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by JW Nearly Retired
Sun May 24, 2015 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Question about Taxes on Social Security
Replies: 15
Views: 930

Re: Question about Taxes on Social Security

We'll probably be in the 15% bracket (< $74,900 ) so I'm going to have to pay taxes on a little over half my SS. At that rate 15% of $12,500 is about $1900 ??? Is that about right ??? Or do we look at this a different way ?? A different way. Tax when you have SS plus other income is very complicate...
by JW Nearly Retired
Sun May 24, 2015 8:24 am
Forum: Personal Finance (Not Investing)
Topic: 2011 Tax Error
Replies: 6
Views: 616

Re: 2011 Tax Error

A couple of questions: 1. Am I correct that since the rollover happened in 2011, the rolled-over funds are considered when determining the taxable portion of my Roth conversion, even though the roll-over happened after the conversion? 2. Do I have any alternatives to amending my return? For example...
by JW Nearly Retired
Sat May 23, 2015 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help me help my retired father -- preferred stocks
Replies: 20
Views: 1428

Re: Help me help my retired father -- preferred stocks

For example, to compare to a PG&E preferred enter PCG in the "compare to symbol" box and select one of their preferreds, say PCG:PRA, from the drop down menu that comes up. This will add a PCG:PRA growth of $10k line to the graph. You can keep on adding many such lines. Thanks: Now, t...
by JW Nearly Retired
Sat May 23, 2015 10:38 am
Forum: Investing - Help with Personal Investments
Topic: 401k vs Roth401k vs backdoor Roth IRA
Replies: 7
Views: 295

Re: 401k vs Roth401k vs backdoor Roth IRA

Another related question, what is the tax treatment for after tax contributions to a 401k? I can contribute up to $53,000 to my 401k or Roth 401k, over the $24,000 qualified limit. My employed match is around $11,000 so I would have around $18,000 headroom to contribute after taxes. Does it make an...
by JW Nearly Retired
Sat May 23, 2015 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs Backdoor
Replies: 8
Views: 688

Re: Roth 401K vs Backdoor

Question - do the Roth 401K contributions in any way limit the backdoor scheme? No they don't. 401k accounts are not IRAs. The thing that inhibits the backdoor scheme is already having the kind of tax deferred assets mentioned on line 6 of the IRS 8606 form. Namely, any other tax deferred money in ...
by JW Nearly Retired
Sat May 23, 2015 9:18 am
Forum: Investing - Help with Personal Investments
Topic: 401k vs Roth401k vs backdoor Roth IRA
Replies: 7
Views: 295

Re: 401k vs Roth401k vs backdoor Roth IRA

Agree most sense is probably traditional 401k, backdoor Roth IRA, and taxable investments. However, don't underestimate your taxes in retirement. Make a serious effort at estimating them for RMDs + SS + pension/all other income. The t401k might be $2M+ by the time you retire. JW ps added: Once you a...
by JW Nearly Retired
Fri May 22, 2015 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Am I crazy to have this asset allocation?
Replies: 21
Views: 2935

Re: Am I crazy to have this asset allocation?

turtlesaliva wrote:The average ER is roughly .78.

If the average ER is 0.78% half of your portfolio is higher than that. You might start by dumping that portion for index funds.

Not familiar with Ilmanen, but don't Swedroe & Bernstein advocate low cost investing?
JW
by JW Nearly Retired
Fri May 22, 2015 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Move out of 401k?
Replies: 5
Views: 313

Re: Move out of 401k?

Thanks for feedback, and I'm aware these are index funds - should have said move to "other index funds". My employer has been slow to provide more choices, planning is occurring now to make this happen in 2016/17. I think you are talking about rolling over your 401k assets to an IRA. Most...
by JW Nearly Retired
Fri May 22, 2015 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Help me help my retired father -- preferred stocks
Replies: 20
Views: 1428

Re: Help me help my retired father -- preferred stocks

What I'm trying to learn is *how* to model the CAGR of a set of high-quality preferred stocks as a proxy and back-of-the-envelope calculations for par value as a function of interest rate/maturity date. I don't even know where to go look.... You can display a preferred stock on a Morningstar growth...
by JW Nearly Retired
Thu May 21, 2015 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Should I move IRA funds to VSCGX?
Replies: 9
Views: 794

Re: Should I move IRA funds to VSCGX?

I am including my taxable because I have been drawing RMD for several years and moving into equity funds. I'm not asking for opinions on my total portfolio, just whether the VSCGX would be just as good as what I have now, pros and cons. I would appreciate your insights and comments. Thank you. It w...
by JW Nearly Retired
Thu May 21, 2015 7:23 am
Forum: Personal Finance (Not Investing)
Topic: SS question
Replies: 8
Views: 989

Re: SS question

So if I wait till 64 or 65 to collect SS I would get more of a benefit right? To repeat, you get a benefit boost for every month you delay. The amount of the increase between 62 and 70 totals to 76%. e.g., a $1500 monthly benefit at 62 would become $2640 delaying to 70. This is on top of any inflat...
by JW Nearly Retired
Wed May 20, 2015 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Pension (annuity) vs lump sum decision
Replies: 10
Views: 791

Re: Pension (annuity) vs lump sum decision

Yes, we have used backdoor Roth to contribute to an IRA. I can roll over the lump sum to my existing company's 401k. However, my plan is to roll over to Vanguard IRA and then roll over to my 401k in a matter of days. Will rolling it over temporarily in an IRA affect me from using the backdoor Roth ...
by JW Nearly Retired
Wed May 20, 2015 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Pension (annuity) vs lump sum decision
Replies: 10
Views: 791

Re: Pension (annuity) vs lump sum decision

My previous company (private company - publicly traded) is offering me the option of lump sum or annuity with an insurance company. The company had previously suspended the pension plan and now is in the process of terminating the plan. Termination is July 1 2015. Hence the options. I am 42 years o...
by JW Nearly Retired
Tue May 19, 2015 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Ed Jones wants American Funds moved under their Name
Replies: 9
Views: 1228

Re: Ed Jones wants American Funds moved under their Name

Years ago I bought American Funds, all A shares, through Ed Jones broker for some Traditional IRAs and Roths but they were and continue to be held at the Fund Company. Now Ed Jones wants me to move them under their name. They can't be faulted for wanting you to increase your multi-tithing to Ed Jon...
by JW Nearly Retired
Mon May 18, 2015 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Any ContraFund Fans Here?
Replies: 7
Views: 602

Re: Any ContraFund Fans Here?

I've held FCNTX in a taxable account since the 80's. Past performance has been good and now I'm stuck with it due to the unrealized gains. Contrafund management appears to have market timed across the 2002 & 2008 crashes very well. A big negative is they do a lot of trading and make cap gains di...
by JW Nearly Retired
Mon May 18, 2015 8:13 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 161
Views: 9859

Re: How much does social security factor into your retirement income?

SS will be the smallest leg of my three legged stool. Then too my wife has a modest pension and SS coming as well, so really a five legged stool. All in SS is still the lowest amount of SS, pensions and investments, though all are large enough to be meaningful. Will SS still be the smallest after t...
by JW Nearly Retired
Sun May 17, 2015 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question about Restricted Application
Replies: 27
Views: 1977

Re: Social Security question about Restricted Application

This is an older thread, no I hope that this is not considered a real hijack. I have some further questions re the "restricted" application. I am planning on filing a restricted application when my spouse reaches 62 (I'll be 68 at that time) so that I can obtain my spousal benefit. (The a...
by JW Nearly Retired
Sun May 17, 2015 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Filing a Social Security Restricted Application
Replies: 13
Views: 1478

Re: Filing a Social Security Restricted Application

Thank you everyone for confirming our SS claiming plan. I am currently at Full Retirement Age (66) and my wife is claiming early at age 62 starting next month on her own benefits. Sorry if I didn't make that clear. Appreciate the feedback on the new Social Security cards. All of the details you hav...
by JW Nearly Retired
Sat May 16, 2015 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Amount needed for medical expenses in retirement
Replies: 14
Views: 1781

Re: Amount needed for medical expenses in retirement

Have recently seen several excerpts touting that the average individual needs to have $364,000 set aside for medical expenses in retirement. This seemed way out of whack to me and was wondering if this was fear mongering, etc. With an individual having Medicare which covers 80% of medical and suppl...
by JW Nearly Retired
Thu May 14, 2015 8:53 pm
Forum: Investing - Theory, News & General
Topic: Poll: Average E/R [Expense Ratio]
Replies: 49
Views: 3123

Re: Poll: Average E/R [Expense Ratio]

I'm so happy polls appear to be enabled again that I'm going to sharpen my pencil and try to get a super accurate number for my average E/R.

Oops, not enabled after all. :(
JW
by JW Nearly Retired
Thu May 14, 2015 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth: Schooling my CPA and getting charged for it!
Replies: 134
Views: 9621

Re: Backdoor Roth: Schooling my CPA and getting charged for it!

Back door Roths are after-tax contributions to a traditional IRA that are immediately converted to a Roth IRA. (underline added) IMO, insisting on immediacy adds quite a lot to the backdoor confusion. There is no significant benefit to avoiding account balance changes before the conversion step. Ta...
by JW Nearly Retired
Tue May 12, 2015 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Does 401K participation affect Roth IRA participation?
Replies: 8
Views: 879

Re: Does 401K participation affect Roth IRA participation?

Our AGI will be well under $181,000. The 401K is maxed out and we would like to put our remaining savings into ROTHs and then taxable accounts. Here is my confusion: the CPA is insisting that my 401K make me ineligible for a ROTH although DW can put in the full $6,500/yr. I have read and can find n...
by JW Nearly Retired
Tue May 12, 2015 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Financial advisor vs. CPA/Tax specialist
Replies: 5
Views: 564

Re: Financial advisor vs. CPA/Tax specialist

Am currently working & plan to start Social Security next year. I also am turning 70 1/2 next year and face RMDs unless I keep working (hopefully, I still can). I do plan to see the CFP again when I have to make decisions regarding annuitizing part of my 403b, but feel the tax/rmd/social securi...
by JW Nearly Retired
Mon May 11, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Advisor: buy a nicer home pre-retirement
Replies: 31
Views: 2976

Re: Advisor: buy a nicer home pre-retirement

The only thing that caught me by surprise was a recommendation to consider moving up to a nicer home pre-retirement (ours is paid off). Briefly, he felt that expected appreciation would outweigh the mortgage interest (if we finance) and leverage would be our friend, and it would also add Real Estat...
by JW Nearly Retired
Mon May 11, 2015 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Form 8606
Replies: 3
Views: 386

Re: Form 8606

Might be good to check what you did against this.

http://thefinancebuff.com/the-backdoor- ... ow-to.html
JW
by JW Nearly Retired
Mon May 11, 2015 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Back door Roth IRA opinion wanted
Replies: 5
Views: 259

Re: Back door Roth IRA opinion wanted

I would like to place 10k a year into a Roth IRA for wife and myself. Problem is that income is at 33% bracket and I have about 300k in Vanguard IRAs. I am maxing out all other tax deferred vehicles, 529, HSA, including placing some money into a non gov 457b. To open a Roth, I would have to transfe...
by JW Nearly Retired
Mon May 11, 2015 9:24 am
Forum: Investing - Theory, News & General
Topic: Skeptical of consistent dividend growth
Replies: 18
Views: 1625

Re: Skeptical of consistent dividend growth

A strategy of owning consistent dividend growers may have backtested well (forming the justification for ETFs of such stocks), but I am wary of it. Vanguard has a Dividend Growth Fund (VDIGX) you can Morningstar growth of $10k "backtest" as far back as 1992. Over the last 10 years it did ...
by JW Nearly Retired
Sun May 10, 2015 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: are we moving to awful 401(k)?
Replies: 5
Views: 769

Re: are we moving to awful 401(k)?

lenneny, I wouldn't worry too much yet. Over 40 years my Megacorp has changed 401k administrators quite a few times and it has made no significant difference to participant's (very low) costs. I believe that once the management that chooses these admins has learned that low costs are of value in a 4...
by JW Nearly Retired
Sat May 09, 2015 9:19 am
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5391

Re: Stop contributions to retirement accts due to future RMDs

Below are Part B premiums by income If your yearly income in 2013 (for what you pay in 2015) was You pay (in 2015) for Medicare part B monthly payments. $85,000 or less $104.90 monthly above $85,000 up to $107,000 $146.90 above $107,000 up to $160,000 $209.80 above $160,000 up to $214,000 $272.70 a...
by JW Nearly Retired
Sat May 09, 2015 7:55 am
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5391

Re: Stop contributions to retirement accts due to future RMDs

So my question is. If at the age of about 50 or whenever, and you have calculated that you can have more than enough to live on from other than retirement accounts, would you stop contributing to retirement accounts and just invest the money in taxable accounts? I would not use just "more than...
by JW Nearly Retired
Fri May 08, 2015 4:10 pm
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1400

Re: Help me understand why maxing out Roth TSP is better than Traditional

In any case, if I were in the 28% federal tax bracket, I would definitely use the traditional over the Roth, but my situation and preferences are not necessarily going to be that similar to yours. Sorry, I read the wrong bracket. I meant 25, not 28. And, we barely made that last year only because m...
by JW Nearly Retired
Thu May 07, 2015 11:26 am
Forum: Personal Consumer Issues
Topic: What to do with 1940's refrigerator that still works?
Replies: 36
Views: 2696

Re: What to do with 1940's refrigerator that still works?

At least in CA, PG&E and other utilities will pick up any (still working) refrigerator from you and pay you $50 for it. Probably there are similar programs in other states.

Try googling "old appliance recycling".
JW
by JW Nearly Retired
Wed May 06, 2015 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Budget allocation between LARGE student loan burden and Retirement_Updated details
Replies: 28
Views: 2417

Re: Budget allocation between LARGE student loan burden and Retirement

Our Larson Financial planner strongly encourages us to continue investing all our savings (which currently amount of about $30,000 on top of $11,000 to IRAs), supporting that the compounding interest will be worth it in the end. On the other hand, we feel very hesitant about not paying aggressively...
by JW Nearly Retired
Tue May 05, 2015 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's 401(k) with former employer: annoying calls from Transamerica
Replies: 16
Views: 1267

Re: Wife's 401(k) with former employer: annoying calls from Transamerica

My concern here is that ever since her departure, my wife has received about a dozen telephone solicitations and a couple of e-mails from a Transamerica rep seeking to woo her to migrate her assets from the 401(k) to a Transamerica rollover individual retirement arrangement. Originally, my impressi...
by JW Nearly Retired
Tue May 05, 2015 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Wife's 401(k) with former employer: annoying calls from Transamerica
Replies: 16
Views: 1267

Re: Wife's 401(k) with former employer: annoying calls from Transamerica

I kept my ~300K balance in my previous employer's 401K system because: ⋅ The company paid all the AUM, marketing, and fund expense ratios. Thus the cost to me (0.00%) is lower than even Vanguard (0.05%) could provide. ⋅ Rolling to an IRA would preclude future backdoor Roth IRA c...
by JW Nearly Retired
Mon May 04, 2015 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Question:
Replies: 33
Views: 3764

Re: Social Security Question:

She will continue to work part time until my father decides he wants to retire. Part time may or may not affect those calculations as she has already worked for 30 years worth of accumulation. It very well may lower her final payment since she might not max out social security working part time. I ...
by JW Nearly Retired
Mon May 04, 2015 10:08 am
Forum: Investing - Theory, News & General
Topic: "Don't invest in something you don't understand."
Replies: 55
Views: 3446

Re: "Don't invest in something you don't understand."

One of the reasons that I don't own any shares in a TIPS fund is that -based on 2008 - I don't have any reasonable understanding of how it will react in the midst of the next market crash. IMO, you are asking way too much. I didn't pay any attention to what my TIPS did in 2008. I'd guess they did l...
by JW Nearly Retired
Sun May 03, 2015 8:45 am
Forum: Forum Issues and Administration
Topic: Polls Disabled
Replies: 60
Views: 3564

Re: Polls Disabled

Sorry about the moderator effort, but I strongly agree with the consensus here that this is a very unfortunate change. Polls certainly reflect the "broader will of the participants of this forum" a heck of a lot better than a typical long thread dominated by the usual small group of respon...
by JW Nearly Retired
Sat May 02, 2015 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Lousy 401k question
Replies: 27
Views: 1984

Re: Lousy 401k question

Much to my disappointment, I have learned the above expense ratios to be correct. Would you put it all in the invesco fund with the .8 expense ratio? Thanks for the help. I would. Then I would do the best I can to add other needed asset classes in your Roth and taxable accounts. This isn't going to...
by JW Nearly Retired
Sat May 02, 2015 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advise - Retiring Teacher
Replies: 10
Views: 1000

Re: Portfolio Advise - Retiring Teacher

Randall, I added up your current salary ($73k), side job ($20k), & rental inc. ($41k), less $30k/yr savings, to guesstimate you are living on $104k/year. Assuming you have no social security and you stop all working, your estimated post-retirement income will be pension ($44k) + rents ($41k) + t...
by JW Nearly Retired
Fri May 01, 2015 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA contribution
Replies: 3
Views: 332

Re: Traditional IRA contribution

These contributions were tax deductible because neither my wife or I had employer sponsored retirement plans during 2014. Prior years I was contributing to Roth IRA's regularly in addition to my work retirement 403(b). I was initially thinking I was doing a back-door Roth conversion, then realized ...
by JW Nearly Retired
Fri May 01, 2015 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Question:
Replies: 33
Views: 3764

Re: Social Security Question:

My father started collecting at 70. Based on what I am hearing, if my mom waited to file hers at 70 she will actually have a higher benefit by then. Therefor filling for half of my fathers in 3 years at 66 will be her best option. I will have them log into SSA.gov today to help confirm those suspic...
by JW Nearly Retired
Thu Apr 30, 2015 2:54 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation during RMD years-unneeded but required wd's
Replies: 13
Views: 1147

Re: Asset allocation during RMD years

Since we don't get to choose our withdrawal rate for RMD's, and they keep increasing, has anyone given thought to how to do AA for this sort of situation? I thought of keeping the next 7 years' projected RMD's in something like G fund with the rest in equities, in hopes of keeping some growth going...
by JW Nearly Retired
Thu Apr 30, 2015 2:16 pm
Forum: Investing - Theory, News & General
Topic: Transfer or Rollover
Replies: 8
Views: 520

Re: Transfer or Rollover

Don't talk to your existing fund seller and don't get a check made out to you. Call Vanguard and tell them what you want to do. They will get it done. If you have some aversion to talking on the phone then just fill out Vanguards "IRA Asset Transfer kit" from here. https://personal.vanguar...
by JW Nearly Retired
Thu Apr 30, 2015 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Question:
Replies: 33
Views: 3764

Re: Social Security Question:

Father 73 and still working, loves what he does and has no interest in quitting for at least a couple more years. Mother 63 and just about ready to retire. Father collects $2510/month in SS Mother currently not collecting SS but at FRA will collect $1700/month Currently the plan is just to collect ...
by JW Nearly Retired
Thu Apr 30, 2015 11:18 am
Forum: Investing - Theory, News & General
Topic: Retirees - What would you have done differently?
Replies: 48
Views: 6555

Re: Retirees - What would you have done differently?

We saved plenty since I started working in 1970's. Always fairly close to Boglehead type DIY investing and LBYM. Never paid a mutual fund load or AUM fee or flipped a house or got a divorce. That, plus the long bull market, has made our retirement savings amount to more than expected. Can't say it w...
by JW Nearly Retired
Thu Apr 30, 2015 9:16 am
Forum: Investing - Theory, News & General
Topic: RE Social security being taxed--new chart by Scott Burns
Replies: 41
Views: 4680

Re: RE Social security being taxed--new chart by Scott Burns

At 71, I'm still working, getting SS and paying tax on 85% of it. When I retire, I'll have pensions, SS and RMDs. I'm not aware of anything I can do to reduce my taxes - and tax on SS. If you will still be paying tax on 85% of SS after you retire then IMO there isn't anything you can do. If not, yo...
by JW Nearly Retired
Thu Apr 30, 2015 8:28 am
Forum: Investing - Theory, News & General
Topic: RE Social security being taxed--new chart by Scott Burns
Replies: 41
Views: 4680

Re: RE Social security being taxed--new chart by Scott Burns

Browser wrote:HouseBlend - I assume in your computational examples, you are talking about taxable income (other + SS), correct?

I can't speak for HouseBlend's examples but the incomes in my examples were all gross incomes.
JW
by JW Nearly Retired
Wed Apr 29, 2015 6:09 pm
Forum: Investing - Theory, News & General
Topic: RE Social security being taxed--new chart by Scott Burns
Replies: 41
Views: 4680

Re: RE Social security being taxed--new chart by Scott Burns

Doc wrote:Thanks guys,

I was right. I suffer from bias of the familiar. $48k in SS income - OMG.

Doc,
That amount is pretty darn ordinary for two people. The max for a couple who both waited until 70 would be a little more than $80k.
JW
by JW Nearly Retired
Wed Apr 29, 2015 3:45 pm
Forum: Investing - Theory, News & General
Topic: RE Social security being taxed--new chart by Scott Burns
Replies: 41
Views: 4680

Re: RE Social security being taxed--new chart by Scott Burns

My favorite tax "gotcha" in this context is a Federal marginal rate of 55.5% . This occurs when (a) your qualified dividend income pushes you across the boundary between the 15% and 25% bracket, and (b) you are in the range where your SS income has not yet topped out at 85% taxable. I've ...

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