Search found 4657 matches

by JW Nearly Retired
Tue Aug 04, 2015 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: The right way to do a roll over with an RMD?
Replies: 5
Views: 212

Re: The right way to do a roll over with an RMD?

Scenario 2: Bob retires on Oct 1, 2015. He can't skip his 2015 RMD so he takes an RMD from the 401k (Using the 401k balance as of Dec 31, 2014). He then does an "mid-air" roll over of all his 401k money to his Roth IRA. He then has no future RMDs. I'm still wondering why Bob might want to...
by JW Nearly Retired
Tue Aug 04, 2015 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal Benefits - so confusing
Replies: 17
Views: 1532

Re: Spousal Benefits - so confusing

My husband started at age 63 and received a reduced benefit. I applied for spousal at age 66 (FRA) and received 50% of his PIA. I do use AnyPIA but I was surprised that I was no longer allowed to inspect the current value of my unclaimed benefit at SSA website. I mostly want to know if there is any...
by JW Nearly Retired
Tue Aug 04, 2015 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Taking advantage of reduced tax bracket - 15%
Replies: 11
Views: 1108

Re: Taking advantage of reduced tax bracket - 15%

House Blend wrote:
Do keep in mind that if you have qualified dividends, then you'll be paying 30% Federal tax on any overshot amounts.

So you would be.:oops: I never realized this is how it works before. Thanks!

Never too old to learn something at Bogleheads.
JW
by JW Nearly Retired
Mon Aug 03, 2015 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Help with old 401(k) plan termination
Replies: 6
Views: 423

Re: Help with old 401(k) plan termination

Bolder- Thanks for pointing out the Backdoor Roth Conversion. I'm currently able to fully contribute to a Roth but am approaching the income limits, so maybe that's something to consider. I did find a useful, high-level summary of state by state protection for IRA's (http://www.irafinancialgroup.co...
by JW Nearly Retired
Mon Aug 03, 2015 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Moving Out of Edward Jones & Retirement Questions.
Replies: 6
Views: 613

Re: Moving Out of Edward Jones & Retirement Questions.

Another thing I need to look into is spousal benefits for social security, and optimizing for my parents. If anyone has any recommended reading on this topic as well it would be appreciated. Mike Piper (a SS expert who posts here) has a "Social Security Made Simple" book on Amazon. I'm su...
by JW Nearly Retired
Sun Aug 02, 2015 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion directly from 401K to Roth IRA?
Replies: 19
Views: 808

Re: Roth conversion directly from 401K to Roth IRA?

1) You can convert directly without an RMD coming into play as long as you are still working (and not a 5% owner) and will work beyond the end of the current year. The current year therefore is NOT an RMD distribution year for your 401k. This means as long as you can keep on going with part time wo...
by JW Nearly Retired
Sun Aug 02, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion directly from 401K to Roth IRA?
Replies: 19
Views: 808

Re: Roth conversion directly from 401K to Roth IRA?

I don't want to trigger a requirement to pay RMDs this year by moving the money initially to an IRA and then to my Roth IRA. It is an IRA rule that the first money you withdraw has to go toward your RMD and you can't put your RMD into a Roth or another tax-deferred account. I think the same basic r...
by JW Nearly Retired
Sat Aug 01, 2015 5:24 pm
Forum: Personal Consumer Issues
Topic: Odd skunk smell inside the house
Replies: 28
Views: 24472

Re: Odd skunk smell inside the house

Skunks in SF? Yep, probably. We live in Silicon Valley and had never ever seen a skunk around here for as long as we can recall. Raccoons and possums yes, but not skunks. Then I bought a critter camera to use at our cabin and tried it out at home first. Yikes. Skunks are traipsing through the yard e...
by JW Nearly Retired
Sat Aug 01, 2015 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation - tax on payouts?
Replies: 14
Views: 1143

Re: Deferred Compensation - tax on payouts?

When I was with Merrill Lynch 15 years ago I made contributions to their voluntary deferred compensation program, thus avoiding current income taxes....................... I expect to receive ~$40,000 per year pre-tax over the next 15 years, and have two simple tax questions, both of which assume I...
by JW Nearly Retired
Sat Aug 01, 2015 9:18 am
Forum: Investing - Theory, News & General
Topic: Financial Advisor v. Bogle Approach?
Replies: 33
Views: 2548

Re: Financial Advisor v. Bogle Approach?

When I have asked them for historical data comparing their approaches to common indexes or specific indexes (like VTSAX), they don't have anything they can provide. If they are really getting their clients better returns than the market, why are they not showcasing this with data and case studies? ...
by JW Nearly Retired
Sat Aug 01, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: 85 Year Old with $150K to invest
Replies: 12
Views: 1366

Re: 85 Year Old with $150K to invest

She needs any income from the money to be non-taxable, but she doesn't want to invest in an annuity, which is what her investment adviser is suggesting. Anyone have any better ideas? Needing the income to be non-taxable doesn't make a lot of sense but not wanting the annuity does. Absent any furthe...
by JW Nearly Retired
Sat Aug 01, 2015 8:06 am
Forum: Investing - Theory, News & General
Topic: Financial Advisor v. Bogle Approach?
Replies: 33
Views: 2548

Re: Financial Advisor v. Bogle Approach?

Are they likely to outperform a total market index by more than 1.5% annually over time? No chance they will outperform a total market index over time. However, it is certainly possible they could outperform you if you turn out to be a very foolish DIY investor. Someone who constantly chases perfor...
by JW Nearly Retired
Fri Jul 31, 2015 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Costco for hearing aids
Replies: 13
Views: 921

Re: Costco for hearing aids

Mine were Bernafon hearing aids. I paid $2800 for the pair and all the accessories last year. I think I recall they were the most expensive Costco was offering at the time.
JW
by JW Nearly Retired
Fri Jul 31, 2015 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Costco for hearing aids
Replies: 13
Views: 921

Re: Costco for hearing aids

I went to my medical clinic to get my hearing test from an audiologist, which my medical insurance paid for. Then I took the test result chart to Costco and bought one of their best hearing aids. They didn't need to give me a Costco hearing test. The device works great. I also think the Costco instr...
by JW Nearly Retired
Fri Jul 31, 2015 9:42 am
Forum: Personal Finance (Not Investing)
Topic: RMDs, taxes and Social Security
Replies: 4
Views: 593

Re: RMDs, taxes and Social Security

Our own Bigfoot48 has a "Retiree Portfolio Model" spreadsheet retirement forecaster I really like. I find it much easier to control and understand what's going on than I-orp. To download it see https://www.bogleheads.org/forum/viewtopic.php?t=97352 There is also some description in the wik...
by JW Nearly Retired
Fri Jul 31, 2015 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Social security
Replies: 7
Views: 642

Re: Social security

However, the article is correct that you have to be very careful because you can screw it up. As I recall the way you tell them in the case of file and suspend at age 66 is that you state your intentions by writing a paragraph in a comments section. There are not check boxes where you pick your cho...
by JW Nearly Retired
Fri Jul 31, 2015 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Another Single Stock (lack of) Diversification Question
Replies: 2
Views: 260

Re: Another Single Stock (lack of) Diversification Question

Now is where I admit that I too hold a single company stock since its IPO inception given as RSU equity compensation (taxed as OI on vesting) over the past six years – valued at about $1.3 M with $800k in LTCG. I’ve understood the risk in this for a long time but boy has it made some money! I’d app...
by JW Nearly Retired
Thu Jul 30, 2015 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: $0.01 left in tIRA MM after backdoor Roth conversion
Replies: 22
Views: 1386

Re: $0.01 left in tIRA MM after backdoor Roth conversion

Personally I've never had this problem (only been doing the Backdoor for two years) - but I always convert the day after doing the tIRA deposit - I imagine this will change if the MM fund eventually earns more than what it is today. Too bad they don't have another cash-holding option with zero inte...
by JW Nearly Retired
Thu Jul 30, 2015 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Auto collision with uninsured driver caused $5000 in damage. What to do?
Replies: 23
Views: 2129

Re: Auto collision with uninsured driver caused $5000 in damage. What to do?

The brother should first be talking about what to do with his car insurance company, not his brother or us. Tell us what they say and we could comment if it seems right or not.
JW
by JW Nearly Retired
Thu Jul 30, 2015 11:51 am
Forum: Investing - Help with Personal Investments
Topic: $0.01 left in tIRA MM after backdoor Roth conversion
Replies: 22
Views: 1386

Re: $0.01 left in tIRA MM after backdoor Roth conversion

So if I'm understanding correctly I can: 1). Leave the 0.01 in tIRA till next years backdoor Roth. Pro-rata rule will apply, but it looks like the rule is proportional so will basically have no tax impact, given I have no other traditional IRAs 2). Have Vanguard convert the penny to the Roth now in...
by JW Nearly Retired
Thu Jul 30, 2015 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Help with my mother's AA within confines of her advisor
Replies: 16
Views: 1243

Re: Help with my mother's AA within confines of her advisor

Monthly income: $1500 SocSec $2000 Distribution from her taxable account at TD Ameritrade Monthly expenses ~$10,000 (nursing home) Total Assets: just over $1M (not including her home’s value) ... She needs to take a net of $8500/month ($102k/yr) from investments of $1M. Counting the advisor's and f...
by JW Nearly Retired
Thu Jul 30, 2015 9:43 am
Forum: Investing - Help with Personal Investments
Topic: $0.01 left in tIRA MM after backdoor Roth conversion
Replies: 22
Views: 1386

Re: $0.01 left in tIRA MM after backdoor Roth conversion

Do I convert it now or wait till next year and convert $5500.01 with next years backdoor Roth. Assuming 1 cent will round to nothing for taxes, but not sure if this complicates filing form 8060. It doesn't complicate the 8606. I always select 100% or all when doing the conversion step and put whate...
by JW Nearly Retired
Wed Jul 29, 2015 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Who are you able to share good financial news with?
Replies: 80
Views: 5059

Re: Who are you able to share good financial news with?

Spouse only. With our fairly well off kids we share stuff only in vague not-to-worry-about-us terms.

They probably get some clue from our gifting to them and the grandkids, but we think all the details can wait another 5 or 10 years. Things happen so this time frame can always change.
JW
by JW Nearly Retired
Wed Jul 29, 2015 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated
Replies: 79
Views: 5213

Re: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated

Effective tax rate is simply total taxes paid divided by total income, presented as a percent. So for your row "Sell in ten years", your effective tax rate is 12.8% (=sum(G11:I11)/F11), whereas for "Sell in one year" your effective tax rate is 20.3%. Again, to compare apples to ...
by JW Nearly Retired
Wed Jul 29, 2015 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on Estate Distribution
Replies: 1
Views: 244

Re: Taxes on Estate Distribution

I know I will have to pay capital gains on the gainers but will that be offset by the losers. For example if I have 15,000 of gains and 15,000 of losses will my cap gain taxes be zero. Or if I have 13000 of gains and 17,000 of losses will I have a loss to carryover? Yes to both your questions. Exce...
by JW Nearly Retired
Tue Jul 28, 2015 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: What type of Professional do I Need, or do I just need Bogleheads?
Replies: 17
Views: 2018

Re: What type of Professional do I Need, or do I just need Bogleheads?

I noticed that the local community college is offering a "retirement planning" course. What is interesting is that one can sign up for different dates. The course is actually taught by instructors from two different investment firms. Our local community college offered the same type class...
by JW Nearly Retired
Tue Jul 28, 2015 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: today or wait a week
Replies: 14
Views: 1760

Re: today or wait a week

Thanks for the reply. I decided not to wait. I wanted to roll directly into the two funds, but for whatever reason Vanguard requested I roll it into cash fund first. I have have always just filled out their transfer of assets form. In the form there are 4 boxes for the VG funds you want to invest i...
by JW Nearly Retired
Tue Jul 28, 2015 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: When to take Social Security survivor benefit
Replies: 5
Views: 443

Re: When to take Social Security survivor benefit

Between ages 60 and 82 the benefit is almost 400,000. It seems like a lot of money to me when I look at it like that. I could invest/save it and my estate could pass it to my 3 children. Between 66 and 82 the age 66 $25000 benefit is also 400,000. But because of the longer female life expectancy an...
by JW Nearly Retired
Tue Jul 28, 2015 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Slammed Closed--WHAT?!
Replies: 28
Views: 3753

Re: Backdoor Roth Slammed Closed--WHAT?!

Regarding "rollover" on an IRA, for some plans but not the TSP, a "rollover IRA" is acceptable, but a non rollover IRA (contributory IRA) is not. So a rollover is generally a positive indication, although since 2002 like another poster mentioned regarding his rollover IRA, a &qu...
by JW Nearly Retired
Tue Jul 28, 2015 12:51 pm
Forum: Investing - Theory, News & General
Topic: Audit over backdoor Roth
Replies: 9
Views: 1432

Re: Audit over backdoor Roth

Contributions and conversions are fully legal. No to similar advice or being audited. I suspect any audits he knows of were because the taxpayer failed to fill out the 8606 forms, or they filled them out wrong. They are a little confusing. Perhaps this advisor doesn't know how to fill them out and d...
by JW Nearly Retired
Tue Jul 28, 2015 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Slammed Closed--WHAT?!
Replies: 28
Views: 3753

Re: Backdoor Roth Slammed Closed--WHAT?!

Further, the TSP has been accepting IRA rollovers for years, I believe even for separated employees. There is no way that they have been attempting to enforce IRA custodian certifications because they were unlikely to receive any. If they did, the IRA custodian was not aware of what they were signi...
by JW Nearly Retired
Mon Jul 27, 2015 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Helping Mom - I'm Concerned About Her Advisor
Replies: 24
Views: 1829

Re: Helping Mom - I'm Concerned About Her Advisor

The right measure of investment expense is to compare it to the income that can be safely derived from the investments. Using the old 4% safe withdrawal rule of thumb as a rough guide, the $450k Ameriprise portfolio could be relied on to sustain a $18,000 yearly drawdown (including expenses). If ban...
by JW Nearly Retired
Mon Jul 27, 2015 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Need a Piece of Evidence on the Boglehead Strategy
Replies: 34
Views: 2866

Re: Need a Piece of Evidence on the Boglehead Strategy

I received some very thoughtful responses to a question I asked last time about moving mine and my wife's portfolio from an adviser that charges a 1% fee to Vanguard. This person also I'm just finding out has us invested in funds with a load of 5.75% on average, which I'm assuming we pay on top of ...
by JW Nearly Retired
Mon Jul 27, 2015 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Hourly W2 - Any Retirement Options?
Replies: 10
Views: 839

Re: Hourly W2 - Any Retirement Options?

tIRA/other tax deferred vs Roth vs taxable account. It depends and IMO it's complicated. No avoiding doing some early strategizing how you will do it in your personal situation. If you expect no retirement income besides social security two flavors can work together better than picking just one. e.g...
by JW Nearly Retired
Sun Jul 26, 2015 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Mom - I'm Concerned About Her Advisor
Replies: 24
Views: 1829

Re: Helping Mom - I'm Concerned About Her Advisor

If you really want to drive the point home, work through her investments with an online fee calculator (plenty of options found with google). Put in her current portfolio, then show her how much more money she'd have by transferring to Vanguard and putting her money in a 3 fund portfolio using Admi...
by JW Nearly Retired
Sun Jul 26, 2015 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Expense ratio question
Replies: 12
Views: 893

Re: Expense ratio question

I have a advisor that my family has used and he swears he can out perform any TDF by at least 1% which would justify he fee...... If this is true wouldn't it be wise to just use the advisor? He provided this in writing for my family members in the past. If he did not beat the TDF of at least 1% he ...
by JW Nearly Retired
Sun Jul 26, 2015 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Mom - I'm Concerned About Her Advisor
Replies: 24
Views: 1829

Re: Helping Mom - I'm Concerned About Her Advisor

If you really want to drive the point home, work through her investments with an online fee calculator (plenty of options found with google). Put in her current portfolio, then show her how much more money she'd have by transferring to Vanguard and putting her money in a 3 fund portfolio using Admi...
by JW Nearly Retired
Sun Jul 26, 2015 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated
Replies: 79
Views: 5213

Re: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated

Thank you for the input on selling the stock. On that issue, does anyone have any input on the 'logistics' of selling this much stock over a few years? My concerns are: 1. Since this is a relatively low volume stock, my concern is selling too much at one time and decreasing the price. Is there a st...
by JW Nearly Retired
Sun Jul 26, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated
Replies: 79
Views: 5213

Re: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated

Was the windfall an inheritance? If so, it was probably stepped up to the value on death. If not, what is the basis? That is what you paid for it, or what it was worth when it vested. Most bogleheads, including me, would strongly suggest selling most or all of the stock. A lightly traded single iss...
by JW Nearly Retired
Sun Jul 26, 2015 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Confused about over contributing to Roth after backdoor
Replies: 3
Views: 460

Re: Confused about over contributing to Roth after backdoor

I would call up Vanguard, where the funds are now, and tell them you made a $500 Roth contribution in January, but you realize you will make too much money to make a (direct) Roth contribution so how can you undo that contribution. I have done this and they just took the contribution amount + its ea...
by JW Nearly Retired
Sun Jul 26, 2015 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Expense ratio question
Replies: 12
Views: 893

Re: Expense ratio question

Portfolio 1- a simple 3 fund in 2 accounts 401k has the 3 fund that everyone talks about and let's say the ER totals .25 for all 3 (( I know it may be different )) Roth IRA has the same 3 fund at .25 Total ER is .50 ??? ..... also.... if this fund was managed by a Advisor which charges 1%.. would t...
by JW Nearly Retired
Sat Jul 25, 2015 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Alert. Scam with callers posing as IRS agents...
Replies: 46
Views: 4204

Re: Alert. Scam with callers posing as IRS agents...

But the valuable lesson I learned was that I'm an idiot to still sometimes answer a landline. Between scammers, telemarketers and robocalls from politicians, there's really no reason to. I get calls like this on my cell phone. Same here. Never answer any cell or landline phone unless I can caller I...
by JW Nearly Retired
Sat Jul 25, 2015 10:00 am
Forum: Personal Finance (Not Investing)
Topic: 401k limits
Replies: 5
Views: 368

Re: 401k limits

The $18k is your own tax deferred contribution maximum (+another $6k if you are over 50). The employer match and any after-tax contributions you might make can bring the total to $53k.

http://www.401khelpcenter.com/2015_401k ... bOj71LbKUk
JW
by JW Nearly Retired
Sat Jul 25, 2015 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Do I dump the Vanguard energy Fund in my 401k
Replies: 32
Views: 2884

Re: Do I dump the Vanguard energy Fund in my 401k

I would dump the energy fund and other sector bets ASAP and just do a 3-fund index portfolio. Even now that it's dropped to 20% looks like you are still 3X overweighting energy. https://eresearch.fidelity.com/eresearch/markets_sectors/sectors/si_weighting_recommendations.jhtml?tab=sirecommendations JW
by JW Nearly Retired
Sat Jul 25, 2015 8:19 am
Forum: Investing - Help with Personal Investments
Topic: today or wait a week
Replies: 14
Views: 1760

Re: today or wait a week

I just completed an IRA roll over from Fidelity to Vanguard. I'm 61 and these are retirement funds. The roll over is currently sitting in cash. I've selected two funds vwiax and vwenx to exchange the cash into. My inclination is to do the exchange today, but since I'm a fairly novice investor I was...
by JW Nearly Retired
Fri Jul 24, 2015 8:59 am
Forum: Investing - Theory, News & General
Topic: EGRX
Replies: 4
Views: 370

Re: EGRX

I saw my brother's stock picks, the company EGRX was up 50% or so and I saw the charts... it has been shooting up. He invested 13k and made 3k so far really quick. I don't invest in single stocks but it's tempting! Tempting?.... but isn't it safer to diversify? Do a stock screening and buy all the ...
by JW Nearly Retired
Fri Jul 24, 2015 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Father passed - helping my mom invest her assets
Replies: 24
Views: 2516

Re: Father passed - helping my mom invest her assets

I would not even concern myself with investing the money. If you can eventually pursuade her to sell the house then an annuity sounds to me like the best plan for the rest. If an annuity isn't right then I'd come back once the house is sorted out for advise on how to invest it then if I was in your...
by JW Nearly Retired
Thu Jul 23, 2015 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Daughter & Husband portfolio rebalance
Replies: 15
Views: 1812

Re: Daughter & Husband portfolio rebalance

We danced around this issue some time back, but I didn't get enough votes for the 70/30 allocation to feel comfortable. I realize the bond market has everyone skittish - but it has for years. Anyway, having money in bonds, seems to me, is like having coins in a piggy bank. Zero growth. Back to my d...
by JW Nearly Retired
Thu Jul 23, 2015 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Help Parents set up Investments
Replies: 6
Views: 478

Re: Help Parents set up Investments

They are too old (>70.5) to invest in traditional IRAs. They could invest in Roths if they have compensation income but it sounds like they might not. See http://fairmark.com/retirement/roth-accounts/contributions-to-roth-accounts/qualifying-income-for-ira-contributions/ I would be careful of the &q...
by JW Nearly Retired
Thu Jul 23, 2015 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Not paying estimated taxes
Replies: 20
Views: 2276

Re: Not paying estimated taxes

Why not pay quarterly estimated taxes as you go. That might keep you from spending rental and business income you don't really have.
JW

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