enough bonus to buy myself some sushi lunches, too. For some people it is too much trouble to open a savings accou...
by iflyjetzzz
Fri Dec 08, 2017 4:18 am
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 7425

Re: What do Bogleheads say when they don't want to spend money?

I don’t fully understand the question. When I don’t want to buy something I say: “I don’t want to buy that”. :sharebeer I don't need to justify not buying anything and I don't care what others think of my spending patterns. I buy what I find has value to me and don't buy what doesn't have value to ...
by iflyjetzzz
Fri Dec 08, 2017 4:13 am
Forum: Personal Finance (Not Investing)
Topic: Paying taxes with credit card?
Replies: 45
Views: 5293

Re: Paying taxes with credit card?

I've done this in the distant past to meet credit card spends. Not anymore; I don't chase credit card points. My time is better spent working another hour at work, not chasing a few pennies of credit card points.
by iflyjetzzz
Fri Dec 08, 2017 4:03 am
Forum: Personal Finance (Not Investing)
Topic: A good friend has nearly $1M in BitCoin what do I tell him?
Replies: 149
Views: 19859

Re: A good friend has nearly $1M in BitCoin what do I tell him?

The REAL effects of scarcity and supply and demand haven't even kicked in yet. This is the one opportunity where people have had the chance to get in before wall street. IPO's aren't available to small investors. Wall Street isn't even here yet. But the herd is coming... ETFs will most likely be av...
by iflyjetzzz
Fri Dec 08, 2017 3:30 am
Forum: Personal Finance (Not Investing)
Topic: Acts of war term insurance?
Replies: 17
Views: 1974

Re: Acts of war term insurance?

Okay thank you. I was hoping there was some kind of tool to simply check all policies against each other but it appears a magnifying glass and fine toothed comb are what's needed. :) That list sounds like a good starting point, thanks. You're welcome. Yes, you're looking for life insurance that doe...
by iflyjetzzz
Fri Dec 08, 2017 1:47 am
Forum: Personal Finance (Not Investing)
Topic: Acts of war term insurance?
Replies: 17
Views: 1974

Re: Acts of war term insurance?

See plans that don't have this exclusion. That doesn't make any since even on the third reading. Actually, it makes perfect sense to me. There are several life insurance companies that are tailored for military members. I remember picking up a couple of smallish additional term life insurance polic...
by iflyjetzzz
Fri Dec 08, 2017 1:27 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage as percentage of take-home pay
Replies: 79
Views: 11829

Re: Mortgage as percentage of take-home pay

We're not normal, but here are our numbers. Wife is in her late 40s; I'm mid/late 50s. Current: 30 year VA (no money down) mortgage, 3.625%. Bought the home in 2014. Current: PITI is ~7% of combined take home pay (gross minus FICA + taxes) We bought our house ~3 years ago and my wife didn't feel com...
by iflyjetzzz
Tue Dec 05, 2017 6:52 am
Forum: Personal Finance (Not Investing)
Topic: Any reason to keep my Life Insurance (FEGLI)?
Replies: 17
Views: 2870

Re: Any reason to keep my Life Insurance (FEGLI)?

It's too bad you can't just buy "insurance insurance" that, after initial underwriting, would enable you to buy term insurance within a certain time period without another medical exam before issuance of the term policy. That should actually be reasonably affordable if anyone would issue it, since ...
by iflyjetzzz
Tue Dec 05, 2017 3:30 am
Forum: Personal Finance (Not Investing)
Topic: Any reason to keep my Life Insurance (FEGLI)?
Replies: 17
Views: 2870

Re: Any reason to keep my Life Insurance (FEGLI)?

Given your current situation, there is zero reason for you to have life insurance. I haven't had life insurance for more than a decade (other than my company benefit) because if I die, there will be no one who will be in a situation requiring insurance. My net worth is more than enough to cover anyt...
by iflyjetzzz
Thu Dec 22, 2016 2:29 am
Forum: Investing - Theory, News & General
Topic: Should everyone use a backdoor Roth?
Replies: 16
Views: 3044

Re: Should everyone use a backdoor Roth?

While a backdoor Roth makes no sense, Roth CONVERSIONS might make sense if he retires in early 2017 and lives off of taxable savings for two or three years prior to age 70... There is no age limit on Roth conversions; you can convert tIRA to Roth IRA above age 70. The original poster may want to co...
by iflyjetzzz
Thu Apr 07, 2016 11:47 am
Forum: Investing - Theory, News & General
Topic: Baby Boomers Doubling in next 20 yrs predictions ?
Replies: 50
Views: 9166

Re: Baby Boomers Doubling in next 20 yrs predictions ?

What is true is that there has been a tendency to spread plants. Eg Eastern pollen producing plants into places like Arizona. AZ used to be heaven for hayfever sufferers, but not now with all the irrigated gardens etc. So human action has definitely worsened the pollen problem. Since those who don'...
by iflyjetzzz
Thu Apr 07, 2016 1:14 am
Forum: Personal Finance (Not Investing)
Topic: [Pay off Student Loan in 2016 or invest?]
Replies: 11
Views: 1247

Re: [Pay off Student Loan in 2016 or invest?]

What's your interest rate? Unless it's really low (like 2%) I'm going to be paying back debt before investing in a taxable account. This. I don't know interest is accrued on student loans but I'd want to kill debt as early in my life as possible. Until we bought a house in 2014 we hadn't had any de...
by iflyjetzzz
Thu Apr 07, 2016 1:05 am
Forum: Investing - Theory, News & General
Topic: Baby Boomers Doubling in next 20 yrs predictions ?
Replies: 50
Views: 9166

Re: Baby Boomers Doubling in next 20 yrs predictions ?

I read "The Coming Generational Storm" when it came out over a decade ago. I recall it being pretty doom and gloom. Blurb from Amazon: "In 2030, as 77 million baby boomers hobble into old age, walkers will outnumber strollers; there will be twice as many retirees as there are today but only 18 perc...
by iflyjetzzz
Thu Apr 07, 2016 12:32 am
Forum: Investing - Theory, News & General
Topic: Are you planning to leave an "estate"?
Replies: 74
Views: 10548

Re: Are you planning to leave an "estate"?

Between our military retirements (both of us are retired military) and SS, we will be drawing ~$200K/yr in today's dollars when we retire. That's far in excess of what we spend every year so every dime we have saved until now and in the future will be inherited by others. I simply do not see us ever...
by iflyjetzzz
Thu Apr 07, 2016 12:03 am
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 178
Views: 52535

Re: Interactive Brokers (Best Kept Secret)

IB's a great broker but it does have some drawbacks. I don't think it's particularly suited for most Bogleheads. I have >$100K in my account so I don't have to worry about the $10/mo inactivity fee. I am able to earn money on my stocks by being enrolled in IB's Stock Yield Enhancement Program. Short...
by iflyjetzzz
Wed Apr 06, 2016 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 10202

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

This is not correct. The rule is often stated as, "if your income is at least X, then up to 50% of your SS benefits can be taxable, and if it is at least Y, then up to 85% can be taxable." However, what actually happens is that once your income reaches X, every additional $1 of income makes 50 cent...
by iflyjetzzz
Wed Apr 06, 2016 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 10202

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

Just for completeness. Go $1 over 4X the federal poverty level and the entire ACA subsidy is due and payable. Unfortunately, I'm afraid there are numerous examples of how more income can generate even more in "taxes". SS becomes taxable at certain AGI thresholds; the marginal rate at those points a...
by iflyjetzzz
Wed Apr 06, 2016 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 10202

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

:oops: Thank you - Corrected above. No worries; better for you to raise questions than be silent. This thread is a great discussion. Until this thread, I didn't bother calculating how much our income would be in retirement. Now that I've made a minimum estimate of our retirement income, it has simp...
by iflyjetzzz
Wed Apr 06, 2016 1:14 am
Forum: Personal Finance (Not Investing)
Topic: Why did my expected S. S. Benefits Only Increase a Dollar
Replies: 11
Views: 1679

Re: Why did my expected S. S. Benefits Only Increase a Dollar

I suspect $2660 a month at FRA of 66 is pretty close to the maximum for when you reach your FRA in 4 years. Maximum Social Security Benefit: 2015 2016 Worker Retiring at FRA $2,663/mo. $2,639/mo. This. The OP's already very close to the maximum monthly SS benefit. At this point, the OP will have to...
by iflyjetzzz
Wed Apr 06, 2016 12:57 am
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 10202

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

I will always be in at least the 33% federal bracket and with state, it is about 40%. I'm sorry to bring this up, but the discussion assumes you will actually be in the 33% + 7% tax brackets in retirement. That's not impossible, but it certainly would be unusual. In today's dollars, your taxable in...
by iflyjetzzz
Tue Apr 05, 2016 9:54 am
Forum: Investing - Theory, News & General
Topic: Which individual countries hold the most promise for future investment gains?
Replies: 86
Views: 8770

Re: Which individual countries hold the most promise for future investment gains?

I agree with everything you wrote, but then you finished with an idea for investments: The massive investment needed to bring Cuba's infrastructure into the modern world will make a lot of people a lot of money. This is compelling. Cuba could become a world leader in tropical disease research, too....
by iflyjetzzz
Tue Apr 05, 2016 6:31 am
Forum: Investing - Theory, News & General
Topic: Which individual countries hold the most promise for future investment gains?
Replies: 86
Views: 8770

Re: Which individual countries hold the most promise for future investment gains?

As for Cuba, I have only two words deaths: Castro and Castro. It will not remain the same and can only get better. 1) You can't directly invest in Cuba so putting Cuba on the list has zero practical application. 2) You're assuming that going from a stable Cuba under the Castros to the next governme...
by iflyjetzzz
Sun Apr 03, 2016 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Taxes
Replies: 8
Views: 1154

Re: Roth Taxes

BigJohn wrote:Don't know if it applies to the OP but just an FYI, the safe harbor rules require 110% of your 2015 tax if your AGI is over $150K.
Thanks for posting that! I was unaware of the 110% requirement for higher earners.
by iflyjetzzz
Sun Apr 03, 2016 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: back door Roth with existing rollover IRA
Replies: 15
Views: 1513

Re: back door Roth with existing rollover IRA

It makes perfect sense. That plan looks good to me.
by iflyjetzzz
Sun Apr 03, 2016 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 10202

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

I'm not familiar with them, but I don't think a bookkeeping service is the place to go for advice on Roth conversions. I also don't think that the fact that a lawyer in Las Vegas or someone in Las Vegas who's not a lawyer places an advertisement somewhere makes him/her the place to go for advice on...