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Prudence

Just curious, did your mother's account have a beneficiary?

Prudence

Accounts with beneficiaries (including TOD/POD) will not go into the estate, right? They pass immediately to the named beneficiary, right?
My wife is the primary beneficiary (100%) in my accounts where I am the sole owner. Except I have one account where our daughter is the primary beneficiary.

Prudence

Thank you for the explanation about disclaimer trust, I was wondering why.
Why is naming beneficiaries for my other accounts usually not a good idea?
I agree with you about probate in Maryland (based on my experience with my mother's estate).

Prudence

On January 1st, the Maryland estate tax exemption increases to $5 million which is more than our combined assets. The bulk of our assets are in savings accounts, mutual funds/ETFs, CDs and tIRAs; all of these have beneficiaries or TOD/PODs so not much will go into our estate(s), I believe. The reaso...

Prudence

My wife and I have wills (also durable POA, durable POA for health care) that were prepared by an attorney in 2003. I am thinking about using a software program (DIY) program to replace these wills now. In our situation, I think we need simple wills. Our existing wills contain a few provisions which...

Prudence

A contractor is installing a deck at my house using Azek decking. I have to decide between grooved or un-grooved decking. As usual, each has its pros and cons. The contractor who is very experienced with this subject recommends the un-grooved because sometimes decks with grooved boards sing or whist...

Prudence

Nope, good luck!

Prudence

I would choose a variation of option B. As you know, TIPs should be held only to protect against unexpected inflation. So, I would hold no more than the amount needed to fund residual expenses. Let's say you retire at 65 and wish to fund a 25 year retirement and need $10,000 a year to cover residual...

Prudence

OP here. To add, my contractor recommended that we use pressure treated lumber for the infill on the railings (these are the vertical pieces that support the hand rails). He said they would be yellowish when installed and then turn to gray over time as they weather. He said that they are never a pro...

Prudence

Was your IPE wood joined with nails or screws?

Prudence

Thank you for the tip, I will check it out. Meanwhile, I did a little research on reviews and evaluations of different composite brands and found mostly conflicting information which did not help in making a decision. If we go with the composite, we will probably opt for the better or best price poi...

Prudence

We have a 30 year old deck constructed with pressure treated wood. We are thinking of replacing the deck floor, steps and railings with a composite (keeping the existing infrastructure and footings). The contractor gave me a quote using the Azek gray brand of composite. Has anyone had any experience...

Prudence

There is no safe level of radon. The EPA came up with a number for when remediation is necessary at 4.0 pCi/L but it doesn't mean 3.9 is safe. I'm not an expert, just a homeowner that did a lot circumspect internet research. Take what I say with a grain of salt and do your own research. You already...

Prudence

I am 71, retired for two years, and my portfolio is in cash. I don't like the stock or bond market so I am comfortable with cash for now. I am open to investing in stocks and bonds at some point, but, not now.

Prudence

FYI, we had Plan F in 2016 and 2017 and were very happy with it. We switched to Plan G in January and have been very happy so far.

Prudence

You are young and it appears that you don't have any big expenditures in your budget over the next several years. So, I would subtract any needed cash reserves and invest the rest in one, two or three index funds. I like ETFs but I think a mutual fund is fine (total world or total US). A 90 to 100% ...

Prudence

I think they are treating you fairly given number of years worked. Companies generally need to treat all employees the same to avoid discrimination claims. So, they would probably not negotiate a package that is better than the other directors at your level.

Prudence

No, I would not block out any of the ID number. FYI, today I went to the doctor whom I have been seeing regularly for years. The receptionist asked me if I had a new Medicare card so I gave it to her and she keyed in my number.

Prudence

I don't think this is very attractive, since the 10 year Treasury note rate is already around 3% and likely to go higher. Also, here is the early withdrawal penalty from the certificate application: 2) Certificates Having a Term Greater Than Six Months. a) If redeemed within the first year, all divi...

Prudence

Why do you like Chrome?

Prudence

I have Windows 10 on my Dell laptop and I have the Microsoft Edge browser. When I prepare to download Chrome, I get this message that says I should stay with Microsoft because it is superior (faster etc.) with Windows 10. Is this just marketing or should I replace Edge with Chrome? What is your expe...

Prudence

No it doesn't. I need $100k purchasing power pretax as retirement income. Average tax 20%, so I need $80k purchasing power for retirement. Rampant inflation, my $100k is only worth $50k in purchasing power (inflation reduced my purchasing power by half)...lucky me, I invested all that $100k on TIPS...

Prudence

No it doesn't. I need $100k purchasing power pretax as retirement income. Average tax 20%, so I need $80k purchasing power for retirement. Rampant inflation, my $100k is only worth $50k in purchasing power (inflation reduced my purchasing power by half)...lucky me, I invested all that $100k on TIPS...

Prudence

My simplified understanding (I have only a rudimentary understanding of bonds in general), from David Swensen’s teachings, is that TIPS are protection against inflation and treasuries serve as protection against deflation. He recommends 50/50 of these in your bond allocation. What if you just hold ...

Prudence

Yes I use CDs and a guaranteed rate fund and own no bonds or bond funds. So far I am doing fine with keeping up with inflation. I would prefer to take risk on equities rather than bonds. At some point, I may buy a ST TIPS fund but doubt I will ever hold a non-TIPS bond fund.

Prudence

What if we change the OP's question a bit and suppose he's willing to hold equities as well as TIPS? So suppose his original question had been: "Why should anyone hold nominal bonds? I want to have a 60/40 portfolio. Why should the 40% portion (that is allocated to bonds) be in anything but TI...

Prudence

In general, yes. I like Bernstein's work. Oversimplified, this means build a TIPs ladder to fully fund your residual expenses over your remaining years (LMP). Then feel free to invest the rest of your portfolio as you choose e.g. 100% equities or whatever. For many bogleheads, this strategy could en...

Prudence

We live in Maryland and occasionally get a rental at an ocean destination in Delaware, NC, or SC etc. We usually rent from a realtor who is managing the rental for the owner but last September got a rental from an owner in Duck, NC via Homeaway. It was a really nice property that we rented at the la...

Prudence

This is a very timely post. My daughter wants us to partner with her on buying a vacation house which she (and us) would use for occasional getaways and vacations and rent out for short term rentals. So, maybe she would rent it out for 60 or 70 days a year (probably in the summer) or whatever the ma...

Prudence

Yesterday I made an online purchase and the company offers a 15% discount to military veterans. To get the discount I would have had to log in to id.me and enter my SSN and upload a copy of my DD214. I was nervous about sharing this info so I skipped the discount. Do any of you have any experience, ...

Prudence

Interesting. Maybe they can qualify to buy this second home and make the down payment on their own and then after the sale is completed I could then give her the gift (so they can replenish their funds).

Prudence

Thanks all!
J

Prudence

So, we can give my daughter $70,000 plus and she can use the funds for whatever?

Prudence

I am retired. My daughter needs about $70,000 for the down payment to buy a second home in Virginia. We all live in Maryland. I can give her the money but would rather not have any legal ownership responsibility (i.e. our names not on the deed etc.). I don't want to pay any gift tax. Maryland and Vi...

Prudence

I agree Kevin. (I was confused by your previous comments that institutional investors would have already anticipated and priced in the future increase in rates; I thought this meant that the bond fund price would not be negatively impacted when the rate increase actually occurred).

Prudence

To the OP, I would not do ANYTHING until you get the EOB from medicare and your supplement. Then make sure it is accurate. Word to the wise for ALL consumers never pay a medical bill unless your EOB confirms the same. Good luck. Good advice, that is what I plan to do. Since I wrote my post I have i...

Prudence

Very clear as usual Kevin. If rates (say ten year Treasury) are expected to increase one percent in one year and they do, does this mean that the share price (return) of the fund should not be adversely impacted?

Prudence

Does SEC yield assume no changes in interest rates (since they cannot be predicted)? So, suppose I buy a bond fund with a 3% SEC Yield and average duration of six years. If market interest rates drop one percent and I sell my position one year later, will my yield be negative for the time I held the...

Prudence

<r><QUOTE author="Spirit Rider" post_id="3885367" time="1523981053" user_id="717"><s> </s> Also, there are actually three categories of Medicare billing from providers:<LIST type="decimal"><s> </s> <LI><s> </s>Accept assignment: They agree to accept ...

Prudence

SpiritRider, So you mean that only category 1 or 2 could apply in our case, correct? See the following Medicare.gov link Lower costs with assignment What to know about private contracts You can't be asked to sign a private contract for emergency or urgent care. Ok, read it, thanks. I wonder if ther...

Prudence

Also, there are actually three categories of Medicare billing from providers: Accept assignment: They agree to accept Medicare payment schedules including deductibles and co-payments/co-insurance. Plan G will pay everything Medicare doesn't pay except for the Part B deductible. Do not accept assign...

Prudence

Thanks all. Great stuff!
J

Prudence

Good point. I was concerned about that too. Under the circumstances (to the ER and then straight to surgery), we were not offered any choices regarding things like anesthesiologists, so I am wondering where we might have messed up or how to handle this proactively the next time this happens.

Prudence

My wife (age 66) had surgery several days ago and this is the first time we have used Part A. When she was admitted to the hospital ER we gave them the insurance information. We have Medicare, Supplemental Plan G with Carefirst and Plan D. I just received a bill from the anesthesia doctor for April ...

Prudence

Your assumptions are correct, provided you take your entire RMD first each calendar year before doing any Roth conversions. But why drive your tax bill higher after age 70? And possibly your Medicare IRMAA tier as well? I'm 68 and doing modest Roth conversions the past few years. But once 2020 gets...

Prudence

Suppose an individual is 71 and has a traditional IRA (all pre-tax). And suppose, going forward, based on the new Federal tax law, he and his spouse (married filing jointly) will be paying either the 22% or 24% tax rate on each required mandatory distribution (RMD). The 24% tax bracket applies to i...

Prudence

Those who are subject to RMD must take RMD first before doing any Roth conversions. The RMD cannot be converted to Roth. In your example, where they convert 150K to stay in the 24% bracket should be adjusted to 150K of additional income where conversion amount is 150K - RMD amount. Having higher AG...

Prudence

Suppose an individual is 71 and has a traditional IRA (all pre-tax). And suppose, going forward, based on the new Federal tax law, he and his spouse (married filing jointly) will be paying either the 22% or 24% tax rate on each required mandatory distribution (RMD). The 24% tax bracket applies to in...

Prudence

PFInterest wrote: ↑Sun Apr 01, 2018 3:36 pm You just use the new bracket #'s.

I am sorry I don't understand. Do you mean that I should go into the model and change the bracket numbers or is there some way to select them in the model (seems like the 2017 bracket numbers are no longer relevant for the Roth conversion part).

Prudence

Has the retiree portfolio model in the BH wiki, specifically the roth conversion section, been updated, if necessary, for the new tax law changes? I wonder if I can use it to help calculate or analyze a roth conversion (from tIRA to Roth IRA) for the 2018 tax year? https://www.bogleheads.org/wiki/Re...

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