For this converter: https://advisors.vanguard.com/tax-center/tools/roth-betr-calculator/
Those 59.5 in age should also take note of rules.
I think page 11 is useful to read to start.
I find it confusing and taking too big a proportional chunk from my investments to make it work even as 1/3 or so of income sources (SS, savings, ladder).
Right now, it seems I would be best served with a ~23 year ladder starting withdrawals when I hit 70 (based on how long I have which is based on sex and longest living relative in my entire ancestral line [my mom] plus a few years cushion [matches what I have read you should do]).
It seems I can only buy some TIPS from open market each year, Treasury TIPS are not doable this way direct. It seems in a Roth or rollover IRA is the only place TIPS can live. Otherwise, the tax is sucked out each year.
The total I would need is a retirement savings back breaker. Even with it at 1/3 of my lowest possible income needs.
The other option is to buy iShares iBonds ETFs which have a 0.10% annual ongoing fee. One ticker for each maturity year. I am not sure this is cheaper or better, just simpler. Maybe?
I would welcome any advice. I have the intelligence of a 9 year old about bonds so, keep it simple and non hyperbolic or OT. Be gentle. Thanks.
Top experts weigh in on what can be improved.
- Reinvest vs. Cash Strategy
Set all funds to pay both Dividends and Capital Gains in Cash. Do not reinvest.
The MAGI Factor: You owe taxes on fund distributions whether they are reinvested or taken as cash. If you reinvest, you lock up the cash but still take the MAGI (Modified Adjusted Gross Income) hit. To get cash to live on later, you would be forced to sell shares, triggering additional capital gains that artificially spike your MAGI and threaten your ACA and IRMAA thresholds.
Mutual Fund Specifics: Mutual funds (especially active ones) often distribute significant end-of-year capital gains. Taking these as cash provides your living expenses without requiring you to sell off principal.
- Routing and (my state tax) Advantage
Direct all dividends and capital gain distributions into MM account to use as your central pool for living expenses.
If your distributions generate more cash than you need to live on, do not leave the excess in MM or reinvest it in equity funds. Instead, manually buy USFR (which I also have).
Why USFR over MM: My state taxes capital gains and ordinary dividends at combined state and local income tax rate, with no discount for long-term gains. However, interest from direct U.S. government obligations is entirely exempt from state and local taxes.
My MM is only partially state-tax exempt because it holds agency debt and repurchase agreements alongside Treasuries. USFR holds direct floating-rate Treasuries and is historically ~99.9% exempt from my state taxes. This makes it a far superior vehicle for parking excess cash, shielding your yield from state taxes while keeping your principal stable and accessible without triggering capital gains.
What a find! Klipsch La Scalas for $50 pair. (Not me…)
He covers two things.
First one he is right! Most don’t sit and listen.
Second, equipment is better (even consumer) and streaming is so great now.
Then he announces a form of Roon like thing he is working on. We will see!
If you don’t watch it, don‘t comment.
>“The ostensible reason for the Kennedy Center’s closing is a renovation to make it—in Trump’s words, and capitalization—“the finest Performing Arts Facility of its kind, anywhere in the World.” For months, my colleagues and I had been hearing chatter about a shutdown, but we suspected it wasn’t just because of problems with the physical structure (which certainly had issues but could have been upgraded piecemeal, without needing to close the entire complex), but also because a year of tumult had left the organization barely able to function artistically and financially. Trump had come in promising that “for the Kennedy Center, THE BEST IS YET TO COME!” On the inside, my colleagues and I instead saw cronyism, incompetence, and a series of bizarre moves that would lead to the Kennedy Center going dark.”
https://apple.news/AMIX6d6S-SFuG6EGwd7UFPg
Classical, Opera, Arts
Since the Apple Neo uses the iOS A18 chip, does that mean it does not have the MIDI limitations of M series and macOS? Allowing exclusive mode? Has anyone tested it?
Sure, we get it. Play the long game, if applicable for you.
He did leave out Medicare two year look back though. 62 and 63, you want to keep income low. If applicable to you.