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Re: 23 Year Old - 70/30 Asset Allocation?

Here is a short booklet made just for you by Boglehead William Bernstein, If you Can
https://dl.dropboxusercontent.com/u/29031758/If%20You%20Can.pdf
It is also available as an e-book at Amazon.com.

Sounds like you have a good plan.
by BL
Mon Sep 22, 2014 1:30 am
 
Forum: Investing - Help with Personal Investments
Topic: 23 Year Old - 70/30 Asset Allocation?
Replies: 12
Views: 756

Re: Savings Bonds for Newborn?

You know that you can't get paper ones anymore unless with a tax refund?
by BL
Sun Sep 21, 2014 11:28 pm
 
Forum: Investing - Theory, News & General
Topic: Savings Bonds for Newborn?
Replies: 5
Views: 344

Re: New Investor begging for input

The nice part about 401ks is that you can usually change your mind about what you invest in. Since you should have extra money quickly, you could easily just start with the S&P if you choose to do that. (S&P + Extended market (or small cap) gives you total market in 4 to 1 ratio.), (or just ...
by BL
Sun Sep 21, 2014 1:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor begging for input
Replies: 25
Views: 721

Re: New Investor begging for input

Here is a short 16-page booklet written by Boglehead William Bernstein, If You Can: How Millennials Can Get Rich Slowly written just for you. https://dl.dropboxusercontent.com/u/29031758/If%20You%20Can.pdf or e-book on Amazon.com. The Wiki has a page on the 3-fund portfolio: http://www.bogleheads.or...
by BL
Sun Sep 21, 2014 1:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor begging for input
Replies: 25
Views: 721

Re: Term Care 80 Northwestern Mutual - What to do for Life I

I agree the NML policy appears expensive, but do realize that the term4life website gives you some artifically low rates as well. You likely won't get the best rates shown - some of the agents won't even try for them. JT It should be easy enough to find out when you apply for their insurance. An in...
by BL
Sat Sep 20, 2014 1:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Care 80 Northwestern Mutual - What to do for Life Ins.
Replies: 15
Views: 916

Re: Need urgent help for 85 y.o. parents just moved to Vangu

Is this not correct? Cap gains are not taxable in the 15% bracket. Cap losses reduce cap gains. Why use cap losses to reduce non taxable income? Cap losses can reduce taxable income. Therefore either do not generate cap losses if you have cap gains or generate cap losses but do not generate cap gai...
by BL
Fri Sep 19, 2014 9:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 63
Views: 3482

Re: No plan till today, not even frame work

15% 401k 100% tech fund

Do you also work in a tech field?

Welcome and may I recommend you read some of the recommended books here and the Wiki here. Search for the 3-fund portfolio.
by BL
Fri Sep 19, 2014 8:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: No plan till today, not even frame work
Replies: 7
Views: 789

Re: Need urgent help for 85 y.o. parents just moved to Vangu

Yes, BL, the first thing I did was direct them not to reinvest anything -- it's all going to the sweep accounts (aka vanguary money market). Okay, that finally explains short-term gains to me. I wasn't getting that the short-term loss is great, and the short-term gain stinks. This makes sense now. ...
by BL
Fri Sep 19, 2014 8:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 63
Views: 3482

Re: Need urgent help for 85 y.o. parents just moved to Vangu

As far as taxes are concerned: Short-term gain: = Bad! (regular tax rate unless offset by short term loss) Short-term loss: = Very Good! (offsets the bad st gains first, then keeps on offsetting) long-term gain: = ok (special rates and 0% within 15% bracket) Long-term loss: = Good (offsets long term...
by BL
Fri Sep 19, 2014 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 63
Views: 3482

Re: Need urgent help for 85 y.o. parents just moved to Vangu

Short term losses are great to sell and they offset short term gains. From Bankrate: How it works It's touching that the Internal Revenue Service wants to give you a break when the stock market tanks. However, this doesn't mean the weighing and applying of capital losses is simple. You must fill out...
by BL
Fri Sep 19, 2014 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 63
Views: 3482

Re: Immediate payable annuity is a bad investment?

Oh dear! :oops: I have to think and research. :twisted: It seemed good till I read this. Buy an annuity and forget it. I'm amused that I cannot invest in Tax Advantaged Deferred Annuities or IRAs - I'm too old at 71 and still working :D I likely don't need an annuity when I plan to retire at 75. My...
by BL
Fri Sep 19, 2014 1:29 pm
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 45
Views: 2401

Re: We have a grocery problem...

There are good suggestions here, but I suggest you study what you are considering food. If in addition to snacks, fast food, and eating out, you are buying lots of non-food items including cigarettes, liquor, beauty, cleaning, and the like, you do need to be aware of that and perhaps separate it out...
by BL
Fri Sep 19, 2014 1:19 pm
 
Forum: Personal Consumer Issues
Topic: We have a grocery problem... [Household budget]
Replies: 95
Views: 5947

Re: Need help with reinvesting chunk of cash

I would combine Roths at Vanguard and taxables at Vanguard. Get rid of individual stocks and you have enough to buy Admiral funds at V. Put ~20% International in taxable. Put 2% bond in Roth and 8% in 401k. (I suggest more bonds and just remove that much from TSM.) (If you don't have $3k for bonds i...
by BL
Fri Sep 19, 2014 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help with reinvesting chunk of cash
Replies: 3
Views: 367

Re: Need urgent help for 85 y.o. parents just moved to Vangu

Sell everything in the IRA and convert to money market, TRI, or total bond market. You can change free of charge when you decide for good. The main thing now is to avoid the danger of keeping those funds and there are no tax consequences in getting rid of anything in the IRA. Anything you sell in ta...
by BL
Fri Sep 19, 2014 11:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 63
Views: 3482

Re: Need urgent help for 85 y.o. parents just moved to Vangu

You would have to run the numbers (nice to have a willing free accountant!) but it looks like they have some room left within the 15% bracket for 0.0% capital gains. Maybe around 15-16k left in the bracket if taxable income is 58k. You can have up to $73,800 this year to stay in 15% bracket. Include...
by BL
Fri Sep 19, 2014 12:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 63
Views: 3482

Re: Help with retirement advise for my parents

Have you checked I-Bonds at treasurydirect.gov? It is inflation-based but only $10k/year/title. So $20k/year for 2, possibly trusts or other ways to get a little more. Online banks may have higher rate CDs, last Dec/Jan PenFed credit union had 3% 5yr CDs (certificates) so you could watch for that. A...
by BL
Thu Sep 18, 2014 11:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with retirement advise for my parents
Replies: 8
Views: 692

Re: Term Care 80 Northwestern Mutual - What to do for Life I

I am beyond the age of needing this, but from what I have read, I think you are on to something in that if well-rated companies have much lower costs, then you would be over-paying with "your guy" who is very nice. Is he worth that much to you? I would expect your insurance to be more expe...
by BL
Thu Sep 18, 2014 11:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Care 80 Northwestern Mutual - What to do for Life Ins.
Replies: 15
Views: 916

Re: Help compare Vanguard Three Fund vs Edward Jones Am. Fun

Maybe the front end load should be deducted when you calculate the American funds performance. I would not pay a guarantee loss of the front end load for some unguaranteed returns. This is what I am trying to figure out. How do you quantify the negative effect of the front end load? It bothers me t...
by BL
Thu Sep 18, 2014 6:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help compare Vanguard Three Fund vs Edward Jones Am. Fund
Replies: 25
Views: 2105

Re: Invest in Betterment or Bank for 4 years.

What fund do you want? Are you planning to open a Roth or traditional IRA or is this a taxable account (not specifically a tax-advantaged retirement account)? Most of the funds have a minimum of $3000 for a fund, but Target Funds (and Star) are only $1000. Many $3000 funds are automatically changed ...
by BL
Thu Sep 18, 2014 5:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest in Betterment or Bank for 4 years.
Replies: 9
Views: 596

Re: Tax Preparation Cost

Study what was done on the last 1040 and see if you can understand it. Then do it on a 2013 tax program (free or cheap TurboTax or other brand) and see if you can duplicate it. There are free guides to each form and a Pub 17 plus other guides on IRS.gov to get more help and/or guide you to do it by ...
by BL
Thu Sep 18, 2014 5:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Preparation Cost
Replies: 19
Views: 1041

Re: Social Security survivor benefits

http://www.ssa.gov/retire2/whileworking.htm If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2014, that limit is $15,480. Would you have anything left after deducting? When you reach full retirement a...
by BL
Thu Sep 18, 2014 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Social Security survivor benefits
Replies: 1
Views: 331

Re: Any success stories of ppl who never made >$50,000?

I was lurking and just wanted to post to reply to some comments I seen on this board. I had joined this forum because I love personal finance topics. After posting a few questions, and hanging around a couple topics I did feel this forum was very hostile to people on lower incomes and newbies. I ma...
by BL
Wed Sep 17, 2014 7:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any success stories of ppl who never made >$50,000?
Replies: 149
Views: 9839

Re: Tax Stupid Investment

Do you have any bonds in taxable that are not tax-exempt? Do you have your IRA filled with bonds? I would fill the IRA with bonds or as many bonds as are planned in the AA. If they all fit there, then I have no need for bonds in taxable and would sell them, assuming there are no huge capital gains ...
by BL
Wed Sep 17, 2014 6:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Stupid Investment
Replies: 16
Views: 1699

Re: Elder & I Seeking Advice for Elder's Plan

Price a SPIA (single premium immediate annuity) to cover essential costs beyond SS that would cover his lifetime. What would it cost to get, say, $25k-35k/year for his lifespan? How much would inflation-adjusted cost? The rest should be mainly in CDs or some in I-Bonds to be there for medical or lon...
by BL
Wed Sep 17, 2014 1:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Elder & I Seeking Advice for Elder's Plan
Replies: 3
Views: 313

Re: LifeStrategy Growth vs Three / Four Fund

What are your thoughts on the LifeStrategy Growth fund vs the normal three fund or four fund profile? Vanguard LifeStrategy Growth Fund (VASGX) ER:0.17% Vanguard Total Stock Market Index Fund Investor Shares 56.4% 0.17 Vanguard Total International Stock Index Fund Investor Shares 23.6% 0.22 Vanguar...
by BL
Wed Sep 17, 2014 1:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Growth vs Three / Four Fund
Replies: 9
Views: 927

Re: Tax Stupid Investment

Do you have any bonds in taxable that are not tax-exempt? Do you have your IRA filled with bonds? I would fill the IRA with bonds or as many bonds as are planned in the AA. If they all fit there, then I have no need for bonds in taxable and would sell them, assuming there are no huge capital gains t...
by BL
Wed Sep 17, 2014 2:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax Stupid Investment
Replies: 16
Views: 1699

Re: Any success stories of ppl who never made >$50,000?

I know a single elementary teacher who had 500k left for her nieces and nephews when she died, which impressed me very much.
by BL
Tue Sep 16, 2014 2:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any success stories of ppl who never made >$50,000?
Replies: 149
Views: 9839

Re: Ack! Bought a Dividend!

You don't need to feel so bad as most of those dividends in VTSAX are probably Qualified Dividends which are taxed at the same rates as Capital Gains (0% if within 15% tax bracket).
by BL
Tue Sep 16, 2014 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ack! Bought a Dividend!
Replies: 26
Views: 2444

Re: help! where to invest about 500k

And if your S&P 500 is at a loss, DEFINITELY sell it and replace it with the Total Stock Market. You'll get a tax loss for it, and save money on your tax bill. +1 Since you hesitate to go into investing your money quickly, consider more bonds ("age in bonds") to start. You don't want ...
by BL
Tue Sep 16, 2014 12:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: help! where to invest about 500k
Replies: 16
Views: 1177

Re: 3 Fund Portfolio Advice

Hello All, If Possible would you be able to offer any guidance with establishing a 3 Fund Portfolio. There is 435 K in a 401k to invest and 14k in a roth ira....Im 52 years old.... and read recently to determine the ratio of stock/bonds you should subtract your age from 120 and this should equal th...
by BL
Mon Sep 15, 2014 11:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Advice
Replies: 4
Views: 382

Re: Am I in over my head?

Lots of people your age haven't "found" themselves. Use this time to get experiences and sample various types of jobs. I believe a lot of technical colleges have mainly hands-on courses which may be what you prefer rather than studying from books. You are obviously mentally talented and it...
by BL
Mon Sep 15, 2014 1:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I in over my head?
Replies: 51
Views: 4624

Re: Roth IRA vs Mutual Fund. Inexperienced Investor

> Fourth, since you have a low income this year, and potentially large gains from your mutual funds, you should consider tax-gain harvesting. That is selling your mutual funds, and then purchasing them again later, thus realizing the "gain" and making it taxable. Then the clock starts aga...
by BL
Mon Sep 15, 2014 2:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA vs Mutual Fund. Inexperienced Investor
Replies: 11
Views: 621

Re: Am I in over my head?

I think you have a very mature way of thinking regarding investing. Starting out fairly conservative is a smart idea. It wouldn't hurt to put some fraction in that portfolio and sit on the rest in CDs or I-Bonds for a while while you get educated on investing and also decide what to do with your lif...
by BL
Sun Sep 14, 2014 8:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I in over my head?
Replies: 51
Views: 4624

Re: Roth Conversion Caution

I did some number crunching several years ago taking into account how it affected the taxability of SS. I did this for several possible level of converted amounts. That's how I knew how much I could convert with an okay impact. One of the benefits of doing taxes via colored pencils instead of with ...
by BL
Sun Sep 14, 2014 2:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Caution
Replies: 9
Views: 1213

Re: Roth Conversion Caution

I would double check it by using an actual tax program such as TurboTax. (Taxcaster might be similar to the link you gave.) Yes, you definitely want to check out the tax consequences of any such actions.
by BL
Sun Sep 14, 2014 1:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Caution
Replies: 9
Views: 1213

Re: Investing $100

Here is another book (16 pages) written for beginners like you by Boglehead William Bernstein, If You Can: How Millenials can get rich slowly : https://dl.dropboxusercontent.com/u/29031758/If%20You%20Can.pdf Or buy it cheap on Amazon Kindle. Save $1000 and invest it in a Vanguard Target Retirement f...
by BL
Sun Sep 14, 2014 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing $100
Replies: 15
Views: 1828

Re: Hearing aids - for those that use them

Do you have a disablity rating with the VA? If so, they may be able to help you. If not, see your county veterans service officer to see if you may be eligible (I assume you were describing military service).
by BL
Sun Sep 14, 2014 1:35 am
 
Forum: Personal Consumer Issues
Topic: Hearing aids - for those that use them
Replies: 29
Views: 1754

Re: Help with annuity questions

I am no expert in this subject but I believe there is a difference between a spouse being able to roll it into her own IRA versus an inherited status (which has to be named exactly right) which may use a different IRS table. I believe you can ask the company for an "in-force illustration" ...
by BL
Sat Sep 13, 2014 7:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with annuity questions
Replies: 13
Views: 947

Re: Newbie: Is my 10 year plan going to work?

Have you considered having the higher income person delay SS until 70 or at least 67? That way you and spouse would have a higher COLAd income as long as one of you lives. The other spouse could start earlier and higher-income person could sign up for spousal at FRA (Full Retirement Age). We free f...
by BL
Sat Sep 13, 2014 8:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie: Is my 10 year plan going to work?
Replies: 35
Views: 3281

Re: Newbie: Is my 10 year plan going to work?

Have you considered having the higher income person delay SS until 70 or at least 67? That way you and spouse would have a higher COLAd income as long as one of you lives. The other spouse could start earlier and higher-income person could sign up for spousal at FRA (Full Retirement Age). We free fo...
by BL
Fri Sep 12, 2014 10:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie: Is my 10 year plan going to work?
Replies: 35
Views: 3281

Re: Helping widowed mother with finances

I believe there is a difference between inherited and spousal which may be important, so you may want to check that out soon. ( RMDs, to be specific, even Roths.)
by BL
Fri Sep 12, 2014 11:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Helping widowed mother with finances
Replies: 11
Views: 1196

Re: Roth Question

For married taxpayers filing a joint return, the phase-out begins at $110,000 Since you are able to do it, you should bring your AGI down below $110,000. Also do a dummy tax return to double check your numbers as there may be other moving parts. Only then consider whether you can do Roth IRA contri...
by BL
Fri Sep 12, 2014 1:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth Question
Replies: 10
Views: 1116

Re: Beginner questions, don't shoot

This is my understanding, but I don't own any ETFs, just mutual funds. We do pay foreign tax (it is included in the NAV of funds so we don't have to do anything), but that amount can be credited to our income taxes. The difference in "cost" shouldn't make any difference. There is the bid a...
by BL
Thu Sep 11, 2014 8:18 am
 
Forum: Investing - Theory, News & General
Topic: Beginner questions, don't shoot
Replies: 10
Views: 1474

Re: Low Income Investor (Tax Concerns)

Thanks for all of the advice. I've already learned a lot in just my first post here. Would it be better to put $5,500 in Roth IRA vs. $10,000 in admiral shares of the VFIAX fund? I wasn't sure if it would be worth getting the lower expense fee with admiral shares.. or the tax benefits of the IRA ri...
by BL
Thu Sep 11, 2014 1:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Low Income Investor (Tax Concerns)
Replies: 31
Views: 1856

Re: First post, Investment Questions

I have recommended this booklet by Boglehead William Bernstein for beginners. I suggest you read Getting Started in the Wiki, and read a recommended book such as Boglehead's Guide to Investing. Also recommend the new 16-page booklet by William Bernstein for beginners, If You Can: https://dl.dropboxu...
by BL
Wed Sep 10, 2014 9:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: First post, Investment Questions
Replies: 31
Views: 1215

Re: Low Income Investor (Tax Concerns)

I suggest you read Getting Started in the Wiki, and read a recommended book such as Boglehead's Guide to Investing. Also recommend the new booklet by William Bernstein for beginners, If You Can:
https://dl.dropboxusercontent.com/u/290 ... %20Can.pdf
or on Amazon.com.
by BL
Wed Sep 10, 2014 7:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Low Income Investor (Tax Concerns)
Replies: 31
Views: 1856

Re: Low Income Investor (Tax Concerns)

It doesn't sound like you do your own taxes. If that is true, I would like to suggest you do a tax return now without sending it. Usually you can do it online without cost (just don't submit it!) You can learn so much about taxes by doing "what-if" calculations. Even better is to look at P...
by BL
Wed Sep 10, 2014 6:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Low Income Investor (Tax Concerns)
Replies: 31
Views: 1856

Re: Where can I get a [toddler-friendly weekend] job? Update

I would call that 3 full time jobs when you include some child care and homemaking. Will you ever sleep and will you ever see your husband? It sounds like he has 1 1/2 jobs as well. I can't imagine this ending well unless it is for a really short-term time span. Perhaps look around at your governmen...
by BL
Wed Sep 10, 2014 2:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where can I get a [toddler-friendly weekend] job? Update
Replies: 33
Views: 3640

Re: Vangaurd STAR

How about a Life Strategy fund for $3k? You can get Aggressive (80% stocks/20% bonds), Moderate (60/40 like Star), Conservative (40/60), or Income (20/80). They are made up of Total Stock Market, Total International Stock Market, Total Bond Market, and an international bond fund. No need to re-balan...
by BL
Wed Sep 10, 2014 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vangaurd STAR
Replies: 31
Views: 1942

Re: Vangaurd STAR

Star is just one of the funds that only requires a $1k to start plus you can add $100 any time you choose (or more or less). All of the Target Retirement funds are also $1k, and they contain Total Stock Market, Total International, and bonds in various combinations so they basically cover the entire...
by BL
Wed Sep 10, 2014 1:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vangaurd STAR
Replies: 31
Views: 1942
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