Search found 1635 matches

by XtremeSki2001
Fri Sep 08, 2023 7:31 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 59406

Re: VUSXX taxable for state and local now

retiringwhen wrote: Wed Sep 06, 2023 8:27 am BTW, i did a quick and dirty look at the VUSXX holdings this morning (SEC EDGAR report data not yet posted to vanguard.com, but the holdings are posted).

It looks like VUSXX is back to nearly 95% Treasuries now. I am guessing that we'll end up seeing it end the year with 80% or more Treasuries for the year. Easily passing the thresholds for CA, CT, and NY.
Considering VUSXX for my emergency fund seeing how compound yield is relatively high right now. How does 95% impact taxes? Are we only taxed on the 5% that's not in treasuries or does it mean the entire return becomes taxable? Asking for clarification / explain like I'm 5 (ELI5) :) . I live in NY state.
by XtremeSki2001
Mon Aug 21, 2023 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Can't Transfer Account
Replies: 11
Views: 1896

Re: Vanguard Can't Transfer Account

old firm titled " PTC CUST ROTH IRA FBO <mother's name> " Interestingly enough, I've now liquidated to cash (sold the Optimum funds) and Vanguard's website is still staying " This type of account can't be transferred to Vanguard ". It's just a Roth IRA. Guess I'll have to get on the phone :| Did you liquidate just now? Have the funds had the chance to settle to cash? If not, you probably need to wait until they do. Otherwise I'm guessing it has something to do with the titling of the existing account, which possibly seems complex for a simple Roth. Given the message you quoted, I suspect this is the issue rather than the specific funds in the account. Yes, now cash. I think you're right about the title. I did confirm wi...
by XtremeSki2001
Mon Aug 21, 2023 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Can't Transfer Account
Replies: 11
Views: 1896

Re: Vanguard Can't Transfer Account

Interestingly enough, I've now liquidated to cash (sold the Optimum funds) and Vanguard's website is still staying "This type of account can't be transferred to Vanguard". It's just a Roth IRA. Guess I'll have to get on the phone :|
by XtremeSki2001
Sun Aug 06, 2023 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Can't Transfer Account
Replies: 11
Views: 1896

Re: Vanguard Can't Transfer Account

Thanks everyone for the help! Much appreciated. I will liquidate and perform a direct transfer.
by XtremeSki2001
Sun Aug 06, 2023 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Can't Transfer Account
Replies: 11
Views: 1896

Re: Vanguard Can't Transfer Account

cheese_breath wrote: Sun Aug 06, 2023 7:30 am Could it be the investments inside the account? What are they?
Thanks, Cheese. This didn't occur to me. This is what's inside ...

OILVX OPTIMUM LARGE CAP VALUE INSTL CL CASH
OILGX OPTIMUM LARGE CAP GROWTH INSTL CL CASH
OIFIX OPTIMUM FIXED INCOME INSTL CL CASH
OISVX OPTIMUM SMALL MID CAP VALUE INSTL CL CASH
OISGX OPTIMUM SMALL MID CAP GROWTH INSTL CL CASH
by XtremeSki2001
Sun Aug 06, 2023 6:43 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Can't Transfer Account
Replies: 11
Views: 1896

Vanguard Can't Transfer Account

Hi All - Finally moving accounts to Vanguard on behalf of my mother. All accounts moved easily via the online transfer process. However, one remaining account at the old firm titled "PTC CUST ROTH IRA FBO <mother's name>" cannot be transferred. It's my mother's rIRA. Vanguard says "This type of account can't be transferred to Vanguard".

Any idea why this would be? Thanks in advance!
by XtremeSki2001
Fri May 26, 2023 10:05 am
Forum: Personal Consumer Issues
Topic: Homeschooling - Picking a Curriculum
Replies: 8
Views: 1167

Homeschooling - Picking a Curriculum

Hi All - Searched a bit and found there's quite a few users on here that homeschool. We're going to homeschool the 23-24 school year after having some success homeschooling during COVID. My wife is a certified teacher w/ lots of public experience so she'll be doing a lot of the heavy lifting. Where we're stuck right now is selecting a curriculum that provides good 'bang for our buck'. Since we have 4 kids 10 and under, a curriculum that allows them to learn some topics (e.g., All in One Unit Study) together are appealing. Obviously, topics like math etc. will need to be separate based on age but my wife is a math teacher so no concerns here. Do you mind sharing how you selected a curriculum and what curriculum you settled on? Would also lov...
by XtremeSki2001
Sat Apr 15, 2023 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Longer Term Rental - Orlando / Davenport FL - Handicapped
Replies: 1
Views: 334

Longer Term Rental - Orlando / Davenport FL - Handicapped

Hi All - Thought some folks here might be able to guide me in the right direction. In laws, mid-70s and one handicapped/in wheelchair, are seeking a 2-3 month rental home in Florida. Needs to be a 4+ bedroom home w/ pool. They want to be somewhere that has some sort of community, handicap accessible, but also within 30 minutes or so of Davenport and Orlando.

I'm familiar with the properties closer to Disney like Windsor Hills (which I discovered thanks to posters here), but closer to Disney is pretty expensive and might be a bit more geared towards children than older adults.

Any areas meeting the above that could be more affordable? Budget for the rental is ~$20k. Thanks in advance for any help or guidance!
by XtremeSki2001
Wed Feb 01, 2023 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to ROTH IRA - Take Tax Hit Now vs Later?
Replies: 5
Views: 663

Re: Convert IRA to ROTH IRA - Take Tax Hit Now vs Later?

Have you looked into whether or not your employer allows for after tax contributions for the mega backdoor Roth? Even with the generous match, this could open another $20k+ of Roth space for you. If that is available, I would leave the tIRA in place and not worry about the second backdoor Roth. It sounds like your tax bracket is higher now than when the tIRA was funded, but it would be important to know what your current tax bracket is and what your projected income will be in retirement. I did confirm my employers 401k plan allows after-tax contributions and non-hardship in-service withdrawals of after-tax contributions. The only hitch is they won't allow lump sum contributions so I'd have to do the after-tax contributions thru my employe...
by XtremeSki2001
Fri Jan 27, 2023 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to ROTH IRA - Take Tax Hit Now vs Later?
Replies: 5
Views: 663

Re: Convert IRA to ROTH IRA - Take Tax Hit Now vs Later?

Wife IRA - $26k - no contributions going forward (SAHM) Wife ROTH - $11k - contribute $6,500/yr via backdoor This could be a problem. Are you pro-rating the $26k IRA each year with the backdoor Roth process? If not, you may have some fixing to do. If you are pro-rating it each year, you are already converting some of it to Roth each year. You didn't mention your current tax bracket. That is one of the significant factors in making this decision. Thanks, retiredjg. You bring up a good point I should have mentioned in my original post. I have NOT made any backdoor contributions yet to my Wife's ROTH. I am planning the first backdoor this year so perhaps instead of pro-rating I should took the tax hit and move to her ROT? I'm not exactly sure...
by XtremeSki2001
Fri Jan 27, 2023 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to ROTH IRA - Take Tax Hit Now vs Later?
Replies: 5
Views: 663

Convert IRA to ROTH IRA - Take Tax Hit Now vs Later?

Hi All - Curious if I should take the tax hit on my wife's IRA now to convert it to a ROTH IRA for the future? Or maybe it's so little money it doesn't really matter?

Wife and I are 40. Hope is to retire at 55 - it's going to be close! Here's what our accounts look like.

Wife IRA - $26k - no contributions going forward (SAHM)
Wife ROTH - $11k - contribute $6,500/yr via backdoor (this would be year 1 so I'd have to follow pro-rata)
Husband 401k - $470k - contribute $22,500/yr ... employer match ~$20k/yr
Husband ROTH - $31k - contribute $6,500/yr via backdoor
Family HSA - $4k - contribute $7,750/yr
Taxable Savings - $30k
Total - $572k
by XtremeSki2001
Wed Jan 18, 2023 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Re: Assisted Living - Negotiating Private Pay

JoeRetire wrote: Wed Jan 18, 2023 1:26 pm
The OP's mom's assisted living IS very expensive; as several have noted, it is much more than expected for her current level of care.
There's more to assisted living than just the level of care. It sounds like quite a nice place.

In my locale, there's a very large assisted living facility where my aunt lived for many years until her passing. Rather luxurious, it was a bit higher standard of living than I've ever experienced. Fortunately, she could afford it.
It's just short of a Ritz Carlton :) If my dad was still around, he'd be losing his mind at the amount of money we're spending :D Wish it was feasible to have my mom live with us, but it's a non-starter.
by XtremeSki2001
Wed Jan 18, 2023 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Re: Assisted Living - Negotiating Private Pay

If I were playing the long game, my money would be spent on the elderly care facility that offers the most flexibility for the entire gamut of potential long term care; amenities might be an alluring draw when you're in independent living, but you can't play contract bridge, go to the theatre with the gang, or play pickle ball in the afternoons, if you're incontinent, mobility restricted or lost your marbles completely. When mom moved into current AL, she was incontinent and had trouble walking due to a broken ankle. Months prior she tried to kill herself in the hospital. Months prior she was clinically depressed. She lived with me for a few months and I caught her abusing her medications. Wasn't trying to share all this from the get go, b...
by XtremeSki2001
Tue Jan 17, 2023 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Re: Assisted Living - Negotiating Private Pay

JoeRetire wrote: Tue Jan 17, 2023 3:50 pm
XtremeSki2001 wrote: Tue Jan 17, 2023 3:29 pm Current Rent @ AL - $115k/yr ... can leave anytime

Proposed Contract @ AL - Pay current rate of $115k/yr thru 2025. 2026 thru end of life pay $72k/yr fixed (no increases due to changes in care, no rate increases). Still have the right to leave at any time.
So, since it appears this is where mom wants to be, this is a no-brainer, right?
I think it is, but was more or less weary about any thing I need to be aware of contract wise when signing something like this.
by XtremeSki2001
Tue Jan 17, 2023 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Re: Assisted Living - Negotiating Private Pay

I don't fully understand the three year "commitment." What if her health declines and she cannot stay in her current living situation? I assume she wouldn't have to pay or stay if everybody agreed the facility could not support her needs, and generally such places do not want residents they cannot support. What happens after three years? Do rates go back up to $9,500? I was not clear on the type of facility -- is it truly "assisted living*" or skilled nursing, or a facility with both. Can it handle dementia? I.e does it have a locked memory care wing/building? Note I did not think that medicaid covered room and board for an assisted living facility, even if the resident ran out of money. I thought (and could be wrong) m...
by XtremeSki2001
Tue Jan 17, 2023 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Re: Assisted Living - Negotiating Private Pay

Today, mom pays ~$9,500/month to the Assisted Living facility. My mother has no other debt. For context, the facility gets about $3,500/month from Medicaid eligible patients, which my mother is unlikely to ever receive due to her assets of ~$1.5M (50% liquid, 50% IRA/ROTH, etc.). The facility is offering $6k/month so long as we do private pay until 2026 - quick math says that's about $350k in rent the next three (3) years. My mother is only 70 and her mother lived to 88 ... a lot can happen in 18 years. 1. How much income does she receive each month? (this reduces the amount she takes out of savings) Approx $5,300 so hoping to negotiate with them by maybe giving them the $350k up front, instead of waiting three years, so long as they agree...
by XtremeSki2001
Tue Jan 17, 2023 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Re: Assisted Living - Negotiating Private Pay

Today, mom pays ~$9,500/month to the Assisted Living facility. My mother has no other debt. For context, the facility gets about $3,500/month from Medicare eligible patients, which my mother is unlikely to ever receive due to her assets of ~$1.5M (50% liquid, 50% IRA/ROTH, etc.). Presumably, you mean Medicaid, rather than Medicare? Good catch ... I've edited to reflect Medicaid. Today, mom pays ~$9,500/month to the Assisted Living facility. The facility is offering $6k/month so long as we do private pay until 2026 Other than "private pay" what are her options? (Seems like a no-brainer). Or are you saying that she must commit to paying monthly for the next three years, rather than leaving? Or something else? Private pay is her onl...
by XtremeSki2001
Tue Jan 17, 2023 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Assisted Living - Negotiating Private Pay
Replies: 39
Views: 3981

Assisted Living - Negotiating Private Pay

Hi All - My mother has some issues w/ Anxiety / Depression and her primary caretaker (my father) passed in 2020 and shortly thereafter she had a fall and her home burned to the ground . Of course the Boglehead community has been so helpful in assisting me to work through all this as my mother's POA. At Bogleaheads urging, I've tried to negotiate mom's rent at her Assisted Living facility. She's 70 and completely independent, but enjoys the social aspects of the facility and having everything done for her really helps her anxiety / depression. Unfortunately, having her live with me or my sister is a non-starter. So for my sister and I, it provides security in knowing someone is there for our mom should she need help. Today, mom pays ~$9,500/...
by XtremeSki2001
Wed Nov 30, 2022 8:38 am
Forum: Personal Investments
Topic: Pro-rata Rule Question
Replies: 10
Views: 843

Re: Pro-rata Rule Question

My tIRA used only post-tax dollars so seems I can do a backdoor rIRA w/out pro-rata applying? What about the gains in the tIRA account (it opened in 2021). When you filed your taxes for 2021 did you include Form 8606 for the 2021 non-deductible contribution? I did. It was a small amount $690, but this amount wound up as my basis amount. So if I club the $690 with a $6k after-tax tIRA contribution for 2022 ... I should be able to convert the $6,690 to a rIRA without penalty or tax. The tIRA actually has less than $690 today due to the market so there's no gains to be taxed. How much is your wife's tIRA? She has ~$27k in the tIRA. Hasn't made a contribution in 10 years or so. Does she have a current job with a 401k/403b? If an employer plan ...
by XtremeSki2001
Tue Nov 29, 2022 11:20 am
Forum: Personal Investments
Topic: Pro-rata Rule Question
Replies: 10
Views: 843

Re: Pro-rata Rule Question

brawlrats wrote: Tue Nov 29, 2022 11:08 am
XtremeSki2001 wrote: Tue Nov 29, 2022 11:01 am
As an aside, what do people usually do in my spouse's situation? Just save in taxable I guess? In my mind I was thinking we could just open a new tIRA for the conversion only?
A new tIRA definitely won't do the trick. How much is your wife's tIRA?

Some people just bite the bullet and pay the tax on conversion. Whether that's worth it or not is up to you and your personal tax situation.
She has ~$27k in the tIRA. Hasn't made a contribution in 10 years or so.
by XtremeSki2001
Tue Nov 29, 2022 11:01 am
Forum: Personal Investments
Topic: Pro-rata Rule Question
Replies: 10
Views: 843

Re: Pro-rata Rule Question

Got it. My spouse's tIRA was filled using pre-tax dollars years ago. As a result, does this mean I can't do a backdoor rIRA for my spouse? Sounds like pro-rata applies? My tIRA used only post-tax dollars so seems I can do a backdoor rIRA w/out pro-rata applying? What about the gains in the tIRA account (it opened in 2021). IRAs are individual accounts, so your spouse's balances are considered separately from your balances. If your tIRA has only post-tax, nondeductible balances, you can do a backdoor Roth. You would pay tax on any gains in your account when you convert. Example, if you put in $6,000 last year and it is now worth $6,200 when you convert, you will pay tax on the $200 in excess of your nondeductible contributions. Your IRA bas...
by XtremeSki2001
Tue Nov 29, 2022 10:47 am
Forum: Personal Investments
Topic: Pro-rata Rule Question
Replies: 10
Views: 843

Re: Pro-rata Rule Question

Got it. My spouse's tIRA was filled using pre-tax dollars years ago. As a result, does this mean I can't do a backdoor rIRA for my spouse? Sounds like pro-rata applies?

My tIRA used only post-tax dollars so seems I can do a backdoor rIRA w/out pro-rata applying? What about the gains in the tIRA account (it opened in 2021).
by XtremeSki2001
Tue Nov 29, 2022 10:30 am
Forum: Personal Investments
Topic: Pro-rata Rule Question
Replies: 10
Views: 843

Pro-rata Rule Question

Hi All - First time doing a backdoor Roth IRA and the pro-rata rule has me stumped. My understanding is pro-rata rule is really focused on after-tax contributions in a tIRA.

Today my wife and I each have a tIRA and rIRA. Neither of us have made contributions to either in this tax year.

My understanding is if I open a tIRA, contribute the max, then convert the balance to a rIRA the pro-rata rule will not apply.

Is my understanding accurate?
by XtremeSki2001
Tue Oct 11, 2022 2:55 pm
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Re: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

Hi All - Thank you for the continued help and assistance. Spoke with an Eldercare/Estate attorney today and it was really helpful. In short, as most of you pointed out, everything depends on whether she needs help in activities in daily living. If she runs out of money, aside from pension / SS, medicaid QIT won't cover anything if she's independent.

Too many unknowns to be comfortable in our current position. If she lives to 90 and healthy, we're in trouble. Going to talk to a CCRC and see if we can do a tour, etc. Big down-payment, but easier to estimate longer term costs and no real risks of running out of money as lower monthly costs that her pension / ss will cover.
by XtremeSki2001
Mon Oct 03, 2022 11:59 am
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Re: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

Hi All - Thanks for all the input. Thought I'd provide an update: - Got mom's rate down to $9500/month or $114k/yr. It's subject to increase at any time she needs an increase in support. - Here's what the facility said about NJ Medicaid ... Medicaid is a covered service through assisted living - with mom needing either supervision, medication administration, or hands on care qualifies her for the service. Medicaid is based off someone's monthly income- For instance- the resource limit on monthly income is around 3,100- for people who make more than that- like mom- there is what's called a QIT medicaid- for that exact reasoning- some people make a little more than the resource limit, but not enough for monthly amount here- for the rare occas...
by XtremeSki2001
Mon Sep 19, 2022 2:05 pm
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Re: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

Ret2018 wrote: Mon Sep 19, 2022 1:18 pm "We've talked to the assisted living facility and, in the event she runs out of money, we confirmed medicaid would likely foot the difference between SS/pension and assisted living costs."

As far as I know, Medicaid does not pay for assisted living, or "foot the difference." You might want to look very carefully at the income/asset limits for Medicaid in you mother's state, as well as covered benefits, and get an independent assessment (not from the facility she is currently in) of her options.
I didn't get into specifics with the facility, but think an assessment is warranted before we've spent too much money. Who would do such an assessment? Estate attorney? Someone else?
by XtremeSki2001
Mon Sep 19, 2022 12:22 pm
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Re: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

Sorry for taking so long to get back to everyone! I appreciate everyone's input. I do think my mother is on a trend to run out of money at her burn rate of ~$140k/yr w/ just under $1.4M in assets. Her pension and social security gets her ~$65k/yr. Considering this, she'll likely be out of money in 15-18 years or so depending on the market. Will she live to 85-88? Maybe. Her mother lived to 88. We've talked to the assisted living facility and, in the event she runs out of money, we confirmed medicaid would likely foot the difference between SS/pension and assisted living costs. We don't think maneuvering now to put my mother on Medicaid after the five year look back is the right thing to do. That said, we are wondering if my mom has any opti...
by XtremeSki2001
Mon Aug 08, 2022 9:47 am
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Re: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

BL wrote: Fri Aug 05, 2022 4:22 pm It sounds like you found a good place for your Mom.
Do you have siblings or are there other heirs here?
Thanks. Was a long road to get to where we are today. I have a younger sister who is pretty flexible and understanding. Thanks for your other input, lots to read/research.
delamer wrote: Fri Aug 05, 2022 4:31 pm Where are her funds being held now? Do you foresee a problem getting them money way from the advisor?
LPL. I don't think he'd take any issue with what my mom and I decide. He worked with my father for ~15 years.
by XtremeSki2001
Thu Aug 04, 2022 11:34 am
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Re: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

Thanks everyone for the input. Lots to digest here. Due to her allocation she was closer to 1.5-1.6M before the recent downtrend in the market. At that time I thought she was in pretty good shape since she also has ~$70k/yr from her pension/SS. I had a relative in a skilled nursing facility recently (highest level of service) for $9,500/mo in a pretty high cost-of-living area, so it does seem that your mother is paying a lot for assisted living unless it's really luxurious. Is she happy living there? Agree with others to just move the investments to Fidelity, Vanguard or Schwab. Let them know that you want to minimize costs and taxes and don't need a personal advisor and invest in some low cost ETFs like VTI and a bond fund. Best wishes! We...
by XtremeSki2001
Thu Aug 04, 2022 8:49 am
Forum: Personal Investments
Topic: Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)
Replies: 23
Views: 2762

Asset Allocation and Next Steps - 70 Year Old Mother (I'm POA)

All - Seeking some input for my 70 year old mother. I'm her POA. She has severe anxiety and depression. She lives in an assisted living facility. Her husband / my father passed in 2020 and he managed the finances. My mother's parents lived until their late 80s. I'm revisiting how she's doing financially now that I've got her living situation settled (long story - here and here ). Her rent at the assisted living facility is ~$12k/month ($144k/yr). Her other living expenses are <$5k/yr. She has no debt. She receives ~$68k/yr from SS / pension. The remaining $80k of rent/expenses is paid from her cash account. She has around $732k in investments and $583k in cash. My father's old business partner now manages her investments. It looks like he's...
by XtremeSki2001
Mon Mar 28, 2022 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Making Large Withdrawal From Retirement Savings
Replies: 28
Views: 3769

Re: Making Large Withdrawal From Retirement Savings

How about stalling as long as possible (stay elsewhere for a few months?), then "borrow" from the IRA with a plan to replace most of it within 60 days with the insurance money. Will her monthly income more than meet her expenses while covering the rest of the CCRC costs? Her rehab costs are ~$13k/month, but even that I suspect is less than the tax hit she would get pulling money out of the IRA. Her monthly income covers CCRC monthly costs w/ about $10k left over. This is without touching any of her savings. Over the last year, DW and I have been checking out independent/assisted living facilities for my mom. The few places that required exorbitant fees (though none were as high as $200k) had alternatives with higher monthly rent ...
by XtremeSki2001
Sun Mar 27, 2022 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Making Large Withdrawal From Retirement Savings
Replies: 28
Views: 3769

Re: Making Large Withdrawal From Retirement Savings

Thanks all for the input and also the suggestion to ask the ins company for an advance. ... I'm wondering if it might be 'easier' to work something out w/ the CCRC? Not sure how flexible a CCRC might be negotiating terms of the buy-in. Have you broached the subject with CCRC management? If they understand the situation they may be willing to consider a delay pending insurance settlement. Buying time in rehab would also help. Medicare pays 100% of 60 days after a ~$1,500 deductible, but it has to be medically justified. Medicare.gov: Inpatient Rehabilitation Care She's still going through the admissions process so my plan was to discuss the terms once she's been accepted. She's been financially accepted, but now going through medical due di...
by XtremeSki2001
Sun Mar 27, 2022 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Making Large Withdrawal From Retirement Savings
Replies: 28
Views: 3769

Re: Making Large Withdrawal From Retirement Savings

Thanks all for the input and also the suggestion to ask the ins company for an advance. ... I'm wondering if it might be 'easier' to work something out w/ the CCRC? Not sure how flexible a CCRC might be negotiating terms of the buy-in. Have you broached the subject with CCRC management? If they understand the situation they may be willing to consider a delay pending insurance settlement. Buying time in rehab would also help. Medicare pays 100% of 60 days after a ~$1,500 deductible, but it has to be medically justified. Medicare.gov: Inpatient Rehabilitation Care She's still going through the admissions process so my plan was to discuss the terms once she's been accepted. She's been financially accepted, but now going through medical due dil...
by XtremeSki2001
Sun Mar 27, 2022 5:59 am
Forum: Personal Finance (Not Investing)
Topic: Making Large Withdrawal From Retirement Savings
Replies: 28
Views: 3769

Re: Making Large Withdrawal From Retirement Savings

Thanks all for the valuable feedback! Your mom is 69 per one of your prior threads. If she is on Medicare, keep the Medicare IRMAA thresholds in mind. You may want to target MAGI (by varying the sources of cash to pay the $200k) to stay under an IRMAA tier. We'll keep this in mind. I was not aware of the IRMAA tier. Will she have house proceeds in 60 days? She could move the traditional IRA to another institution if she deposits the funds in 60 days. Could you do a HELOC on your house or spot mom $200K till the house funds come in? Definitely some risks to consider but a lot of potential tax savings as well. It's doubtful she will have cash in hand in 60 days. Thinking more like 90. I'm wondering if it might be 'easier' to work something ou...
by XtremeSki2001
Sat Mar 26, 2022 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Making Large Withdrawal From Retirement Savings
Replies: 28
Views: 3769

Re: Making Large Withdrawal From Retirement Savings

Someone with better finance insight will respond to your question, but I just want to remind you that in many cases, the CCRC cost (buyin and/or monthly charge) can include an amount which is considered a prepaid medical expense, thus deductible. All situations are different, but just a reminder to look into specifics for her situation. Thank you - I was not aware of this. Seems at least a portion is indeed tax deductible. Does she have a house to sell? That's how my mom bought into the CCRC. It's a long story, which you can read more about here , but ultimately we may not have money from the house in time for the deposit. If you're hoping to get some medical deduction, keep in mind that anything taken from the IRA is going to raise the th...
by XtremeSki2001
Sat Mar 26, 2022 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Making Large Withdrawal From Retirement Savings
Replies: 28
Views: 3769

Making Large Withdrawal From Retirement Savings

Hi All - Trying to help my mother, who's hopefully moving into a continuing retirement community. The down payment is ~$200k. She has the following balances:

1 - IRA - 878k
2 - ROTH - $26k
3 - Taxable Investing - $52k
4 - Savings Account - $40k

She also earns ~$6k/month between her pension and SS. To come up with the $200k in the most tax advantageous way - would the order be to hit up #4 first, #3, #2, and finally #1? Thanks in advance for any input!
by XtremeSki2001
Thu Mar 24, 2022 9:42 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

I am not saying "don't do it" but you are thinking of going swimming in a pool full of sharks. Noted. Our preference is not to build, but we will not rule it out. The standard ISO policy allows you to walk away and not rebuild, but you will only get Actual Cash Value: D. Loss Settlement d. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss as noted in 2.a. and b. above. Insurance companies are sometimes willing to pay more than Actual Cash Value, especially if rebuilding costs have increased so much that you will be using the extended replacement cost coverage. If they can pay you 100% of Coverage A to ...
by XtremeSki2001
Wed Mar 23, 2022 10:10 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

I started making calls the day I saw the house was gone. Filed with her Insurance company right away, they sent copies of the policy and limitations etc. They did expect alot of information on contents which is nearly impossible unless you have an inventory, video and photos. It was listed for sale a few years ago so we have some good recent photos, which has been hugely helpful. One thing to consider is the property. In the end, we had it appraised and my brother bought it. It's been two years and neighbors are starting to rebuild. I moved my Mom to a Wonderful Senior community and she is very happy. It has been a long journey We have not ruled out rebuilding or clearing / selling the lot. Still have several weeks until we get solid numbe...
by XtremeSki2001
Mon Mar 21, 2022 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

Again, I strongly suggest consulting a public adjustor before talking to the insurance company again. We're now working with an adjuster so all dialog will be between ins company and adjuster. When our house burned, the company requirement was that we replace it or they would not pay. As I remember it our PA told us this could be either a rebuild or purchase of a different house. BUT having the intention of just adding the payout to our portfolio was definitely not allowed. Your policy may be different, and we rebuilt so I did not pay close attention to the issue. Sounds like there are some benefits to rebuilding, even if we plan to sell. We'll need to see the numbers to make the decision. Appreciate your and everyone else inputs.
by XtremeSki2001
Sun Mar 20, 2022 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

While this is a horrible way to move on to the next chapter in life, you may want to see what the settlement is then consider selling the property to a developer rather than rebuilding yourselves. Unless you would see building it back to sell as a "hobby" you'd enjoy and find profitable. It sounds like an independent living or assisted living apartment might be a better choice for her going forward, and the loss of the house removes those sentimental ties to her late husband and her years of being a mother to her children associated with the house. We will definitely not rebuild. We were planning to list the home in the next few weeks. Totally agree on apartment. We're encouraging her to join a continuing care retirement communit...
by XtremeSki2001
Sun Mar 20, 2022 11:59 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

While this is a horrible way to move on to the next chapter in life, you may want to see what the settlement is then consider selling the property to a developer rather than rebuilding yourselves. Unless you would see building it back to sell as a "hobby" you'd enjoy and find profitable. It sounds like an independent living or assisted living apartment might be a better choice for her going forward, and the loss of the house removes those sentimental ties to her late husband and her years of being a mother to her children associated with the house. We will definitely not rebuild. We were planning to list the home in the next few weeks. Totally agree on apartment. We're encouraging her to join a continuing care retirement communit...
by XtremeSki2001
Sun Mar 20, 2022 10:29 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

Alternate living expenses. Many policies cover ALE for one or two years. If you mother was planning to return to the house she may be entitled to this benefit. This is not a trivial sum. It is the rent on another nearby house of comparable size to the one that burned. A public adjustor can help you with this. Thanks for the input! She's been discharged from her inpatient subacute rehab facility, but we're paying cash now for her to stay there and continue rehab considering the circumstances. It's not cheap at all (~$13k/month) and I doubt the insurance will cover it all, but since she still needs some level of supervision and physical therapy (not to mention we need time to get an apartment, furniture, etc.) I'm hoping they at least pay a ...
by XtremeSki2001
Sat Mar 19, 2022 10:52 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

Even though the house is gone, I see two major areas of dispute between you and the company. 1. Most policies assume you are going to rebuild and offer coverage for inflation protection and building code upgrades since the house was originally built. These can be substantial. 2. Most policies offer "guaranteed replacement value" for the contents. This is a huge area for dispute. Spent hours on the phone with folks today and seems any contents payout will not be possible without content assessment. So public adjuster will be necessary. The policy covers structure/content up to $1.1M, which we will reach with ease. In this case, does it really matter what the replace value is if we can't go over $1.1M? Just a couple of very random ...
by XtremeSki2001
Sat Mar 19, 2022 9:21 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

passivestream wrote: Sat Mar 19, 2022 7:18 am Read the insurance policy and understand the vacancy definition and how it could hurt you.

Many insurance policies limit coverage when a house is considered vacant so the definition of vacancy is very important.
I’ve got the policy finally. There are limits around coverage of glass, vandalism, etc. Minor stuff so far as I can tell.
by XtremeSki2001
Sat Mar 19, 2022 6:45 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

Still has a level of complexity I wouldn’t want to deal with. My insurance company wanted to put us in a small two bedroom apartment. That was fine for us but not very good for the poultry we kept. Then a trailer was offered and I nixed that as it was winter in a cold climate. At least your mom already has lodging even if it isn’t a long term situation. I would tell her as soon as you can. It isn’t ever going to be easy. But if you wait she might start questioning your motives on other stuff. Most my insurance friends, who know the home, policy, etc. think it's most likely the insurance company will claim total loss and just pay out the close to the full insured amount even w/out an adjuster. If they give us a hard time, we'll loop in the ...
by XtremeSki2001
Fri Mar 18, 2022 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

If you don't do anything else in the next week -- get a independent public adjuster. Thank you. We have a few names lined up that we'll be calling. You'll need to dig into the policy to see what they consider unoccupied. Weekly visits might be enough. Reviewed the policy and spoke with a few insurance agent friends and seems the house qualifies as 'occupied'. Some good news. Do you know what type of coverage she had, and the limits? Some policies have more serious limits than others, meaning some will rebuild to the same quality, even if prices have gone up, etc. (I have no idea what that situation is with the sudden surge in housing prices...) Here's what I pulled from the Encompass policy: Property Location Limit (PLL) - $1,148,798 (PLL ...
by XtremeSki2001
Fri Mar 18, 2022 11:32 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

Re: House Fire - Now What?

exodusNH wrote: Fri Mar 18, 2022 11:26 amWas anyone living there at the time? If it was just your mother and if she's been in the hospital for awhile, I hope that the insurance company doesn't determine the house to have been unoccupied.
No, my mother had not been there since Christmas. However, we were checking the house every week to make sure there are no issues (inside/outside).

I would expect the insurance company still insures a house when it's owner is in the hospital, no?
by XtremeSki2001
Fri Mar 18, 2022 11:10 am
Forum: Personal Finance (Not Investing)
Topic: House Fire - Now What?
Replies: 40
Views: 5666

House Fire - Now What?

Hi All - I'm at a loss typing this and have never dealt with a house fire. The house is totally destroyed - razed to the ground. Fortunately, no one was hurt. If you've been following along with my mothers story Care Options for Parent w/ Mental Health Issues and Care options for parent (mental health, death of spouse) you know it's been a wild ride. I have not told my mother the news because she's in inpatient care and I want to tell her in person (I'm not close by). However, I'm also the Financial POA/Medical POA and will be responsible for next steps with the house. We were planning to list the house for sale next week - it was worth ~425k and there was ~180k left on the mortgage. Fortunately, my mother has a lot of saving and will be fi...
by XtremeSki2001
Fri Feb 04, 2022 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Care Options for Parent w/ Mental Health Issues
Replies: 19
Views: 2539

Re: Care Options for Parent w/ Mental Health Issues

Thanks all. Going to talk to an Elder Care Attorney just to understand what they could provide me that isn't already done.

I do find the Medical POA is somewhat useless. The hospital told me that unless she can't speak for herself then they view her as able to make decisions, etc. As a result, surgery decisions and forms she had to sign were decided by my mother without my knowledge. I don't currently trust her to make decisions that are best for her, but it seems my hands are tied.
by XtremeSki2001
Thu Feb 03, 2022 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Care Options for Parent w/ Mental Health Issues
Replies: 19
Views: 2539

Re: Care Options for Parent w/ Mental Health Issues

What about an elder law attorney? I would connect with an elder law attorney on what appropriate documents you need (POA, medical POA, etc.) in order to direct her care at arm's length. Very likely you will also need to perform some estate planning - establishing a trust, et cetera. Not so much as to "protect her assets" but in order to give you the financial capability to provide the best care possible. When my father passed in 2020, we had my mom create a living will. I was named executor and also POA of medical and financial. What else would I need from an Elder Law Attorney? I assume they could help create a living trust, which might make my life easier when my mother passes. However, at that point her house will be sold so h...