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Re: Traditional vs Roth 401k when contributing the max

I would suggest 100% Traditional 401k, Roth IRA (via backdoor if necessary) and investing in taxable accounts. Without a pension and assets in taxable, there may not be much to consume the lowest tax brackets in retirement which may mean that your traditional withdrawals may be taxed at a far lower ...
by DSInvestor
Mon Jul 28, 2014 6:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Traditional vs Roth 401k when contributing the max
Replies: 6
Views: 596

Re: Stop Extra Payment Toward Mortgage?

I was thinking of first building the regular savings account to about $30K. Afterwards, I wanted to start maxing out both ROTH IRA accounts per year instead of putting extra money in regular savings account. Are you saying use ROTH IRA as emergency fund now? Thanks I'm suggesting that you should be...
by DSInvestor
Sun Jul 27, 2014 2:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Stop Extra Payment Toward Mortgage?
Replies: 31
Views: 1929

Re: Stop Extra Payment Toward Mortgage?

I am only maxing my 401k to 17.5k and wife is contributing the standard 5% to get company match. These are our only retirement funds. I had plan to start a ROTH IRA this year, but I will wait til my emergency fund is built up to my liking. Of course a ROTH IRA can be used a emergency fund as well, ...
by DSInvestor
Sun Jul 27, 2014 2:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Stop Extra Payment Toward Mortgage?
Replies: 31
Views: 1929

Re: Stop Extra Payment Toward Mortgage?

How much are you adding to emergency fund per month now while you're making extra mortgage payments?

Are you contributing to Roth 401k or Traditional 401k? If contributing to Roth 401k, consider a switch to Traditional 401k to get the tax deduction and increase take home pay.
by DSInvestor
Sun Jul 27, 2014 12:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Stop Extra Payment Toward Mortgage?
Replies: 31
Views: 1929

Re: Have a million to transfer, thinking of doing 100% stock

Why can't you transfer the annuity? Is this because of a surrender fee? If you're subject to a surrender fee, know that they're going to get the money from you either way. If you stay for 5 more years, you pay the 2+%/yr fee for 5 more years. It's a sunk cost. If transfer to a low cost annuity at V...
by DSInvestor
Sat Jul 26, 2014 3:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Have a million to transfer, thinking of doing 100% stocks
Replies: 38
Views: 3625

Re: Have a million to transfer, thinking of doing 100% stock

Why can't you transfer the annuity? Is this because of a surrender fee? If you're subject to a surrender fee, know that they're going to get the money from you either way. If you stay for 5 more years, you pay the 2+%/yr fee for 5 more years. It's a sunk cost. If transfer to a low cost annuity at Va...
by DSInvestor
Sat Jul 26, 2014 8:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Have a million to transfer, thinking of doing 100% stocks
Replies: 38
Views: 3625

Re: Pay Taxes Now or Later

The key is that the Traditional TSP/403b/457b contributions reduce taxes at your top marginal brackets. In retirement, your withdrawals from these Traditional accounts are considered income and in the absence of other income like pension, social security or other income, the withdrawals are taxed so...
by DSInvestor
Sat Jul 26, 2014 8:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Pay Taxes Now or Later
Replies: 6
Views: 696

Re: Can I backdoor a Roth, if i have a Roth?

The backdoor into Roth IRA is a way to work around the income limit that may prevent high earners from contributing directly to Roth IRA. It does so by combining two steps: 1. Contribution to Traditional IRA which has no income limit to disallow contribution. 2. Roth conversion. There is no income l...
by DSInvestor
Sat Jul 26, 2014 8:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I backdoor a Roth, if i have a Roth?
Replies: 5
Views: 534

Re: Paycheck division/saving for yearly expenses & contribut

What about having all the pay go into your checking account? Keep enough in the checking to avoid bank charges and cover 2-3 months of expenses. This handles your monthly expenses (automated) and the twice a year and annual expenses which can be automated also. The house downpayment or I bond money ...
by DSInvestor
Sat Jul 26, 2014 3:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Paycheck division/saving for yearly expenses & contributions
Replies: 9
Views: 901

Re: Which tax advantage accounts do I use for 3-funds?

my Roth is with VG, and I have not opened my 401k yet. It sounds like your opinion (based on lowest fees) would be to open the 401k at fidelity, is that correct? based on your suggestions would you suggest using the Target Retirement Date funds in both the roth and 401k equally? should one fund, ba...
by DSInvestor
Fri Jul 25, 2014 12:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Which tax advantage accounts do I use for 3-funds?
Replies: 30
Views: 1952

Re: Advice proceeding with 100% taxable portfolio.

I will almost certainly not have a pension or other income in retirement (only social security if it's actually available by the time I am 62+). I will definitely give that tool a try and see what happens, that will answer my question pretty definitively whether or not I should consider the Roth be...
by DSInvestor
Thu Jul 24, 2014 11:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1578

Re: Advice proceeding with 100% taxable portfolio.

If you cannot afford to max out 401k, Roth IRA and build up emergency fund (EF), consider holding some of your emergency fund inside your Roth IRA account. I suggest keeping the Roth money designated as EF in conservative investments like a short term bond fund like Short Term Investment Grade VFST...
by DSInvestor
Thu Jul 24, 2014 11:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1578

Re: Advice proceeding with 100% taxable portfolio.

If you cannot afford to max out 401k, Roth IRA and build up emergency fund (EF), consider holding some of your emergency fund inside your Roth IRA account. I suggest keeping the Roth money designated as EF in conservative investments like a short term bond fund like Short Term Investment Grade VFSTX...
by DSInvestor
Thu Jul 24, 2014 10:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1578

Re: Advice proceeding with 100% taxable portfolio.

No way I'd avoid that 401k given the excellent investment options and employer match. Even if you end up not vesting the employer contributions, you still get the valuable tax deduction of almost 30%. What complication are you concerned about regarding the 401k? How much are you saving in taxable an...
by DSInvestor
Thu Jul 24, 2014 9:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1578

Re: Advice proceeding with 100% taxable portfolio.

Welcome to the forum. IMO, it is a mistake not to contribute to 401k. Do you need to contribute to get the employer match? If you max out Traditional 401k for 17.5K, you may reduce your fed and state income taxes by 5K. You should consider maxing out Traditional 401k, Roth IRA and invest in taxable ...
by DSInvestor
Thu Jul 24, 2014 8:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice proceeding with 100% taxable portfolio.
Replies: 24
Views: 1578

Re: New investor wondering how best to use a windfall

Rollover from Traditional 403b to Rollover or Traditional IRA does not add to income. Rollover from Traditional 403b to Roth IRA is a Roth conversion and adds to income. Your priorities to build emergency fund and get rid of 6.8% debt is good. For size of emergency fund, I suggest 6 months of expens...
by DSInvestor
Thu Jul 24, 2014 5:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: New investor wondering how best to use a windfall
Replies: 9
Views: 555

Re: Computer Problem

Did you change or update anything recently? I think I remember having a similar problem after I updated Adobe Flash. I downgraded flash and the problem went away for me. If there was a recent change or update of a driver or video player software just before the problems began, you can try to undo th...
by DSInvestor
Thu Jul 24, 2014 7:52 am
 
Forum: Personal Consumer Issues
Topic: Computer Problem
Replies: 15
Views: 1343

Re: SEP-IRA employer contributions fr/ personal account-prob

Hopefully OP filed for an extension for 2013 taxes and is in the process of tax preparation. If 2013 return was prepared, OP would surely have been surprised to see a much higher than expected Fed/State tax due due to lack of SEP-IRA deduction and investigated prior to filing the return. If a valid ...
by DSInvestor
Wed Jul 23, 2014 6:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1325

Re: Which tax advantage accounts do I use for 3-funds?

Where are you opening your Solo 401k? If you're opening an Individual 401k at Vanguard, be advised that Admiral shares are not available. Also a $20/yr service fee per fund account in Individual 401k is charged unless you or any other plan participant have sufficient assets (50K Voyager) at Vanguard...
by DSInvestor
Wed Jul 23, 2014 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Which tax advantage accounts do I use for 3-funds?
Replies: 30
Views: 1952

Re: Best Way to Show Google Docs via Wi-Fi on a TV: Chromeca

I'm not familiar with Chromecast but I've used AppleTV to receive screens via Airplay from Apple devices. This kind of solution may need a dedicated PC to drive that content to that screen. Perhaps someone can confirm this. If no dedicated PC is available, is there another way to put the content on ...
by DSInvestor
Tue Jul 22, 2014 10:42 pm
 
Forum: Personal Consumer Issues
Topic: Best Way to Show Google Docs via Wi-Fi on a TV: Chromecast?
Replies: 6
Views: 556

Re: retirement transfer from Janus

With 400K, you can certainly qualify for Admiral shares Vanguard index funds (10K minimum initial investment). I would keep it simple and stick with Vanguard mutual funds rather than ETF shares. ETF offers no price advantage over Vanguard Admiral index funds. You can go with something like this for ...
by DSInvestor
Tue Jul 22, 2014 10:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: retirement transfer from Janus
Replies: 4
Views: 441

Re: Asking for a raise

How long before you get your green card?
by DSInvestor
Tue Jul 22, 2014 9:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Asking for a raise
Replies: 14
Views: 1497

Re: Help me choose a new tv

I have a 32inch LCD Samsung and a 47 inch LG LED. Both are excellent TVs. I bought my mom a 40 inch LED Samsung SmartTV from costco last year for $399 and it's a great TV but smart features aren't that great - a little sluggish. IMO, anyone can turn a dumb TV into a smart TV with a $99 Apple TV or R...
by DSInvestor
Tue Jul 22, 2014 9:21 pm
 
Forum: Personal Consumer Issues
Topic: Help me choose a new tv
Replies: 31
Views: 1687

Re: Mortgage Prepayment Question

Here is this month's (July) statement: Principal: 581.00 interest: 861.00 Escrow: ...... Total: 1,952.10 Today (July 22), I received my next month's mortgage statement(and pay stub), on the history section, it does show that my prepayment has been applied to the principal: 07/8/2014 Principal only ...
by DSInvestor
Tue Jul 22, 2014 8:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Prepayment Question
Replies: 41
Views: 2556

Re: Bond strategy resilient to rate increase

If you or your spouse have access to TSP, invest in G fund.

I bonds will not lose value if rates rise.
by DSInvestor
Mon Jul 21, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: Bond strategy resilient to rate increase
Replies: 13
Views: 1514

Re: SEP-IRA employer contributions fr/ personal account-prob

When you're incorporated, you must take care not to pay for business expenses with personal money and vice versa. I think it's an issue of piercing the corporate veil. From an accounting and tax perspective, the SEP-IRA contribution is an expense of the S-Corp and reduces the S-Corp's net income whi...
by DSInvestor
Mon Jul 21, 2014 4:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA employer contributions fr/ personal account-problem?
Replies: 18
Views: 1325

Re: Self Employed - Roth Contribution for Sep and solo 401K

Yes, Roth IRA contributions are allowed above and beyond what you contribute to either SEP-IRA or Solo 401k. Note that if your income is eligible for Roth IRA contributions, you'd be able to contribute much more to Solo 401k than to SEP-IRA. If you self employed income allows for 20K contribution to...
by DSInvestor
Mon Jul 21, 2014 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Self Employed - Roth Contribution for Sep and solo 401K
Replies: 2
Views: 252

Re: incorporating bonds into our portfolio

I think it would be fine to hold your entire bond allocation in your 401k in that ssga bond index fund. If you hold all the asset classes in the 401k, you can rebalance in that one account. Use the 403b and IRAs to hold overflow for your US and INTL holdings.
by DSInvestor
Mon Jul 21, 2014 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: incorporating bonds into our portfolio
Replies: 6
Views: 743

Re: Help me select a streaming media device

Apple TV works well with iPhones, iPod Touch, iPad, Macs, WIndows PCs with iTunes. It's really easy to send pictures to Apple TV from your apple device. It supports Netflix, Hulu Plus, HBO Go, PBS, ESPN, youtube, but does not have a channel for Amazon Instant Video. I have my Apple TV connected to m...
by DSInvestor
Mon Jul 21, 2014 11:32 am
 
Forum: Personal Consumer Issues
Topic: Help me select a streaming media device
Replies: 24
Views: 1776

Re: American in need of Premier team to root for

I don't follow Premier League but enjoyed a movie called Damned United where Michael Sheen plays Brian Clough, one of Britain's top managers in football. It's available on Netflix.

When I was a kid, my best friend was an Arsenal fan.
by DSInvestor
Mon Jul 21, 2014 10:04 am
 
Forum: Personal Consumer Issues
Topic: American in need of Premier team to root for
Replies: 21
Views: 1038

Re: What to do in a market correction

1) The first thing I expect will happen automatically. If prices go down, so will the amount of minimum required distributions, and also the taxes paid on them. This could be a problem if you spend the MRD, as you lose a bigger percentage of your assets. But I just transfer from a tax deferred acco...
by DSInvestor
Mon Jul 21, 2014 1:21 am
 
Forum: Investing - Theory, News & General
Topic: What to do in a market correction
Replies: 32
Views: 3065

Re: income tax - s corp

How do you pay taxes on distribution for s corp? For example, S corp has income of 220k, it pays you a salary of 100k. I assume the salary income tax gets paid monthly through withholding, but what about the remaining 120k? The remaining 120k of S corp income gets sent to yourself via distribution,...
by DSInvestor
Mon Jul 21, 2014 12:16 am
 
Forum: Personal Finance (Not Investing)
Topic: income tax - s corp
Replies: 1
Views: 345

Re: Favorite Athlete

Roger Federer
by DSInvestor
Sun Jul 20, 2014 11:26 am
 
Forum: Personal Consumer Issues
Topic: Favorite Athlete
Replies: 22
Views: 821

Re: Roth 401k conversion

IRA is a different matter. She can contribute to traditional IRA, but the contribution would not be deductible because of your MAGI. But if she has no untaxed money in any other IRA, SEP IRA, or SIMPLE IRA accounts, she can contribute to tIRA (not-deductible) and convert that to Roth IRA. Since thi...
by DSInvestor
Sun Jul 20, 2014 10:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401k conversion
Replies: 9
Views: 739

Re: Advice For Late Starters To Investing

Retirement used to be a three legged stool with the three legs being pension, social security and savings. If you will not have a pension, that makes your savings all the more important. You've done an excellent job of constructing a very low cost, diversified and easy to manage portfolio. Now you n...
by DSInvestor
Sun Jul 20, 2014 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice For Late Starters To Investing
Replies: 7
Views: 1123

Re: Complete Portfolio Rebalancing: Lump or DCA?

You're already invested in the stock market, so just make the switch to the funds you want to hold quickly. Your taxable account already holds TSM and TISM which I assume you're keeping. The other 90% of the portfolio is in retirement accounts so there are no tax implications for exchanging out of y...
by DSInvestor
Sun Jul 20, 2014 4:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Complete Portfolio Rebalancing: Lump or DCA?
Replies: 9
Views: 944

Re: Social Security Taxes?

Run some numbers with taxcaster. It is free, very easy to use and may help you better understand how social security and other types of income are taxed.
https://turbotax.intuit.com/tax-tools/c ... taxcaster/
by DSInvestor
Sat Jul 19, 2014 3:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Taxes?
Replies: 26
Views: 2271

Re: Roth IRA income limit question

If you're total income is right around the threshold you should be able to get that well below with deductions. Are you maxing out 401k? I would think the $17,500 should be more than enough to bring you under. Be careful about the term deductions in this case. In this case, tax deductible contribut...
by DSInvestor
Sat Jul 19, 2014 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA income limit question
Replies: 24
Views: 1063

Re: Roth IRA income limit question

DSI - I contribute the max $17,500 to a traditional 401(k). That lowers AGI??? Disclaimer: I'm a corporate accountant, not a tax accountant. I've taken one tax course in my life. :) Yes, Traditional 401k contributions lowers your AGI. If you contributed max to Traditional 401k in tax year 2013, go ...
by DSInvestor
Sat Jul 19, 2014 10:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA income limit question
Replies: 24
Views: 1063

Re: Roth IRA income limit question

I'm currently single and my income in 2014 will be about $116,000, plus about $1,500 in interest income from savings and CDs, which puts my estimated modified adjusted gross income at $117,500. This is in the "phase out" range of $114,001-$129,000. Look back at your 2013 tax return and fi...
by DSInvestor
Sat Jul 19, 2014 10:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA income limit question
Replies: 24
Views: 1063

Re: Apple TV

Yes, I assume I could get faster internet speed. I currently use Time Warner and, as a BH, have one of the cheaper plans. I pay under $50 / month, and that's after periodic pleading with them about the cost. Not sure how much more faster speed would cost, but I'm guessing maybe $80-90? I can afford...
by DSInvestor
Fri Jul 18, 2014 9:43 am
 
Forum: Personal Consumer Issues
Topic: Apple TV
Replies: 39
Views: 2977

Re: Apple TV

How fast is your internet service? I have used Apple TV with service that was 8-25Mbps and it's pretty snappy with the menus, netflix, Hulu, PBS, HBO Go etc. One of my neighbors has a low tier internet service (max 3Mbps) with UVerse and the apple TV is a little sluggish to show menus and show icons...
by DSInvestor
Fri Jul 18, 2014 9:05 am
 
Forum: Personal Consumer Issues
Topic: Apple TV
Replies: 39
Views: 2977

Re: Economics 101

Here's a link to a clip from the HBO movie "Too Big to Fail" that explains the financial crisis. William Hurt plays Treasury Secretary Hank Paulson and his team working on a way to explain the crisis in plain English.
http://www.youtube.com/watch?v=OqYTQB6lrQQ
by DSInvestor
Fri Jul 18, 2014 8:43 am
 
Forum: Investing - Theory, News & General
Topic: [Learning about] Economics 101
Replies: 37
Views: 2675

Re: Economics 101

Take a look at Khan Academy.
https://www.khanacademy.org/

Here's a page showing all of their subjects:
https://www.khanacademy.org/library
by DSInvestor
Fri Jul 18, 2014 1:12 am
 
Forum: Investing - Theory, News & General
Topic: [Learning about] Economics 101
Replies: 37
Views: 2675

Re: Adding Backup Boot Disk - Windows 7 - Clone or Image?

I then ran the restore process and when completed everything was there and running OK just as with the original drive. Thanks for passing that along. I intend to do the same thing to get the confidence that it all works. In my case I do have a USB 3.0 Seagate backup drive and storing the image has ...
by DSInvestor
Thu Jul 17, 2014 5:23 pm
 
Forum: Personal Consumer Issues
Topic: Adding Backup Boot Disk - Windows 7 - Clone or Image?
Replies: 13
Views: 959

Re: Transferring Roth IRA to Vanguard & Restructuring...

I didn't think of simplifying it to a LifeStrategy Growth (VASGX) fund, which would really make things easy, but the way I have it split up I would save 50% on the expense ratio. My net expense ratio with the above breakout is .09% whereas VASGX is .18%. The fact that it automatically rebalances an...
by DSInvestor
Thu Jul 17, 2014 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Transferring Roth IRA to Vanguard & Restructuring...
Replies: 12
Views: 1043

Re: Wife has no retirement options- is breadwinner

Would she qualify for an Individual 401(k) at Vanguard? I'm not familiar with that. I'll look into it. Is that subject to the same income limits as a TIRA? Individual 401k is a Solo 401k that is an option for self employed folks who have no employees. Can work for sole proprietor (1099 contractors,...
by DSInvestor
Thu Jul 17, 2014 9:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 3214

Re: Transferring Roth IRA to Vanguard & Restructuring...

That would mean I should structure my portfolio as follows: Roth IRA: $17k VTI: 45% (Total US Stock - $9k) VXUS: 20% (Total Int'l Stock - $4k) BND: 10% (Total US Bond - $2k) VNQ: 5% (US REIT - $1k) VWO: 5% (Emerging Market Stock - $1k) Taxable: $3k BND: 10% (Total US Bond- $2k) BNDX: 5% (Total Int'...
by DSInvestor
Wed Jul 16, 2014 2:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transferring Roth IRA to Vanguard & Restructuring...
Replies: 12
Views: 1043

Re: Insurance Settlement and Roth

Your wife can make Spousal IRA based on your compensation if you both file joint tax return. With joint AGI at expected around 135K, you'd both be eligible for full Roth IRA contribution ($6500 for you, 5500 for spouse under age 50). http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amo...
by DSInvestor
Wed Jul 16, 2014 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Insurance Settlement and Roth
Replies: 4
Views: 419

Re: Transferring Roth IRA to Vanguard & Restructuring...

With 3K in the taxable account, I'd suggest going with Total Stock Market Investor VTSMX er=0.18% or VTI. The Roth IRA can be something like LifeStrategy Growth which has 80/20 AA. In the early stages of investing, your savings rate will have a much larger impact on the growth of your portfolio than...
by DSInvestor
Tue Jul 15, 2014 4:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transferring Roth IRA to Vanguard & Restructuring...
Replies: 12
Views: 1043
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