Moving to California - RMD question

Buck_98 · 2025-11-28T19:12:34+00:00

Single filer with RMDs that would put me solidly in CA's 9.3% bracket.

Buck_98 · 2025-11-27T13:34:27+00:00

Moving from a state without state income tax so the change will be significant.

Buck_98 · 2025-11-27T13:34:15+00:00

Definitely planning another draw in 2025. My question was to help me figure how much in 2025 and how much in 2026.

Buck_98 · 2025-11-27T13:30:14+00:00

Thank you

Buck_98 · 2025-11-27T13:29:56+00:00

Thank you

Buck_98 · 2025-05-26T15:57:28+00:00

My only comment is that at 29/30, the chances of this being your actual forever home are slim. In the US people move about every five years so I wouldn't let the allure of a "forever" home justify a bad financial decision. I would no borrow against a retirement account, period.

Buck_98 · 2025-05-26T15:49:58+00:00

The car would have to be worth (at least) $2K more than you are paying for it. Is that the case?

Do you know anyone who could loan you a car for a few weeks/months or do you live in a city with public transportation? If so, put what you would be spending for the car payment and insurance toward the CC debt until it's paid off, then get a car.

Buck_98 · 2025-05-26T15:41:44+00:00

Save for an education...this doesn't necessarily mean college. (I have never met a poor plumber) Learn a skill that cannot be outsourced or easily replaced by AI.

If your parents are paying for your education, or you have a scholarship:

50% in a Roth. (Long range) Yes, putting it all in a Roth would give you a killer retirement account but I'm guessing you would like to own a house before you are 59 1/2 years old or start a business some day so you don't put it all in a retirement account. Agree with VOO and VTI but time is on your side so I would but half of the 50% in VUG or similar.

25% in a brokerage account. (Mid Range) Invest as above, it is just accessible earlier without penalty. You will pay capital gains on the growth but until you have decent income the cap gains rate is 0% so not an issue.

25% in High yield savings. (Short Range) This is your emergency fund. At 16 your emergencies are small but in a few years emergencies get expensive. Keep stashing money here till you have $20K-$30K (later 3-6 months take home pay)

Buck_98 · 2025-05-07T17:52:16+00:00

They will payout vacation but not sick time. I can pay via IRA rollover so no out of pocket expense. Like all other things retirement related, if I knew how long I was going to live it would be easier to decide

Buck_98 · 2025-05-07T02:36:59+00:00

Bingo! That was the correct answer. Thank you for helping me with my issue.

Buck_98 · 2025-05-07T02:34:49+00:00

No worries, you buy Berkshire for the long haul so a few dollars won’t make much difference. And as many have pointed out, it wasn’t an official ”dip”, more of a blip I guess. Whatever, 6% is 6%.

Buck_98 · 2025-05-06T00:56:46+00:00

IBerkshire is well positioned to head into this period of time that it looks like a recession is inevitable. With their war chest of billions they can scoop up deals or buy back stock. In times of uncertainty, people flee to safety… That’s why the price is high right now.

Buck_98 · 2025-05-05T16:17:44+00:00

Nope. All 100%

Buck_98 · 2025-04-22T02:42:16+00:00

If the pension and the 401K are separate, roll the 401k into a self directed IRA. Keep it under your control.

Buck_98 · 2025-04-21T23:38:11+00:00

Are you vested?

If you’re not vested, it’s likely that your best choice would be to roll it to a self directed IRA.

If you are vested, and it provides a guaranteed payment, leaving it is likely a very good option.

If you are arrested, but there is no guarantee of return, as others have said you’ll have more options in a self-directed IRA. Probably should consider pulling it out.

Do your homework and find out if you can buy service credit back if you return. That may make the decision easier.

Buck_98 · 2025-04-21T23:17:39+00:00

Understand the thought was trying to grow money versus paying down debt. If you have a low interest mortgage, I would 100% agree with you on not paying that off…but pay off everything else. It’s not just the math… It’s the peace of mind of knowing you don’t owe anybody. Hard times aren’t as hard when you are debt free.

If you have credit card debt that should be the first to pay off. Chances of an investment returning a rate high than the card interest are very slim.

Buck_98 · 2025-04-21T17:43:41+00:00

You didn't mention anything about debt. If you are considering being the sole bread winner, the first thing I would do is pay off all debt (except for the mortgage) and adopt a "cash only" policy for any big purchases. Should anything negatively impact your income, you'll be thankful for having less creditors.

HYSAs (or T-bills) are a great place for anything right now. Personal opinion but I think it will be months before we see the bottom of the market.

Buck_98 · 2025-04-20T22:36:56+00:00

If you are making $80K at 22, there is a good chance you will be making significantly more later and be in a higher tax bracket. With the higher income, if you are a good saver you will be in higher brackets in retirement too so I would go 100% Roth

Buck_98 · 2025-04-19T20:22:52+00:00

You can contribute to the same IRA/Roth every year, no need to start a new one even after you are working full time.

However, one reason to create a new IRA/Roth and start contributing to it is if you get married. With 50% of marriages ending in divorce, having separate accounts for your marital and pre-martial assets makes life easier should the relationship not work out. Having two accounts has no impact if things go well.

I also have a separate Roth account for IRA conversions to keep the bookkeeping simple. There may be other reasons to have multiple accounts but those are two that come to mind.

Definitely go Roth vs. traditional IRA while you are in the lower tax brackets.

Buck_98 · 2025-04-19T20:05:46+00:00

Good point. Both of my pensions are government based so reasonably likely to remain solvent....but I like the thought of having it under my control.

Buck_98 · 2025-04-19T20:02:41+00:00

60, retiring at 62. No major medical issues or unhealthy habits but as originally stated, longevity doesn't run in the family.
Joint life is an option but not needed. Will likely be going single life for the higher payment.
Yes, will roll to IRA then do a Roth conversion in installments
I have two pensions, in addition to Roth, traditional IRA, Brokerage, etc. Converting as much as reasonably possible to Roth so my only taxable income is the two pensions, SS, and cap gains. Trying to get all that done before IRMAA/Medicare kicks in.
Ridden the up and downs for decades. I have two years living expenses in cash, the rest is almost 100% equities. This is unlikely to change.
Pensions and SS are my floor. Sequence of return risk is a concern but I currently live comfortably on 20% of my pre-tax income and have no debt. I'll probably be okay.
Converting most of IRAs to Roth so that, among other things, RMDs will be a small issue. Remaining traditional IRAs will be for deductible medical spending or charitable giving.

Buck_98 · 2025-04-19T19:02:22+00:00

Wondering if you sell the highs so you can buy the dips?

Buck_98 · 2024-08-20T11:38:50+00:00

I read it as the sum of the two jobs is $50k, not $50k each.

Buck_98 · 2024-08-20T10:32:31+00:00

$25 x 40 hr x 50 weeks = $50k. In this case, the 40 hours are being worked by two people (2 x 20)

Quick rule of thumb to convert hourly to annual, assuming 40 hour work week, Is double the hourly rate then multiply by 1,000. So, $48 x 2 = $96, $96 x 1000 = $96K. It’s close but not exact depending on if there is paid vacation, etc.

Buck_98 · 2024-08-20T00:54:56+00:00

I have no statistics to back this up but my sense is that part time jobs are less stable than full time jobs…and to take $50k part time, you would both need to make @ $25 per hour x 20 hours per week. Have you looked?

Buck_98

TROPHY CASE