Search found 168 matches

by kate1234
Wed Dec 04, 2019 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees, which accounts do you consume first: Taxable, Deferred,...?
Replies: 37
Views: 2696

Re: Retirees, which accounts do you consume first: Taxable, Deferred,...?

"The rule of thumb is taxable first, but there are definitely exceptions." White Coat Investor

Isn't a major exception whether you will leave assets to your heirs, in which case give them the benefit of the lowered cost basis of a taxable account upon inheritance.
by kate1234
Wed Nov 06, 2019 1:38 pm
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1228

Re: choosing between VTSAX and VTI

Thanks for the replies everybody. I made my choice, right or wrong, and executed the trade. Done!
by kate1234
Wed Nov 06, 2019 11:38 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1228

Re: choosing between VTSAX and VTI

Smiley face.
by kate1234
Wed Nov 06, 2019 11:06 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1228

Re: choosing between VTSAX and VTI

It's an RMD. Waiting isn't allowed.
by kate1234
Wed Nov 06, 2019 10:49 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1228

Re: choosing between VTSAX and VTI

Just got off the phone with Vanguard where they explained the bid/ask deal (which is new to me) and I realized that one of my most prized goals is simplicity. A mixture of mutual funds and ETFs is not as simple as all of one or the other. So the suggestion to just throw the $2000 in with the retirem...
by kate1234
Wed Nov 06, 2019 8:32 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1228

Re: choosing between VTSAX and VTI

Thank you. While I am a mutual fund gal all the way, in this case I only have $2000 to spend so can't meet the VTSAX minimum purchase. So it sounds like nothing bad will happen if I choose VTI. It is a brokerage account that currently holds one of the target retirement funds.
by kate1234
Wed Nov 06, 2019 8:14 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1228

choosing between VTSAX and VTI

When I compare VTSAX and VTI the only differences I see are that VTSAX has a $3000 minimum purchase (whereas VTI has none) and has an expense ratio of .04% (whereas VTI is .03). So is there any reason I wouldn't choose VTI? The accounts in question are both taxable and tax-advantaged, and both tradi...
by kate1234
Thu Aug 01, 2019 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: How do you decide what car to buy for your kid
Replies: 91
Views: 4504

Re: How do you decide what car to buy for your kid

Consumer Reports has a couple of articles on buying a car for teens and the criteria they recommend, like having it be zippy enough to get them out of a bad situation, but not so zippy they are tempted to hotrod around town. They also suggest that you think about doing the opposite of what has been ...
by kate1234
Thu Aug 01, 2019 7:50 am
Forum: Personal Investments
Topic: Tax-efficient placement of international stock fund
Replies: 8
Views: 700

Tax-efficient placement of international stock fund

The Wiki article on Tax-Efficient Fund Placement recommends that international stocks be placed in a taxable account so that one can take advantage of the foreign tax credit. I don't plan to do that because the amount of tax savings does not compensate for the increased complexity of the tax return....
by kate1234
Fri Jul 05, 2019 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Adult child - cars & residency
Replies: 14
Views: 1264

Re: Adult child - cars & residency

Each university will have their own definition of residency. In one case, a co-worker was attempting to establish in state residency for his daughter by claiming that his brother was her guardian. In that case, he finally found for that university, that residency had to have been established by the...
by kate1234
Fri Jul 05, 2019 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Adult child - cars & residency
Replies: 14
Views: 1264

Adult child - cars & residency

Our son is 22 and heading to graduate school. At the moment he is fully a dependent and is on our medical insurance and car insurance, and we own his car. We will continue to pay for the first two years of graduate school, then the school will start to pay him, so by the time he ages out of both IRS...
by kate1234
Fri Dec 28, 2018 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1572

Re: Do Roth distributions affect MAGI?

There are many definitions of MAGI, it depends on what definition is being used by the agency that you are dealing with. For instance, Federally tax free municipal bond interest is included in MAGI for purposes of IRMAA. Ralph In this case I am after the Lifetime Learning Credit, one of the educati...
by kate1234
Fri Dec 28, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1572

Re: Do Roth distributions affect MAGI?

Thanks, that's just what I thought.
by kate1234
Fri Dec 28, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1572

Do Roth distributions affect MAGI?

The answer to my question seems obvious to me but I have already been wrong today on other matters that seemed obvious to me so I thought I'd better confirm. Would Roth distributions affect my MAGI? I'm trying to keep the MAGI low enough to qualify for a certain tax credit.
by kate1234
Fri Dec 28, 2018 11:11 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1309

Re: QCD, RMD, and Roth conversions

Thanks everybody, this has been helpful and without this advice I would have done the wrong thing. So instead I'll do all 2019 withdrawals for living expenses and/or Roth conversions from an IRA that is not yet subject to RMDs. I'll leave the IRA that is subject to RMDs alone except to take QCDs an...
by kate1234
Fri Dec 28, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1309

Re: QCD, RMD, and Roth conversions

Thanks everybody, this has been helpful and without this advice I would have done the wrong thing. So instead I'll do all 2019 withdrawals for living expenses and/or Roth conversions from an IRA that is not yet subject to RMDs. I'll leave the IRA that is subject to RMDs alone except to take QCDs and...
by kate1234
Fri Dec 28, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1309

Re: QCD, RMD, and Roth conversions

Do companies like Vanguard have safeguards in place to prevent hapless people like me from doing it wrong? So if next Wednesday I contacted Vanguard with the direction to convert some portion of the tIRA to Roth, their computer would kick it out saying, "Nope, take your RMD first!"
by kate1234
Fri Dec 28, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1309

Re: QCD, RMD, and Roth conversions

Can you please explain further about the effect of the Roth conversion? My reasoning was that since, even if you do a Roth conversion you must still take your RMD, then the full amount of the RMD is still available for a QCD.

And yes, I do need to spend the RMD.
by kate1234
Fri Dec 28, 2018 8:57 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1309

QCD, RMD, and Roth conversions

I got caught out this year by failing to note that one must make a qualified charitable distribution before one had withdrawn (and spent) the full amount of the RMD. Lesson learned. For next year, how does a Roth conversion affect this? I suspect not at all. Here are some sample numbers: Assume the ...
by kate1234
Mon Dec 24, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: Picking through tax loss harvesting
Replies: 2
Views: 251

Picking through tax loss harvesting

I don't have any capital gains in 2018 and don't expect to have any in the near future. I do have some carryover losses from a previous year's TLH. I have just swapped out all my short-term losses. Is there any reason I shouldn't also swap out my long-term losses?
by kate1234
Sat Dec 22, 2018 7:57 am
Forum: Personal Consumer Issues
Topic: Electric scooter for 10y old?
Replies: 17
Views: 855

Re: Electric scooter for 10y old?

In my state, Virginia, electric scooter riders must be at least 16 and must carry a government-issued ID (doesn't have to be a driver's license). You might be able to find information for your state at dmv.org
by kate1234
Sat Jun 23, 2018 4:44 pm
Forum: Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1155

Re: Timing!

Thanks David and others. I did not know about the bond dividend (and we are indeed talking about VBTLX) accruing daily and not dropping in NAV when it pays the dividends. That was the core of my question.

Makes it much easier for those of us who are actually spending those hard-earned IRAs.
by kate1234
Fri Jun 22, 2018 10:58 am
Forum: Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1155

Re: Timing!

Can you please elaborate as to why the fund being in a traditional IRA made it not matter?
by kate1234
Fri Jun 22, 2018 10:34 am
Forum: Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1155

Timing! [When to withdraw from a traditional IRA]

Timing! Everybody's favorite word. Assume a traditional IRA (but I don't think it makes a difference here) invested entirely in Vanguard Total Bond Market, which throws off dividends on about the last day of every month. And assume I want to sell/withdraw/spend on frivolous things a flat dollar amou...
by kate1234
Sun Jun 10, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: How much rent can one afford?
Replies: 4
Views: 671

How much rent can one afford?

My friend is 65 and is divorcing and selling the house after a long marriage. She has owned every house she has lived in for many decades but this new chapter of life requires more temporary living arrangements until she can get her bearings and start to craft whatever is next. She just got a new jo...
by kate1234
Sat Feb 24, 2018 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 823

Re: Social Security question under old rules

Thanks. This discussion has given several quite useful points I can pass on to my friend. Restricted app when she turns 66. And don't worry about the timing as to whether she is still married. And in five years, if they are still married and if I have any contact with him (and the laws haven't chang...
by kate1234
Sat Feb 24, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 823

Re: Social Security question under old rules

Actually, whether she would wait until age 70 to claim on her own record isn't in question. She clearly intends to. But what is new very helpful information here is that even under the new rules, she can get spousal from age 66 to 70 by filing a restricted application. I do not know what either of t...
by kate1234
Sat Feb 24, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 823

Re: Social Security question under old rules

Okay so let me be sure I understand: he would continue to collect under his own retirement record for the time being. I know that she wants to wait until age 70 and I believe that while she is waiting, he cannot collect spousal (because of the new rules). But in theory, after she claims at age 70, h...
by kate1234
Sat Feb 24, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 823

Re: Social Security question under old rules

Let me restate the question: He was born in 1950, she was born in 1953. He has filed for retirement benefits under his own record. Can he switch to spousal benefits after she reaches full retirement age?
by kate1234
Sat Feb 24, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 823

Re: Social Security question under old rules

You are correct; I was mistaken; and that changes the question - but only by a year, right?
by kate1234
Sat Feb 24, 2018 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 823

Social Security question under old rules

H and W were both over age 62 when the rules about file and suspend changed, so the old rules will apply to them. H waited to age 68 to claim retirement benefits, and has claimed under his own record, about three months ago. He is still age 68. W has just reached 65 and FRA and has not yet claimed a...
by kate1234
Tue Dec 19, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan withdrawal question.
Replies: 10
Views: 1252

Re: 529 plan withdrawal question.

Also, since our income is low enough to qualify for the American Opportunity Credit Act, I always reimburse $4000 less from the 529 than I spent on tuition and other qualified expenses.
by kate1234
Tue Dec 19, 2017 8:01 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan withdrawal question.
Replies: 10
Views: 1252

Re: 529 plan withdrawal question.

B. Food and housing are limited by what is listed in the cost of attendance, but other expenses are what you actually incurred. To calculate the limit for 2017 I take half the limit for the 2016-17 school year, plus half the limit for 2017-18. And of course if you spent less than those limits, you w...
by kate1234
Fri Dec 08, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3963

Re: Trying to understand Roth five-year rule

Alan S. wrote:
Fri Dec 08, 2017 12:50 pm
However, you better be aware of the pending tax legislation as soon as it passes because it will probably eliminate your "fine tuning" opportunity.
Thanks, I had missed this.
by kate1234
Fri Dec 08, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3963

Re: Trying to understand Roth five-year rule

Thanks, that helps and is a relief (since I recently made a withdrawal from the Roth then doubted myself). In spite of your warning though, the reason we have accumulated these tIRAs and rIRAs is to spend them! My understanding is the way one chooses whether to spend first from tIRA or rIRA is based...
by kate1234
Fri Dec 08, 2017 11:41 am
Forum: Personal Investments
Topic: Help with Inherited IRA
Replies: 14
Views: 1578

Re: Help with Inherited IRA

We transferred ours over to Vanguard so that nearly all of our accounts are in the same place. Helps with simplicity, which is one of our goals.
by kate1234
Fri Dec 08, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3963

Trying to understand Roth five-year rule

This is a hypothetical to help me understand better how the five-year rule works for a Roth: Suppose a Roth was opened in 2010 with a regular contribution of $6,000. Then in 2017 came a second regular contribution of $6,500, plus a taxable conversion of $10,000. And assume the taxpayer is over 59.5 ...
by kate1234
Fri Nov 24, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Building credit
Replies: 2
Views: 367

Re: Building credit

As for the impact on his credit score, I would recommend he get his credit report to see if the Visa card is even reporting for him. If not, it isn't doing much good for him I think in terms of building his credit score. That was exactly the right advice. He is home for Thanksgiving so he ran a cre...
by kate1234
Fri Nov 24, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Building credit
Replies: 2
Views: 367

Building credit

I opened a joint Visa card when my son was 16. It gets robust use and of course the balance is paid off every month. Someone told me this was not adequate to build credit in his name - that a card had to be in his name alone to build the credit and so I should open one of those cards designed for co...
by kate1234
Tue Nov 07, 2017 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Disposable income... how?
Replies: 106
Views: 12784

Re: Disposable income... how?

If you end up with kids you will have a lifetime of explaining why their friend gets a motorized ride-on toy but they don't. While at the same time reminding them and yourselves that you have both a refrigerator and flush toilets, so yes you are rich. It is totally worth it to clarify in your mind w...
by kate1234
Tue Nov 07, 2017 6:22 am
Forum: Personal Investments
Topic: SIPC
Replies: 3
Views: 480

SIPC

Vanguard's website says: "Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC." Does this give me a reason to ...
by kate1234
Mon Oct 23, 2017 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Calculators
Replies: 9
Views: 2259

Re: Social Security Benefits Calculators

Thanks. This one https://socialsecurity.tools/app.html worked better for me because the one at SSA required a download that isn't compatible with my Mac.

I do have some believable numbers now.
by kate1234
Mon Oct 23, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Calculators
Replies: 9
Views: 2259

Re: Social Security Benefits Calculators

I have used MaximizeMySocialSecurity in the past, back when claiming strategies were more interesting. And I intend to use them again in the year I turn 62 to confirm my conclusion that claiming at 62 really is the best strategy. This is just keeping tabs on things in the meantime.
by kate1234
Mon Oct 23, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Benefits Calculators
Replies: 9
Views: 2259

Social Security Benefits Calculators

When one logs onto one's account on the SSA website, they happily give you the estimated monthly benefit at age 62, your FRA, and age 70. However, they assume that you will continue to earn the amount you made last year (in this case 2016). I don't plan to earn any more salary so those numbers are i...
by kate1234
Thu Jul 06, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: What is a "sleeve"?
Replies: 34
Views: 5520

Re: What is a "sleeve"?

Thanks for the responses and the laughter! The good news is that my friend took the leap last Friday, went to Fidelity and asked them to move all the assets from the financial advisor and to set up what is basically a three-fund portfolio using the index funds that Fidelity used to call "Spartan." S...
by kate1234
Thu Jul 06, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: What is a "sleeve"?
Replies: 34
Views: 5520

What is a "sleeve"?

My friend's financial advisor is encouraging her to go with an "end sleeve" and to avoid index funds at all costs :D [pun intended]

What is an "end sleeve"? I don't find anything on the wiki about it.
by kate1234
Wed Jul 05, 2017 7:28 am
Forum: Personal Investments
Topic: PIMIX? [PIMCO Income Institutional]
Replies: 3
Views: 1680

Re: PIMIX? [PIMCO Income Institutional]

Thanks folks, I've passed this on.

Personally I value simplicity over just about everything else so I wouldn't keep it. But if I were to keep some, I'd mentally assign half to my bond allocation and half to stock.
by kate1234
Tue Jul 04, 2017 3:16 pm
Forum: Personal Investments
Topic: PIMIX? [PIMCO Income Institutional]
Replies: 3
Views: 1680

PIMIX? [PIMCO Income Institutional]

I have a friend who is just this week making the leap from having her assets under management with an advisor, to taking the IRA over to Fidelity and managing it herself. She will start with 50%/50% stocks & bonds, with 25% international: FSTVX Fidelity Total Market Index Premium FSIVX Fidelity Inte...
by kate1234
Wed Jun 07, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Young adults and gifts versus support
Replies: 5
Views: 1346

Re: Young adults and gifts versus support

Our 20-year-old is in college and we claim him as a dependent on our taxes. We pay all of his tuition, room & board, expenses, and fun stuff, as he earns virtually no money . This arrangement works well for all of us. I am trying to understand the IRS's distinctions between gifts and support for hi...