Messages

1

Expat life / Re: how do you plan to deal with lack of Medicare coverage?

« on: November 23, 2020, 03:06:30 AM »

Hi jeremy, i would like to ask what health insurance overseas will you recommend??? Thanks

2

Expat life / Living abroad with your investment

« on: November 23, 2020, 03:01:58 AM »

I would like to ask from here if anyone is living or planning to retire abroad and will rely only their savings and investments you have allocated for retirement. I know some retire early and yet they still generate income from YouTube or blogs. I am curious if you set an amount for your early retirement would that be enough no matter what the stock market goes in the future?  Until you wait for your social security like 10-15 years from now. Thanks.

3

Early Retirement / Selling index fund (VTSAX) in taxable account

« on: August 06, 2020, 04:10:38 AM »

I have a question, i am planning to sell some shares of vtsax from my taxable account and will gain profit after selling. If i will sell the VTSAX, is that mean i cannot buy the same index fund on the following day??? Do you sell some of your index fund if you profit from it or just leave it and wait until you are ready to do the rebalance of the asset??? Just need some thought. This is the first time i am trying to sell the index fund. Thank you...

4

Early Retirement / Re: Newbie in investment

« on: May 07, 2019, 04:37:35 AM »

Thank you again Jeremy and really appreciate it :-)

this might help
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement#Tax_efficiency_of_various_asset_classes

5

Early Retirement / Re: Newbie in investment

« on: May 06, 2019, 03:40:23 PM »

Thank you for taking time to reply. I already know what I want to buy but somehow got confused which bucket to use especially when buying bonds. Thanks again...

You can purchase the ETF equivalents if you have your IRAs at another brokerage.

Is it a good idea isn't really a question that can be answered.

If you've decided you want to hold bonds, and you can't hold them in your IRA, then you hold them in your taxable account as it is the only other option.

6

Early Retirement / Re: Newbie in investment

« on: May 03, 2019, 01:49:23 PM »

Thank you Jeremy for the reply. Really appreciate it. I am planning to buy VBTLX and since I don?t have tIRA and ROTH IRA at vanguard, I will just buy the VBTLX and put it in taxable account. Bonds until now, i still have to learn from it and even the TAXATION. Is it a good idea???
Thank you..

Do you invest bonds in your brokerage (taxable) account? 

The VTSAX minimum was reduced to 3k a while back. If less than that, you can buy the ETF (ticker symbol: VTI)

Really, there is nothing you can do wrong here. Traditional, Roth, Brokerage, whatever, the most important thing is you are saving $. The boring details are just related to taxes.

Easy approach: 403b contributions Traditional, IRA as Roth, the rest in brokerage

If you want to dig deeper: compare your current marginal tax rate to your expected tax rate in retirement. If now > retirement, then Traditional, else Roth. It depends on income.

I hold some bonds in my taxable account, yes. Interest is taxed at your marginal rate.

Ibonds can be held tax-deferred, and municipal bonds are not taxable at the Federal level (maybe at State, and definitely for ACA subsidy calculations.)

7

Early Retirement / Re: Newbie in investment

« on: May 03, 2019, 03:10:24 AM »

Do you invest bonds in your brokerage (taxable) account? 

The VTSAX minimum was reduced to 3k a while back. If less than that, you can buy the ETF (ticker symbol: VTI)

Really, there is nothing you can do wrong here. Traditional, Roth, Brokerage, whatever, the most important thing is you are saving $. The boring details are just related to taxes.

Easy approach: 403b contributions Traditional, IRA as Roth, the rest in brokerage

If you want to dig deeper: compare your current marginal tax rate to your expected tax rate in retirement. If now > retirement, then Traditional, else Roth. It depends on income.

8

Taxes / Re: Does Roth Conversion make sense for me

« on: April 13, 2019, 02:31:43 PM »

Any suggestions what to do with his 403b when he stops working???

It sounds like you understand what to do perfectly. I'd follow the plan that you described.

The RMD will only be a small fraction of total income. At age 70.5, the RMD distribution factor is 27.4 (or 3.65%.)
For $200k, that is a withdrawal of ~$7k, or only 10% of earned income.

Thank you for your reply. I am glad that i am doing the right way since i am new with this investments :-). One more question though, I understand that when my husband hits 70 and start taking his RMD. Is there a limit age or years for him to do the Roth IRA conversion???
Once again really appreciate your reply and thank you very much...

9

Taxes / Re: Does Roth Conversion make sense for me

« on: April 12, 2019, 11:00:35 AM »

I am 61 and retired with considerable assets in both my brokerage accounts and traditional IRA's

In this late stage and with the assets I have (25 years worth of savings) does Roth Conversion make any sense at all and if so in what circumstance?

Any responses greatly appreciated

Yes!

With significant assets in Traditional IRAs, at age 70.5 the IRS will require you begin minimum withdrawals (RMDs.) Those grow over time and can result in significant tax burden. You can voluntarily do large withdrawals in advance to reduce the size of the RMDs, paying tax now at 10% or 12% to avoid paying tax later at 22%+. (Your State may also tax these.)

You can see an example of this here:
https://www.gocurrycracker.com/reader-financial-review-scared-death-early-retirement/

If you are on an ACA health insurance policy, Roth conversions will reduce or eliminate your premium subsidies, so be sure to understand this.
https://www.gocurrycracker.com/obamacare-optimization-early-retirement/

With ACA subsidy impact it might be better to wait until when you enroll in Medicare to start Roth conversions. Or go abroad for a few years...

Hello. We have somehow same situation. My husband is 61 y.o now and he is planning to retire at age of 67. We are planning what to do in his 403b. We are thinking that when he stop working at age 67, he will roll over his 403b to traditional IRA and wait for the RMD(but we know rmd will keep on increasing yearly). He is also planning to take his social security at age of 68. I am younger than him of 20 years and when he retires i will still be working. We are trying to think how to reduce our tax especially when he retires. We really don?t have that much money though and that is why we are trying to lower our taxes. We don?t have that much investment except the 403b and brokerage account that we invested in vanguard.

Husband 403b when he retires: 200,000 (plan to roll over to traditional Ira when he stops working)
His expected social security:     24,000 yearly
Wife working with annual gross income of: 77,000
No kids
No debts except for home mortgage.
Yearly expenses now: 40,000

Any suggestions what to do with his 403b when he stops working??? Is it a good idea to roll over to traditional IRA or ROTH IRA??? Our plan is rollover the 403b to traditional IRA and the remaining 3 years he has, will try to do the ROTH IRA conversion. At the same time he will take his full retirement social security at age of 67 and 8 months.And whatever is the remaining on his tIRA will follow the RMD. I wife is still working during the process.Does it make sense? I believe that my income and his social security is enough for us to live when he stops working. I am hoping that i will not pay more tax during the process.

Thank you very much and really appreciate any suggestions....
Sorry for my ignorance about this thing but I?m just started learning this things especially the investment.

10

Taxes / Re: Cost basis in vanguard

« on: April 12, 2019, 10:26:07 AM »

Thanks for the info. Really appreciate it

11

Taxes / Re: Cost basis in vanguard

« on: April 12, 2019, 05:17:53 AM »

I've had two tax years with investments in Vanguard and have done my taxes myself without any issues so I doubt a pro would have any issues.

Thank you for the reply. Can you share with me by chance how you learn to make your taxes? I want to learn but when I did the first time I mess up on it😩😩😩... thanks again

12

Taxes / Re: Cost basis in vanguard

« on: April 10, 2019, 01:47:51 AM »

It is not complicated.

Specific identification gives you more control over exact gain/loss for tax optimization

Will the vanguard provide a statement and track on it every time you sell and buy using the specific identification? I pay a tax preparer to do our taxes coz scared of messing our taxes. I just don?t want it to be complicated for the tax preparer to do our taxes. Thanks again

13

Early Retirement / Re: Newbie in investment

« on: April 10, 2019, 01:44:34 AM »

Thanks all for the reply. I started already in vanguard and both 3k shares of vtsax. Planning to add more money every month on it. Thanks again and got so excited with this FI journey. Also, maximize already my 403b and planning to open an account for Roth IRA.

14

Taxes / Cost basis in vanguard

« on: April 08, 2019, 11:23:55 PM »

I am new in investing and still learning. I set up an account to vanguard and I encounter this cost basis. I would like to ask any suggestion what to do about it. Will I choose average cost, FIFO or specific identification? I read some blogs and article that specific identification is better. I would like to ask if it would be complicated if I choose the specific ID. I hire tax preparer to do tax foe me and my husband for the reason we don?t want to mess up our irs. Just an average here and very new when investing in stocks and index funds... thanks...

15

Early Retirement / Newbie in investment

« on: March 07, 2019, 11:21:36 AM »

Hello to all. I am so glad I came into this forum.

I read tons of forum and article. Everything is new to me. I want to start investing in vanguard but I have limited cash like 3000$. I would like to ask if I should open the Roth IRA or brokage account or traditional Ira?

I have a maximized 403b which is fully maxed by my employer. I have my hsa also. I want to expand my investment and want to start even though I will start in a small amount of money. After that I will plan to put 500 dollars every month on that account.

Can anyone please suggest where to start and what fund to invest??? I am eyeing the VTSAX for Roth IRA.

Really appreciate your feedback and thank you.

By the way, currently 39 years old and planning to retire 10 years from now....hoping....

Thanks