Search Result

[Andrew Musbach]

Very fair question and I’d be annoyed by a disclaimer in every post too

I don’t know the exact compliance “risks” or the extent...

[Andrew Musbach]

Hence the “general guidance” of where to look

I wasn’t trying to give specific advice, but appreciate you adding color here / I...

[Andrew Musbach]

Going to add a heavy emphasis that you should confirm with a tax professional for specific advice

But, hoping to point you in the right...

[Andrew Musbach]

No, I wouldn’t. We have an “easy” to understand portfolio and make sure people align with our approach before investing. I’m not trying to defend...

[Andrew Musbach]

5 months is too short of a time period to judge performance (whether that's someone managing their own investments or an advisor managing them). Any strategy...

[Andrew Musbach]

Joanne Giardini-Russell is a great resource (https://gmedicareteam.com/about/meet...dini-russell/#). We've used her to help several...

[Andrew Musbach]

It typically comes down to location, size of the firm, and complexity of the documents. With a $1.2 million net worth, you almost certainly just need...

[Andrew Musbach]

You can have a joint account with "transfer-on-death" to the Trust, so it goes to the surviving spouse if just one of you passes away, but if...

[Andrew Musbach]

^This was a big change given in the past the SEP-IRA was the only retirement plan you could set up in the following calendar year yet make employER contributions...

[Andrew Musbach]

Instead of starting with the allocation first, I find it helpful to work backwards.

1) What's your spending going to be in retirement?...

[Andrew Musbach]

There is a general framework to follow, but like anything else, it factors in assumptions/each situation is unique based on income sources, investment...

[Andrew Musbach]

This concern/perceived awkwardness is why there is something like 93%+ retention rate for advisors in general. The onus is on the advisor to continue...

[Andrew Musbach]

No magic allocation, but it seems reasonable and I'm biased with having tilts toward small and value too

As to rebalancing, you might...

[Andrew Musbach]

We don't either because you'll always need a place to live so it's not really an "investment" to rebalance around. The only way we'd incorporate...

[Andrew Musbach]

One other thought, and nothing to do with an HSA, but you can always retroactively apply for COBRA insurance through your previous employer for up to...

[Andrew Musbach]

Wow - I've never looked at the numbers for West Virginia and that is significantly higher than any state I've seen. You're right about how big of a difference...

[Andrew Musbach]

You'd be surprised how many people are sitting with $100-300k+ of cash because they just aren't sure what to do with it, so for basic situations, a roboadvisor...

[Andrew Musbach]

Agree with ENT Doc on clarifying the healthcare subsidy. $30k subsidy doesn't sound accurate even if you had your income at $1 over the FPL and received...

[Andrew Musbach]

I think it's nice of you to be concerned about your co-resident, but agree with others there is no use in trying to "convince" anyone as it's...

[Andrew Musbach]

Obviously you want to get adequate coverage at the best price. I describe it like your comcast bill where if you don't periodically shop your policies,...

[Andrew Musbach]

Yes, the stars have to "align," but what you report on your tax return in retirement doesn't directly equate to what you are spending. This...

[Andrew Musbach]

The ACA tax credit based solely on your tax return. I know there will always be loopholes, but I've helped people with a multi-million net worth qualify...

[Andrew Musbach]

When looking at any investment, you want to look at the the "total" return, which is a combination of income (dividends/interest) and appreciation/depreciation...

[Andrew Musbach]

I think that is just a presumptuous statement made about the financial advisor, but I would just ask HR that question (along with if you can open it at...

[Andrew Musbach]

I'm all for keeping things simple, so I'd start with getting the basics right when it comes to asset placement:

1) Match investment account...

[Andrew Musbach]

I always describe the pro-rate rule like pouring cream into coffee. You pour a little cream (your basis from non-deductible IRA contributions) into a...

[Andrew Musbach]

Thanks for the feedback here. Loving the day job and being comfortable working longer makes the retirement savings goal much more manageable. Everyone...

[Andrew Musbach]

It really comes down to cash flow and any other goals you have/are saving toward and what's most important to you. Here is a rough outline of the thought...

[Andrew Musbach]

Traditional IRA = tax deduction today for contribution, tax deferred growth, pay taxes when you withdraw in the future
Roth IRA = no tax deduction...

[Andrew Musbach]

An easier route is to just roll your previous 403b over to a Roth IRA thus completing the "conversion". That allows you to then just start the...

[Andrew Musbach]

Haha - we have a MUCH more complicated and exciting 5-6 fund portfolio, but don’t worry - we can convert your holdings to the conformist portfolio after...

[Andrew Musbach]

fatlittlepig talk EntrepreneurMD off the ledge!

Joking aside, there is a lot of value to be had, especially between retirement and 72. But...

[Andrew Musbach]

You have to be 70 1/2 before you can make QCDs- literally 70 years old and 6 months and a day before you can contribute (not just the calendar year in...

[Andrew Musbach]

Not trying to downplay the benefits of proactive tax planning here, but if you have a lot of income/money, there does come a point where you just have...

[Andrew Musbach]

That's exactly what this forum, and any other forums are for, to share opinions/perspectives and for people to make their own decisions. A lot of smart/savvy...

[Andrew Musbach]

I'd separate it out from in theory v. in practice.

In theory, I think it can be a great strategy for people to use who love to optimize everything...

[Andrew Musbach]

100% agree. Investing is much easier than trying to manage behavioral expectations around investing. It's also why, like you mention, for the vast majority...

[Andrew Musbach]

Not trying to have this come off in a rude or combative tone in the slightest, but I prefer to invest based on decades of actual academic research versus...

[Andrew Musbach]

Without going too far into the weeds, in the most basic form, which is based on decades of academic research over much longer periods than just 10 years,...

[Andrew Musbach]

Just elaborating on what Peds says, you can run a rough calculation to at least see where you will be come tax time. I'll do an overly simplified example...

[Andrew Musbach]

Haha, I guess I should stop trying to be a glitch in the matrix ...

[Andrew Musbach]

I noticed some people get annoyed with me when I try to justify an AUM fee structure

[Andrew Musbach]

Haha - I’m working on it with my posts, but keep reverting back ...

[Andrew Musbach]

I wish there was an easy, automated way to do this or explain this, but there really are too many variables/moving parts to give blanket advice, but I'll...

[Andrew Musbach]

Thanks for the additional details - I was not expecting this split of taxable v. tax-deferred based on your net worth. You're in a great spot, at least...

[Andrew Musbach]

As GasFIRE mentions, that thread is a good place to start, but I'll get you some high level thoughts here:

1) You probably already know this,...

[Andrew Musbach]

You may have looked at the wrong picture While we didn't see the MoneyCare PPO HDHP, the EPO HDHP has a $4k/$8k deductible for individual/family. ...

[Andrew Musbach]

To tylerjw12's point, you posted the EPO plan, but I would assume the PPO plans follow the same logic where the HDHP is more expensive for worse coverage...

[Andrew Musbach]

No, you're definitely looking at it right. Does your employer make any contributions to your HSA if you selected the HDHP? If everything is even (healthcare...

[Andrew Musbach]

I would be very surprised if a HDHP would cost $775 more than the low deductible plan. I have yet to come across a health insurance plan where the HDHP...

[Andrew Musbach]

Thank you! I really appreciate the kind words and shout-out

[Andrew Musbach]

Yes, you can have both and claim the deduction....

[Andrew Musbach]

It may seem more complicated than it really is because of the changing employment, but it’s a pretty straightforward situation of just needing to understand...

[Andrew Musbach]

The pro rata rule is based on YE balance. So, as long as you have a $0 IRA balance on 12/31/20, by making those Roth IRA conversions, you can make the...

[Andrew Musbach]

Hi Virajith,

I apologize if I stated anything incorrectly! I was simply trying to summarize each firm's ADV to hopefully help people compare...

[Andrew Musbach]

I'll paraphrase, but it sounds like you'd like to live a comfortable retirement, pass away next to your spouse at the same time, and have the last check...

[Andrew Musbach]

I'd second jfoxcpacfp - but I guess you could say we're both biased on the value you could get, which is different than the bias most people on here will...

[Andrew Musbach]

Don't let the tax tail wag the dog. You'd rather pay taxes on something than pay no taxes on nothing. Having said that, you can be intentional with where...

[Andrew Musbach]

I agree that you might as well start doing backdoor Roth IRA contributions now.

Having said that, you have until 4/15/22 to make a 2021...

[Andrew Musbach]

Like any investment decision, you want to focus on the best after-tax net return you can with the mix of stocks and bonds. Bonds get the majority of their...

[Andrew Musbach]

Another good strategy is to have a joint Amazon Prime account and frequently change the password to slow down the purchases by your significant other...

[Andrew Musbach]

Not everyone wants to have to login and place periodic trades. The people where dividend/cap gain reinvestment makes sense is for people who wouldn't...

[Andrew Musbach]

Not to repeat what everyone else has said, but here's my summary on your questions:

1) Every person has an annual "gift tax exemption"...

[Andrew Musbach]

Oh boy... don't tell me that I need to learn about what a backdrop Roth IRA is now too ...

[Andrew Musbach]

1) Agree that ideally you can have outside accounts (like a Roth IRA) where you have your small cap value exposure
2) Expenses are just one part...

[Andrew Musbach]

This is a great question and I've thought about this as well and have not found a definitive answer.

Another option to save a little on taxes,...

[Andrew Musbach]

Nothing to do with TLH, but I agree with Peds on cleaning up your Roth IRA. I would never want to own a bond fund in a Roth IRA.

TLH is...

[Andrew Musbach]

Just my opinion, but I'd only purchase life insurance if there is a need or you knew there would be one in the near future (i.e. getting married or starting...

[Andrew Musbach]

That's great and sounds like you're being thoughtful there.

For what it's worth, just my preference, but I like to have a mix of some corporate...

[Andrew Musbach]

Unfortunately, yes, this was bad advice. I can't believe that A shares and C shares are still a thing. A shares mean that you pay a "front-load"...

[Andrew Musbach]

No one has a crystal ball, but the Fed projects interest rates to stay low for quite some time, so it's hard to see rates going up very much in the near-term....

[Andrew Musbach]

I think it's easy to forget that once you are FI, especially if you RE, that you have a very long investment time horizon ahead of you. Instead of worrying...

[Andrew Musbach]

That would be a perfect time to do that and yes with all things being equal if the only income you had was a $10k Roth IRA conversion then that would...

[Andrew Musbach]

Ah, sorry, I wish I could be more help here! Some of these wait times for any provider are ridiculous right now....

[Andrew Musbach]

I'm not familiar with E-trade's platform but i401k contributions are broken up into two potential parts - an employee contribution and employer contribution...

[Andrew Musbach]

That seems surprising that her current job does not offer any pre-tax retirement plans.

Depending on the dollar amount, you could just bite...

[Andrew Musbach]

Not a good idea. The earnings on non-deductible contributions are just like the earnings in a pre-tax IRA where you'll eventually be taxed on it as ordinary...

[Andrew Musbach]

Schwab's Pledged Asset Line (PAL) is a line of credit secured by your taxable investment account and it is easy to use and set up. Another option, which...

[Andrew Musbach]

I think general rules are a great starting point, but I think about debt on your home a little differently, especially given how low rates are today....

[Andrew Musbach]

Ah, thanks for clarifying, and yes, unintentional

I’m happy to hear that!

LIFEISBEAUTIFUL - Not trying to join team hate...

[Andrew Musbach]

Lithium Ha - when are we starting Lithium Wealth Management?

Lordosis hard to beat free, which is why I love this site and google, CFP(r)....

[Andrew Musbach]

I was a little surprised going through this exercise and actually looking at the #s:

1) Based on the average AUM/client of these recommended...

[Andrew Musbach]

I know I am likely speaking to an annoyed forum, but I'm genuinely not trying to be self-serving here with my points and instead just lay out the reality...

[Andrew Musbach]

I think you may be confusing a couple different topics:

1) You can make a $19,500 employee contribution to either Traditional or Roth 401k...

[Andrew Musbach]

In a clean world, all you'd have to do is complete transfer paperwork at Vanguard and funds could move from one custodian to another "in-kind"....

[Andrew Musbach]

One other factor would be if you were limited with investment options in your 401k. Having said that, if your 401k has caught up with the times and allows...

[Andrew Musbach]

A lot of people on here look at the fee in vacuum and make the assumption that advisors are a commodity and thus you should just pay the lowest fee. People...

[Andrew Musbach]

Not trying to be superfluous here, but my initial comment would’ve excluded Johanna because her support for everyone speaks for itself. She’s on here...

[Andrew Musbach]

Nothing to do with the original post directly, but one thing with the approved “recommended” advisor list here is that the advisors have to pay to...

[Andrew Musbach]

With $15 million, you have a lot more room to negotiate fees and no advisor or firm that I’ve seen, who charges based on AUM, would charge you 1% on...

[Andrew Musbach]

Shucks, I didn't make the list either

Age 55 - haven't updated my picture in 25 years. I live in Ann Arbor and outside of having fun making...

[Andrew Musbach]

Here are my thoughts on the overall process / summarized explanation of the main points:

1) Assuming tax laws stay the same, you won't have...

[Andrew Musbach]

https://www.incomesolver.com/features/

This software is meant for advisors and I didn’t think it was worth the money. We tried it at out...

[Andrew Musbach]

Welp, it sounds like we've settled this and are all on the same page - make sure you find an advisor that charges AUM

[Andrew Musbach]

By "cookie cutter" I meant that they trade everyone the same way without factoring in taxes or a client's unique situation/cash flow needs....

[Andrew Musbach]

Nothing to do with this post now as my rant is over, but it feels like I am reading Donald Trump's twitter with all those caps haha....

[Andrew Musbach]

1) no tax issues which is good since in a Roth IRA
2) the only two ways of transferring are "in-kind" or by liquidating and getting the...

[Andrew Musbach]

I think it lines up with any other questions around investing. What's the time horizon for when you need the money?

I'd have enough in cash/bonds...

[Andrew Musbach]

You make several good points and you’re clearly ahead of the vast majority of people where you can think critically through all of your options. If...

[Andrew Musbach]

For once, I 100% agree with you

I was simply explaining, from a business perspective, why there isn’t this excessive amount of wonderful...