Search found 8694 matches

by celia
Wed Jan 16, 2019 5:08 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 80
Views: 2394

Re: Are mega back door Roth contributions considered contributions?

OP here again. I think I get it now. There are two ways to add money to a Roth IRA: Contributions (ie, what you deposit directly if you're under the income limits), or Conversions (Back Door and Mega Back Door). Contributions can be withdrawn at any time without tax or penalty. Conversion amounts c...
by celia
Wed Jan 16, 2019 2:46 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 80
Views: 2394

Re: Are mega back door Roth contributions considered contributions?

Why don't we look at IRS Pub 590-B . The discussion of Roth withdrawals starts on page 30, Additional Tax on Early Distributions . I suggest that anyone thinking of withdrawing before age 59.5, start their reading here. For the purposes of this question, page 33 has Ordering Rules for Distributions ...
by celia
Tue Jan 15, 2019 8:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 603

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Dave , I also forgot to add that if your volunteer center did their returns last year, you can pull them up and see if the Roth was previously reported as being older than 5 years. If that was TRUE last year, it is probably TRUE the following year. :oops: When I was a TaxAide volunteer, the compute...
by celia
Tue Jan 15, 2019 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Non-English speaking elderly care options
Replies: 12
Views: 682

Re: Non-English speaking elderly care options

One thing that frustrates us a bit is when we offer to take Grandma out, for instance to visit with my wife's Bulgarian friend's grandmother who she is friendly with, she is usually too lazy to take us up on it. We try to get her out of the house but it can be hard to motivate her, and it's true th...
by celia
Tue Jan 15, 2019 7:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Roth Tax Accounts Distribution Code Errors
Replies: 16
Views: 603

Re: Vanguard Roth Tax Accounts Distribution Code Errors

Dave, You're making a mountain out of a molehile. This is not a big deal and it is not the custodian's responsibility to verify everything. They are just using the generic code. So what? Can you imagine a taxpayer's problem who has been sitting in a waiting room for 3 hours to have me do their taxes...
by celia
Tue Jan 15, 2019 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: A co-worker makes more than me
Replies: 77
Views: 6438

Re: A co-worker makes more than me

Is it appropriate to discuss this topic with my manager? and what's the best way to bring it up? Instead of comparing yourself to a co-worker when talking to your manager, ask what YOU can do to increase your income instead. Try to have it nailed down with something that is measurable, such as more...
by celia
Tue Jan 15, 2019 5:46 pm
Forum: Personal Consumer Issues
Topic: School staff threatened to call social worker
Replies: 54
Views: 2701

Re: School staff threatened to call social worker

So you want to celebrate a "real" Chinese New Year instead of going to school? In the long term, which is more important to the child's growth or future? Will she be living in China some day? Is she learning to speak it? If you can focus on the educational part of the trip, that is different than go...
by celia
Tue Jan 15, 2019 12:17 am
Forum: Investing - Help with Personal Investments
Topic: 401(k) rollover check for 8 cents. Can I ignore it?
Replies: 8
Views: 780

Re: 401(k) rollover check for 8 cents. Can I ignore it?

If you decide to mail it in, it needs to be received within 60 days of the original withdrawal.

Also, know that the postage rates are going up in less than 2 weeks. You wouldn't want to waste an extra $0.05 to mail it in 3 weeks! :oops:
by celia
Mon Jan 14, 2019 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help - Taxable account a mess!
Replies: 31
Views: 3160

Re: Need Help - Taxable account a mess!

I think she needs around $75K in her taxable account as it can be her "Emergency Fund", especially with owning rental properties. (I hope she has insurance on those rentals, including liability insurance, in case she is sued.) She should consider contributing to a Roth IRA since her taxable income i...
by celia
Mon Jan 14, 2019 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 46
Views: 3251

Re: Choosing a trustee

Thank you, Celia. You just summarized much of my life! Gill, I've been there and done that.... FOR FREE, although at times it was a fulltime second job, especially if your trustee duties kick in while the person is still alive and needs medical care. In that case, you can't even control the timing ...
by celia
Mon Jan 14, 2019 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing a trustee
Replies: 46
Views: 3251

Re: Choosing a trustee

The cost with vanguard trustee fees is outrageous. Many better options. I’m surprised not to see a reasonable fee for service. :annoyed You are likely confusing "trustee" with "financial advisor". A trustee does A LOT MORE (and may not even be responsible for the investment decisions). The trustee ...
by celia
Mon Jan 14, 2019 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: After tax contribution OR roth conversion?
Replies: 31
Views: 815

Re: After tax contribution OR roth conversion?

He says he is trying to prepare for possible early retirement. If he is retiring at 61, I would agree with you. If he is retiring at 40, I would not have any concern about RMD's. I would be hesitant to recommend Roth conversions in the 22% bracket without more information. Even if he is retiring at...
by celia
Mon Jan 14, 2019 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: After tax contribution OR roth conversion?
Replies: 31
Views: 815

Re: After tax contribution OR roth conversion?

1. Her employer's website says if she uses the roth version of the 457, the money cannot be withdrawn until 59.5. We will need it before then. That's pretty much unexpected and makes no sense at all, at least not to me. Spirit Rider, are you around? I can confirm that I have seen that before. A rel...
by celia
Mon Jan 14, 2019 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: After tax contribution OR roth conversion?
Replies: 31
Views: 815

Re: After tax contribution OR roth conversion?

In Roth, the contributions and growth are both tax-free (after the money is in the Roth). In After-tax, the contributions remain tax-free but the growth will be taxed later on. So as far as which one to hold, the Roth is definitely better. Now, if your tax-deferred accounts look like they will be wo...
by celia
Mon Jan 14, 2019 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: too much college savings
Replies: 40
Views: 3513

Re: too much college savings

I wouldn't worry about this until all your kids are done with school. What if younger siblings want to go to medical school? Or their college takes more than 4 years? Then I doubt there will ever be enough in the 529. (I believe you can also use the money now for K-12 education.) The way your post r...
by celia
Mon Jan 14, 2019 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Does order of 401k contributions matter?
Replies: 5
Views: 779

Re: Does order of 401k contributions matter?

I first read this before anyone had replied, but didn't respond since I was "lost" too. Maybe these questions (to you) would clarify my (and your) understanding about your 401k. 1. Does the employer match both pre-tax and after-tax contributions? 2. Is the bonus considered an employer contribution o...
by celia
Sun Jan 13, 2019 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard PRIMECAP and Capital Opportunity
Replies: 48
Views: 2802

Re: Vanguard PRIMECAP and Capital Opportunity

How does it compare to Growth Index? Corgittodd, Did you see this post above? PRIMECAP also runs its own family of funds, called Odyssey. There are three, each a fairly close match for the three Vanguard funds advised by PRIMECAP: Vanguard PRIMECAP Fund - Odyssey Growth (POGRX) Vanguard PRIMECAP Co...
by celia
Sun Jan 13, 2019 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard PRIMECAP and Capital Opportunity
Replies: 48
Views: 2802

Re: Vanguard PRIMECAP and Capital Opportunity

Yes. So, as a family (mother, father, son) we have put in $150k/year at once. I’m not sure if son is still doing this. We have father: taxable, rollover IRA, tIRA. Mother: rIRA and taxable. Son: taxable. Now that you mention it, I think son has taxable and rIRA, so $25k more, but as he’s launched, ...
by celia
Sun Jan 13, 2019 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Account Consolidation
Replies: 3
Views: 269

Re: Retirement Account Consolidation

I am considering rolling the 457b into my Rollover IRA once I turn 59-1/2, to consolidate and to eliminate the minor management fees from the 457b. If you are no longer working at the employer that sponsored the 457b, I think you are eligible to roll it over now. However, employer plans often have ...
by celia
Sun Jan 13, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax penalty exceptions [ACA premium underpayment penalty]
Replies: 24
Views: 1252

Re: Estimated tax penalty exceptions [ACA premium underpayment penalty]

I just realized that IRS hit me with a nice penalty for not paying enough estimated taxes during 2017. I didn't think I had to pay the penalty, because on 27th of December I received a large Capital Gains Distribution from a mutual fund. This additional income disqualified me from keeping Obamacare...
by celia
Sun Jan 13, 2019 2:02 am
Forum: Personal Finance (Not Investing)
Topic: Purchased rentals, spent savings and now I am worried about debt
Replies: 19
Views: 2964

Re: Purchased rentals, spent savings and now I am worried about debt

henbones wrote:
Thu Jan 10, 2019 9:06 am
You guys are right - I need to pay those debts off and grow a cash fund.... for my sanity and so my wife doesn’t kick me out of the house :)
Well, if that happens, I know of a place you can stay for a few nights close to where you live! :D
by celia
Sun Jan 13, 2019 1:41 am
Forum: Personal Finance (Not Investing)
Topic: Please advice - HSA vs. PPO vs. EPO with baby due any day
Replies: 7
Views: 452

Re: Please advice - HSA vs. PPO vs. EPO with baby due any day

Why are you asking about this now? Is your company having Open Enrollment? Even if they are, your choice likely won't take effect until the beginning of February or March.

I would think the most important thing is to wait and see if the baby is healthy (and happy). :beer
by celia
Sat Jan 12, 2019 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Unique One: Mom's Retirement Life Insurance
Replies: 8
Views: 921

Re: Unique One: Mom's Retirement Life Insurance

Please consider this post as a thought exercise since I’ve never considered a situation like this. I am just thinking typing :) out loud and don’t know where this will take me, but maybe something I say will spark an idea for someone else to expound on. Since your mom and her sister are relatively c...
by celia
Sat Jan 12, 2019 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Setting Up A Parent For Retirement
Replies: 18
Views: 1406

Re: Setting Up A Parent For Retirement

$750,000 currently held in high yield checking accounts. If this is held in a bank, the interest is piddly, compared to what a money market fund would provide. And if she has more than $250,000 in any one bank, she needs to know that FDIC insurance only covers up to $250,000 per bank. Multiple bran...
by celia
Sat Jan 12, 2019 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Contributions AFTER 70 1/2 years of age??
Replies: 18
Views: 2840

Re: IRA Contributions AFTER 70 1/2 years of age??

Maybe a dumb question....or rather a dumb person asking a question :wink: : If you are retired and took lets say 100,000 out of your 401k or IRA, and at the end of the year you ended up with leftover money, can you take said money and reinvest it in a Roth IRA? Is your retirement considered "earned...
by celia
Sat Jan 12, 2019 3:51 am
Forum: Personal Finance (Not Investing)
Topic: IRA to Roth IRA conversion
Replies: 9
Views: 913

Re: IRA to Roth IRA conversion

I am planning to open a regular after tax IRA for 2018 and 2019 and then roll over to ROTH IRA. There is no such thing as an "after tax IRA" unless you really mean a "Roth IRA". Even if there were, if it was not a Roth, as soon as there is any growth, that growth would be pre-tax. Then it isn't an ...
by celia
Fri Jan 11, 2019 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: I inherited individual stock. Should I sell it now or wait?
Replies: 28
Views: 2261

Re: I inherited individual stock. Should I sell it now or wait?

This week, I inherited $7000 in individual stock in one particular company. For various reasons, I strongly believe this stock won’t hold its value much longer. And even if I’m wrong, I’d still rather put the $7000 elsewhere. ...Another thing to consider is that I have no idea what my current tax s...
by celia
Fri Jan 11, 2019 3:43 pm
Forum: Personal Consumer Issues
Topic: Dental work - possibly going elsewhere
Replies: 17
Views: 1277

Re: Dental work - possibly going elsewhere

For custom, she said it was around $625 at the location I was at, but around $350 at the other practice she worked at :oops: I should have asked what the name of the other practice was. Google the dentist's name or call and ask. If the guard costs less at the other office, the fillings might also b...
by celia
Fri Jan 11, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 703

Re: Non deductable IRA Contributions

Non-deductible contributions work as explained in IRS Publicatoin 590A. You will need to file a Form 8606 with your tax return. Instructions and form are online. Tax prep software is pretty good at dealing with all this. You need to understand what a Backdoor Roth IRA is ... even if you decide not ...
by celia
Fri Jan 11, 2019 3:18 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

Put another way, if you are saving for a certain income to roughly match your working income that will come from RMDs and SS, it is unlikely that that would ever be more than your working income. But your RMDs won't stay level, unless you have a low growth rate in the tax-deferred account. They sta...
by celia
Fri Jan 11, 2019 3:03 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

As I indicated in my post, 66% of our portfolio is taxable (non-retirement). Our 88% ROTH is of the other 34% of our portfolio that is retirement assets. By the time we collect Social Security at 70, I expect to have zero RMD requirements. Rick, It is hard for me to imagine how this works well but ...
by celia
Fri Jan 11, 2019 2:52 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

I'm 41 years old. There's seldom been a year where the additional tax deduction for 401k/IRA would not have come in handy. Roth IRA, Roth 401(k) & HSA = 5% Traditional IRA, 401(k), 403(b), etc. = 90% Taxable = 5% Of course, if there's a way to lower your taxes, that sounds good. But are you aware t...
by celia
Fri Jan 11, 2019 1:55 pm
Forum: Personal Consumer Issues
Topic: Discounted Postage Stamps
Replies: 25
Views: 2037

Re: Discounted Postage Stamps

I had about 100 odd-valued various denomination stamps at one time. I used them all up when sending Christmas cards one year and liked to add the values up in my head (mental exercise). Over time, I'm starting to end up with them again (from fund-raising letters with return postage included, PO vend...
by celia
Thu Jan 10, 2019 5:09 pm
Forum: Personal Consumer Issues
Topic: Travel Companies Similar to "Road Scholar"?
Replies: 21
Views: 1502

Re: Travel Companies Similar to "Road Scholar"?

I just googled: "one-week classes in Europe" (as an example) and these are some of the interesting classes you can find: 28 Awesome Cooking Classes Around The World To Take During Your Travels These classes appear to last for a few hours. You could also contact some of the places directly and ask if...
by celia
Thu Jan 10, 2019 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13813

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

We started saving from the first jobs we had. Starting early and saving as much as you can (before house and kids) is the key, in my opinion. We didn't reach a million until we were retired in our 60s. This was with a few layoffs (one year it was both of us at the same time [different job titles and...
by celia
Thu Jan 10, 2019 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Helping retired, outside US dad with his liquid investments
Replies: 5
Views: 327

Re: Helping retired, outside US dad with his liquid investments

Questions: - I am not sure about investing so much in US bonds. Given my dad lives in Chile and will do so for the rest of his life, would diversifying into international bonds make sense to reduce his exposure to the US Dollar? How strong or volatile is the Chilean currency? That would be the most...
by celia
Thu Jan 10, 2019 1:31 am
Forum: Personal Finance (Not Investing)
Topic: How do you manage credit card use with monthly budget
Replies: 37
Views: 2300

Re: How do you manage credit card use with monthly budget

I just signed up with Personal Capital and I am having trouble with how to analyze monthly spending using my credit cards. My wife uses one credit card and I use a different credit card from a separate account. I like the idea of having $5k in my checking account at the end of each month. Anything ...
by celia
Thu Jan 10, 2019 12:32 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

In my portfolio spreadsheet I divide my accounts into: Taxable Tax Deferred (tax to be paid on withdrawal) Tax Exempt (never taxed, i.e. Roth IRA) When we divide our accounts up by tax treatment, we usually say: Taxable, Tax-deferred, and Roth (or After-Tax). It isn't technically correct that the R...
by celia
Thu Jan 10, 2019 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Talk the new guy off the 80 or 90% equities cliff!
Replies: 21
Views: 2868

Re: Talk the new guy off the 80 or 90% equities cliff!

If your income is on the lower side, the Roth IRA is probably the way to go. $6k is the limit for 2019. You can still contribute for 2018 up until tax filing day. $5,500 for 2018. Let me be more specific since we aren't sure what year you've made contributions for. You can still contribute for 2018...
by celia
Wed Jan 09, 2019 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: IRA help
Replies: 26
Views: 991

Re: IRA help

When you are starting out, the thing that has the most impact on your future wealth is not what investment you choose, but the AMOUNT that you can save/invest. But to invest more, you first need to improve your net worth, get out of debt, finish school. (To edit text you've already posted, you need ...
by celia
Wed Jan 09, 2019 4:05 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

I have about 20% of my IRA money in tax exempt. That placement is unnecessary since the money is not taxed while it is in the IRA. When it is withdrawn, it is taxed as ordinary income, not tax-exempt. I suggest putting the tax-exempt funds in your taxable account instead, where the tax-exempt statu...
by celia
Wed Jan 09, 2019 3:56 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

Can you convert a position in traditional IRA directly to Roth on a market down day? Yes, you can convert on a down day, up day, sideways day, any day the market is open. If you convert in-kind (meaning the asset was moved without selling and re-purchasing it), it is the value on the day of convers...
by celia
Wed Jan 09, 2019 3:41 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

I have about 20% of my IRA money in tax exempt. That placement is unnecessary since the money is not taxed while it is in the IRA. When it is withdrawn, it is taxed as ordinary income, not tax-exempt. I suggest putting the tax-exempt funds in your taxable account instead, where the tax-exempt statu...
by celia
Wed Jan 09, 2019 3:27 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 113
Views: 5237

Re: BHers, what is your Roth IRA %?

We were not Roth eligible until a few years ago, so Roths are under between 5% and 10% of total assets. EVERYONE is eligible to convert. I started converting like crazy while we were working during the 2008 market drop when I saw the share prices drop significantly. To me, that meant "Roth conversi...
by celia
Wed Jan 09, 2019 4:51 am
Forum: Investing - Help with Personal Investments
Topic: Move Inherited Trad IRA Money to Trad or Roth IRA?
Replies: 12
Views: 770

Re: Move Inherited Trad IRA Money to Trad or Roth IRA?

I have about $20,000 in an non-spouse Inherited IRA account; I have to take a taxable RMD each year. I would like to gradually withdraw $6,000 each year and contribute the amount into an IRA. These are two separate transactions that have nothing to do with each other. To be clear, you need to withd...
by celia
Tue Jan 08, 2019 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: IRA help
Replies: 26
Views: 991

Re: IRA help

Would anyone here move their money (IRA) out of the 2045 fund and into VTSAX for long term investing? Some would, some wouldn't. Either one is a defensible choice. Pros and cons to each? What if I do 50% in each fund? VTSAX is 100% stocks (well, maybe 98% to allow for liquidity when people want to ...
by celia
Tue Jan 08, 2019 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: RMD planning
Replies: 19
Views: 1696

Re: RMD planning

I can't find a single web page that says that you are ever required to take an IRA as a lump sum even if the estate was the beneficiary of the IRA. I also cannot determine if you can reverse a blunder by the executor. I'd ask a CPA about this matter, one who had no motive to cover up a blunder. But...
by celia
Tue Jan 08, 2019 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: TLH and Roth Conversion
Replies: 6
Views: 263

Re: TLH and Roth Conversion

Although it appeared to be just a transfer of shares, unless the broker retitled the shares from one account to another I think transactionally it probably is a sale in your traditional IRA, a transfer of cash to your Roth IRA, and a purchase in your Roth IRA. I’m not claiming 100% certainty but my...
by celia
Tue Jan 08, 2019 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: TLH and Roth Conversion
Replies: 6
Views: 263

Re: TLH and Roth Conversion

There shouldn't be a problem because the sale generated a Capital Loss on a Form 1099-B while the Roth conversion will be on a 1099-R with a code of "7" (most likely) in box 7. The code "7" means Normal Distribution but your tax return will also be reporting it going into a Roth, rather than it bein...
by celia
Tue Jan 08, 2019 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Why isn't an AA of 75/25 with a SWR 3.75% the standard??
Replies: 62
Views: 6696

Re: Why isn't an AA of 75/25 with a SWR 3.75% the standard??

Not everyone needs (or wants) a 3.75% withdrawal rate. Some people don't need to withdraw that much. Some people need more (with the corresponding consequences). Likewise, a 75/25 Asset Allocation is too risky for some while not aggressive enough for others. Everyone's situation is different, so I d...