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Re: Social Security 62 vs 66

Hypothetical scenario - What am I missing ? I was thinking about how just about everyone states that collecting social security is advantageous if you wait and collect a larger monthly amount but I have a thought... Assumption: If you wait till age 66 you obviously do not need the income so this as...
by JW Nearly Retired
Fri Nov 21, 2014 8:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Social Security 62 vs 66
Replies: 26
Views: 2081

Re: Fitbit, Vivofit, or other?

I have a vintage Xmas 2012 Fitbit. Still works like a charm. 3280 miles to date! :D

I don't use any feature except tracking the daily steps/mileage. I've checked and found the miles are pretty accurate in spite of my short legs. Not sure how they do that?
JW
by JW Nearly Retired
Fri Nov 21, 2014 5:17 pm
 
Forum: Personal Consumer Issues
Topic: Fitbit, Vivofit, or other?
Replies: 13
Views: 1119

Re: Outperforming the Indexes

When I compared the fund performances to the indexes over various time periods, here are my results: Time Better Better Less Less Period than than than than best Average Average Lowest 1 month 6.54% 4.19% 4.45% 84.82% 3 months 7.07% 4.45% 2.88% 85.60% 6 months 3.14% 5.76% 10.73% 80.37% 1 year 7.59%...
by JW Nearly Retired
Thu Nov 20, 2014 9:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Outperforming the Indexes
Replies: 13
Views: 1861

Re: Outperforming the Indexes

Can you describe what is being compared to what in more detail? i.e., what's a best/ average/ lowest index for each period? especially "average".
JW
by JW Nearly Retired
Thu Nov 20, 2014 9:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Outperforming the Indexes
Replies: 13
Views: 1861

Re: Any experience with 10-year alarm batteries?

I just replaced all my silly number of old smoke alarms with new Kiddie models that have permanently sealed-in 10-yr Lithium batteries. These were selling at Home Depot for $30 per two-pack.

You just have to like climbing ladders to replace ceiling stuff only every 10 years. :D
JW
by JW Nearly Retired
Wed Nov 19, 2014 7:14 pm
 
Forum: Personal Consumer Issues
Topic: Any experience with 10-year alarm batteries?
Replies: 16
Views: 1067

Re: Over my head setting up Backdoor Roth

I first signed up for a Traditional IRA and placed my remaining 2014 contributions ($458) into the account. The next day my account shows a "Traditional IRA Brokerage Account" with $458 placed into a Vanguard Prime Money Market Fund inside of that account. It also says the account has una...
by JW Nearly Retired
Wed Nov 19, 2014 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Over my head setting up Backdoor Roth
Replies: 5
Views: 894

Re: What financial tools/software do you use?

Voted Excel only. We have assets at VG/Fido/& my 401k. I just periodically transfer a few numbers from their account statements to a simple Excel spreadsheet to compute my overall allocation. Post-vote I recalled we also made quite a lot of use of Bigfoot48's "Retiree Portfolio Model" ...
by JW Nearly Retired
Wed Nov 19, 2014 10:52 am
 
Forum: Personal Finance (Not Investing)
Topic: What financial tools/software do you use?
Replies: 35
Views: 2203

Re: Roth vs Traditional 401k - What percentages would you do

You can estimate your taxes in your age 70.5 year when you are taking SS and you first need to take an RMD. For example, say your SS is $25k/year and your 401k/tIRAs have grown to $300k. A (1/27.4)x$300,000 RMD from the IRS distribution period table would come to a $10,950/yr RMD. SS is tax free so ...
by JW Nearly Retired
Tue Nov 18, 2014 8:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional 401k - What percentages would you do?
Replies: 11
Views: 974

Re: Pension and asset allocation

To me, it seems like common sense that if your basic expenses are covered by reliable sources such as SS and defined benefit pensions, then you can afford to allocate more of your portfolio to equities. As far as how to value such income streams, anyone who took a basic finance course can do a net ...
by JW Nearly Retired
Sun Nov 16, 2014 9:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pension and asset allocation
Replies: 12
Views: 1645

Re: Resident physician with question regarding 403b/457 fund

.......... I have been living on about 1/3rd of my income and invested about 2/3rds my income into our hospitals 403b(17.5k), 457b(17.5k) with Fidelity and have my own Roth account at scottrade where I have been putting away the annual max. When I finish fellowship and transition to my first attend...
by JW Nearly Retired
Sun Nov 16, 2014 12:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Resident physician with question regarding 403b/457 funds
Replies: 21
Views: 1999

Re: Pension and asset allocation

Hi, I'm 10 to 15 years from retirement and have a"portable pension" plan from my employer. The pension funds are fully vested so I can roll them into an IRA in the event I leave the company. The value of the pension is tied to corporate bonds and my employer no longer makes any contributi...
by JW Nearly Retired
Sun Nov 16, 2014 11:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Pension and asset allocation
Replies: 12
Views: 1645

Re: backdoor roth balance question

I thought of one way around this but not sure about how valid it is... What if I contribute $550 to another roth IRA that i have with another investment bank (td ameritrade or etrade - i have both right now)? Would that be ok from an IRS perspective? I would eventually transfer that roth over to va...
by JW Nearly Retired
Sat Nov 15, 2014 11:17 am
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth balance question
Replies: 13
Views: 1024

Re: Newbie we need help!

I'm a 28 yo stay at home mom. We have 3 kids, 5, 2.5 and 3 months. Husband is done having kids but I'd like one more :) my husband is 29yo 2nd year resident. His program is only 3 yrs. (family medicine) so we have 1.5 years left of training. I basically handle all the money/budget in the house. Hus...
by JW Nearly Retired
Sat Nov 15, 2014 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie we need help!
Replies: 15
Views: 832

Re: Resident physician with question regarding 403b/457 fund

on this point I may be incorrect, but I had assumed that I could not roll the tax-deferred accounts into an ira until after I had separated from my current employer. Therefore, if I was going to do this rollover, I was planning to do it the first 6 months after fellowship while I still have half of...
by JW Nearly Retired
Fri Nov 14, 2014 2:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Resident physician with question regarding 403b/457 funds
Replies: 21
Views: 1999

Re: Why is this simple for everyone else, retiree Roth quest

Did you mean very high marginal (instead of effective) for the SS taxation effect? OP hasn't given quite enough numbers but it is possible/likely? that if 50K Roth conversions bring OP near to top of 25% bracket, when SS is added later , the high pre-existing other income will already have the SS t...
by JW Nearly Retired
Fri Nov 14, 2014 11:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Why is this simple for everyone else, retiree Roth question?
Replies: 13
Views: 1446

Re: A/A including Social Security?

One rough way would be to find the cost of an annuity now that will pay you $22k/yr in 20 years at age 62, and count that amount as some of your bonds. You can get such a quote here https://www.immediateannuities.com/ Personally, I find the exercise somewhat helpful. I've long had a conventional Bog...
by JW Nearly Retired
Fri Nov 14, 2014 10:24 am
 
Forum: Investing - Help with Personal Investments
Topic: A/A including Social Security?
Replies: 5
Views: 339

Re: Why is this simple for everyone else, retiree Roth quest

JW, Effective tax rate, not a clue, more reading now. Just got a handle on marginal tax rate, will have to look at effective. Thanks for your comments. Maybe effective is not a well defined metric. The "effect" is that even if your tax table income is in the 25% bracket, you may find when...
by JW Nearly Retired
Thu Nov 13, 2014 10:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is this simple for everyone else, retiree Roth question?
Replies: 13
Views: 1446

Re: Why is this simple for everyone else, retiree Roth quest

We understand there are subtle or secondary issues that might include: 1. impact on tax bracket for RMDs 2. impact on taxation of social security 3. medicare fee structure at different income level 4. legacy of inherited IRAs, costs basis Thanks for you thoughts, insights and jokes. IMO, your "...
by JW Nearly Retired
Thu Nov 13, 2014 9:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is this simple for everyone else, retiree Roth question?
Replies: 13
Views: 1446

Re: Why is this simple for everyone else, retiree Roth quest

Simple math comparing traditional and ROTH over eight years from 2014 to 2022 invested at 4% return with 25% tax bracket Trad 50,000 becomes 65,000, tax paid in 2022 then net of tax is 48750. Roth 37500 (taxes paid in 2014) becomes 50000 in 2022. Net difference is $1,250. (times eight subsequent Ro...
by JW Nearly Retired
Thu Nov 13, 2014 6:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is this simple for everyone else, retiree Roth question?
Replies: 13
Views: 1446

Re: Tax-deferred account for 1 year or taxable?

.............. Of course, that is dependent on cash availability, how much you earn in the last year before you quit and if the company lets you write them a check to make a contribution. Is this kind of 401k deposit even a legal option? I've never seen anything about it before. JW I'm going vaguel...
by JW Nearly Retired
Thu Nov 13, 2014 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax-deferred account for 1 year or taxable?
Replies: 8
Views: 345

Re: Tax-deferred account for 1 year or taxable?

nordlead wrote: .............. Of course, that is dependent on cash availability, how much you earn in the last year before you quit and if the company lets you write them a check to make a contribution.

Is this kind of 401k deposit even a legal option? I've never seen anything about it before.
JW
by JW Nearly Retired
Thu Nov 13, 2014 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax-deferred account for 1 year or taxable?
Replies: 8
Views: 345

Re: Resident physician with question regarding 403b/457 fund

By the time I graduate fellowship I will have about $150k-250k in these tax deferred accounts. These are currently worth about $175k in total but i have another 50k I will be adding over the next 1.5 years. These are invested in an 85/15 stocks bonds mix of low cost spartan index funds. The Roth IR...
by JW Nearly Retired
Thu Nov 13, 2014 10:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Resident physician with question regarding 403b/457 funds
Replies: 21
Views: 1999

Re: Questions about flying with a toddler

If memory serves, SW always gives passengers with young children a chance to get on the plane first. JW No, family boarding on Southwest is after the A group (60 people max)... but there's always plenty of room left to get settled in. So the order goes Early Bird Checkins, Group A, Family Boarding,...
by JW Nearly Retired
Wed Nov 12, 2014 8:06 pm
 
Forum: Personal Consumer Issues
Topic: Questions about flying with a toddler
Replies: 35
Views: 1722

Re: backdoor roth balance question

RVD wrote: ...last week I made a $5500 contribution of after tax money to my new vanguard ira.

You probably already know they would mess things up, but perhaps it's worth us verifying that you don't have any "old" IRA accounts of any kind (SEP,SIMPLE, tIRAs, rollover IRAs).
JW
by JW Nearly Retired
Wed Nov 12, 2014 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth balance question
Replies: 13
Views: 1024

Re: Questions about flying with a toddler

The infant fares were drastically higher than what I paid for the regular tickets. If it was a long flight, I would probably get an extra seat at the regular price, but since the flight is only 2 hours we'll probably just put our daughter on our lap. Or we may do the early bird checkin ($12 extra p...
by JW Nearly Retired
Tue Nov 11, 2014 11:24 am
 
Forum: Personal Consumer Issues
Topic: Questions about flying with a toddler
Replies: 35
Views: 1722

Re: Find flaws in my plans for Deferred Compensation?

JW, Why did you choose 5 years rather than 10? To minimize anxiety over company solvency? Or was 5 just better matched to your spending? I'm defaulting to 10 simply to avoid moving into the 28% marginal rate that 5 year payout would force. Dropping 1 tax bracket seems worth it if you have no solven...
by JW Nearly Retired
Mon Nov 10, 2014 6:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Find flaws in my plans for Deferred Compensation?
Replies: 13
Views: 756

Re: Find flaws in my plans for Deferred Compensation?

Initiating payout in 2021 should retain the tax protected space for 7-17 years and confine the payouts to 25% bracket (unless tax laws change). The latest date I can begin is 2028. Waiting until then is worth consideration to retain the tax protected space, but doing so would also force 4-5 years o...
by JW Nearly Retired
Mon Nov 10, 2014 3:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Find flaws in my plans for Deferred Compensation?
Replies: 13
Views: 756

Re: Talk me into/out of Tax Lost Harvesting

The ability to use this $11,000 to offset gains and taxes this year is very appealing but the thought of "selling at a loss" is a hangup for me. What would you do if you were in my shoes? I would do exactly what Ken Schwartz says above. This Exchange from Total International Admiral to FT...
by JW Nearly Retired
Mon Nov 10, 2014 11:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Talk me into/out of Tax Lost Harvesting
Replies: 14
Views: 868

Re: Best Investments for a ROTH IRA

I have it all stocks in our Roths (VG total US market and total international), as there is plenty of room for bonds in the tIRA/401k. Few here would ever use a high ER fund like you have chosen if they could avoid it. Appears you have a Fido account so I'd just go back to the FSTMX. JW added: Memor...
by JW Nearly Retired
Mon Nov 10, 2014 10:22 am
 
Forum: Investing - Theory, News & General
Topic: Best Investments for a ROTH IRA
Replies: 7
Views: 963

Re: 25 y.o. -- Is it "rebalancing" if I've never "balanced"?

I'm considering transferring funds out of the Balanced fund in my 401(k), since the ER is much higher than that of the index fund. There's only one index fund offered in my 401(k), so I think I'd just go 100% into that fund. There's also a "cash" fund that returns a fixed 3.4% (no ER). I ...
by JW Nearly Retired
Mon Nov 10, 2014 10:05 am
 
Forum: Investing - Help with Personal Investments
Topic: 25 y.o. -- Is it "rebalancing" if I've never "balanced"?
Replies: 9
Views: 1796

Re: Backdoor Roth IRA - some specific questions

I assume each of us have to do individual 8606’s? As a married couple, if you file jointly I believe each person's basis IRA contributions are reflected on the same 8606 and, like many lines on the return, are identified as "T" for Taxpayer and "S" for Spouse. At least, that's h...
by JW Nearly Retired
Sun Nov 09, 2014 7:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA - some specific questions
Replies: 7
Views: 793

Re: Made a huge mistake, need help

My husband is 64 and I am 57. He was laid off from his job in 2004 and was underemployed and unemployed until he made it to 62 and started drawing SS. We rolled over to WF Traditional IRA in Nov. 2012. We are already drawing money from the IRA. When I said fees, I meant a 1% fee of our total invest...
by JW Nearly Retired
Sun Nov 09, 2014 4:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Made a huge mistake, need help
Replies: 50
Views: 9392

Re: Is Final Social Security calculated monthy or annually?

My birthday is in mid March. So, to paraphrase the issue for my own understanding, if I did start collecting at 69 years 11 months, in February, I would eventually receive DRC's for the two months I waited (January and February), 1 1/3%, but I would not receive them until February of the following ...
by JW Nearly Retired
Sun Nov 09, 2014 12:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Final Social Security calculated monthy or annually?
Replies: 10
Views: 1102

Re: 58yo First-Time (Possible) Investor Savings/Retirement?

I plan to retire at 62. Here is a breakdown of income/assets we will have at that time: SS: $1,300 Pension: $2,500 Does your pension have a cost of living adjustment? If not, you need to plan for the fact that after 20 years of average inflation that pension will buy you only half as much. About th...
by JW Nearly Retired
Sun Nov 09, 2014 11:15 am
 
Forum: Investing - Help with Personal Investments
Topic: 58yo First-Time (Possible) Investor Savings/Retirement?
Replies: 19
Views: 1903

Re: What to Suggest for Inheritance Mom Received

A Roth IRA might not be the best choice since it doesn't look like her retirement income will be very great, meaning once retired she would owe little or nothing in federal taxes. Might be better to get a tax deduction now. Will she have less than $60,000 modified adjusted gross income this year so ...
by JW Nearly Retired
Sat Nov 08, 2014 4:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to Suggest for Inheritance Mom Received
Replies: 28
Views: 2398

Re: Rethinking My Asset Allocation

You should certainly dump your high expense funds to the extent you can stay in the 15% bracket, where cap gains tax is zero.
JW
by JW Nearly Retired
Fri Nov 07, 2014 2:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rethinking My Asset Allocation
Replies: 21
Views: 2597

Re: High income earners, Roth 401k y/n?; DBP y/n?

EmergMD wrote:Are my questions too long?

Perhaps nobody can see anything much to change in what you are doing now. I can't.

I wouldn't do a Roth 401k when you are in the 33% + CA tax bracket.
JW
by JW Nearly Retired
Fri Nov 07, 2014 2:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: High income earners, Roth 401k y/n?; DBP y/n?
Replies: 16
Views: 2244

Re: "Easy" social security question...

Question: If you don't need the money is it always best to wait until you're 70ish to start drawing retirement benefits? I mean.. if your portfolio spins off enough income to maintain your lifestyle and you don't need the money, why not just go into it with the intention of delaying retirement bene...
by JW Nearly Retired
Fri Nov 07, 2014 10:07 am
 
Forum: Personal Finance (Not Investing)
Topic: "Easy" social security question...
Replies: 50
Views: 3714

Re: Bonus deferral state income tax question

jebmke wrote:When I retired, my deferred comp plan was disgorged over a five year period. The income was considered taxable in the state I was living in (Maryland) when the plan distributed the funds.

Yep, same with my plan.
JW
by JW Nearly Retired
Thu Nov 06, 2014 7:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bonus deferral state income tax question
Replies: 4
Views: 415

Re: Mold, mold, mold!!! In Massachusetts..

LeeMKE wrote:Running a dehumidifier will raise your utility bill significantly.

Nonsense. It's like a small refrigerator. Since we run it about 25% of the day our cost comes to only a few dollars a month.
JW
by JW Nearly Retired
Wed Oct 29, 2014 7:44 am
 
Forum: Personal Consumer Issues
Topic: Mold, mold, mold!!! In Massachusetts..
Replies: 18
Views: 2292

Re: Mold, mold, mold!!! In Massachusetts..

You could always get a dehumidifier. That totally solved the chronic mold & musty smell problem in a very high humidity area vacation cabin we own. We plumbed it so the collection tank drained to the sewer, letting it keep running all year unattended. We set it up on a timer so it ran about 6 hr...
by JW Nearly Retired
Tue Oct 28, 2014 9:07 pm
 
Forum: Personal Consumer Issues
Topic: Mold, mold, mold!!! In Massachusetts..
Replies: 18
Views: 2292

Re: How to fund my ROTH IRA in the future

Do you mean just the pension itself will put you there? Or is this your all up pension +SS + tIRA/t401k RMDS + taxable account earnings+ whatever retirement income? Yes, pension by itself will put me in or very close to the 25% tax bracket. We would have to see your whole retirement income picture ...
by JW Nearly Retired
Tue Oct 28, 2014 9:21 am
 
Forum: Investing - Help with Personal Investments
Topic: How to fund my ROTH IRA in the future
Replies: 18
Views: 2118

Re: If holding cash, do you want a Great Depression?

Surely if you hold cash you want the market to crash, a great depression would be even better. Would this not allow you to become very rich in years ahead. You could buy up assets/stocks very cheaply and if everyone did not have money and you did, this would allow you to become very rich. Well it s...
by JW Nearly Retired
Mon Oct 27, 2014 9:19 pm
 
Forum: Investing - Theory, News & General
Topic: If holding cash, do you want a Great Depression?
Replies: 50
Views: 4047

Re: $50,000 in Private Loans for Nursing Degree

Greetings, I am wanting some outside financial perspective prior to entering an accelerated nursing program (Full BSN, not an Associates) that I will be entering in March 2015. I have recently finished reading the bogleheads book and it mentions several times that an educational debt can actually b...
by JW Nearly Retired
Mon Oct 27, 2014 9:43 am
 
Forum: Personal Finance (Not Investing)
Topic: $50,000 in Private Loans for Nursing Degree
Replies: 34
Views: 3134

Re: Investment Advice

Your goal looks too high. A safe fixed income investment is not going to produce anything close to $15k/year and preserve the principal for children. Have you looked at annuitizing some of your $350k? For you and wife's ages, a joint and survivor single premium immediate annuity (SPIA) that pays $15...
by JW Nearly Retired
Mon Oct 27, 2014 9:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment Advice
Replies: 15
Views: 1206

Re: How to fund my ROTH IRA in the future

3. In retirement, my pension will put me at the very top of the 15% tax bracket or the bottom of the 25% bracket (assuming today's brackets). Do you mean just the pension itself will put you there? Or is this your all up pension +SS + tIRA/t401k RMDS + taxable account earnings+ whatever retirement ...
by JW Nearly Retired
Mon Oct 27, 2014 8:31 am
 
Forum: Investing - Help with Personal Investments
Topic: How to fund my ROTH IRA in the future
Replies: 18
Views: 2118

Re: How to fund my ROTH IRA in the future

Option 1 (hold monthly contributions in a taxable account): Pro - potential to minimize the tax consequences because the conversion can be taxed at the favorable long term capital gains rate by selling appropriate tax lots from our taxable accounts. Con - the amount converted to the ROTH IRA will b...
by JW Nearly Retired
Sun Oct 26, 2014 1:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to fund my ROTH IRA in the future
Replies: 18
Views: 2118

Re: SS Tax, RMD and Roth Conversions

Edit: I am aware of the Wiki discussion of SS taxation and the SS tax brackets and IRS Pub 915. I eventually used an on line calculator that gives the user the % of SS that is taxed and the amount of that tax. Taxcaster does not break this out, but calculates total tax and federal marginal tax rate...
by JW Nearly Retired
Sun Oct 26, 2014 10:32 am
 
Forum: Personal Finance (Not Investing)
Topic: SS Tax, RMD and Roth Conversions
Replies: 6
Views: 750

Re: Help on Turbo Tax Long term cap gains

Ok - I went to H&R Block and didn't learn all that much but two things: 1) when I enter my Edit Long Term Cap Gains and change the sale price and cost basis - the Totals on the screen stay the same as the first entry (in this case the totals all stay at Sale Price $5000, Cost Basis $3000 regard...
by JW Nearly Retired
Sat Oct 25, 2014 10:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Help on Turbo Tax Long term cap gains
Replies: 29
Views: 1693

Re: Anchoring vs. Buy-and-Hold

In my 401K account, I have 100K in Russell 2000 Index Fund and nothing in SP500 Index Fund. I'm thinking that I should transfer 50K from R2000 to SP500. Should I do it in one transaction, or transfer $2,000/month over the next three years, or use some other threshold? Thanks. You already own all th...
by JW Nearly Retired
Wed Oct 22, 2014 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Anchoring vs. Buy-and-Hold
Replies: 15
Views: 1460
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