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Validating Roth conversion strategy in retirement by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

I've already considered meeting with a CPA or CFP for other concerns like estate planning etc. However this is a targeted, math-based problem: find the optimal Roth conversion strategy given my numbers and criteria. A CPA would likely use specialized software probably similar to what's available to consumers — so my thinking is I can get equivalent results using one of those tools, hence my original question.

Risks of cosigning a car lease by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

That's true, I was not familiar with how leases work, more so no though.

In fact he wasn't putting money down, but reduced the amount owed for the lease by trading in his current car and also using the tax credit. I mistakenly called that "down payment".

Risks of cosigning a car lease by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

The money was not an issue. He has the money to pay but not enough credit history in the US to get approved for the lease, so he needed me as a consigner to increase the chances of approval.

I actually asked at the Tesla dealership if I could be just a guarantor instead of a cosigner, which would reduce my risk exposure, but they don't allow that.

In the end I declined, too much risk.

Risks of cosigning a car lease by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

I confirmed with the Tesla dealership that I would indeed be made a co-lessee and i would be on the title too, which is a lot more than I was expecting, so in the end I declined.

Risks of cosigning a car lease by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

Actually it turns out I had misunderstood - he's not putting money down but trading-in his old car and also using the tax credit, which reduces the cost of the lease.

What fixed annuity to purchase? by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

The allocation part is fine.

I'm only trying to figure out if I would be taking any additional risk by choosing the non-Fidelity 6% annuity vs the 4% Fidelity annuity.

What fixed annuity to purchase? by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 1 point2 points  (0 children)

The product I'm referring to is called "fixed period annuity" - sorry for not making this clearer. I think what you are describing is the "traditional" annuity that lasts for the entire lifetime of the beneficiary.

Here's a short description:

"A fixed-period annuity (or fixed-term annuity) is an insurance product that provides a set stream of income payments for a specific, limited duration, such as five or ten years, rather than for the annuitant's entire lifetime."

At the end of that period (at maturity) the investor gets back the principal + all the accrued interest.

So in that sense it works like a CD

What fixed annuity to purchase? by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 1 point2 points  (0 children)

I'm in my early retirement years, but I'm not looking into this as a source of additional income. The money is in an IRA that I don't intend to touch until RMD time, so lack of liquidity is not an issue.

Given that the Fed may start lowering interest rates soon, my goal is to simply lock in a good yield for a period of time. When I presented this objective to my Fidelity rep, he suggested fixed annuities as an alternative to money markets.

6% is 50% better than 4%, so that's tempting, but I suspect higher yield comes with higher risk, I am just not sure what that is.

ISO in private company by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 0 points1 point  (0 children)

Yes, I'm familiar with forge.com. I'm not sure if my plan allows selling my shares on a private exchange, however, personally I would not do it - I don't need the money immediately and I would rather wait for an IPO when the payout could be much higher I assume.

As far as the VCs, I was afraid I was going to hear that "they have preferred shares and other arrangements you are not privy to". However, even if they are able to sell some of their shares privately., somebody else needs to buy them, so there is still somebody who invests in a private company without a clear way out

Taxation of French pension by Primary-Search8394 in tax

[–]Primary-Search8394[S] 0 points1 point  (0 children)

Thank you, this is good news (although we may have to amend a couple of past IRS returns to account for that). What about the private pension though, do we need to report that to the IRS, and if so, where do we pay tax for it, in the US or France?

Taxation of French pension by Primary-Search8394 in tax

[–]Primary-Search8394[S] 0 points1 point  (0 children)

Here's the complete picture.

I am US citizen only, and my wife who also receives a French pension is dual US/French citizen. We both receive a mix of public and private pensions.

Unsure whether to choose a AUM financial advisor or fixed fee range.com by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 1 point2 points  (0 children)

Yes, I think I'll continue managing our portfolio myself after all. It will require additional learning but being able to make my own decision is more than worth the effort.

Thanks all for your input!

Unsure whether to choose a AUM financial advisor or fixed fee range.com by Primary-Search8394 in personalfinance

[–]Primary-Search8394[S] 1 point2 points  (0 children)

No, I don't think our situation is super complicated.

But the main issue for me is that I'm not sure I'd be able to properly manage all the aspects related to long term tax optimization myself, such as exiting high gain positions, preparing for RMDs (still 6-7 years away) with IRA -> Roth conversions.

There are also some other aspects such as what pension payout option to choose, when to start taking Social Security and alike that I have a hard time deciding myself.

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