Search found 9692 matches

by celia
Mon Nov 18, 2019 2:36 am
Forum: Personal Consumer Issues
Topic: morality, kids, tuition etc
Replies: 68
Views: 3955

Re: morality, kids, tuition etc

I have been mulling this over for some time. I am thinking of offering my Grade 11 kid a choice - go to a UC with all tuition paid OR - go to 2 years of community college and then transfer to UC AND I will deposit $20K when you graduate ($10K per year of CC) I would only offer her the option if she...
by celia
Sat Nov 16, 2019 8:59 pm
Forum: Personal Consumer Issues
Topic: Tablet for 2 year old for long car trip
Replies: 27
Views: 1340

Re: Tablet for 2 year old for long car trip

Putting a computer in front of your kid during a road trip helps deprive them of the views of new things they don't see at home and conversation about what is outside. Frequent interactive conversations with the little one are necessary for building his/her vocabulary.
by celia
Sat Nov 16, 2019 4:07 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 78
Views: 3938

Re: Tax Deferred : Taxable : Tax Free

If the market really crashes and my IRA of $1MM drops down to $20k, I may convert them all and cross into a higher tax bracket and an IRMAA cliff. If Dec. 2018 repeats, it will be a difficult decision. A 98% drop (to $20K) is an easy decision. If your tax-deferred dropped in value to $20K and you t...
by celia
Sat Nov 16, 2019 12:53 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 78
Views: 3938

Re: Tax Deferred : Taxable : Tax Free

I also took advantage of the 2008 market crash to convert a lot of stock funds at a bargain rate for taxes - I don't get this part. Why does the market condition matter at all? Don't you decide how much to convert to Roth? Since tax-deferred has a zero tax basis, only the absolute dollar amount mat...
by celia
Sat Nov 16, 2019 8:04 am
Forum: Personal Investments
Topic: Why am I taking so much risk?
Replies: 44
Views: 4824

Re: Why am I taking so much risk?

It sounds like you need to change your Asset Allocation to something more conservative. Instead of 50/50, try 45/55. After a month, if you still can't sleep well at night (ie, worrying about money), then change it to 40/60. If you still can't sleep well at night after another month, turn it down to ...
by celia
Sat Nov 16, 2019 7:55 am
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 48
Views: 7233

Re: How much is a Roth worth?

The most common comparison is a 1. Roth (not deductible - tax free growth - tax free withdrawal- worth the most) 2. Traditional (tax deductible now - tax free growth - taxable later - worth less) 3. Taxable (taxed on dividends, long term, and short term gains - worth the least) This is backwards! T...
by celia
Sat Nov 16, 2019 5:39 am
Forum: Personal Investments
Topic: Planning for sister-in-law's future after losing her father.
Replies: 15
Views: 1748

Re: Planning for sister-in-law's future after losing her father.

Big Picture: - Lives paycheck to paycheck, take home roughly $1200 a month Rough Plan: - Open HYSA with 2 years of expenses Can she live comfortably on $1200 a month? If so, what would her 2 years of expenses be for? While this is being set up, an estate plan for her should be generated. When she d...
by celia
Sat Nov 16, 2019 1:44 am
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 78
Views: 3938

Re: Tax Deferred : Taxable : Tax Free

I haven't read your 'Roth conversion posts', but I'm assuming that you must be filling up at least the standard deduction and 10% brackets, and likely some of the 12% bracket, with Social Security benefits at this point. I don't see any other way that this approach would come out ahead over one's l...
by celia
Sat Nov 16, 2019 1:10 am
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 78
Views: 3938

Re: Tax Deferred : Taxable : Tax Free

3:43: 54 Yep, that's correct. The majority of our assets are now in Roth. I'm a big believer in Roth conversions as those who read my Roth conversion posts know. I followed the advice I give others in mapping out our income for each year until we hit 72 before we even retired. Basically I did enough...
by celia
Fri Nov 15, 2019 4:30 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe's Retirement book is #1 in WSJ listing
Replies: 13
Views: 2162

Re: Larry Swedroe's Retirement book is #1 in WSJ listing

If you order it after clicking on the Boglehead's link at the top of this page, Bogleheads will also get an Amazon donation for it. Larry's book, "Your Complete Guide to a Successful and Secure Retirement" was selected in first place in the Wall Street Journal's list of best books on retirement and...
by celia
Fri Nov 15, 2019 4:23 pm
Forum: Personal Investments
Topic: I need to rebalance, but hate paying capital gains tax.
Replies: 39
Views: 2997

Re: I need to rebalance, but hate paying capital gains tax.

If you are still contributing to any accounts, those contributions could go 100% to whatever you are under-allocated. Your dividends can also go there. Many/most funds will be paying dividends in December. In addition, you can re-allocate in any retirement accounts/ IRAs without incurring capital ga...
by celia
Fri Nov 15, 2019 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: No Kids Yet - Beneficaries - Who are yours?
Replies: 29
Views: 1901

Re: No Kids Yet - Beneficaries - Who are yours?

The simplest thing for now is to list each other as primary beneficiary and charities as secondary. The odds you both die together are slim. You pretty much would have to be traveling together when an accident occurs. Even then, if it can be determined that one of you lived a minute longer than the...
by celia
Fri Nov 15, 2019 3:18 pm
Forum: Personal Investments
Topic: Separate $ in...retirement??
Replies: 38
Views: 3510

Re: Separate $ in...retirement??

You already have decades of operating with his, hers and ours. I am actually surprised that you planned to move away from this in retirement after establishing that approach. It depends on what the agreement is for his, hers, and ours. In our case, our separate accounts are a fixed amount of money ...
by celia
Fri Nov 15, 2019 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: No Kids Yet - Beneficaries - Who are yours?
Replies: 29
Views: 1901

Re: No Kids Yet - Beneficaries - Who are yours?

The simplest thing for now is to list each other as primary beneficiary and charities as secondary. The odds you both die together are slim. You pretty much would have to be traveling together when an accident occurs. Even then, if it can be determined that one of you lived a minute longer than the ...
by celia
Fri Nov 15, 2019 2:25 pm
Forum: Personal Investments
Topic: Separate $ in...retirement??
Replies: 38
Views: 3510

Re: Separate $ in...retirement??

We have, "his", "hers", and "ours" accounts, but our IRAs and retirement accounts are considered "joint" (mentally) because the money that funded them was withheld from our wages which was considered joint at the time. Since you've only been married for 20 years, maybe you need to consider how much ...
by celia
Fri Nov 15, 2019 2:04 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 38
Views: 2120

Re: Letting retirement funds grow, without further contribution

Let's also assume I've calculated income in retirement is about $48k/year. The $1.5M should be able to fund that income. In 25 years, today's $48K will have the spending power of today's $20K. Look up the cost of a loaf of bread, a gallon of gas, and the cost of toilet paper over the last 25 years....
by celia
Thu Nov 14, 2019 3:54 pm
Forum: Personal Consumer Issues
Topic: Los Angeles to San Francisco Roadtrip
Replies: 29
Views: 1982

Re: Los Angeles to San Francisco Roadtrip

Note that (we did when we made a car trip) if you drive south from San Francisco along the Pacific coast, you are driving closer to the edge of the highway - . My wife an I both have trouble with heights - so we chose to drive north along the coast so we were driving further from the edge. A lot of...
by celia
Thu Nov 14, 2019 6:35 am
Forum: Personal Consumer Issues
Topic: Los Angeles to San Francisco Roadtrip
Replies: 29
Views: 1982

Re: Los Angeles to San Francisco Roadtrip

I second the idea of going in and out of San Francisco if your dates are firm. I’m not sure about the traffic on Hwy 1 (Pacific Coast Hwy) but the 5 and 99 through the middle of the state will be a parking lot on Wed before Thanksgiving and Sunday Dec 1. It will seem like half the people from SF go ...
by celia
Thu Nov 14, 2019 12:23 am
Forum: Personal Finance (Not Investing)
Topic: Options for great aunt ($0 net worth, low income, retired)
Replies: 23
Views: 3201

Re: Options for great aunt ($0 net worth, low income, retired)

I was about to suggest Medicaid and Food Stamps but see that you beat me to it. If she gets on those programs, she has to understand the rules, such as likely yearly reporting of all income and assets. You need to understand that there can be no more cash gifts to her. You can pay for an item or ser...
by celia
Wed Nov 13, 2019 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing a bad inherited tIRA situation
Replies: 8
Views: 730

Re: Fixing a bad inherited tIRA situation

Is there a problem knowing who the IRA will go to? Or what is your question? The questions include how to minimize the tax hit given other circumstances related to income, and how to calculate just what the RMD is supposed to be for 2018 and 2019. (Specifically, it's not clear to me if the 2018 RMD...
by celia
Wed Nov 13, 2019 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing a bad inherited tIRA situation
Replies: 8
Views: 730

Re: Fixing a bad inherited tIRA situation

What do you need an accountant for? I see no need for one. Is there a problem knowing who the IRA will go to? Or what is your question? So my question, as clearly as I can state it, is... aaargh, what's the least-worst way out of this? Looks like all D needs to do is take out the missing RMDs includ...
by celia
Wed Nov 13, 2019 12:53 pm
Forum: Personal Investments
Topic: To Roth or not to Roth, that is the question
Replies: 8
Views: 1144

Re: To Roth or not to Roth, that is the question

I did not mention it but, I did consider your last suggestion and doing a large Roth conversion instead for the overall benefits that you mentioned, but I really am struggling with the large tax bite. I realize that the taxman cometh eventually so I am working on the benefits of taking the tax hit ...
by celia
Wed Nov 13, 2019 12:22 pm
Forum: Personal Investments
Topic: SIL retirement puzzle
Replies: 49
Views: 3464

Re: SIL retirement puzzle

Unfortunately, I'll never convince her to rent...her parents drummed into their kids that "renting was throwing away money". You could probably say that about most of her other expenses too! her employer has allowed her to continue medical benefits for $76 per month. she worked in health care, bene...
by celia
Wed Nov 13, 2019 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Retiring in early 2020, want to stuff preferred tax vehicles?
Replies: 15
Views: 956

Re: Retiring in early 2020, want to stuff preferred tax vehicles?

I have ample cash flow from sources other than my job, for my income needs, so is there any reason I cannot just devote my entire salary to pre-tax contributions? Will this mess with payroll income taxes somehow? I do have payroll deductions for health insurance premiums to pay as well. I tried to ...
by celia
Wed Nov 13, 2019 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Grandparents helping with college
Replies: 24
Views: 1862

Re: Grandparents helping with college

Seems to me that you have 3 options to help pay for college: Write a check directly to the college. Write a check as a gift to your grandchild. Write a check as a gift to your grandchild’s parent(s). Or some combination thereof. or have the student take out students loans and pay them off when the ...
by celia
Wed Nov 13, 2019 3:29 am
Forum: Personal Investments
Topic: FIRE Roth Ladder Tax Question
Replies: 13
Views: 1164

Re: FIRE Roth Ladder Tax Question

kaneohe wrote:
Tue Nov 12, 2019 9:21 pm
But won't the conversion be available after 5 yrs and only the earnings part will have a problem until 59.5 appears?
You're right. I forgot about that. Thanks for the reminder.
by celia
Wed Nov 13, 2019 3:19 am
Forum: Personal Investments
Topic: SIL retirement puzzle
Replies: 49
Views: 3464

Re: SIL retirement puzzle

The living expenses of $4,000 a month seem quite high if she is Single and living with relatives for free. Does she have a budget? Can she get her expenses down to $3,000 a month?
by celia
Wed Nov 13, 2019 2:40 am
Forum: Personal Investments
Topic: To Roth or not to Roth, that is the question
Replies: 8
Views: 1144

Re: To Roth or not to Roth, that is the question

I just turned 67 and have an Inherited IRA, as well as a tIRA and a Roth. I am taking a mandatory RMD on the inherited now as required and am forecasting what my MAGI will look like at 70-1/2 and beyond, with SS calculations, dividends and interest. That's a good way to look at this situation! I ha...
by celia
Tue Nov 12, 2019 5:08 pm
Forum: Personal Investments
Topic: inheritance
Replies: 25
Views: 3172

Re: inheritance

1. Consider gifting some of the money to your kids/grandkids now, rather then focusing on growing it for future inheritance. Contributing to your kids’ retirement accounts or your grandchildren’s college funds lets them benefit from the money sooner, rather than later. An easy way to get some of th...
by celia
Tue Nov 12, 2019 4:45 pm
Forum: Personal Investments
Topic: FIRE Roth Ladder Tax Question
Replies: 13
Views: 1164

Re: FIRE Roth Ladder Tax Question

If the premise behind the FIRE Roth conversion ladder (well before 59.5) is that you convert what you want 5 years from now each year and in the meantime you live off taxable brokerage sources (can't imagine people holding that much cash in high yield savings),...<cut>...I currently have $500k in t...
by celia
Tue Nov 12, 2019 4:21 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion Calculation
Replies: 17
Views: 1383

Re: Roth Conversion Calculation

I start by what I want to accomplish. If that is not paying the Medicare surcharge , then your gross income can't be greater than $85,000 this year. Then subtract any income you know of (dividend, interest, SS, pension). The remaining amount, if any, is what you would be able to convert to a Roth. ...
by celia
Tue Nov 12, 2019 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Selling house with no commissions,fair deal?
Replies: 38
Views: 1735

Re: Selling house with no commissions,fair deal?

After speaking to several realtors and doing the math,selling as is or spending money to fix it up and sell for a higher price,it comes out to a net of about 765,000.I am trying to achieve that same result by selling it to the broker who is co-signing for his daughter.His daughter owns a house in O...
by celia
Tue Nov 12, 2019 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Selling house with no commissions,fair deal?
Replies: 38
Views: 1735

Re: Selling house with no commissions,fair deal?

I am avoiding the main part of your question. You don't say anything about who the heirs are, but if you are the sole heir of the estate, you can do what you want. But if there are other heirs, your obligation is to maximum their inheritance, not give favors to other people.
by celia
Mon Nov 11, 2019 8:40 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion Calculation
Replies: 17
Views: 1383

Re: Roth Conversion Calculation

Are you also looking a tif the conversion moves you into IRMAA status, and how close you are to the next ledge? I am sorry… what is a tif? Neil has a slight typo and just means "at if" (or "to see if"). He is referring to this easy-to-read publication to see if you will have a Medicare surcharge (a...
by celia
Mon Nov 11, 2019 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: State Estate Tax Consideration
Replies: 16
Views: 970

Re: State Estate Tax Consideration

One way of thinking about this, if you really don't want to move, is that, when you die, you now have another heir: the state of Taxachusetts. List all your heirs and this new one along with how much money each would get, if you died now. Would that be ok with you? If you are leaving money to charit...
by celia
Mon Nov 11, 2019 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Homebuying in Los Angeles - Advice Needed
Replies: 65
Views: 5244

Re: Homebuying in Los Angeles - Advice Needed

Sure, you can afford the house and you will get all your money back when you sell. We bought in SoCal 40+ years ago and our house value is more than every dollar we ever put into it (mortgage, interest, adding on/remodeling, taxes, insurance, maintenance). That's not to say the future will give you ...
by celia
Mon Nov 11, 2019 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating back taxes?
Replies: 5
Views: 367

Re: Estimating back taxes?

Since you already have a CPA, what info does she/he have on the both of you? past tax returns? forms from companies that report your income to the IRS? records for your business?

Who has your business records? Even if you trusted them to your wife, you should try to get them back.
by celia
Sun Nov 10, 2019 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy the family cottage?
Replies: 90
Views: 7256

Re: Should I buy the family cottage?

Surely, your wife understands the family dynamics. What does SHE think about the possible purchase?

Would you be using jointly-owned money to buy it?
by celia
Sun Nov 10, 2019 6:19 pm
Forum: Investing - Theory, News & General
Topic: Wait for Social Security - breakeven returns
Replies: 107
Views: 9832

Re: Wait for Social Security - breakeven returns

. . .I live on (spend) the government's money, while keeping my own money in my portfolio. This is exactly the opposite of the advice I frequently hear to spend down one's portfolio while waiting to claim SS, thereby maxing out the putative SS benefit. Having my money in my brokerage account, to me...
by celia
Sun Nov 10, 2019 11:19 am
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 192
Views: 14860

Re: Spend It All vs. Leave $$ for the Kids

Choose a SWR so if you are in the worst 10% of historical outcomes, you spend it all. And if you experience the average historical outcome, you’ll leave half behind. The problem with this is that probably the worst 10% of historical outcomes is having NO INCOME at all in your final years, except fo...
by celia
Sun Nov 10, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Settling a disputed estate, cannot locate one survivor
Replies: 20
Views: 1901

Re: Settling a disputed estate, cannot locate one survivor

If your friend prevails against the known child, I think that would also cover the other child.
by celia
Sun Nov 10, 2019 4:58 am
Forum: Personal Consumer Issues
Topic: House for Sale--How Much to Tell Potential Buyer
Replies: 35
Views: 2826

Re: House for Sale--How Much to Tell Potential Buyer

As an HOA Board member, you should be representing what the majority of your owners want. If many homeowners are bothered by the noise, that seems like a problem you should be addressing, on their behalf. Maybe you could buy the landscape company quieter equipment, plant some shrubbery to absorb som...
by celia
Sat Nov 09, 2019 8:24 pm
Forum: Personal Consumer Issues
Topic: What is this sound in the house?
Replies: 28
Views: 3216

Re: What is this sound in the house?

Chimney, you say???

We had a bird fly into our chimney earlier this year but haven't done anything about it yet. At a minimum, we need a chimney cap to keep the birds from entering. Here's what I posted:
viewtopic.php?f=11&t=280901&p=4539875#p4539875
by celia
Sat Nov 09, 2019 1:04 pm
Forum: Personal Investments
Topic: Decision: 0% tax on capital gains or Roth Conversion
Replies: 9
Views: 617

Re: Decision: 0% tax on capital gains or Roth Conversion

Why would you incur capital gains unnecessarily when you can allow them to accumulate and get a tax-free step-up of value at death? You need the room in each tax bracket for Roth conversions instead. If you have not yet done so, you should build a chart to estimate your expected income each year fro...
by celia
Fri Nov 08, 2019 9:56 pm
Forum: Personal Investments
Topic: divorce, splitting assets?
Replies: 14
Views: 2376

Re: divorce, splitting assets?

A divorce attorney would know what the legal ways are to get the info you request.
by celia
Fri Nov 08, 2019 9:41 pm
Forum: Personal Investments
Topic: Inherited IRA Strategy
Replies: 13
Views: 1107

Re: Inherited IRA Strategy

It looks like I only have two options: 1. Take a lump distribution 2. Take Required Minimum Distributions 3. Roll the 403b to an Inherited Traditional IRA and take out more than the Required Minimum Distributions each year but less than emptying out the account. The amounts can vary each year as lo...
by celia
Fri Nov 08, 2019 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy the family cottage?
Replies: 90
Views: 7256

Re: Should I buy the family cottage?

I see this as a family issue, rather than a financial issue. Sure, if you were buying it from a co-worker or friend, you could make a lot of money by selling it after a few years without having any hard feelings. But this is family. Your dad got it for a good deal, instead of his siblings. Sure, yo...
by celia
Fri Nov 08, 2019 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

Thanks. This kept bugging me until I found the reference. (I’m persistent when something means a lot to me.) I know this question will re-appear in a year or two and I won’t be able to locate this thread so I also edited the wiki pages for Roth IRA Conversions and Required Minimum Distributions with...
by celia
Fri Nov 08, 2019 2:41 am
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4560

Re: Best month to take RMDs?

No. IRS rule is that you must satisfy your RMD before converting to a Roth in a given calendar year. You can distribute your RMD into a taxable account in January, then do a Roth conversion, and take monthly withdrawals from the taxable account. Can you refer me to the exact IRS rule on that, for m...
by celia
Thu Nov 07, 2019 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: will or living revocable trust
Replies: 15
Views: 1197

Re: will or living revocable trust

If you live in a community property state, you likely would want all your non-retirement accounts and house owned jointly. This is because the asset gets a step-up in value at the time one of you dies. When the second person dies, the assets get another step up in value. But, while widowed (only on...