Search found 7064 matches

by Bob's not my name
Fri Aug 21, 2015 4:30 am
Forum: Investing - Help with Personal Investments
Topic: Help with starting new 401k
Replies: 2
Views: 221

Re: Help with starting new 401k

Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX) 0.02% Vanguard Intermediate-Term Bond Index Fund Institutional Shares (VBIMX) 0.07% Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) 0.12% That was easy. I suggest you put his 401k entirely in Total Stock ...
by Bob's not my name
Sun Jul 19, 2015 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: CD early withdrawal--survivor option
Replies: 8
Views: 649

Re: CD early withdrawal--survivor option

skepticalobserver wrote:should purchased to be held to maturity.
Death may come before maturity. Or so my wife tells me.
by Bob's not my name
Fri Jul 17, 2015 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: CD early withdrawal--survivor option
Replies: 8
Views: 649

Re: CD early withdrawal--survivor option

You can sell a new-issue CD. If after the owner's death you can sell it at a premium that's obviously more attractive than exercising the death put to liquidate at par. If you can't, you exercise the death put.
by Bob's not my name
Fri Jul 17, 2015 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: CD early withdrawal--survivor option
Replies: 8
Views: 649

Re: CD early withdrawal--survivor option

the survivor option ... would allow some investors to extend cd term and gain yield, yet offer flexibility to heirs at the future date. I'm not following your description of the survivor option. The survivor option or death put (aka estate feature or flower provision) allows the heirs to liquidate ...
by Bob's not my name
Wed Jul 15, 2015 3:24 am
Forum: Personal Finance (Not Investing)
Topic: Student loan repayment vs retirement savings
Replies: 4
Views: 593

Re: Student loan repayment vs retirement savings

My income: $85,000 Wife's income: $120,000 I am maxing out my 401(k) Tax Rate: 33% Federal You're barely into the 28% bracket, and maxing her retirement plan contributions would easily drop you into the 25% bracket. Perhaps there's $70,000 of other income you haven't mentioned. I'm asking because y...
by Bob's not my name
Mon Jul 13, 2015 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Bracing Myself for Taxes and Looking for Advice
Replies: 6
Views: 598

Re: Bracing Myself for Taxes and Looking for Advice

*I'm paying on student loans and plan to pay at least the $2,500 maximum allowed for deduction The deduction is for interest only, not the principal you pay. For example, if you had $37,000 of debt at the typical 6.8% interest rate, your annual interest would be about $2,500. The deduction starts t...
by Bob's not my name
Sun Jul 12, 2015 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement vs College?
Replies: 4
Views: 665

Re: Retirement vs College?

tax credits that you can probably take advantage of. Eligibility for financial aid at the top schools and the tax credits phase out at about the same income level. If the OP is around that income level, he should anticipate that his de facto marginal tax rate (federal + state + financial aid de fac...
by Bob's not my name
Sun Jul 12, 2015 4:17 am
Forum: Investing - Help with Personal Investments
Topic: Seeking help with 401k and Roth Portfolio Allocations
Replies: 9
Views: 759

Re: Seeking help with 401K and Roth Portfolio Allocations

What's a rollover 401k? Do you mean a rollover IRA? A traditional (pre-tax) IRA may complicate back door Roth IRA contributions for you. I'm bringing this up because you must be in the narrow income bracket in which you're in the 28% tax bracket but still able to make direct Roth IRA contributions. ...
by Bob's not my name
Tue Jul 07, 2015 4:23 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio/Investing Advice for Mid 30’s Couple
Replies: 13
Views: 1533

Re: Portfolio/Investing Advice for Mid 30’s Couple

mdjohnson18 wrote:household income is $182,000
You're in the 25% bracket.
by Bob's not my name
Sun Jul 05, 2015 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Borrowing money from my 401k
Replies: 26
Views: 2057

Re: Borrowing money from my 401k

You should probably contribute enough to your 401k to (1) get the maximum employer match AND (2) get the student loan interest deduction. The second factor probably isn't huge, but it's worth considering. Since you just started work this summer, there's no issue for 2015. It may not be an issue for ...
by Bob's not my name
Sun Jun 28, 2015 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: Just started first real job, need financial advice!!!!
Replies: 10
Views: 1475

Re: Just started first real job, need financial advice!!!!

Since you just started your first job you don't know what your taxes are. You haven't filed a tax return yet. What will your gross income for 2015 be? (This is not the same thing as your salary, although they might be similar numbers if you started work on January 2.) You also don't know your loan i...
by Bob's not my name
Tue Jun 16, 2015 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Help me choose: Roth401k or Trad401k?
Replies: 31
Views: 2826

Re: Help me choose: Roth401k or Trad401k?

if you have a long time frame Roth's are preferable with the assumption that they will grow tax free. Timeframe is irrelevant. Both traditional and Roth accounts grow tax-free. The difference is whether you pay tax up-front or on withdrawal. If the tax rate is the same the math comes out the same. ...
by Bob's not my name
Tue Jun 16, 2015 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Help me choose: Roth401k or Trad401k?
Replies: 31
Views: 2826

Re: Help me choose: Roth401k or Trad401k?

Awesome. So you have no chance of getting under the 28% bracket or the Roth IRA phaseout by increasing your traditional 401k contributions. This makes it a clean choice between paying 28% tax on your contributions or unknown % on your withdrawals ... unless you're in the AMT :D
by Bob's not my name
Tue Jun 16, 2015 4:36 am
Forum: Investing - Help with Personal Investments
Topic: Help me choose: Roth401k or Trad401k?
Replies: 31
Views: 2826

Re: Help me choose: Roth401k or Trad401k?

if you have a long time frame Roth's are preferable with the assumption that they will grow tax free. Timeframe is irrelevant. Both traditional and Roth accounts grow tax-free. The difference is whether you pay tax up-front or on withdrawal. If the tax rate is the same the math comes out the same.
by Bob's not my name
Tue Jun 16, 2015 3:15 am
Forum: Investing - Help with Personal Investments
Topic: Help me choose: Roth401k or Trad401k?
Replies: 31
Views: 2826

Re: Help me choose: Roth401k or Trad401k?

We will be right on the bubble of 28% and 33% tax bracket this year, and hopefully continuing on for at least the next several years. last year our AGI finally crossed the threshold ... I expect that to be the case going forward. These statements suggest both steadily increasing income (not a one-y...
by Bob's not my name
Mon Jun 15, 2015 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Help me choose: Roth401k or Trad401k?
Replies: 31
Views: 2826

Re: Help me choose: Roth401k or Trad401k?

We will be right on the bubble of 28% and 33% tax bracket this year We used to max RothIRA contributions, but last year our AGI finally crossed the threshold These statements seem incompatible. The Roth IRA phaseout started at $181,000 MAGI in 2014, which, for a family of four now (2015) equates to...
by Bob's not my name
Fri Jun 05, 2015 3:29 am
Forum: Investing - Help with Personal Investments
Topic: 403b traditional or Roth?
Replies: 16
Views: 847

Re: 403b traditional or Roth?

I saw Roth as an ability to let my current post tax investment grow with the market and at retirement not have to share that growth with uncle sam. Your "great" accountant has failed to explain this correctly. Again, both Roth and traditional "grow with the market", and for both...
by Bob's not my name
Fri Jun 05, 2015 3:12 am
Forum: Investing - Help with Personal Investments
Topic: 403b traditional or Roth?
Replies: 16
Views: 847

Re: 403b traditional or Roth?

if you are in the 33% combined tax bracket then your choice for $1,000 would give you the options of; 1) Deposit $1000 in the Roth and pay $333 in taxes. 2) Deposit $1000 into the Traditional and invest the $333 in a taxable account in a tax efficient mutual fund. To deposit $1,000 in Roth you have...
by Bob's not my name
Thu Jun 04, 2015 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: 403b traditional or Roth?
Replies: 16
Views: 847

Re: 403b traditional or Roth?

If I choose to keep investing the $18,000 to the Roth, would bogleheads advise changing to traditional in X number of years when I would have less years of compounding interest potentional? No, the opposite. First, years of compounding is irrelevant to the decision. Both types of account compound. ...
by Bob's not my name
Thu Jun 04, 2015 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: 403b traditional or Roth?
Replies: 16
Views: 847

Re: 403b traditional or Roth?

If your gross income is 189K, you're in the phase out range for Roth IRA contributions. Traditional 401k/403b will help reduce your MAGI and stay eligible for direct Roth IRA contributions. For 2015, full Roth IRA contributions are permitted if MAGI < 183K Married Filing Jointly. This would be a no...
by Bob's not my name
Mon Mar 02, 2015 4:46 am
Forum: Personal Finance (Not Investing)
Topic: Please correct if my tax calculation is not accurate
Replies: 11
Views: 599

Re: Please correct if my tax calculation is not accurate

Yes wage means box 1 amount As pointed out, you're twice subtracting retirement contributions. This ought to be obvious to you because you know your own earnings. Instead of inventing your own process follow the correct process through form 1040. On paper if the software is a black box to you. Wher...
by Bob's not my name
Fri Feb 27, 2015 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs trad 401k + various Qs on SCV, momentum, bonds
Replies: 7
Views: 676

Re: Roth vs trad 401k + various Qs on SCV, momentum, bonds

A $10,000 Roth 401k contribution costs you about $14,600 of gross income, of which $4,600 is thrown away to taxes. Almost any state to which you might retire will have a lower tax rate AND probably exempts some or all retirement income. Almost. MD wouldn't be much better than DC because its rate is ...
by Bob's not my name
Tue Feb 17, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Graduating law student portfolio and loan questions
Replies: 32
Views: 2985

Re: Graduating law student portfolio and loan questions

Seattlenative wrote:Because OP's income as a working couple will be at the very highest Federal, state and local tax rates
hardly
by Bob's not my name
Mon Feb 16, 2015 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Graduating law student portfolio and loan questions
Replies: 32
Views: 2985

Re: Graduating law student portfolio and loan questions

Expected combined 2015 earnings are 60k, 2016 projected 200k (possibly a bit conservative). ⋅ Hopefully you didn't pay your last tuition bill before Jan 1, so you can get a $2,000 Lifetime Learning Credit for 2015. ⋅ 2015 is the only year you'll be eligible for the Student Loan ...
by Bob's not my name
Wed Jan 21, 2015 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Adjusted Livesoft Income (ALI)
Replies: 40
Views: 6845

Re: Adjusted Livesoft Income (ALI)

A line will have to be drawn somewhere. :) I have decided that most perks are not going to be included. I lived in employer-owned housing in the past and benefitted from employer-paid travel when I add some vacation days when in overseas destinations, so I understand how those things are helpful. I...
by Bob's not my name
Wed Jan 21, 2015 4:33 am
Forum: Investing - Help with Personal Investments
Topic: Review a 26 year old's portfolio - Update 2
Replies: 42
Views: 5241

Re: Review a 26 year old's portfolio - Update 2

acejacksingh wrote:I believe if I max out my Traditional 401k I will be able to lower my federal tax bracket to 15% as well. Does that look correct?
Yes, with headroom.
acejacksingh wrote:3) Holding onto individual stocks right now and slowly reducing positions because I don't want to increase my taxable income.
To the extent you can realize LTCG within the 15% bracket you'll pay only MD tax, so use that headroom.
by Bob's not my name
Sun Jan 18, 2015 3:46 pm
Forum: Investing - Theory, News & General
Topic: estimating atfter tax return
Replies: 5
Views: 567

Re: estimating atfter tax return

Bond yield tax exempt same state = no taxes at all Bond yield tax exempt other states: local state income tax Bond yield for anything else = federal and state income tax plus net investment tax Treasury bond yield: federal income tax plus investment tax, no state US Stock qualified dividends = ltcg...
by Bob's not my name
Wed Jan 14, 2015 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Before Tax or Roth 403(b)?
Replies: 4
Views: 288

Re: Before Tax or Roth 403(b)?

I think you'd have to be out of your mind to choose post-tax (Roth) over pre-tax (traditional) when your marginal rate is about 34% (MD is 8%, not 5.25; read your tax booklet more closely). A $5,500 Roth contribution consumes $8,300 of gross income, of which $2,800 is thrown away to taxes.
by Bob's not my name
Wed Jan 14, 2015 6:50 am
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 2671

Re: How to transfer estate without including tax man

Wricha wrote:after her pasting
This thread belongs in the domestic violence forum.
by Bob's not my name
Tue Jan 13, 2015 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Partial Deduction for Traditional IRA Contribut.
Replies: 14
Views: 1287

Re: Calculating Partial Deduction for Traditional IRA Contri

I'm not familiar with the deductibility of health insurance premiums that aren't withheld from your pay, but I'd guess (with no research) that they're an itemized deduction. You are saving an extraordinary amount for someone living in a super high cost of living city. I wouldn't complicate things by...
by Bob's not my name
Tue Jan 13, 2015 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Partial Deduction for Traditional IRA Contribut.
Replies: 14
Views: 1287

Re: Calculating Partial Deduction for Traditional IRA Contri

No, that's not right. Your DC tax probably isn't high enough to exceed the standard deduction, so you're not going to itemize and essentially it's not deductible. Your taxable income for federal purposes is your AGI minus a $4,000 personal exemption and the $6,200 standard deduction, so let's say $1...
by Bob's not my name
Tue Jan 13, 2015 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Partial Deduction for Traditional IRA Contribut.
Replies: 14
Views: 1287

Re: Calculating Partial Deduction for Traditional IRA Contri

What you're doing seems smart to me. With WashDC added to federal you have a 33.5% marginal rate, so pre-tax savings are attractive. If you max the 401k you might get down to the 15% federal bracket, so at that point post-tax (Roth) savings become more attractive.
by Bob's not my name
Tue Jan 13, 2015 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Partial Deduction for Traditional IRA Contribut.
Replies: 14
Views: 1287

Re: Calculating Partial Deduction for Traditional IRA Contri

AGI (which isn't quite MAGI) is at the bottom of page 1 of your 1040. Your gross income doesn't appear anywhere on your 1040. Simplistically, AGI is: Gross income - pre-tax health, dental, and insurance premiums withheld from your pay - FSA contributions or HSA contributions - traditional 401k contr...
by Bob's not my name
Tue Jan 13, 2015 3:58 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Partial Deduction for Traditional IRA Contribut.
Replies: 14
Views: 1287

Re: Calculating Partial Deduction for Traditional IRA Contri

chuckwagon1111 wrote:I max-out the 5% match and then contribute an additional 5%); my annual income is in the mid- to high-$60ks.
Sounds like your MAGI should be under $61,000 and you should be fully eligible for a deductible TIRA contribution. Why aren't you just increasing your 401k contribution instead?
by Bob's not my name
Mon Jan 12, 2015 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Financ[ing] My Son's Law School
Replies: 65
Views: 4766

Re: Financ[ing] My Son's Law School

The student is a dependent.
by Bob's not my name
Mon Jan 12, 2015 6:27 am
Forum: Personal Finance (Not Investing)
Topic: Doing my taxes by hand
Replies: 64
Views: 5368

Re: Doing my taxes by hand

I've always done my taxes with a pen and real paper. I know that eventually electronic filing will be mandatory.
by Bob's not my name
Mon Jan 12, 2015 5:32 am
Forum: Investing - Help with Personal Investments
Topic: How much is too much for tax deferred investing
Replies: 23
Views: 3236

Re: How much is too much for tax deferred investing

Your marginal tax rate may be over 35%. The threshold of the 25% bracket roughly coincides with the threshold of the child tax credit phaseout, which adds 5% to your marginal rate. So you may have 25% + 5% + state (which is deductible against federal at the margin if your itemized deductions exceed ...
by Bob's not my name
Sun Jan 11, 2015 5:53 am
Forum: Investing - Help with Personal Investments
Topic: Investment help for retirement accounts - NoVA2015
Replies: 18
Views: 2333

Re: Investment help for retirement accounts - NoVA2015

2015 roth contributions should go Debt: 503k Mortgage on single family home @ 30 yr 3.375% APR Tax Filing Status: Married Filing Jointly Tax Rate: 33% Federal, 6.00% State Your gross income has to be over $270,000 to put you in the 33% bracket, and your AGI over about $230,000. That means you're no...
by Bob's not my name
Sat Jan 10, 2015 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: How much is too much for tax deferred investing
Replies: 23
Views: 3236

Re: How much is too much for tax deferred investing

By the way, in 25 years $5M may not be enough for retirement.
by Bob's not my name
Sat Jan 10, 2015 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: How much is too much for tax deferred investing
Replies: 23
Views: 3236

Re: How much is too much for tax deferred investing

You're a quarter century from retirement. Show us the math on how you're going to suffer grievously from RMDs.
by Bob's not my name
Sat Jan 10, 2015 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Deduction Tax Question
Replies: 7
Views: 695

Re: IRA Deduction Tax Question

Not sure I follow your questions. 1) My gross income is about 102,000 but there may be another 10K in dividends or cap gains [tax]. I think this means my MAGI is right in the middle of that phase out window. Right? 2) I know with things like the child tax credit, a tax deferred contribution to a ret...
by Bob's not my name
Sat Jan 10, 2015 11:06 am
Forum: Investing - Help with Personal Investments
Topic: Getting Married - Want advice merging Portfolio & Taxes
Replies: 24
Views: 2353

Re: Getting Married - Want advice merging Portfolio & Taxes

Our gross income is ~$200k - subtract $36k for 401k contributions, and we should be in the 25% tax bracket. And your pre-tax insurance premiums and your HSA contributions and at least the $12,600 standard deduction and $8,000 in personal exemptions. As for your AGI, it sounds like it will be about ...
by Bob's not my name
Sat Jan 10, 2015 6:40 am
Forum: Investing - Help with Personal Investments
Topic: Getting Married - Want advice merging Portfolio & Taxes
Replies: 24
Views: 2353

Re: Getting Married - Want advice merging Portfolio & Taxes

Tax Rate – 25-28% (we are going to be on the border depending on deductions). I think our AGI will be <$181,000, but it will be close. The Roth phaseout for 2015 is MAGI $183,000 - $193,000. $183,000 would put your taxable income at $162,400, which is $11,000 above the 25% bracket, but since you sa...
by Bob's not my name
Thu Jan 08, 2015 5:53 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k vs Roth 401k vs Roth IRA
Replies: 25
Views: 2811

Re: Maxing 401k vs Roth 401k vs Roth IRA

Rule of thumb: 1. Contribute enough to pre-tax 401k to get the full company match and drop into the 15% federal bracket (18% including your state tax) and get your AGI under any phaseouts that affect you. 2. Contribute to Roth IRA. Unless your income and/or wealth is modest, or unless you're plannin...
by Bob's not my name
Sun Jan 04, 2015 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Financ[ing] My Son's Law School
Replies: 65
Views: 4766

Re: Finance My Son's Law School

The debt totals mentioned are appalling. I don't remember the exact numbers but my kid made about $50,000 in the summers, borrowed about $20,000 (paid off within a year of graduating), got the LLC in graduation year, got a $10,000 advance from the hiring firm that helped with start-up costs like apa...
by Bob's not my name
Sun Jan 04, 2015 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Financ[ing] My Son's Law School
Replies: 65
Views: 4766

Re: Finance My Son's Law School

Sorry about all the abuse. bogleheads hate it when you pay for your kids' education. I paid for my kids' graduate school, including one law school degree -- the lawyer is now making twice what I am, which is what Americans used to want before we got selfish. I agree with other posters that the debt ...
by Bob's not my name
Fri Jan 02, 2015 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: New job with Vanguard options! Thoughts on 401k?
Replies: 16
Views: 1374

Re: New job with Vanguard options! Thoughts on 401k?

It sounds like you're paying part of the cost of your MBA yourself, since you are accumulating some debt. Your tax situation argues for traditional 401k. I see these possible elements of your tax situation: ⋅ High state tax (7%?) ⋅ 25% nominal federal rate ⋅ If you are ...
by Bob's not my name
Sun Dec 28, 2014 6:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA
Replies: 6
Views: 2031

Re: Roth IRA

I usually sell my spp shares in 6 month intervals since my company offers this option semiannually. The company allows you to buy and sell every 6 months at at least a 15% return. I'm guessing this is a plan that allows you to buy shares at 15% off the price at the start or finish of the 6-month pe...
by Bob's not my name
Sat Dec 27, 2014 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Considering a pay cut for a career change
Replies: 19
Views: 3162

Re: Considering a pay cut for a career change

You are probably paying $15,000 in taxes (federal income tax, loss of child tax credits, payroll tax, state income tax), on your top $40,000 of income. Still leaves you $25,000 lighter, but that's the number you should be thinking about, not $40,000. 30% seems incorrect for two reasons: With bonuses...

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