Search found 10382 matches

by David Jay
Wed Apr 14, 2021 4:20 pm
Forum: Personal Investments
Topic: Review my Retirement Plan - Health Care, Taxes, Pension, SS
Replies: 1
Views: 142

Re: Review my Retirement Plan - Health Care, Taxes, Pension, SS

I see no mention of a Roth account for either of you. Roth accounts can be very useful when there are means tested programs such as Medicare IRMAA. I would recommend each of you open a Roth account to get the 5-year clock started. You can each do a small Roth conversion from IRA (and pay the taxes o...
by David Jay
Wed Apr 14, 2021 8:18 am
Forum: Personal Investments
Topic: Funding Early Retirement
Replies: 5
Views: 1157

Re: Funding Early Retirement

Have you used various tools (opensocialsecurity.com in particular) to evaluate this? In the vast majority of cases for a married couple: 1. It makes sense for the spouse with the larger benefit to delay to age 70, as the larger benefit becomes the benefit amount for the survivor, regardless of whic...
by David Jay
Wed Apr 14, 2021 7:55 am
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 60
Views: 5366

Re: HSA advice Jane Quinn How to Make Your Money Last

Also, if this author Jane Quinn is this far off from understanding all of the "perks" of an HSA, is the rest of her book worth reading? I will stand up for Jane Bryant Quinn and “How to make your money last”: 1. This is just an update, not a new book. It is clear that she did not update t...
by David Jay
Wed Apr 14, 2021 7:30 am
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 60
Views: 5366

Re: HSA advice Jane Quinn How to Make Your Money Last

One other thing to be aware of: There is a “once per lifetime” annual funding option [“Qualified HSA funding distribution” in IRS-speak, see Publication 969] from a tIRA which moves money directly from tax-deferred to tax-free. I did that in 2020. The once per lifetime is a technicality. All this r...
by David Jay
Wed Apr 14, 2021 7:24 am
Forum: Personal Finance (Not Investing)
Topic: Penalty for distributing IRA to a trust
Replies: 1
Views: 173

Re: Penalty for distributing IRA to a trust

That is a clear way to explain the costs, thanks for sharing.
by David Jay
Tue Apr 13, 2021 9:09 pm
Forum: Personal Investments
Topic: Funding Early Retirement
Replies: 5
Views: 1157

Re: Funding Early Retirement

...retire this year at age 62. We will delay drawing SS. Have you used various tools (opensocialsecurity.com in particular) to evaluate this? In the vast majority of cases for a married couple: 1. It makes sense for the spouse with the larger benefit to delay to age 70, as the larger benefit become...
by David Jay
Tue Apr 13, 2021 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Asset selection for Roth ira
Replies: 5
Views: 312

Re: Asset selection for Roth ira

Sure can if you pay the taxes on the transfer Not the RMD - you can do a conversion AFTER you take your RMD but you can't transfer your RMD to a Roth. This is correct. RMD must come out of all tax-advantaged accounts first. This money cannot go into a Roth (with the exception of a new, annual Roth ...
by David Jay
Tue Apr 13, 2021 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Good HSA accounts?
Replies: 41
Views: 1952

Re: Good HSA accounts?

Vote #10 for Fidelity
by David Jay
Tue Apr 13, 2021 10:41 am
Forum: Investing - Theory, News & General
Topic: For a 40/60 Allocation, what would you choose ?
Replies: 14
Views: 1436

Re: For a 40/60 Allocation, what would you choose ?

Vanguard LifeStrategy Conservative. 40% stocks, 60% bonds.

I am transitioning to a "one-fund" portfolio, with everything in a single LifeStrategy fund, for the simplicity.
by David Jay
Tue Apr 13, 2021 9:34 am
Forum: Personal Consumer Issues
Topic: 10+ year old used cars?
Replies: 47
Views: 2598

Re: 10+ year old used cars?

Up north in the rust belt, 10 or 12 year old cars are starting to have serious corrosion issues. I buy mine about 4-5 years old and run them for 5-7 years.
by David Jay
Tue Apr 13, 2021 9:27 am
Forum: Personal Finance (Not Investing)
Topic: how to deal with it [regret over past investing choices]
Replies: 82
Views: 19166

Re: how to deal with it [regret over past investing choices]

It is impossible to drive a vehicle while looking exclusively in the rear view mirror. There is nothing you can do about the past, but the future is yours to choose.
by David Jay
Tue Apr 13, 2021 9:15 am
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 60
Views: 5366

Re: HSA advice Jane Quinn How to Make Your Money Last

However, if you withdraw from the traditional IRA, that increases your AGI, but if you then contribute the same dollar amount to your HSA, that decreases your AGI by the same amount. I am not aware of any version of MAGI which adds HSA contributions back in to income the ACA doesn't . Okay, I think...
by David Jay
Tue Apr 13, 2021 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Before Medicare begins: Use your HSA tax free funding distribution
Replies: 5
Views: 387

Re: Before Medicare begins: Use your HSA tax free funding distribution

My understanding is that the IRA->HSA rollover takes the place of your contribution. There is nothing fancy about this. You could just withdrawal from the IRA and make an HSA contribution.. and the net on your taxes should be the same (in most cases) Note the bold, above. " The distribution [i...
by David Jay
Tue Apr 13, 2021 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Before Medicare begins: Use your HSA tax free funding distribution
Replies: 5
Views: 387

Re: Before Medicare begins: Use your HSA tax free funding distribution

My understanding is that the IRA->HSA rollover takes the place of your contribution. There is nothing fancy about this. You could just withdrawal from the IRA and make an HSA contribution.. and the net on your taxes should be the same (in most cases) Note the bold, above. " The distribution [i...
by David Jay
Tue Apr 13, 2021 8:13 am
Forum: Personal Finance (Not Investing)
Topic: Before Medicare begins: Use your HSA tax free funding distribution
Replies: 5
Views: 387

Before Medicare begins: Use your HSA tax free funding distribution

[Discussions here and with "Grabinar" on the Jane Quinn HSA thread have convinced me that withdrawing from one's tIRA and then contributing to one's HSA is the two-step equivalent of the process outlined here. If one's HSA is at the same institution as one's tIRA - in my case Fidelity - t...
by David Jay
Tue Apr 13, 2021 7:28 am
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 60
Views: 5366

Re: HSA advice Jane Quinn How to Make Your Money Last

One other thing to be aware of: There is a “once per lifetime” annual funding option [“Qualified HSA funding distribution” in IRS-speak, see Publication 969] from a tIRA which moves money directly from tax-deferred to tax-free. I did that in 2020. The once per lifetime is a technicality. All this r...
by David Jay
Mon Apr 12, 2021 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 60
Views: 5366

Re: HSA advice Jane Quinn How to Make Your Money Last

This I don't understand. Don't we have to be employed with a high deductible health plan to contribute to an HSA? Can a retired person (not employed) with a high deductible health plan (if there are such things) contribute to an HSA? I have a high deductible ACA plan that is HSA eligible.* I opened...
by David Jay
Mon Apr 12, 2021 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Distributions - are they income tax-free if ... ?
Replies: 6
Views: 676

Re: Roth IRA Distributions - are they income tax-free if ... ?

GerryL wrote: Mon Apr 12, 2021 8:53 pm
My aunt has a Roth IRA she started outside of her employer back in 2000
This seems to be a non sequitur. All IRAs, traditional and Roth, as started outside of an employer. Or is there an instance I'm not familiar with?
SIMPLE-IRA is employer sponsored.
by David Jay
Mon Apr 12, 2021 8:43 pm
Forum: Personal Investments
Topic: Required minimum distributions: All to QCDs vs. ROTH conversions
Replies: 7
Views: 690

Re: Required minimum distributions: All to QCDs vs. ROTH conversions

Thanks for the great thoughts. It definitely makes sense to keep track of the potential size of the RMDs to keep them below the QCD limit of 100,000. Converting a bit to a ROTH also makes sense if it can be done to the top of a reasonable tax bracket. Remember, tax rates are scheduled to go up in 2...
by David Jay
Mon Apr 12, 2021 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 60
Views: 5366

Re: HSA advice Jane Quinn How to Make Your Money Last

Don't we have to be employed with a high deductible health plan to contribute to an HSA? Nope . Can a retired person (not employed) with a high deductible health plan (if there are such things) contribute to an HSA? Yes. My ACA plan qualifies - in fact they offered an HSA provider (I have a Fidelit...
by David Jay
Mon Apr 12, 2021 2:18 pm
Forum: Personal Investments
Topic: Investing strategy with known future expense
Replies: 26
Views: 1293

Re: Investing strategy with known future expense

Long Term Treasuries are really not appropriate for a requirement in the 5-10 year range. If there is a significant bump up in interest rates it will take 20+ years for LTT to recover.
by David Jay
Mon Apr 12, 2021 12:04 pm
Forum: Personal Investments
Topic: Can you Invest to much?
Replies: 12
Views: 1501

Re: Can you Invest to much?

I would lean towards fully funding all of the tax-advantaged accounts every year and paying down the mortgage with funds that would otherwise be saved in taxable that year. At 1.99%? I think I would keep it in taxable and invest. Some people look at a mortgage in ROI terms, others see being debt fr...
by David Jay
Mon Apr 12, 2021 11:38 am
Forum: Personal Investments
Topic: Can you Invest to much?
Replies: 12
Views: 1501

Re: Can you Invest to much?

I would lean towards fully funding all of the tax-advantaged accounts every year and paying down the mortgage with funds that would otherwise be saved in taxable that year.
by David Jay
Mon Apr 12, 2021 11:35 am
Forum: Investing - Theory, News & General
Topic: How to Compare Active Managed fund to Passive
Replies: 19
Views: 1180

Re: How to Compare Active Managed fund to Passive

Contra would have to outperform on average by a good margin to make up for its expanse vs total stock with it's lower fees. And that is exactly the case - Contrafund is underperforming the SP500. Given the choice, I would select a Total Market fund rather than an SP500, such as Fidelity’s FSKAX or ...
by David Jay
Mon Apr 12, 2021 10:49 am
Forum: Investing - Theory, News & General
Topic: How to Compare Active Managed fund to Passive
Replies: 19
Views: 1180

Re: How to Compare Active Managed fund to Passive

1. In a search engine (Google, Bing, etc) type in: morningstar fcntx 2. Select the link to: Morningstar Fidelity Contrafund (it is the third or fourth one on my search) 3. Select the "Performance" tab 4. Click on "Show Interactive Chart" button in the upper left corner of the cha...
by David Jay
Mon Apr 12, 2021 7:10 am
Forum: Personal Finance (Not Investing)
Topic: After Action Review Funding My Revocable Living Trust
Replies: 1
Views: 320

Re: After Action Review Funding My Revocable Living Trust

It sounds like you are doing a good job. Our trust attorney says that the most common error with trusts is failure to fund them properly. The firm has a group of para-legals who follow up to confirm that the funding has been done.
by David Jay
Sun Apr 11, 2021 9:21 pm
Forum: Personal Investments
Topic: Buying a 1.5M house in Austin. Should I pull it?
Replies: 51
Views: 5299

Re: Buying a 1.5M house in Austin. Should I pull it?

How confident are you that there is a rental market for 1.5 million dollar homes in Austin? Do you want to be an absentee landlord?

There is really no comparison between VOO and being a landlord. VOO is a passive investment, an out-of-state rental property is a part-time job.
by David Jay
Sun Apr 11, 2021 9:16 pm
Forum: Personal Investments
Topic: Required minimum distributions: All to QCDs vs. ROTH conversions
Replies: 7
Views: 690

Re: Required minimum distributions: All to QCDs vs. ROTH conversions

We will be starting RMDs in about 8 years. Our current plan is to do QCDs ( qualified charitable donations) with our entire RMD. If we are planning to do just QCDs is there any reason to do any ROTH conversions? QCD is a great use of tIRA assets, but If your taxable income is less than about $18,00...
by David Jay
Sun Apr 11, 2021 1:50 pm
Forum: Investing - Theory, News & General
Topic: Another 2.8% SWR Article Quoting Wade Pfau
Replies: 231
Views: 12354

Re: Another 2.8% SWR Article Quoting Wade Pfau

HomerJ wrote: Sun Apr 11, 2021 1:34 pmWe can check Pfau from 10 years ago... He was comically wrong.
You mean like here? viewtopic.php?t=174030

His 2% SWR included 1% AUM and .67 ER. Effective SWR for DYI Boglehead would have been 3.6% without challenging any of Pfau's assumptions.
by David Jay
Sun Apr 11, 2021 1:14 pm
Forum: Investing - Theory, News & General
Topic: VPW too aggressive?
Replies: 23
Views: 2085

Re: VPW too aggressive?

Note that 4% is constant in inflation adjusted value. There are costs to achieving this (sequence of returns, etc.) and inflation is built into the 4% number, which is why the VPW percentages are much higher. One could take 6% of remaining portfolio every year with a very high likelihood of good res...
by David Jay
Sun Apr 11, 2021 8:08 am
Forum: Personal Investments
Topic: Creating revocable trust just for buying I Bonds?
Replies: 29
Views: 1937

Re: Creating revocable trust just for buying I Bonds?

Welcome to the forum! I see your thread has over 120 views, so I know folks are looking at it. It appears there is little experience here on BH that provides insight into your question. I cannot answer your question with certainty, but we have a revocable living trust set up to simplify our children...
by David Jay
Sun Apr 11, 2021 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB
Replies: 154
Views: 11075

Re: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB

AquaBliss wrote: Sat Apr 10, 2021 11:29 am
David Jay wrote: Sat Apr 10, 2021 10:19 am Succinct is good :happy
Can you please elaborate? #irony
“No”
by David Jay
Sat Apr 10, 2021 7:02 pm
Forum: Personal Investments
Topic: US Equity Allocation Strategy
Replies: 4
Views: 410

Re: US Equity Allocation Strategy

Welcome to the forum! VTI (Vanguard Total US Stock) is the default, low regret choice for your US Equity Allocation. It holds the entire US market at market weight so it is fully diversified. Adding any of your other choices to VTI is a tilt away from the market. A tilt away from the market essentia...
by David Jay
Sat Apr 10, 2021 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Age 63 retired, planning how to use Roth conversions
Replies: 35
Views: 3958

Re: Age 63 retired, planning how to use Roth conversions

I am not surprised, it is a balancing act. Too much Roth conversion, pay excess conversion / IRMAA taxes. Too little Roth, pay excess RMD taxes.

Sounds like #2 is (a-la "Goldilocks") just right.
by David Jay
Sat Apr 10, 2021 3:40 pm
Forum: Personal Investments
Topic: Roth IRA 5 year rule (over 59.5) question.
Replies: 8
Views: 691

Re: Roth IRA 5 year rule (over 59.5) question.

jwc1754 wrote: Sat Apr 10, 2021 3:37 pm Does it reset a clock if you transferred a Roth account from TD to Vanguard (opened a new Roth account in VG)?
No. The primary 5 year clock is since you first funded your first Roth IRA. Even if you later closed the account.
by David Jay
Sat Apr 10, 2021 11:45 am
Forum: Personal Investments
Topic: Windfall going to invest @ AA but?
Replies: 2
Views: 411

Re: Windfall going to invest @ AA but?

I agree with “retired”, you should view all your accounts, combined as one portfolio and position assets in an optimal manner, rather than holding the 3-fund in every account.
by David Jay
Sat Apr 10, 2021 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1730

Re: Withdrawal Frequency in Retirement

Virtually all of our portfolio is in tax-advantaged accounts. In order to meet specific qualifications (ACA, MI Homestead, etc.) we carefully move money from tax advantaged to a taxable account that I call our "distribution" account (at the brokerage) a couple of times a year. We then have...
by David Jay
Sat Apr 10, 2021 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Refund adjusted by IRS
Replies: 7
Views: 687

Re: Refund adjusted by IRS

I vote for "typo" by the OP (projecting from my own experience).

Plus, neither the IRS or TurboTax are new at this...
by David Jay
Sat Apr 10, 2021 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance - help me get my head straight
Replies: 11
Views: 1551

Re: Inheritance - help me get my head straight

bungalow10 wrote: Sat Apr 10, 2021 6:18 amAm I missing something? I feel like there used to be an option to do RMDs based on life expectancy.
This feature (sometimes called the “stretch” IRA) was eliminated for the heirs of individuals passing after January 1, 2020. Sorry.
by David Jay
Sat Apr 10, 2021 8:55 am
Forum: Investing - Theory, News & General
Topic: Buying a range of bond maturities?
Replies: 11
Views: 813

Re: Buying a range of bond maturities?

In normal times, when future interest rates are unknown, holding a range of bond durations probably make sense. There is a widely-described “barbell” strategy of holding short term bonds and long term bonds to cover a wide range of outcomes. In these near-zero interest times, I cannot bring myself t...
by David Jay
Fri Apr 09, 2021 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security decsion
Replies: 7
Views: 899

Re: Social Security decsion

The spouse with the higher earnings record should, under almost any circumstance, defer to age 70 because their benefit becomes the survivor’s benefit.

If the couple are well situated financially, it makes little difference what the lower earning spouse chooses.
by David Jay
Fri Apr 09, 2021 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: [Backdoor] Roth Conversion Confusion
Replies: 8
Views: 559

Re: [Backdoor] Roth Conversion Confusion

Welcome to the forum!

Your tax guy is mistaken. We have lots of folks here who do the backdoor Roth process every year.

Here is the Wiki on the backdoor Roth process, he may benefit from this page: https://www.bogleheads.org/wiki/Backdoor_Roth
by David Jay
Fri Apr 09, 2021 7:13 pm
Forum: Personal Consumer Issues
Topic: Travel Trailer vs My Pickup Truck: Specs?
Replies: 54
Views: 3256

Re: Travel Trailer vs My Pickup Truck: Specs?

This is why we need the OP to explain his use. If he wants to pull the trailer 50 miles to the lake every spring and pull it 50 miles home in the fall, his truck will be fine. If he wants to pull the trailer out west and explore the Rockies, his truck won't cut it. There is a wide range of activitie...
by David Jay
Fri Apr 09, 2021 3:37 pm
Forum: Investing - Theory, News & General
Topic: Beat the market by only holding after hours
Replies: 56
Views: 3328

Re: Beat the market by only holding after hours

I read the article as saying that buy-and-hold outperforms day-trading( i.e. closing all positions each day).
by David Jay
Fri Apr 09, 2021 3:22 pm
Forum: Personal Investments
Topic: Life Savings in Cash--Need Advice
Replies: 27
Views: 4267

Re: Life Savings in Cash--Need Advice

Welcome to the forum! First off, you need to establish your level of comfort. Since you don't need the money for living expenses, you can afford to be conservative. The primary "control knob" for growth versus stability is the percentage of stocks versus bonds (+ other fixed income), calle...
by David Jay
Fri Apr 09, 2021 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block not allowing stock sale on 1099-B
Replies: 11
Views: 720

Re: H&R Block not allowing stock sale on 1099-B

1099-B is not the normal document for a stock sale through a brokerage house. Can you explain more about the 1099-B? Was this stock in a closely held company, perhaps not a public stock? Who issued the 1099-B? Guess I haven't sold any stocks in a taxable account for a while. I'm just used to gettin...
by David Jay
Fri Apr 09, 2021 2:32 pm
Forum: Personal Consumer Issues
Topic: Travel Trailer vs My Pickup Truck: Specs?
Replies: 54
Views: 3256

Re: Travel Trailer vs My Pickup Truck: Specs?

Sure you can pull it. It won't be great in the mountains, where are you planning on driving? I wouldn't recommend putting 3000 pounds in the trailer, but I don't even think you can in a trailer of that size. We always figured we had 1000 pounds of "stuff", that would put you at about 5500 ...
by David Jay
Fri Apr 09, 2021 12:30 pm
Forum: Personal Investments
Topic: Etrade cover transfer fee?
Replies: 6
Views: 533

Re: Etrade cover transfer fee?

This website says that Schwab does not have an account closing fee: https://www.brokerage-review.com/expert/cancel-account/how-to-close-charles-schwab-account.aspx The best route is to talk to an IRA transfer specialist at eTrade. They will know the ins and outs. More generally, always work with the...
by David Jay
Thu Apr 08, 2021 9:58 pm
Forum: Investing - Theory, News & General
Topic: TSLA gamed the system - Could Index Funds Be ‘Worse Than Marxism’?
Replies: 108
Views: 11400

Re: TSLA gamed the system - Could Index Funds Be ‘Worse Than Marxism’?

Also, the index funds won't just automatically buy in the given scenario you've presented. Index funds hold stock in proportion to market cap, not the number of shares outstanding. If the number of shares outstanding increase with a concomitant decrease in price that leads to an equal market cap be...