Search found 4554 matches

by JW Nearly Retired
Mon Jun 29, 2015 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring @ 60; $1 million (portfolio)
Replies: 22
Views: 6267

Re: Retiring @ 60; $1 million (portfolio)

According to the AARP Social Security calculator, if I file/suspend and my wife started receiving benefits at her FRA her benefit would add about $16,000 to our income from age 66 to 70. This would reduce her annual spousal benefit by about $5,000 compared to what she would receive at age 70. No, i...
by JW Nearly Retired
Sun Jun 28, 2015 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401k/Roth IRA/Traditional IRA
Replies: 5
Views: 478

Re: Employer 401k/Roth IRA/Traditional IRA

Saving just $5500 a year isn't going to produce the kind of retirement I'm guessing you probably want, and something with near 1% expense ratios is not all that terrible as 401k choices go. I'm guessing there is something fairly good in there that is worth investing in. We often see that people star...
by JW Nearly Retired
Sun Jun 28, 2015 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Risks of RMD Withdrawal From A Single Fund IRA
Replies: 39
Views: 2617

Re: Risks of RMD Withdrawal From A Single Fund IRA

An in kind distribution to satisfy an RMD prevents having to sell the shares and/or repurchasing them in taxable, however it does eliminate the strategy of using withholding from the IRA distribution in lieu of paying quarterly estimates. Correct. What you describe is what I had been doing every De...
by JW Nearly Retired
Sat Jun 27, 2015 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring @ 60; $1 million (portfolio)
Replies: 22
Views: 6267

Re: Retiring @ 60; $1 million (portfolio)

My wife is the same age as me and she will be claiming half of my social security since my half would be larger than her full amount. My budget did include taxes. My SS claiming strategy would depend on a number of factors such as market performance over the next 6 - 10 years. If my 401k became too...
by JW Nearly Retired
Fri Jun 26, 2015 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring @ 60; $1 million (portfolio)
Replies: 22
Views: 6267

Re: Retiring @ 60; $1 million (portfolio)

charleshugh, This chart gives a graphical view that I personally like of how a married couple's mix of SS income and other taxable income like pensions/RMDs gets taxed in retirement. The curves plotted are each for the same gross income but with a range of differing percentages of SS in the mix. The...
by JW Nearly Retired
Fri Jun 26, 2015 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Should I move IRA funds to VSCGX?
Replies: 15
Views: 1575

Re: Should I move IRA funds to VSCGX?

I edited my original post to say that I am in the 25% tax bracket, not 15% as I originally stated. I have not made any changes in my portfolio yet (cold feet), but I realized that I will have some significant capital gains if I sell all funds in my taxable account. I wonder if that changes the advi...
by JW Nearly Retired
Thu Jun 25, 2015 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for age 62 - 70?
Replies: 33
Views: 3147

Re: Strategy for age 62 - 70?

My question is this -- is there any advantage to converting $50K/year (or more) to a Roth IRA for the next 7 years? In theory, this would reduce our required minimum distribution at age 70.5 and give us some tax-free money after 5 years. But it would significantly increase income taxes over the nex...
by JW Nearly Retired
Wed Jun 24, 2015 9:00 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 217
Views: 13068

Re: What ratio are you stocks/bonds and how old are you?

Last I checked (April 28) it was 63/37. I've done nothing to change it but maybe the market could have tweaked it very slightly. This is only counting investable assets.

My age as well as wife's age is 71.
JW
by JW Nearly Retired
Tue Jun 23, 2015 10:24 am
Forum: Personal Consumer Issues
Topic: Where can I buy wiper blade inserts?
Replies: 22
Views: 2671

Re: Where can I buy wiper blade inserts?

coffeehubcap wrote: If anyone has a clue where to purchase just the inserts, please let me know.

Have you tried Walmart? The auto parts places around here all seem to have just a puny group of wiper inserts to choose from, but I've found Walmart has a really big selection.
JW
by JW Nearly Retired
Tue Jun 23, 2015 9:27 am
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13111

Re: The "4% Rule" revisited

Thanks for this clarification - I had assumed it was 4% of the current value each year. So if we go back to a high inflationary period (say as roughly 12% rate of 1979-1980), we're going to be multiplying our initial year SWR by 1.12?? Wouldn't a decade of high inflation pretty much wipe out your s...
by JW Nearly Retired
Tue Jun 23, 2015 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA, nondeductible tIRA, or taxable account for retirement - highest tax bracket
Replies: 4
Views: 513

Re: Backdoor Roth IRA, nondeductible tIRA, or taxable account for retirement - highest tax bracket

A backdoor Roth 2-step usually implies you have no existing tIRAs so you pay no tax converting to the Roth. Can you roll your tIRA into your 401k? That would open up zero tax backdoor Roth contributions going forward, making the Roth a no-brainer. If you can't hide the tIRA money then paying high br...
by JW Nearly Retired
Mon Jun 22, 2015 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage interest tax deduction in California
Replies: 4
Views: 689

Re: Mortgage interest tax deduction in California

Hello! I know you can deduct mortgage interest rate and property tax from your federal taxable income. Can you also deduct them from your California taxable income? A link would be helpful! Your help is greatly appreciated. I always thought both were deductible but when you use tax software this ki...
by JW Nearly Retired
Sat Jun 20, 2015 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a UTMA account to Roth
Replies: 5
Views: 680

Re: Converting a UTMA account to Roth

He can't "rollover" or "convert" the UTMA to a Roth. However, possibly he can move at least some of it in two unrelated steps. if the UTMA amount is equal to or less than $5500, and he has enough earned income from other sources like wages to cover the amount to be put in the Rot...
by JW Nearly Retired
Sat Jun 20, 2015 2:35 pm
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13111

Re: The "4% Rule" revisited

Didn't the original "4% rule" assume some absurdly high portfolio cost also, something like 1% ER? Nope, the expenses come out of the 4%. http://www.vanguard.com/pdf/s325.pdf JW Thanks for that. If I'm reading that right, it supports what I said (it's also possible I misread it). 4% is st...
by JW Nearly Retired
Sat Jun 20, 2015 8:56 am
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13111

Re: The "4% Rule" revisited

Clever_Username wrote:Didn't the original "4% rule" assume some absurdly high portfolio cost also, something like 1% ER?

Nope, the expenses come out of the 4%.
http://www.vanguard.com/pdf/s325.pdf
JW
by JW Nearly Retired
Thu Jun 18, 2015 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Is My Federal Pension a Substitute for a Bond Fund?
Replies: 29
Views: 3003

Re: Is My Federal Pension a Substitute for a Bond Fund?

I've tried out each of the two roads to Dublin on this and find they both lead to the same Dublin. If I follow Jack Bogle's rule of sticking to exactly my chronological age in "bonds" while counting the present value of pensions as such , I find that I need to have a 60/40 AA in my investm...
by JW Nearly Retired
Wed Jun 17, 2015 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Going Part time
Replies: 17
Views: 1970

Re: Going Part time

Jim85, I went to 3 days, 24 hrs/wk, for a year before I finally pulled the plug. It was an OK warm-up but nothing much like full retirement. Still found myself thinking about work all the time. One significant downside is the more odious busy work like compliance training and reviews doesn't get red...
by JW Nearly Retired
Wed Jun 17, 2015 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Help me plan retirement account for this year
Replies: 8
Views: 629

Re: Help me plan retirement account for this year

You will need to use the "backdoor" Roth work-around because with $370k income you make too much for a direct Roth contribution. This means you must avoid rolling any of your 401k money to a personal tIRA. See the wiki on it. https://www.bogleheads.org/wiki/Backdoor_Roth_IRA JW This is wh...
by JW Nearly Retired
Wed Jun 17, 2015 7:18 am
Forum: Investing - Help with Personal Investments
Topic: Help me plan retirement account for this year
Replies: 8
Views: 629

Re: Help me plan retirement account for this year

You will need to use the "backdoor" Roth work-around because with $370k income you make too much for a direct Roth contribution. This means you must avoid rolling any of your 401k money to a personal tIRA. See the wiki on it.
https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
JW
by JW Nearly Retired
Mon Jun 15, 2015 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Transfer of wealth to kids
Replies: 87
Views: 10305

Re: Transfer of wealth to kids

How closely does the IRS watch this gift thing. No sugar daddy reports every time he takes his sugar baby shopping. Billion are "gifted" this way every year. LOL, this made me smile. I had a roommate in college who had her entire college career paid by her sugar daddy. Very proud of the f...
by JW Nearly Retired
Sun Jun 14, 2015 8:25 pm
Forum: Investing - Theory, News & General
Topic: Why High Equity Allocation in Retirement
Replies: 78
Views: 9587

Re: Why High Equity Allocation in Retirement

I don't think there are many people on this board who think you should have 50-60% in equities in retirement unless you have other good sources of income such as a pension, or if you have far more than you'll need. In those cases, you can afford to take more risk. I think there are far more than yo...
by JW Nearly Retired
Sun Jun 14, 2015 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Anyone have multiple IRAs through different brokerage firms?
Replies: 25
Views: 1989

Re: Anyone have multiple IRAs through different brokerage firms?

dwickenh wrote:My wife and i both have our roth iras at VG and i am able to see both accounts under one login for my account. The change can be made in account maintenance/settings. I am assuming that multiple accounts can be linked, but I only have the 2 at the moment.

Thanks, never knew that could be done.
JW
by JW Nearly Retired
Sun Jun 14, 2015 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Dealing with the fear: "Will we be eating cat food?"
Replies: 90
Views: 13654

Re: Will we be eating cat food?

When I bought the place (long before DH and I got together), there were four offers made the day of the open house. Agent's advice in order to win was to make an unconditional offer matching any other offer - no outs for inspection, financing, anything - talk about no net! But it worked. $3M in inv...
by JW Nearly Retired
Sun Jun 14, 2015 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Anyone have multiple IRAs through different brokerage firms?
Replies: 25
Views: 1989

Re: Anyone have multiple IRAs through different brokerage firms?

Makes sense. I am completely turned off by all the funds on Fidelity's website. Granted I like how they give you all these options but navigating their website is totally confusing. Now if I can somehow view her VG account within my account, that would make it all better and a win in my book. Reall...
by JW Nearly Retired
Sat Jun 13, 2015 8:41 am
Forum: Personal Consumer Issues
Topic: How to securely dispose old computer?
Replies: 43
Views: 4014

Re: How to securely dispose old computer?

I just recently destroyed an old hard drive by removing it from the desktop, put it in a large vice and squeezed it severely, then I took a large hammer and mashed it. I've found that old desktop hard drives are extremely sturdy devices. Are you positive you actually deformed the platters? Squeezin...
by JW Nearly Retired
Sat Jun 13, 2015 7:53 am
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7113

Re: tIRA's RMDs causing increasing tax concerns

It is an employer rule that I cannot roll over a Roth 401K to a Roth IRA until it has met their 5 year time period. I think this is the case as I spent hours on the phone with HR and read and re-read the plan. I plan to retire before the 5-year time period is up. My accountant is charging me for al...
by JW Nearly Retired
Fri Jun 12, 2015 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7113

Re: tIRA's RMDs causing increasing tax concerns

...The big way to reduce total post-RMD taxes is to delay SS and spend down the IRA instead. Is it too late for that? If there are no spouse benefits, is that beneficial? Absent spouse benefits, Social Security is supposed to be approximately fair whether you start at 66 or 70, whereas there's a si...
by JW Nearly Retired
Fri Jun 12, 2015 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA's RMDs causing increasing tax concerns
Replies: 62
Views: 7113

Re: tIRA's RMDs causing increasing tax concerns

RMDs from a tIRA will push me into a 25% marginal income tax bracket from a 15% marginal income tax bracket. (Yes. I know others have bigger tax problems. I'm grateful I don't have those problems. And, I appreciated the tax avoidance I've experienced - to one extent or another - for more than 44 ye...
by JW Nearly Retired
Fri Jun 12, 2015 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA timing with existing IRA balance
Replies: 13
Views: 859

Re: Backdoor Roth IRA timing with existing IRA balance

I think this might be where I'm hung up. So if 100% of rolled-over IRA is pre-tax (hasn't been taxed) - is a pro-rating still needed? Maybe I need to play with the IRS form on this to see how different scenarios play out. The pro-rating happens when you convert some of your IRA money to a Roth. If ...
by JW Nearly Retired
Fri Jun 12, 2015 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA timing with existing IRA balance
Replies: 13
Views: 859

Re: Backdoor Roth IRA timing with existing IRA balance

I was under the impression that the pro-rata rule only applied to non-deductible tIRA balances. It was my assumption that a 401(k) - the deductible version or the Roth version, wouldn't impact this. Is that incorrect? The rule applies to the total of all tIRA balances, both deductible & non-ded...
by JW Nearly Retired
Fri Jun 12, 2015 10:21 am
Forum: Investing - Help with Personal Investments
Topic: 401K's and Expense ratio's
Replies: 8
Views: 726

Re: 401K's and Expense ratio's

My question is this. some of them have some thing called "annual gross expense ratios". Is that the same as expense ratio? Also should I add the expense ratio of each fund to get a total cost. No to adding up the ERs. You should add up the fund ER x the $ amount you have in the fund, over...
by JW Nearly Retired
Fri Jun 12, 2015 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA timing with existing IRA balance
Replies: 13
Views: 859

Re: Backdoor Roth IRA timing with existing IRA balance

The sequence of events within the year makes no difference. Dry run filling out the 8606 form and you will see for yourself that the only account balances counted will be those on 12/31/2015.
JW
by JW Nearly Retired
Thu Jun 11, 2015 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

OK, here it is. This is from TaxCaster 2015 results for an age 70 married couple. For this couple filing MFJ, I doubled all the income amounts from those in the single person table above. JW There's an "RMD" in a column label. To me, that means the Required Minimum Distribution. That is, ...
by JW Nearly Retired
Thu Jun 11, 2015 1:19 pm
Forum: Investing - Theory, News & General
Topic: IRA Withdrawals & Delayed SS
Replies: 1
Views: 351

Re: IRA Withdrawals & Delayed SS

Looking for comments- or link to prior posts- on the wisdom of delaying SS til age 70 by taking early, more than minimum withdrawals from a traditional IRA. In my case, at upcoming retirement age 64. Is there a beneficial tax trade-off? Yes there is. For example see http://www.bogleheads.org/forum/...
by JW Nearly Retired
Thu Jun 11, 2015 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Disadvantages from moving 401k to IRA
Replies: 37
Views: 3510

Re: Disadvantages from moving 401k to IRA

Would you rather have to fill out some paperwork or have your account hacked? The funny thing to me is that the security question was, "what is your favorite hobby?" How can that be considered taking security seriously? Using social media people could easily find one's favorite hobby. Cer...
by JW Nearly Retired
Thu Jun 11, 2015 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Aon Hewitt Retirement Income modeling
Replies: 8
Views: 872

Re: Aon Hewitt Retirement Income modeling

I'd trust VG more than Aon-Hewitt (who I know nothing about) just because they have less of an ax to grind. However, the VG Monte Carlo shows such wide range of possible outcomes (-1% to +15% nominal annualized returns for a 80/20 portfolio) what can you do with it? Probably such forecasts are a rea...
by JW Nearly Retired
Wed Jun 10, 2015 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Have Vanguard withhold taxes or not? First time IRA withdrawal...
Replies: 8
Views: 1220

Re: Have Vanguard withhold taxes or not? First time IRA withdrawal...

It would eliminate quarterly estimated taxes if you end up having enough withheld. I do that by tuning my annual RMD & monthly pension & SS tax withholding to give the right amount. Others prefer the quarterly estimated payments since it lets them do it all in one set of quarterly payments. JW
by JW Nearly Retired
Wed Jun 10, 2015 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

There's an "RMD" in a column label. To me, that means the Required Minimum Distribution. That is, it's money that I have no intention of spending this year, but I'm required to take by law. I'd use a simple "distributions" or "withdrawals" to indicate money that's part...
by JW Nearly Retired
Wed Jun 10, 2015 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

So the break even number is 81, yet life expectancy tables are 79? What would Vegas bet on? They make billions on small margins. My bet would be SS will be needs based within 20 years, everybody eligible will get something but making projections 20 years out based on what you're eligible for now Is...
by JW Nearly Retired
Tue Jun 09, 2015 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Your Home Equity / Net Worth Ratio?
Replies: 119
Views: 7913

Re: Your Home Equity / Net Worth Ratio?

1. Home Equity = 33% of net worth.
2. Yes
3. Guessing about 40%.... it was years ago.
JW
by JW Nearly Retired
Tue Jun 09, 2015 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

Found it! Not sure if the table will show up with copy and paste. I'll be darned.... it was me. JW Glad I'm not totally losing it. I was beginning to think it was time to go to a single target retirement fund. :shock: So have you done a similar table for married couples? Don't know if I did the sor...
by JW Nearly Retired
Mon Jun 08, 2015 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

Found it! Not sure if the table will show up with copy and paste. I'll be darned.... it was me. JW Glad I'm not totally losing it. I was beginning to think it was time to go to a single target retirement fund. :shock: So have you done a similar table for married couples? The chart is for married co...
by JW Nearly Retired
Mon Jun 08, 2015 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

Workinghard wrote:Found it! Not sure if the table will show up with copy and paste.

I'll be darned.... it was me.
JW
by JW Nearly Retired
Mon Jun 08, 2015 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

JW, guess I should have said table rather than chart. :oops: I thought you did the 'green" table that showed the difference paid in taxes based on the comparison between SS and RMD earnings. That was easier for me to understand. I don't recall a green table but I would like to see it too? Who ...
by JW Nearly Retired
Mon Jun 08, 2015 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

Yep, I like to make such charts if the numbers are pretty easy to dig up. Thanks for noticing that one! JW JW, you should post it again. It really helped me in seeing the difference and benefit of doing conversions before SS. OK The explanation of the chart was in this thread. http://www.bogleheads...
by JW Nearly Retired
Mon Jun 08, 2015 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

My pet peeve.......most everyone in these kind of threads seems to ignore the large difference in taxes on SS income versus other income (such as from tax deferred accounts like IRAs). If RMDS are going to get taxed at a much higher rate than SS benefits you probably should aim for making SS retire...
by JW Nearly Retired
Mon Jun 08, 2015 1:55 am
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 7483

Re: Putting off Social Security until 70

My pet peeve.......most everyone in these kind of threads seems to ignore the large difference in taxes on SS income versus other income (such as from tax deferred accounts like IRAs). If RMDS are going to get taxed at a much higher rate than SS benefits you probably should aim for making SS retirem...
by JW Nearly Retired
Sun Jun 07, 2015 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Spousal IRA question
Replies: 5
Views: 484

Re: Spousal IRA question

If you file MFJ then enough joint income to cover both your contributions is all that's needed. There is an upper limit for the contribution to be deductible but you are well under it.
JW
by JW Nearly Retired
Sat Jun 06, 2015 9:48 am
Forum: Investing - Help with Personal Investments
Topic: 30 years old / Missed the bull run
Replies: 50
Views: 8548

Re: 30 years old / Missed the bull run

After graduating university in 2008 and thankfully finding a job, I immediately fell into the trap of not doing anything meaningful with investing because I was afraid of losing everything to the next market crash. I started listening to Peter Schiff's radio show and have been convinced that the wo...
by JW Nearly Retired
Fri Jun 05, 2015 10:09 am
Forum: Investing - Theory, News & General
Topic: "Do You Know How Much You're Paying?"
Replies: 44
Views: 6642

Re: "Do You Know How Much You're Paying?"

Let's see, a 1% ER on a $500k portfolio is a $5000/year fee. That's as trivial a calculation as it gets. It's sad, but I doubt forcing an explicit statement that it comes to $5000/yr would make the slightest difference.
JW

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