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Re: DGS: OK in taxable now?

How much dividends? What % is qualified?
by BL
Mon Mar 02, 2015 9:14 am
 
Forum: Investing - Help with Personal Investments
Topic: DGS: OK in taxable now?
Replies: 2
Views: 197

Re: Life events downturn

Yes, disability insurance is important and it is good that social security has that. So he has paid in enough to earn the ssdi if he should be very seriously permanently disabled. I assume you checked into the recorded work record to determine that you are short of the 10 years. Hopefully when you a...
by BL
Mon Mar 02, 2015 2:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Life events downturn
Replies: 15
Views: 1711

Re: Please correct if my tax calculation is not accurate

Yes, throw out the state tax! Maybe that is the problem and the rest might have been done right.
I am thinking that the health insurance is just informational also, so it wouldn't be used here.
by BL
Mon Mar 02, 2015 2:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Please correct if my tax calculation is not accurate
Replies: 11
Views: 444

Re: Please correct if my tax calculation is not accurate

Are your wages the Box 1 amounts in your W-2? They would already have subtracted out the retirement accounts. Not sure how the insurance amounts are figured.
by BL
Mon Mar 02, 2015 1:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Please correct if my tax calculation is not accurate
Replies: 11
Views: 444

Re: Life events downturn

You might want to check term4sale to see what he could get with an independent agent that would check with several companies: http://www.term4sale.com/cgi-bin/cqsl.cgi Don't let them sell you any other kind of insurance or annuities! (A quick peek of a 35 yr old getting 20 year $500K term was $260-$...
by BL
Mon Mar 02, 2015 12:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Life events downturn
Replies: 15
Views: 1711

Re: Method for repayment of long term care expenses

You could even advance the withdrawal so the next 10k is already there at the beginning of the month. I have power of attorney. Can I withdraw money from her bank account after she's passed? Thanks so much. AFAIK, power of attorney expires when she does. The executor would pay valid bills. If she h...
by BL
Sun Mar 01, 2015 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Method for repayment of long term care expenses
Replies: 18
Views: 740

Re: Method for repayment of long term care expenses

You could even advance the withdrawal so the next 10k is already there at the beginning of the month.
by BL
Sun Mar 01, 2015 7:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Method for repayment of long term care expenses
Replies: 18
Views: 740

Re: Mid Thirties - Messy Retirement Portfolio ~$600k

It looks like you have her funds figured out: the word Index and the low ER. Does he have a current 401K? If self-employed he could set up his own. Not really enough info on old 401k and pension. What are current costs and choices? If they were rolled into Vanguard, we know they would not be put int...
by BL
Sun Mar 01, 2015 7:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mid Thirties - Messy Retirement Portfolio ~$600k
Replies: 4
Views: 868

Re: Method for repayment of long term care expenses

I am not an expert either, but will put in my comments. I believe most if not all of her nursing home expenses can be itemized on her Schedule A of the 1040 tax return, so that will probably wipe out any income. Do you have a power of attorney to handle her affairs? That would make it easier to tran...
by BL
Sun Mar 01, 2015 6:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Method for repayment of long term care expenses
Replies: 18
Views: 740

Re: Nearing 40 and Never Invested

Just pick one LS or TR that you can live with for at least 2 years without tinkering and you will be good. When you have $100,000 or when you run out of space each year in tax-advantaged accounts, then take another look as to whether a separate 3-fund portfolio is worth it or not. It really is not w...
by BL
Sun Mar 01, 2015 6:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Nearing 40 and Never Invested
Replies: 55
Views: 4871

Re: Nearing 40 and Never Invested

You do need to figure out how much Stocks/bonds you want. The "age in bonds" is the default, but you could go up or down from there. The thing is, there is no guarantee that stocks will continue to increase, and may rather drop in value ~10-30 %. So while you are hoping to increase your re...
by BL
Sun Mar 01, 2015 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Nearing 40 and Never Invested
Replies: 55
Views: 4871

Re: Account order/priority to pull from in retirement

I believe I have seen to do taxable first, and save Roth for last. I think that doing some of each to control your income tax would be more useful. Also converting some IRA to Roth during lower income years such as after retirement and before SS and/or RMD (age 70 1/2) may make sense. There is not e...
by BL
Sun Mar 01, 2015 9:14 am
 
Forum: Investing - Theory, News & General
Topic: Account order/priority to pull from in retirement
Replies: 4
Views: 412

Re: Would you buy into this state defined benefit pension?

I am glad I bought into a MN state pension, even though now the COLAs have been lowered (and eliminated for a year or two) greatly. The basic pension has not been changed, however. I am glad to have a lifetime guaranteed income (with some COLA) at a reasonable cost.
by BL
Sun Mar 01, 2015 8:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Would you buy into this state defined benefit pension?
Replies: 16
Views: 1142

Re: Wife doesn't want to retire - I do

It does sound like you would be switching financial responsibility onto her (just as men have traditionally had this financial pressure to "bring home the bacon"). There can be a world of difference in working because you want to and working because you have to, and she may not like this a...
by BL
Sun Mar 01, 2015 8:42 am
 
Forum: Personal Consumer Issues
Topic: Wife doesn't want to retire - I do
Replies: 60
Views: 4946

Re: Lifestrategy moderat growth vs Total stock MKT index fun

Your choices are not equivalent: 100% stocks vs. 60%stock/40%Bond.
Definitely fill a Roth up to $5500; there is no downside that I can think of. Contributions can be withdrawn if necessary, without tax consequence. Otherwise they will grow with no tax consequences at all if you follow some rules.
by BL
Sun Mar 01, 2015 12:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Lifestrategy moderat growth vs Total stock MKT index fund
Replies: 8
Views: 965

Re: Taxes and the safe harbor

Why?
Just increase your W-4 to the amount that would cover the safe harbor.
by BL
Sat Feb 28, 2015 9:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxes and the safe harbor
Replies: 7
Views: 492

Re: Thoughts on adding Vanguard STAR to my portfolio

There is nothing wrong with the actively managed Star (I have kept mine but wouldn't buy it now), but I get the impression you are going for a collection rather than a simple, diversified well-balanced portfolio. Take a look at the 3-fund portfolio: Total Stock Market, Total international, and Total...
by BL
Fri Feb 27, 2015 10:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on adding Vanguard STAR to my portfolio
Replies: 7
Views: 1005

Re: Advice and Support on providing advice/opinions

There is a quick read on the internet that might be of use to you and them: http://www.etf.com/docs/IfYouCan.pdf Sometimes referring to a book or website is easier than telling them what to do. Vanguard has low-ER funds and much safer and cheaper management available for anyone who needs that: 0.3%/...
by BL
Fri Feb 27, 2015 1:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice and Support on providing advice/opinions
Replies: 8
Views: 274

Re: Nearing 40 and Never Invested

Good luck to you on this move. I think you have chosen a reasonable AA. You do need to think about why you have left things in cash until now. What has changed? Do you plan to put it all into the market at one time? I know we can be confident about how we will react in times of a crash, but that doe...
by BL
Fri Feb 27, 2015 1:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Nearing 40 and Never Invested
Replies: 55
Views: 4871

Re: Advice and direction for a beginner

I would choose just a single fund in 401k: Either: Columbia Large Cap Index A (NEIAX) (0.45%) which is the cheapest available, and is similar to an S&P 500 stock fund; or: American Funds American Balance R4 (RLBEX) (0.65%) A balanced fund that would more closely match your Target Date Retirement...
by BL
Fri Feb 27, 2015 12:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice and direction for a beginner
Replies: 12
Views: 1593

Re: Nearing 40 and Never Invested

Since you are practically all bonds and cash, I don't think you want to go so quickly into stocks and then panic sell or have trouble sleeping when it crashes (it will, sooner or later, but hopefully picks up again within a year or so). Life Strategy Conservative has 40% stocks, 60% bonds and might ...
by BL
Fri Feb 27, 2015 9:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Nearing 40 and Never Invested
Replies: 55
Views: 4871

Re: 34 year old new to investing - help please

Ideally, I would keep the same % AA as you decided earlier.
I think good enough would be 70/30 or 70% stocks/ 30% bonds added to IRA. Something like 1500 total bonds, 4000 total stock market Admiral investor shares would be reasonable.
by BL
Thu Feb 26, 2015 6:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: 34 year old new to investing - help please
Replies: 71
Views: 9956

Re: Is there a way to provide for inflation ?

Have you also considered buying I-Bonds since they are tied to inflation? You could each do $10k/year (double that with 2 very simple trusts) for a few years to build up to whatever you choose, then withdraw each year. Nothing exact here, but it is inflation adjusted every 6 months.
by BL
Thu Feb 26, 2015 10:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Is there a way to provide for inflation ?
Replies: 22
Views: 1662

Re: Re-allocating my portfolio to be tax efficient

It looks like you could put all of the bonds into your IRA. That would fill about half of your IRA space. I believe that would also likely produce lower RMDs and convert more future equity gains to Capital Gains. I also believe there are some different opinions here. If you want minimum change, you ...
by BL
Thu Feb 26, 2015 9:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Re-allocating my portfolio to be tax efficient
Replies: 10
Views: 850

Re: What kind of allocation for a 50-60 year old?

Let's just say his goal is to create gains. Low-moderate risk. That's it. Instead of having his checking account money lose value from inflation. GIGO. That said, a low-moderate risk inflation hedge is: Vanguard Inflation-Protected Securities Fund Investor Shares (VIPSX) https://personal.vanguard.c...
by BL
Thu Feb 26, 2015 8:59 am
 
Forum: Investing - Help with Personal Investments
Topic: What kind of allocation for a 50-60 year old?
Replies: 13
Views: 1276

Re: Beginner Investor - Selling Mutual Fund to start Roth IR

Of course you don't want to liquidate within 60 days if there is a $50 Vanguard fee for doing it in that time frame. I wasn't aware of that. Only if I decided to keep it longer than 60 days would I move in kind and only if it turns out to be more expensive at A . At least they were very up front wit...
by BL
Wed Feb 25, 2015 9:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Beginner Investor - Selling Mutual Fund to start Roth IRA
Replies: 9
Views: 699

Re: Novice Boglehead, please help with 600k windfall

I agree that you should take some time to decide. This is standard advice for anyone grieving as well as anyone with a windfall. So you fit both categories. I believe the guaranteed FDIC limits are $250k/per person. Some banks can disperse the amounts so they can handle it all. Check into CDARS – Th...
by BL
Wed Feb 25, 2015 6:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Novice Boglehead, please help with 600k windfall
Replies: 9
Views: 1443

Re: Convincing older relative to open online savings account

Check all the banks and credit unions in their area of comfort and see if any have checking, savings, or CDs (c.u. certificates) with a higher rate of interest. I would not push them to move online when they are not comfortable with it. It is too bad that I-Bonds are only online, or that would have ...
by BL
Wed Feb 25, 2015 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Convincing older relative to open online savings account
Replies: 34
Views: 1457

Re: Help with some Vanguard fund moves

What is your tax bracket or taxable income (Line 43 on 1040)? If you have room in the 15% bracket the tax for any capital gains is 0%, otherwise it is 15% of your CG. Look at cost basis in your account, and find out how much CG you have. I have no interest in extra Reits, beyond what is in total sto...
by BL
Wed Feb 25, 2015 5:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with some Vanguard fund moves
Replies: 4
Views: 329

Re: contributing to my roth ira

i made about 114k in 2014. so do i have paperwork and how much can i contrinbute? also, i transferred one of my 401k from a previous employer to a regular IRA last year. does that IRA affect my contributino to this roth ira? i will not contribute to that normal ira. i will only contribute to roth A...
by BL
Wed Feb 25, 2015 4:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: contributing to my roth ira
Replies: 5
Views: 387

Re: Can someone please help me with this investment thing!

Yes, you are off to a good start. Maybe start with "Getting Started in our Wiki: https://www.bogleheads.org/wiki/Getting_started Here is a quick read and excellent overview for beginners: http://www.etf.com/docs/IfYouCan.pdf When you are ready, you can post all your information in the format sh...
by BL
Wed Feb 25, 2015 10:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Can someone please help me with this investment thing!
Replies: 17
Views: 1175

Re: Variable Annunity ??

BL, Has not left federal service. She did an in-service partial rollover to ameriprise. The account was held in the federal TSP program which is considered a 401K program or close to it for federal employees. The TSP account is still open and she is still contributing on a bi-weekly basis.. Interes...
by BL
Tue Feb 24, 2015 3:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annunity ??
Replies: 20
Views: 1236

Re: What kind of allocation for a 50-60 year old?

Check banks and credit unions in town to see if there are better rates at savings accounts or CDs.
by BL
Tue Feb 24, 2015 2:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: What kind of allocation for a 50-60 year old?
Replies: 13
Views: 1276

Re: Taking RMD this year

The same thing is true if you become sick and just forget. I still just wait until Dec, mainly because I am waiting to instead do the tax-free QCD, qualified charitable distribution, which congress only get around to at the last minute.
by BL
Tue Feb 24, 2015 2:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking RMD this year
Replies: 13
Views: 927

Re: Newly Married, want to simplify and make a plan

We have had car insurance at USAA for about 45 years, and a credit card for maybe 35 years and are very satisfied with that. I am glad I found Vanguard for investing rather than USAA, since USAA is more expensive.
by BL
Tue Feb 24, 2015 2:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newly Married, want to simplify and make a plan
Replies: 10
Views: 725

Re: Breaking up with a Financial Advisor help?

Take a look at the fund tickers you have at Morningstar.com. Click on Fees to see what the expense ratio and 12b-1( kickback to broker) fees are, and the 3,5,7 yr costs. Then look up a Vanguard fund to compare (there are no 12b-1 kickbacks at V!) If interested in Fidelity, look up a comparable Spart...
by BL
Tue Feb 24, 2015 10:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Breaking up with a Financial Advisor help?
Replies: 17
Views: 1180

Re: Investment advice needed

There is no way of knowing in advance which sector will do well. Perhaps you would like this Callen Periodic Table which shows how the sectors did each year. They might do great one year and poorly the next.
https://www.callan.com/research/files/989.pdf
by BL
Tue Feb 24, 2015 9:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment advice needed
Replies: 13
Views: 657

Re: Newly Married, want to simplify and make a plan

The 3-fund portfolio link will show you both ETF and mutual fund choices at various places. If you are above the income limit for direct contributions to Roth IRA, you might want to consider the 401k for your retirement plan. See Back door Roth in Wiki. It is complicated if you have non-Roth IRAs. (...
by BL
Tue Feb 24, 2015 9:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Newly Married, want to simplify and make a plan
Replies: 10
Views: 725

Re: Advice and direction for a beginner

I suggest you open a Roth IRA at Vanguard and buy a Target Date Retirement fund as you seem comfortable with minimum bonds. All of the 30+ year dates have only 10% bonds, so you would get mostly Total Stock market anyway, along with some Total International funds. Minimum is $1000 so put in whatever...
by BL
Tue Feb 24, 2015 12:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice and direction for a beginner
Replies: 12
Views: 1593

Re: Convincing a novice index funds are superior

I would quote William Bernstein, author of The Four Pillars of Investing by saying, “...concentrating your portfolio in a few stocks maximizes your chances of getting rich. Unfortunately, it also maximizes your chance of becoming poor. Owning the whole market—indexing—minimizes your chances of both...
by BL
Tue Feb 24, 2015 12:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Convincing a novice index funds are superior
Replies: 26
Views: 2361

Re: Investment advice needed

You said that you "maxed out" "his T-IRA" for 2014 & 2015. It's my understanding that if you have a retirement plan at work such as a 401k, you can't contribute to a traditional (deductible) IRA if married filing jointly and your modified adjusted gross income (MAGI) is over...
by BL
Mon Feb 23, 2015 11:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investment advice needed
Replies: 13
Views: 657

Re: Beginner Investor - Selling Mutual Fund to start Roth IR

I was really excited to hear about the spousal IRA. Thanks for mentioning it. If we go ahead and start her Roth IRA, will it convert to a spousal IRA when she quits working? The spousal is really just an ordinary IRA, either Roth or traditional. It is just that you are allowed to contribute, whethe...
by BL
Mon Feb 23, 2015 10:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Beginner Investor - Selling Mutual Fund to start Roth IRA
Replies: 9
Views: 699

Re: Beginner Investor - Selling Mutual Fund to start Roth IR

I would put HER gift money into HER IRA. It is hers, after all. Has she been paying tax on the dividends each year (gets a 1099 from A)? If not, it may already be in a Roth or traditional IRA. Anyway, it is a good idea to get it out of A and into Vanguard. A Target Retirement Date fund or Life Strat...
by BL
Mon Feb 23, 2015 7:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Beginner Investor - Selling Mutual Fund to start Roth IRA
Replies: 9
Views: 699

Re: Income tax on MF capital gains?

Yes, consider the safe harbor. Set your withholding to at least cover what your tax was last year, as that should eliminate penalties.
by BL
Mon Feb 23, 2015 7:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Income tax on MF capital gains?
Replies: 4
Views: 398

Re: Variable Annunity ??

My sympathies. The real shame is that the 401k was with the TSP. The broker had her do a rollover to Ameriprise and as soon as the cash hit the account he purchsed the VA and pocketed the 7.5% commission,that The Wizard mentioned above. I only wish she would have told me about this before she decide...
by BL
Mon Feb 23, 2015 6:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Variable Annunity ??
Replies: 20
Views: 1236

Re: Does my work vehicle allowance count as taxable income?

I hope you get someone knowledgeable to help. I believe you are saying that it includes the extra $9000 in your Box 1 income (and Box 2 as well?) and is not listed elsewhere on your W-2? I Googled and found a couple possibilities to check: http://www.irs.gov/publications/p463/ch06.html http://www.ir...
by BL
Mon Feb 23, 2015 9:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Does my work vehicle allowance count as taxable income?
Replies: 12
Views: 1088

Re: Does early retirement affect SS benefits?

It might, as they take the 35 highest earning years (inflated) and she might have some zeros in there. Have you signed up at SS.gov website to see what they estimate, or use their calculator since she won't be working up until she starts drawing SS. There are many possible times to start drawing SS....
by BL
Sun Feb 22, 2015 2:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Does early retirement affect SS benefits?
Replies: 16
Views: 2310

Re: Starting Roth+401k for Wife

I don't think there is anything bad about your selection, except it doesn't seem at all simple to me. Does she need to learn about ETFs? Could you (over) simplify to, for example, one S&P 500 fund and one bond fund in 401k? How old is she, does she have many work years to go or is she near retir...
by BL
Sun Feb 22, 2015 2:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Starting Roth+401k for Wife
Replies: 4
Views: 361

Re: investment strategy for a housewife (never worked)

When you have filed for SS, she will be able to collect spousal social security when she is at least age 62, but it will increase if she waits. If you die, she will collect widow's (your) SS instead. Be sure you have named her beneficiary (or co-owner) on all of your financial accounts, property, te...
by BL
Sun Feb 22, 2015 1:55 am
 
Forum: Investing - Help with Personal Investments
Topic: investment strategy for a housewife (never worked)
Replies: 4
Views: 419

Re: Advice on my investments

Search Tax Efficient funds in Wiki. Usually it is suggested to have your bonds in tax-deferred (IRA) and not in taxable. Total stock market and total international are fine in taxable (and elsewhere). The balanced funds are not efficient as they contain bonds and you will be paying taxes on these di...
by BL
Sat Feb 21, 2015 9:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice on my investments
Replies: 1
Views: 215
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