patrick.net
An Antidote to Corporate Media
1,363,556 comments by 15,734 users - floki, mell, Tenpoundbass online now
Long time, no see--Are you guys and gals still financial whizzes?
2020 Apr 14, 1:29pm 1,823 views 15 comments
by CL follow (1)
« First « Previous Comments 12 - 15 of 15 Search these comments
12
Tenpoundbass
2020 Apr 15, 4:30pm
Tenpoundbass
2020 Apr 15, 4:30pm
I'm smart enough to know when it's going to take a crap, though I haven't developed the skill to know exactly when.
And my investment skills aren't great enough to short markets. And after watching what that class of investors does to the global economy and people everywhere.
I think it should be outlawed.
I'm not in tune enough with the markets to know when stocks are going to go up, other than the obvious ones, that are going to gain a few points because they are being pumped up by the Feds.
And my investment skills aren't great enough to short markets. And after watching what that class of investors does to the global economy and people everywhere.
I think it should be outlawed.
I'm not in tune enough with the markets to know when stocks are going to go up, other than the obvious ones, that are going to gain a few points because they are being pumped up by the Feds.
13
CL
2020 Apr 16, 5:37pm
CL
2020 Apr 16, 5:37pm
Thanks all! For the record, my folks are retired but working (I myself am looking at retirement, and could, but my wife says I don't sit still anyway, so I'm better off keeping employed).
RE: Medicaid, my understanding is that eventually many people, regardless of means, wind up utilizing medicaid for nursing homes. I believe none other than Elliemae told me that years ago. The reason that's important would be that if they had to spend down assets to be eligible, it'd be my dough they're spending down or that's getting liquidated.
OTOH, if I inherit my own money in a Roth, I'd be able to keep that money growing for another decade tax free (my only brother died recently, leaving me the only heir).
They could also take some of their IRA (now that it's taken a hit) and convert it to Roth. As it recovers, it'd be recovering into a tax-free account rather than back in a tax-deferred account. Of course, Dad might stop working sooner than he realizes, given the dangers at homeless shelters.
EBGuy says
RE: Medicaid, my understanding is that eventually many people, regardless of means, wind up utilizing medicaid for nursing homes. I believe none other than Elliemae told me that years ago. The reason that's important would be that if they had to spend down assets to be eligible, it'd be my dough they're spending down or that's getting liquidated.
OTOH, if I inherit my own money in a Roth, I'd be able to keep that money growing for another decade tax free (my only brother died recently, leaving me the only heir).
They could also take some of their IRA (now that it's taken a hit) and convert it to Roth. As it recovers, it'd be recovering into a tax-free account rather than back in a tax-deferred account. Of course, Dad might stop working sooner than he realizes, given the dangers at homeless shelters.
EBGuy says
CL saysjust did a spit take as a certain house in the Oakland hills just sold for a million bucks. Sorry to bring back bad memories. Yikes, that place may be cursed.Cursed? How? I think I managed to do fine without it (it only went up 200K). Good to see you!
14
Booger
2020 Apr 16, 5:46pm
Booger
2020 Apr 16, 5:46pm
At this point you really should be selling your yams, ammo, and toilet paper, and buying S&P500 futures.
15
CL
2020 Apr 21, 3:08pm
CL
2020 Apr 21, 3:08pm
ThreeBays says
I guess what I wondered there was, conceivably one could say "help" a working adult with a traditional IRA contribution. Depending on who took the dough out, it could be funded with post-tax earnings, but taxed on the withdrawal or conversion?
ThreeBays says
I was under the impression that most people eventually dump whatever assets they have ~ 5 years out so they can go on the Medicaids. They have no intention of that, but I reckon most don't.
You can gift each of your parents up $15,000 each per year without affecting your estate tax exclusion. You won't get double taxed unless you inherit more than $11.5 million in 2020. Inherited IRAs have an RMD.
I guess what I wondered there was, conceivably one could say "help" a working adult with a traditional IRA contribution. Depending on who took the dough out, it could be funded with post-tax earnings, but taxed on the withdrawal or conversion?
ThreeBays says
Look into the Medicaid "asset limit". The limit is not very high, so if your parents already have some savings it may already disqualify them from Medicaid
I was under the impression that most people eventually dump whatever assets they have ~ 5 years out so they can go on the Medicaids. They have no intention of that, but I reckon most don't.
« First « Previous Comments 12 - 15 of 15 Search these comments
1) My parents were working last year (at a homeless shelter), and my mom, who was a Professor prior to this, found it too physically taxing and has since "retired" (although may return to teaching). Dad is still working there, and plans to until death, although the Covid-risk is high among that population, so ya never now.
1) Idea: take their stimulus check(s) plus some canceled "vacation to the west coast" cash and put it in a Roth. Given their employment situation, I can figure they could drop 7K each in for 2019, and 7K for my dad in 2020 for a total of 21k. I could gift them the difference.
1) Questions: Is that a crazy-ass idea? Would it harm future medicaid eligibility, if needed? Would I introduce taxes to myself if the money comes back to me, either as we withdrew, or through inherited IRA fine print? Would I get "double taxed" somehow?
2) Given the mods in the CARES act, can one get access to their 401k/IRAs penalty-free and put that money to use, only to repay it later (like in the 3+ years they allow). Especially pertinent to question 1, because there might be an opportunity for the folks to use their own IRA, fund the Roth, pay it back through the growth.
3) Given the drop in the market, is it a good time for some/all to do Roth conversion? I already do the backdoor Roths for me, but my wife has a former employer 401k I wouldn't mind improving upon. It would seem so with the drop in value and historically low taxes that are bound to go up.
Any other smart idears?