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Re: 401k in-service withdrawals

I recently became eligible to participate in my company's 401K. There's not much in there yet ~$3100. When I was checking the plan, I found out I can do an in-service withdrawal. The fees on the funds range from 1.41-1.61. I want to do a rollover IRA to Vanguard. I'm gradually increasing my contrib...
by JW Nearly Retired
Thu Apr 17, 2014 10:00 am
 
Forum: Investing - Help with Personal Investments
Topic: 401k in-service withdrawals
Replies: 13
Views: 685

Re: Stock AA [Asset Allocation]

Thanks Dulocracy.It is all in an IRA.It seems reasonable to me but when all is said and done it probably would not differ much from the total market unless I changed the percentages somewhat.He said I could go 75k 75k 50k 50k 50k if I wanted to be a little more aggressive.This is intended to be my ...
by JW Nearly Retired
Tue Apr 15, 2014 10:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stock AA [Asset Allocation]
Replies: 11
Views: 674

Re: Backdoor Roth IRA Conversion - Worth it for us?

JW - can you elaborate. Do you mean that if we use my spouses account as an example (Total balance $38,096 with a IRA Basis of $24,417), I would roll in $13679 (the diff. between the total balance and the IRA basis) into her 401k, and then convert to a Roth? Not exactly. As DSInvestor said 3 posts ...
by JW Nearly Retired
Tue Apr 15, 2014 4:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA Conversion - Worth it for us?
Replies: 8
Views: 603

Re: Backdoor Roth IRA Conversion - Worth it for us?

dpusa, I checked your age in the previous thread. Mid 30's .... 33% bracket and two 401k's you are maxing is a clue you are going to be filling up most of the 25% bracket and perhaps more in retirement. Since converting these small IRAS now will clear the deck for decades of backdoor Roth contributi...
by JW Nearly Retired
Tue Apr 15, 2014 2:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA Conversion - Worth it for us?
Replies: 8
Views: 603

Re: Stock AA [Asset Allocation]

I have a relative who considers himself to be a very successful investor.I have 300,000 to allocate to stocks in my portfolio.He suggests the following:100,000 in Vang Dividend growth....100,000 in Vang Equity Income....33,333 each in Vang small cap value,midcap value and Reit.Any thoughts? You did...
by JW Nearly Retired
Mon Apr 14, 2014 8:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stock AA [Asset Allocation]
Replies: 11
Views: 674

Re: Math challenged

Let me add my favorite investment fee effects calculator to the mix.
http://www.buyupside.com/calculators/feesdec07.htm
JW
by JW Nearly Retired
Mon Apr 14, 2014 7:37 pm
 
Forum: Investing - Theory, News & General
Topic: Math challenged
Replies: 18
Views: 1429

Re: Use of tax software for planning

I have used the online version of H&R Block at Home for several years, including the 2013 tax return I recently completed. I don't think the online version supports more than one return. What options do I have for running scenarios for 2014? I'm guessing if I buy the download version (2013) to ...
by JW Nearly Retired
Mon Apr 14, 2014 6:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Use of tax software for planning
Replies: 17
Views: 1133

Re: Financial plan for pensioned in-laws

The 457 plan has some decent vanguard funds (including lifestrategy funds) however I believe there are minimum distribution rules that kick in at age 60. This seems like a good reason to convert to a traditional IRA (which has MDR at age 70). Or would you suggest trying to gradually convert these i...
by JW Nearly Retired
Mon Apr 14, 2014 12:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Financial plan for pensioned in-laws
Replies: 19
Views: 1195

Re: Financial plan for pensioned in-laws

The 457 plan has some decent vanguard funds (including lifestrategy funds) however I believe there are minimum distribution rules that kick in at age 60. This seems like a good reason to convert to a traditional IRA (which has MDR at age 70). Or would you suggest trying to gradually convert these i...
by JW Nearly Retired
Mon Apr 14, 2014 10:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Financial plan for pensioned in-laws
Replies: 19
Views: 1195

Re: How fast to contribute 403b

Before you do this front loading of the contributions, make very sure the your employer "trues up" the match on a yearly basis. Some number of 401k's, my own for example, just make a match up to say 5% of your pay on a per-paycheck basis and that's it. So if you max out your contributions ...
by JW Nearly Retired
Sun Apr 13, 2014 7:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: How fast to contribute 403b
Replies: 4
Views: 265

Re: Financial plan for pensioned in-laws

(3) As you can judge by their existing allocation, they have been quite risk-averse. Any guidance around how to "ease" them into taking risk (especially since market downturns won't affect their quality of life)? I was thinking of starting their asset allocation at 30% US, 20% Intl, 50% b...
by JW Nearly Retired
Sun Apr 13, 2014 2:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Financial plan for pensioned in-laws
Replies: 19
Views: 1195

Re: IRA or Roth IRA and other decisions

(1) I know I need to diversify but in my 401k portfolio I am not able to find other low exp ratio funds with decent return What would you recommend? 2.What would you recommend to invest in our IRAs? Vanguard exp ratios for some reason are higher than my company offered 401k vanguards. What we would...
by JW Nearly Retired
Sun Apr 13, 2014 11:02 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA or Roth IRA and other decisions
Replies: 13
Views: 803

Re: My Investment Policy Statement

I love the elegant simplicity. It looks very sound to me except for the fact that your bond allocation is only half your age AND includes your pension. That's awfully aggressive for someone who has never experienced a market crash. Something to think about. SAM Yes. It's something I've considered. ...
by JW Nearly Retired
Sat Apr 12, 2014 12:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: My Investment Policy Statement
Replies: 13
Views: 873

Re: Backdoor Roth IRA Strategy? Help?

JW, Thanks for posting this scenario. I wanted to run it through Taxcaster. Social Security Plus 37.7K RMD: Social Security: 31,000 401K RMD: 37,700 AGI: 58, 520 (which suggests that taxable amount of SS was 20,820) Std Deduction: 7600 Exemption: 3900 Taxable Income: $47,020 Fed Tax: $7,685 Tax Bra...
by JW Nearly Retired
Sat Apr 12, 2014 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Strategy? Help?
Replies: 39
Views: 1165

Re: Backdoor Roth IRA Strategy? Help?

OK, then you guys are just confusing me. See, what I'm getting from you guys (and it may me my fault) is that re-rolling over the money into my 401(k) would be the better move. Reason: when I retire, my tax bracket will be low, likely in the 10-15% range. And yet, whenever I read about Roths or ask...
by JW Nearly Retired
Fri Apr 11, 2014 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Strategy? Help?
Replies: 39
Views: 1165

Re: U.S. stocks in freefall

I wouldn't mind seeing a RBM (really bad month) or three. We plan to Roth convert some of DW's tIRA every year and we could do more at our budgeted tax cost if stocks would just go down. We market timed taking our larger than we need RMDs already this year so down thru December is fine. :) I will wa...
by JW Nearly Retired
Thu Apr 10, 2014 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 742
Views: 122108

Re: Improvement needed

So, admitting and seeing your problems is 1/2 of the battle. Background: My EJ advisor is a long time friend. I really trust him. Conservative, thoughtful. His advice has been very helpful. I am also in two commercial investments with him outside of EJ. Kids similar ages. Same schools. Oh the folly...
by JW Nearly Retired
Thu Apr 10, 2014 7:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Improvement needed
Replies: 42
Views: 1695

Re: IRA Mess (including recharacterization)- Suggestions?

JW ~ Thanks for the reply. It would not be impossible - we'd simply open a different account. However, I do understand your point about how IRS views the total amounts. What I still don't know/understand is whether it makes sense for either of us to contribute? I meant you could not keep IRS tracki...
by JW Nearly Retired
Thu Apr 10, 2014 2:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Mess (including recharacterization)- Suggestions?
Replies: 6
Views: 436

Re: IRA Mess (including recharacterization)- Suggestions?

I've read through many of the recent posts on IRAs, but I could not find anything similar to this... In the mid-2000s I ended up contributing too much much to Roth IRAs two years in a row. As a result, I had to create a traditional non-deductible IRA and recharacterize the contributions, pay the pe...
by JW Nearly Retired
Thu Apr 10, 2014 11:17 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA Mess (including recharacterization)- Suggestions?
Replies: 6
Views: 436

Re: Should We Convert RothIRA?

If you guys/gals wish to study the if/when/how much to Roth convert decision in exquisite personal detail, BigFoot48 has written a really comprehensive spreadsheet to do that.......... "Retiree Roth Conversion Decision Model". It drastically changed my plans on how much I was going to conv...
by JW Nearly Retired
Thu Apr 10, 2014 9:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Should We Convert RothIRA?
Replies: 21
Views: 818

Re: Should We Convert RothIRA?

Gah, I didn't know that you can't deduct contributions to a traditional IRA at a certain income level. So why would anyone ever use a traditional IRA? At lower income levels, it looks like a Roth IRA trumps it and a higher income levels, it looks like it's pointless (if you can't deduct the contrib...
by JW Nearly Retired
Wed Apr 09, 2014 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Should We Convert RothIRA?
Replies: 21
Views: 818

Re: Should We Convert RothIRA?

Oh, also, if a relative high earner (which the OP would be, I guess, since they're on the edge of not qualifying for a Roth) would be better served NOT paying taxes on the money going into the IRA, right? Seems to me that a traditional IRA is better for higher earners. If the OP is in the phase out...
by JW Nearly Retired
Wed Apr 09, 2014 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Should We Convert RothIRA?
Replies: 21
Views: 818

Re: I Need Your Help Selecting 403(b) Provider

Here are my choices: Ameriprise Financial AXA Equitable GALIC ING Financial Advisors ING Lincoln National MetLife Vantage Financial(MetLife) AIG Variable Annuity Life Insurance Company(VALIC) Security Benefit Please help me determine if it is worth setting up a 403(b) or if I should just invest aft...
by JW Nearly Retired
Wed Apr 09, 2014 11:16 am
 
Forum: Investing - Help with Personal Investments
Topic: I Need Your Help Selecting 403(b) Provider
Replies: 17
Views: 607

Re: Should We Convert RothIRA?

I would do it. 20 years to retirement x 2 x $6k = $240k in Roth contributions you are passing up if you don't.
JW
by JW Nearly Retired
Wed Apr 09, 2014 10:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Should We Convert RothIRA?
Replies: 21
Views: 818

Re: 54 year old new investor with no retirement savings

Thanks for the replies. Answers to all who had questions.... Although I am American, I moved to England almost 19 years ago. (and now have dual citizenship) My work is that I own a small paint your own pottery shop that after 5 years only just breaks even with me being paid a pittance. It gets slig...
by JW Nearly Retired
Tue Apr 08, 2014 9:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: 54 year old new investor with no retirement savings
Replies: 14
Views: 2439

Re: After-tax IRA -- Cost basis of funds?

DSInvestor,
Good addition. I briefly thought it might be useful to mention it but had run plumb out of thread energy.
JW
by JW Nearly Retired
Tue Apr 08, 2014 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA -- Cost basis of funds?
Replies: 18
Views: 542

Re: How is social security calculated?

I'm planning to retire early and looking for a real rough estimate of what my ss benefit will be. Don't know of any "rough estimator". from http://www.socialsecurity.gov/OACT/COLA/piaformula.html PIA formula For an individual who first becomes eligible for old-age insurance benefits or di...
by JW Nearly Retired
Tue Apr 08, 2014 3:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: How is social security calculated?
Replies: 21
Views: 1175

Re: After-tax IRA -- Cost basis of funds?

It seems like my situation is more complicated than I thought. I have (as discussed) a strictly non-deductible IRA. I also have a SEP-IRA (100% deductible funds), and a rollover-IRA (100% deductible funds rolled over from a company 401(k). It sounds like folks are saying that all IRAs are lumped to...
by JW Nearly Retired
Tue Apr 08, 2014 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA -- Cost basis of funds?
Replies: 18
Views: 542

Re: After-tax IRA -- Cost basis of funds?

Fortunately my case is fairly simple (I think). I have only ever made non-deductible contributions to one IRA, and have made no deductible contributions to it. Unfortunately I have been (at best) sloppy with my 8606s. Sound like I need to play twenty years of catch up. I'm still not sure how the wi...
by JW Nearly Retired
Tue Apr 08, 2014 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA -- Cost basis of funds?
Replies: 18
Views: 542

Re: After-tax IRA -- Cost basis of funds?

You just have to add up all the non-deductible contributions you made to all your IRAs, SEP IRAs, rollover IRAs, and SIMPLE IRAs over the years. IRA views all such IRAs as one total IRA composite amount for taxation. Selling or buying funds has no effect. Withdrawing or converting funds to a Roth wo...
by JW Nearly Retired
Tue Apr 08, 2014 11:11 am
 
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA -- Cost basis of funds?
Replies: 18
Views: 542

Re: Family Entangled in Variable Annuities. Need help...

My mother bought into a bunch of variable annuities for the family in year 2000. I don't know very much about variable annuities except that they have a bad rep and the financial advisor who opened the accounts for her had also invested her/family money in high ER/fee non-annuity accounts. He also ...
by JW Nearly Retired
Tue Apr 08, 2014 10:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Family Entangled in Variable Annuities. Need help...
Replies: 6
Views: 775

Re: California Taxes - Am I Missing Something?

What nobody tells you about living near the beach, not even at the beach, is that you won't see the sun before 11am for two months in May and June. No thank you. That coastal fog air conditioning system is one of the two huge things that keeps us living where we are. As the Redwood City sign says, ...
by JW Nearly Retired
Tue Apr 08, 2014 10:32 am
 
Forum: Personal Finance (Not Investing)
Topic: California Taxes - Am I Missing Something?
Replies: 142
Views: 7872

Re: Always understand taxes do not trust software

You must have answered one or more of the interview questions wrong. Or entered some of the 1099 data incorrectly. Or something.
JW
by JW Nearly Retired
Tue Apr 08, 2014 10:07 am
 
Forum: Personal Consumer Issues
Topic: Always understand taxes do not trust software
Replies: 33
Views: 2670

Re: Is Our Accountant Over-Charging Us?

Our family has been using an accountant to prepare our income taxes and payroll documents for household employees for the last few years. Our income taxes are not complicated. We are W2 employees, and our investment income is from index and mutual funds. We've been subject to the AMT, so we haven't...
by JW Nearly Retired
Tue Apr 08, 2014 10:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Our Accountant Over-Charging Us?
Replies: 30
Views: 3126

Re: The Hidden Dividends

I directed that the cash value be placed into an S&P index fund, International equity Index fund (tracking the performance of MSCI ACWI Free-USA Index), and a Bond Index fund (tracking the performance the Barclays Capital U.S.Aggregate Bond Index.) This resulted in a three fund portfolio with t...
by JW Nearly Retired
Mon Apr 07, 2014 9:51 pm
 
Forum: Investing - Theory, News & General
Topic: The Hidden Dividends
Replies: 6
Views: 1069

Re: Do I convert my traditional IRA to a Roth IRA?

If all contributions to the traditional IRA were non-deductible, then the conversion is tax-free. Slight correction. All the IRA earnings (gains) in the conversion would get taxed since they have not been taxed yet. Also, the cost basis being referred to is the amount of non-deductible contribution...
by JW Nearly Retired
Mon Apr 07, 2014 3:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do I convert my traditional IRA to a Roth IRA?
Replies: 9
Views: 893

Re: 24 y/o investing inheritance

But my contributions to the Roth 457 will show up on box 1 of my W2 because you pay tax before investing those amounts? Pretty sure a 457b is not a "qualified plan". So you will have to deduct it's box 11 nonqualified plan amount from the box 1 amount to get your "compensation"....
by JW Nearly Retired
Mon Apr 07, 2014 10:57 am
 
Forum: Investing - Help with Personal Investments
Topic: 24 y/o investing inheritance
Replies: 15
Views: 1881

Re: 24 y/o investing inheritance

It's amazing how complicated things get so quickly. I had no idea that graduate student stipends might not be "earned income". Is there any way to get around that and/or is it possible to use 1099 money for a different type of tax advantaged account? A little more information about my cur...
by JW Nearly Retired
Mon Apr 07, 2014 10:32 am
 
Forum: Investing - Help with Personal Investments
Topic: 24 y/o investing inheritance
Replies: 15
Views: 1881

Re: Time Zone

AFAIK the forum software can't automatically switch between standard and daylight-saving time. You have to do that manually. Go to User Control Panel , click the Board Preferences tab, then click the Summer Time/DST is in effect radio buttons to toggle back and forth. Here's a direct link . The sem...
by JW Nearly Retired
Mon Apr 07, 2014 10:02 am
 
Forum: Forum Issues and Administration
Topic: Time Zone [Changing the displayed time]
Replies: 40
Views: 3628

Re: Please Try Out Test Posts Here

time check..........5:37 PM
by JW Nearly Retired
Sun Apr 06, 2014 8:37 pm
 
Forum: Forum Issues and Administration
Topic: Please Try Out Test Posts Here
Replies: 190
Views: 93505

Re: Delaying Social Security - best long-term investment?

See that 10:33 a.m. post of JW Nearly Retired for some perspective. Austintatious, Off the subject but it was at 7:33 AM for me. I guess the Forum software must convert the post time stamp to local time, but not convert times within the post text. Never knew that but perhaps it makes sense. So you ...
by JW Nearly Retired
Sun Apr 06, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: Delaying Social Security - best long-term investment?
Replies: 78
Views: 3615

Re: Delaying Social Security - best long-term investment?

As somebody who delayed to age 70 I can list my personal advantages in waiting for a bigger SS check. We didn't consider breakeven type analyses at all. -SS has a survivor benefit so wife will only get a small pay cut when I pass. -SS has a cola, my pension does not. The pension is larger now but a ...
by JW Nearly Retired
Sun Apr 06, 2014 11:33 am
 
Forum: Investing - Theory, News & General
Topic: Delaying Social Security - best long-term investment?
Replies: 78
Views: 3615

Re: Getting a sense of scale of returns during bull/bear

As a novice investor, I have not really been through multiple cycles of bull/bear. I was finishing up my investments for the quarter and I decided (out of curiosity) to see how the US Total Stock Market was doing. Holy crap! It has been growing continuously since the crash and I had no idea that th...
by JW Nearly Retired
Sun Apr 06, 2014 10:42 am
 
Forum: Investing - Theory, News & General
Topic: Getting a sense of scale of returns during bull/bear
Replies: 4
Views: 339

Re: Are we saving too much or too litte?

Sorry to be negative but it looks like way too little to me for early retirement unless you can basically live on the $70k from pensions. You are not maxing out the contributions to the 403b and wife only saves in her IRA. I get an eyeball total in your retirement accounts of about $175k. That's co...
by JW Nearly Retired
Sun Apr 06, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving too much or too litte?
Replies: 28
Views: 2841

Re: Delaying Social Security - best long-term investment?

Agree this is an especially comprehensive and persuasive article on SS delay. Thanks for linking it.
JW
by JW Nearly Retired
Sun Apr 06, 2014 10:03 am
 
Forum: Investing - Theory, News & General
Topic: Delaying Social Security - best long-term investment?
Replies: 78
Views: 3615

Re: somoene filed a return with my spouses SSN?

This is another excellent reason to adjust your withholding so you don't get a refund. JW I don't think that makes a difference since the fraudster can just fudge the numbers to give big returns. It's too bad the IRS isn't cracking down on this more. No difference to the fraudster, but it certainly...
by JW Nearly Retired
Sat Apr 05, 2014 4:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: somoene filed a return with my spouses SSN?
Replies: 22
Views: 1757

Re: somoene filed a return with my spouses SSN?

This is another excellent reason to adjust your withholding so you don't get a refund. JW I don't think that makes a difference since the fraudster can just fudge the numbers to give big returns. It's too bad the IRS isn't cracking down on this more. No difference to the fraudster, but it certainly...
by JW Nearly Retired
Sat Apr 05, 2014 12:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: somoene filed a return with my spouses SSN?
Replies: 22
Views: 1757

Re: somoene filed a return with my spouses SSN?

This is another excellent reason to adjust your withholding so you don't get a refund.
JW
by JW Nearly Retired
Sat Apr 05, 2014 11:36 am
 
Forum: Personal Finance (Not Investing)
Topic: somoene filed a return with my spouses SSN?
Replies: 22
Views: 1757

Re: Investing in Equities, But Avoiding Market Top

If you look at a graph of the SP500 over decades, most of the time you would be buying at or near the historic market high price. We are now fully recovered back to that more typical condition. Of course, that doesn't mean a big correction couldn't happen soon. It just means if you are hesitant now ...
by JW Nearly Retired
Sat Apr 05, 2014 11:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing in Equities, But Avoiding Market Top
Replies: 13
Views: 1081

Re: Are we saving too much or too litte?

Sorry to be negative but it looks like way too little to me for early retirement unless you can basically live on the $70k from pensions. You are not maxing out the contributions to the 403b and wife only saves in her IRA. I get an eyeball total in your retirement accounts of about $175k. That's con...
by JW Nearly Retired
Sat Apr 05, 2014 9:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving too much or too litte?
Replies: 28
Views: 2841
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