Search found 224 matches

by bengt
Wed Apr 04, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 11521

Re: NY passes law to get around SALT limit

They say that "timing is everything" although I'm still not clear how some tax relief could be thwarted by a well-crafted program. As I posted above, CA has been offering this program, which is different from the NY program but with a similar end result, since 2014. They have awarded up to nearly $10M in annual credits from 2014-2017, but it looks like they've slated $500M in credits for 2018. The IRS has not contested this program to date and I find it hard to believe that they would penalize people retroactively going back several years. I can't be sure, but if they're allocating $500M for 2018, it could appear that they're looking at the new tax law's effects; or, they could have widened the scope of people and entities which ...
by bengt
Wed Apr 04, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 11521

Re: NY passes law to get around SALT limit

To keep this thread actionable and within the limits of allowable discussion:

This NY trick is not confirmed by the IRS and will extremely unlikely be allowed by the IRS.
So the (higher) courts will eventually decide on this. Quoting some law profs supporting or refuting this does not change the facts and is hence pointless debate here.

NY taxpayers need to take this unclarity into account i.e. similar to many other gray-area tax avoidance strategies. If you use this, you will face years of uncertainty and potential penalties for underpayment. Use your own judgment.
by bengt
Wed Apr 04, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 11521

Re: NY passes law to get around SALT limit

For starters, https://www.washingtonpost.com/news/wonk/wp/2018/02/12/california-has-a-plan-to-skirt-the-gop-tax-law-irs-veterans-say-its-doomed The California measure would allow residents to make “charitable” contributions to a new state-run nonprofit group in exchange for a credit that would offset their state tax burden. Classifying the payments as charitable contributions rather than local taxes would help Californians avoid hitting the cap.. Two former Treasury officials and five former IRS officials — including a former IRS commissioner, an attorney who served in the IRS chief counsel's office, and a director of the IRS's nonprofit division — have told The Washington Post that the agency could view the charitable contributions as an a...
by bengt
Wed Apr 04, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 11521

Re: NY passes law to get around SALT limit

It is fair to say that there is 100% probability that IRS disagrees with this trick. In fact, it has made it clear already.
Naturally, after years of court battles, NY taxpayer using this trick could prevail. But that is a long-shot, so good luck for anybody trying this.
by bengt
Mon Feb 26, 2018 3:11 pm
Forum: Personal Consumer Issues
Topic: Strategies for getting out of a car dealership quickly?
Replies: 78
Views: 9625

Re: Strategies for getting out of a car dealership quickly?

Have some guy "pose" as your abusive boyfriend - who has threatened you for buying it.
This sounds like a business opportunity for a start-up to provide a service, i.e. send some angry, poorly-dressed violent looking guy to hang around next to the car salesman. Premium service includes authentic-looking gang tattoos with the guy. I bet the service will be quick.
by bengt
Mon Feb 19, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 91
Views: 11021

Re: Effect of spending money on appearance in career

Research has found a beauty/appearance premium AND a beauty/appearance penalty if you too good looking...seriously.
I can vouch for that as a male. Being too handsome and smart has frequently prevented me from being promoted.
by bengt
Sat Feb 17, 2018 8:32 pm
Forum: Investing - Theory, News & General
Topic: Target Retirement Fund Question
Replies: 20
Views: 2231

Re: Target Retirement Fund Question

Hello All, Can an investor rest assured that Vanguard in 2060 will be the same Vanguard we know today? This is a valid concern. In the past, Vanguard used to be in passive investing mode, but recently it has radically altered its approach, and now it wants to start actively managing and meddling in the companies it owns. It has publicly announced that this covers areas such as executive compensation, global warming etc. The model has been changed and things will depend merely on the few individuals who will retain/gain power at Vanguard. I'm sure many people will cheer these initiatives and think they are good, but nevertheless, this is radical move towards active management. So Vanguard is fundamentally different company already. I believ...
by bengt
Fri Jan 26, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: How do you decide how wealthy you really are?
Replies: 58
Views: 10281

Re: How do you decide how wealthy you really are?

I decided to self-identify myself as a billionaire. More precisely, twenty-something, handsome billionaire.

Anybody who tries to deny that is an anti-science bigot.
by bengt
Fri Jan 19, 2018 4:31 pm
Forum: Non-US Investing
Topic: Dealing with overseas inheritance?
Replies: 3
Views: 765

Re: Dealing with overseas inheritance?

This seems good summary here: http://estate.findlaw.com/planning-an-e ... broad.html

Basically, US does not impose any tax on foreign inheritance. Some reporting may be needed and income generated by foreign assets is taxable, but in most cases foreign inheritance seems fairly simple process and can be done without expensive attorneys, I would think.

Note that if you keep the inherited foreign assets abroad, then things get more complicated (more reporting and more complex taxation). But inheritance itself is fairly simply (if inherited money is transferred to the US).
by bengt
Tue Jan 16, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Do I really need a trust?
Replies: 62
Views: 13245

Re: Do I really need a trust?

I live in CA too and I decided to set up regular recoverable trust via attorney without any fancy tax optimization / IRA trusts. I considered those but eventually decided against it. My attorney also advised against them, given my main goal I expressed. The main purpose was to protect minor children in the case of extreme rare event (i.e. both parents die). I feel this is simplicity vs. optimization issue.

I understand that retirement benefits could be stretched and tax-optimized, but since I believe trust will have enough assets for minor children (via life insurance of both parents etc) I don't really care if the trust pays too much taxes on the 401k distribution etc.

This is a balance.
by bengt
Mon Jan 15, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 3676

Re: pay off 401k loan or not?

WoodSpinner wrote: Mon Jan 15, 2018 12:08 pm OP,

How stable is your job? Changing jobs, layoffs etc. will all trigger a requirement to pay back the loan within 60 days.
This is not true. The Trump Tax Reform bill changed that. Now employee has until the following year tax deadline to pay the loan back.
by bengt
Fri Dec 29, 2017 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Coverdell (at TDA) transfer to 529 (after new tax law in effect)
Replies: 9
Views: 2838

Re: Coverdell (at TDA) transfer to 529 (after new tax law in effect)

Important clarification. Lots of Internet resources say that pre-school is qualified expense for Coverdell ESA. However, this appears not to be true. IRS is more reliable source: https://www.irs.gov/publications/p970 "Coverdell.. Qualified Education Expenses .. Contributions to a qualified tuition program (QTP). ... Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school... Eligible elementary or secondary sc...
by bengt
Fri Dec 29, 2017 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Coverdell (at TDA) transfer to 529 (after new tax law in effect)
Replies: 9
Views: 2838

Re: Coverdell (at TDA) transfer to 529 (after new tax law in effect)

It seems there is a problem for Coverdell to 529 rollover if the account owner is different (e.g. parent1 for Coverdell vs. parent2 for 529). So I think the options are: - changing TDA Coverdell account owner from parent1 to parent2 (and after that, rolling over to 529), or - withdrawing Coverdell money (cashing out) and sending same amount of money to 529 during the calendar year (i.e. this is qualified expense), or - withdrawing Coverdell money and spending it for other qualified purposes (e.g. pre-school fees) If the amount is small, then maybe easiest solution is simply cashing out and spending it to pre-school fees/529 contributions. Not sure even if the TDA account owner change is possible. Anybody knows what actions are needed if you...
by bengt
Thu Dec 28, 2017 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Coverdell (at TDA) transfer to 529 (after new tax law in effect)
Replies: 9
Views: 2838

Re: Coverdell (at TDA) transfer to 529 (after new tax law in effect)

For the benefit of others who may consider similar move, I found some information. This link below is Vanguard's incoming rollover form for 529 accounts. It seems to allow direct Coverdell to 529 rollover. https://personal.vanguard.com/pdf/s404.pdf Bogleheads wiki has also some information, but at least somewhat unclear: https://www.bogleheads.org/wiki/529_plan_account_transfers To make a transfer of a Coverdell ESA to a 529 savings plan you would follow these steps: ... 3.Treat the Coverdell withdrawal as a tax-free "qualified distribution" on the beneficiary's income tax return. Beneficiary is often a minor who does not have tax return. I'm wondering if one spouse is holding 529 account and the other spouse is managing Coverdell...
by bengt
Thu Dec 28, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Coverdell (at TDA) transfer to 529 (after new tax law in effect)
Replies: 9
Views: 2838

Coverdell (at TDA) transfer to 529 (after new tax law in effect)

Few years ago I set up Coverdell ESA account at TDA. It has now $4k (and 60 cents of earnings - I never managed to pick any funds so money is still in the settlement fund). Now TDA has removed all Vanguard funds and the replacement funds are not so tempting (though somewhat reasonable I suppose). So I was wondering about the usefulness of Coverdell even with the current law. New tax law allows 529 funds to be used for private elementary and high-school. (Not sure if tutoring, computer, books are eligible expenses before college age?) Anyway, given above, there does not seem to be good reason to keep my Coverdell ESAs anymore. In theory, Coverdell offers more freedom in fund selection (and maybe books/tutoring for elementary school) but the ...
by bengt
Wed Dec 27, 2017 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Using 529 for grade school- help with strategy
Replies: 45
Views: 5922

Re: Using 529 for grade school- help with strategy

johne417 wrote: Sat Dec 23, 2017 6:29 pm [Yeah, that's why TCJA eliminated new contributions to Coverdell ESAs moving forward. You can leave existing ones open, but they're going the way of the dinosaur.

I believe this is fake news. Coverdell accounts were not affected by the tax reform bill.
by bengt
Wed Dec 20, 2017 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 889
Views: 85911

Re: Tax Bill Omnibus Thread

Does the estate tax provision expire in 10 years? If it does, then this temporary provision is quite meaningless, as most people don't plan to die within certain time window, and people would still have to assume that current limits return in 10 years.
by bengt
Sat Dec 16, 2017 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tricky Mega Backdoor Roth Excess Contribution Question
Replies: 1
Views: 663

Re: Tricky Mega Backdoor Roth Excess Contribution Question

What is P&L?

I think the question is what happens exactly if you need to return excess after-tax 401k contribution (after you rolled it over to Roth IRA?)
Do you have to write a check to 401k plan or is there legal way of getting money back from Roth IRA to 401k plan (without penalties)?
by bengt
Fri Dec 15, 2017 4:58 pm
Forum: Personal Investments
Topic: 529 Gift Splitting and Form 709
Replies: 8
Views: 4253

Re: 529 Gift Splitting and Form 709

This is an old thread, but same question (with different answers) is still discussed in various sites. Many answers imply that 709 form is needed even if money comes from joint account.

Does anybody have further confirmation that married couple (filing jointly) making ACH transfer to 529 account, from their joint bank account, can avoid filing 709 form (e.g. if making $20k contribution)?

In other words, IRS "assumes" that money coming from joint account is 50/50 split and no further evidence/paperwork needed.
by bengt
Thu Nov 16, 2017 10:47 am
Forum: Personal Investments
Topic: reached 54K IRS limit, now will miss employer match, what to do
Replies: 19
Views: 1921

Re: reached 54K IRS limit, now will miss employer match, what to do

Write to congress to increase limit for this year.
by bengt
Tue Nov 14, 2017 12:13 am
Forum: Personal Consumer Issues
Topic: places to live near Stanford University
Replies: 39
Views: 7717

Re: places to live near Stanford University

OP need to realize that there are no 350k places in SF or 250k condos in Mt View. Cheapest 1-bedroom condo nearby (say, Mt. View) is north of 500k.

East Palo Alto is close and cheapest, and seems bit better nowadays (lots of gentrification i.e. regular Silicon Valley people moving in, though still some parts of it to be avoided).

Lot depends on how flexible schedule OP has, but if long and typical work hours, then commuting is a nightmare.

Within one hour of Stanford during commuting hours (other than East Palo Alto) there might barely be 1-bedroom around 400k.

Renting makes sense.
by bengt
Mon Nov 13, 2017 8:36 pm
Forum: Personal Consumer Issues
Topic: places to live near Stanford University
Replies: 39
Views: 7717

Re: places to live near Stanford University

There are no condos below 500k near Mountain View or Sunnyvale. Maybe there have been some weird ads showing such (or same in-family transaction or murder place sale) but recent sales and Trulia current offerings show that below 500k you need to go to San Jose or Fremont.
by bengt
Mon Nov 13, 2017 7:54 pm
Forum: Personal Consumer Issues
Topic: places to live near Stanford University
Replies: 39
Views: 7717

Re: places to live near Stanford University

Safety is not really an issue, except maybe in East Palo Alto.
Mountain View is close by and 1-bedroom condo is about 500-550k.

Commuting is a nightmare in Bay Area but if daily commuting timing is flexible, San Jose is cheaper and ok option.
by bengt
Fri Oct 27, 2017 8:51 pm
Forum: Personal Investments
Topic: 401K Maximum Limit
Replies: 15
Views: 2108

Re: 401K Maximum Limit

(I have never heard of a company continuing to make the match on paycheck-by-by paycheck basis after someone hit the maximum contribution limit).
I had that feature with my previous megacorp (match continues as long as you have the contribution set in plan provider website, regardless of limit reached). So even if you reach the limit in January, match would continue, paycheck-by-paycheck the whole year.
by bengt
Sun Sep 03, 2017 12:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard Speaks Softly but Carries a Big Stick
Replies: 29
Views: 4886

Re: Vanguard Speaks Softly but Carries a Big Stick

What if Exxon wants to invest in, say, fracking because it believes its long term value for its shareholders, but political action committee at VG blocks it in the name of climate change?

Floodgates for active hands on management and political interference have now been opened.
by bengt
Tue Aug 29, 2017 11:15 am
Forum: Personal Investments
Topic: Concerns about under/over funding 529
Replies: 16
Views: 2243

Re: Concerns about under/over funding 529

You have two kids, so there is decent chance that at least one of them gets either college or graduate degree in the US.
Also, some foreign schools also qualify for 529/Coverdell under US tax law (such as IESE BUSINESS SCH, UNIV OF NAVARRA, Barcelona).

So I think it makes sense to fund 529/Coverdell to some extent, but not to absolute max.
by bengt
Fri Aug 18, 2017 10:10 am
Forum: Personal Investments
Topic: 401k Mega backdoor review (HCE, unclear rules)
Replies: 5
Views: 1199

Re: 401k Mega backdoor review (HCE, unclear rules)

#1 Yes. I have to deal with this every year, some years i get some of it back, other years not. #2 Not Sure. If the plan requires 2 year wait, they should not have let you withdraw it in the first place. I they allow withdrawal, I am not sure what recourse they have to claw it back. I am pretty sure there is NOT any IRS requirement for this waiting period. #3 When you withdraw the after-tax dollars, i am pretty sure you will also get a separate check for the earnings attributed to those contributions. The most effective approach is to roll the distribution of the after-tax contributions to a ROTH IRA, roll the distribution of the attributed earnings to a traditional IRA. Then if you also do backdoor ROTH IRA contributions, you will want to...
by bengt
Thu Aug 17, 2017 10:51 am
Forum: Personal Investments
Topic: 401k Mega backdoor review (HCE, unclear rules)
Replies: 5
Views: 1199

401k Mega backdoor review (HCE, unclear rules)

I have found out that my MegaCorp allows "after-tax contributions" and "in-service (non-hardship) withdrawal of after-tax money". The detailed rules are unclear (even after asking HR and plan admins) so I just decided to proceed anyway and see how things turn out. I'm now half-way through the process and would appreciate feedback. My goal is to make annual after-tax contribution of about $6,000 and roll it over to ROTH IRA. It is also major goal to keep things as simple and safe as possible (rather than squeezing out every penny). Before starting after-tax contributions, I changed my new contribution allocations to 100% bonds. So far, I have contributed $2,000 after-tax money (to bonds) and this is recorded correctly at ...
by bengt
Fri Jul 07, 2017 2:58 pm
Forum: Personal Consumer Issues
Topic: What is this cable device?
Replies: 53
Views: 5535

Re: What is this cable device?

Pay no attention to this box, or the flower delivery van parked outside your home.
Nothing to see here, move along.
by bengt
Sun May 07, 2017 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Delayed Mega Backdoor Roth
Replies: 11
Views: 2293

Re: Delayed Mega Backdoor Roth

Interesting. My plan also has 24 month limitation for after-tax in-service withdrawals. It is mentioned in SPD. I did also ask about this from HR and eventually got an answer that the limitation is for the protection of employer money. Anyway, I also plan to start the process and contribute after-tax money and two years later to do in-service withdrawal to ROTH IRA. In practice, I think I'll make small (test) contribution this month, and then max contribution next 1-2 month to get decent size balance on the after-tax sub-account. Then wait 2 years and do the in-service withdrawal. Stable value is one investment option (it has 3 month wait period for selling, but not an issue here). I will probably use bond total return fund for this after-t...
by bengt
Mon May 01, 2017 4:27 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth IRA - In service Withdrawal
Replies: 26
Views: 4321

Re: Mega Backdoor Roth IRA - In service Withdrawal

Ok..I suspect that I have similar situation, i.e. customer service reps do not see any such time limitations, but when I actually try to do that (or call them to do it) the computer system does not allow it to go through. Still, sounds worthwhile to do it even with the waiting period.
by bengt
Mon May 01, 2017 3:57 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth IRA - In service Withdrawal
Replies: 26
Views: 4321

Re: Mega Backdoor Roth IRA - In service Withdrawal

Only potential issue is that some documents seem to imply that there is 24 month waiting period for after-tax rollovers My MegaCorp plan has a 2 year "seasoning" period for each after tax contribution before those funds are eligible for in-service distribution. Each after tax contribution has its own 24 month window. Is that enforced? It sounds similar to what is in my SPD, but the plan admins (customer service) did not see anything like that in their system, and they assured me that they can simply do the rollover asap.. I wonder if any danger of having to return the money if the customer service sends it. I got some impression that the 24 month window is for protecting the company money, but I don't understand why that would be...
by bengt
Mon May 01, 2017 2:49 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth IRA - In service Withdrawal
Replies: 26
Views: 4321

Re: Mega Backdoor Roth IRA - In service Withdrawal

You should look for "after-tax contribution" (not to be confused with roth 401k) and "in-service withdrawal" (or "in-service distribution") rules.

Hopefully they allow non-hardship in-service withdrawal (beyond e.g. for some medical emergency purposes).

I would hope that all SPD documents would include a separate section on "Mega Backdoor ROTH". Now it is difficult to find out the details from different parts of the document..
by bengt
Mon May 01, 2017 1:31 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth IRA - In service Withdrawal
Replies: 26
Views: 4321

Re: Mega Backdoor Roth IRA - In service Withdrawal

I have an update on my 401k plan. My company has had several acquisitions and we seem to have several different SPD documents, for each legacy company while all these documents are now named after the same MyMegaCorp. So there are several MyMegaCorp 401k Plan SPDs laying around. I read again the one SPD given to me my local HR rep and called Fidelity customer service rep and got forwarded to somebody who knew these rollovers well and who did look at my plan. My plan allows after-tax contributions, and in-service withdrawals, and I can roll over after-tax money asap to ROTH IRA (will need to pay taxes on the earnings, based on 1099-R). He recommended to open Fidelity ROTH since paperwork is easier (I would prefer Vanguard, but I'm not a fan ...
by bengt
Sun Apr 30, 2017 4:52 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth IRA - In service Withdrawal
Replies: 26
Views: 4321

Re: Mega Backdoor Roth IRA - In service Withdrawal

One further clarification to my question above:
Is my understanding correct, that Mega backdoor ROTH is still possible, if it includes additional steps of going through Traditional IRA? So it is perhaps possible, but involves extra steps and paperwork (and possibility to mess it up).

For example something like this might work:
- Contribute $10k after-tax money to 401k plan (preferably without company match involved)
- do in-service (non-hardship, under 59.5) withdrawal of after-tax contributions to newly created empty Traditional IRA (no taxes withheld)
- do conversion from Traditional IRA to ROTH IRA (pay taxes on earnings). Or is there a danger that also contribution get taxed here?
by bengt
Sun Apr 30, 2017 1:19 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth IRA - In service Withdrawal
Replies: 26
Views: 4321

Re: Mega Backdoor Roth IRA - In service Withdrawal

Sounds like a small plan with some technical challenges. Attached in Notice 2008-30 which requires the plan to provide a direct rollover without withholding to your Roth IRA. See Qs 4 and 6: https://www.irs.gov/irb/2008-12_IRB/ar11.html .... Go back to them. The LAW requires them to provide for direct rollovers. I think this is not correct. The above IRS notice only talks about 401(a) plans which are different from 401(k) plans. My 401k plan allows "after-tax contributions" and "in-service distributions" (non-hardship, under 59.5) but under the Tax and Rollover section the plan says that it does not permit rollovers to Roth IRAs. Mandatory penalty and withholding will apply unless rolled over into a Traditional IRA or a...
by bengt
Tue Dec 20, 2016 4:50 pm
Forum: Personal Consumer Issues
Topic: Scotland speeding ticket while renting car
Replies: 15
Views: 4279

Re: Scotland speeding ticket while renting car

mrtiger wrote:I agree with above comments. Pay the ticket. I had similar situation in Europe few years back. They will send the ticket to U.S. embassy in Scotland who will start pursuing for the payment and all associated fees.

US has embassy in Scotland?
It is the job of US embassy to hunt down US citizens who are alleged to have committed minor traffic violation abroad?
by bengt
Sun Oct 23, 2016 6:29 pm
Forum: Personal Consumer Issues
Topic: How many have moved from California due to Cost of Living?
Replies: 108
Views: 18494

Re: How many have moved from California due to Cost of Living?

covepatrol wrote:Look what 650k can buy you in Ripon,Ca. (One hour from silicon valley)
There are only a handful of places in the Central Valley I would recommend.
1. Oakdale
2. Ripon
3. East Turlock
4. The country

http://www.realtor.com/realestateandhom ... h/Ripon_CA

One hour?
Rush hour one-way commute times to those towns would be closer to 3 hours. That is not realistic for most people. That is very the reason for threads like these..
For people working mostly from home and occasionally showing at SV office this might be ok.
Even most of Fremont is more than 1 hr commute time from core SV.
by bengt
Sun Oct 02, 2016 2:29 pm
Forum: Personal Consumer Issues
Topic: Simplisafe Home Security System
Replies: 55
Views: 10514

Re: Simplisafe Home Security System

Get yard sign and 1-2 fake security cameras (cost less than $10) that can be spotted easily.

This helps regardless whether you have actual security system.
Another sign or sticker with NRA lifetime member text should help too.
by bengt
Sat Aug 27, 2016 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement: Where $200K Will Last 30 Years
Replies: 113
Views: 25464

Re: Retirement: Where $200K Will Last 30 Years

Imagine that in 2009 you did your research, read glorified New York Times accounts of paradise called Venezuela, and decided to retire there. Great weather, booming economy, educated population and free healthcare..
by bengt
Tue Aug 09, 2016 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Not paying mortgage, what???
Replies: 21
Views: 4123

Re: Not paying mortgage, what???

I know somebody who took money out of his house (presumably more than $400k) during the craziest boom times and stopped paying at some point afterwards. During the height of the housing boom, it was valued close to $650k.
He continued to live there few more years and eventually bank paid him incentive of $20k to get him out.
The buyer had to wait two months for the bank to approve their offer of $400k.

So they lived there for free for couple of years, got $20k move out bonus, and who knows what happened to the $400k they got from the bank..Sometimes crime, greed or stupidity pays.
by bengt
Sat Jul 16, 2016 11:30 am
Forum: Personal Consumer Issues
Topic: Mother was victim of online virus scam - How can she recover the money she paid?
Replies: 56
Views: 8854

Re: Mother was victim of online virus scam - How can she recover the money she paid?

I'm curious. Why did the thieves steal only $299?
Is that important limit for something. It sounds like they could have charged anything, especially since mom authorized.

To the OP: I don't think bank can "know" that charges are fraudulent. They have nice system to ask authorization in case of unusual activity. What else can they do?
by bengt
Wed Jul 13, 2016 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust for immigrant family with small children
Replies: 6
Views: 886

Re: Will/Trust for immigrant family with small children

bsteiner wrote:Since the children are U.S. citizens, they'll probably want to make sure that the trusts for their children are considered domestic (U.S.) rather than foreign. That requires, among other things, that a majority of the trustees be U.S. persons.
I think this is a problem. All the relatives are non-US persons.
by bengt
Wed Jul 13, 2016 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Will/Trust for immigrant family with small children
Replies: 6
Views: 886

Re: Will/Trust for immigrant family with small children

what I have heard is that the yellow page type ads in the immigrant communities are notoriously unreliable and in many cases outright scams (this applies especially to all kind of immigration help services which often take advantage of the unsophisticated immigrants). So I would assume that those ads have been ruled out. I think I would encourage them to prepare a will first and ensure that life insurance beneficiaries are up to date (e.g. kids as secondary beneficiaries). The probate paperwork for rest of the stuff can take place afterwards in the extremely unlikely scenario of both parents dying (parents could identify few law firm candidates for the relatives). I think the temporary guardianship is important. The process of getting court...
by bengt
Tue Jul 12, 2016 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Will/Trust for immigrant family with small children
Replies: 6
Views: 886

Will/Trust for immigrant family with small children

My co-worker asked for advice what should he and his wife do to ensure that their children would be taken care of, in case something were to happen to the parents. Some law firms seem to offer specialized service for immigrant families but they tend to cost a lot and it is still unclear how much they make sense. They might still pick one of the law firms but do any of the bogleheads have further high-level advise? They would like at least to understand things better before they go to talk to the ($500/hr?) attorney. The family lives in California. Parents are dual-citizens. Their small children have citizenship of 3 countries (US, and countries of the both parents). Children are familiar with all three countries and the relatives there. The...
by bengt
Mon Jun 20, 2016 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Can we/Should we buy this house (SF Bay Area)
Replies: 54
Views: 10296

Re: Can we/Should we buy this house (SF Bay Area)

technovelist wrote:
DoubleClick wrote:
technovelist wrote:We survived that without terrible financial damage because our housing costs were so low that we could keep afloat for a long time without income, but with a $4k/month housing cost I wouldn't have been able to sleep at night.
Yes, but rentals in the area aren't any cheaper. A good 2 bedroom in the South Bay is $4k/month.
Ok, but you aren't locked into a rental for 15-30 years.
Keep in mind that if both are unemployed, they will not be able to get cheaper rental either (since employment verification fails) so they have to stay in the expensive rental (or move to low cost area elsewhere without jobs nearby)
by bengt
Sun Jun 19, 2016 3:52 pm
Forum: Investing - Theory, News & General
Topic: Why has congress prevented us from maxing Roth and traditional?
Replies: 6
Views: 1411

Re: Why has congress prevented us from maxing Roth and traditional?

I think government should confiscate more money from people other than me and giving it to me.
by bengt
Sun Jun 05, 2016 3:40 pm
Forum: Personal Investments
Topic: When do we have to sell our house???
Replies: 13
Views: 2182

Re: When do we have to sell our house???

Yes, you have 3 years from the date you moved out (minus one day, I think) to qualify. Better to be safe and ensure the official closing date of the sale is within that period (since sometimes closing takes more than a month).

If you have rental income from that house, you have to pay separate tax on depreciation when you sell. This may be thousand or two.
by bengt
Thu May 19, 2016 4:04 pm
Forum: Personal Consumer Issues
Topic: should I rent out my house instead of selling; any mortgage prohibitions?
Replies: 10
Views: 1505

Re: should I rent out my house instead of selling; any mortgage prohibitions?

One important issue to condider: tax residency

If you keep the rental, the state (such as CA) may consider you as resident and liable for taxes even outside of CA (eg if moving out of country but retaining CA rental)
by bengt
Mon May 02, 2016 3:16 pm
Forum: Personal Consumer Issues
Topic: How do Bogleheads TRAVEL?
Replies: 81
Views: 13967

Re: How to Bogleheads TRAVEL?

True Bogleheads do not use overpriced airplanes with all the management fees.

YouTube has lots of advise how to build your own airplane with commonly found spare parts. Savings are huge!