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Re: CapitalOne360 won't give me an ATM-only card?

If you travel (foreign destinations) you will not be able to access your bank account with just an ATM card. You will be able to do so with the ATM/Debit card. I ran into this problem many years ago while traveling, and even though I have two different accounts (bank/CU) I never use the cards to bu...
by JW Nearly Retired
Tue Nov 25, 2014 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: CapitalOne360 won't give me an ATM-only card?
Replies: 20
Views: 1330

Re: I think I'm missing something about the backdoor roth

I'm with retiredjg on this one. But JW and I said the same thing. :D retired jg has it right......I said to OP: "The best approach to the conversion is to first exchange exactly the amount of the non-deductible basis in the tIRA to a new Roth. This leaves only the taxable amount behind, so the...
by JW Nearly Retired
Mon Nov 24, 2014 4:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 21
Views: 1542

Re: I think I'm missing something about the backdoor roth

It isn't whether you are above the MAGI to deduct it's whether you are above the MAGI to make direct Roth IRA contributions as that is superior to backdoor Roth since it's less complicated and you don't have to do anything with the current IRA but if you can't then your plan makes sense. +1 Good ca...
by JW Nearly Retired
Mon Nov 24, 2014 12:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 21
Views: 1542

Re: I think I'm missing something about the backdoor roth

The best approach to the conversion is to first exchange exactly the amount of the non-deductible basis in the tIRA to a new Roth. This leaves only the taxable amount behind, so then roll that entire amount into the 401k. It is key you do this before the end of this year so you have no tIRA money a...
by JW Nearly Retired
Mon Nov 24, 2014 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 21
Views: 1542

Re: I think I'm missing something about the backdoor roth

I have 35.5k in the tIRA. 30k is from when I rolled over a 401k into my Vanguard tIRA 2 years ago. The original amount was 28k, and it grew to 30k. Then I added 5.5k this year. So I was thinking of rolling the original 30k back into my new employer's 401k, and converting the remaining 5.5k to a Rot...
by JW Nearly Retired
Mon Nov 24, 2014 12:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 21
Views: 1542

Re: Backdoor Roth Question

Dry run an IRS 8606 form for this. You will see how everything works and why all IRA type account money gets lumped into the calculation. (Answer, because IRS says it is right on the form.)
JW
ps: a rollover IRA is a tIRA.
by JW Nearly Retired
Mon Nov 24, 2014 11:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Question
Replies: 7
Views: 484

Re: I think I'm missing something about the backdoor roth

I wanted to know, if in your opinion, a backdoor roth makes sense for my specific situation. I can't seem to wrap my head around the idea... I currently am maxing out my 401k for the past 2 years, so have about 30k in it. I also have a tIRA with vanguard with about 30k in it. I have contributed to ...
by JW Nearly Retired
Mon Nov 24, 2014 10:54 am
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 21
Views: 1542

Re: Fitbit, Vivofit, or other?

For several months, I was tracking all my walks/runs using "Map My Run," but this got too cumbersome. Thus, I am looking for something more automated. The smartphone trackers are great, but I agree that the new phones are getting too big to exercise with. For $69 (black friday), I think p...
by JW Nearly Retired
Mon Nov 24, 2014 10:21 am
 
Forum: Personal Consumer Issues
Topic: Fitbit, Vivofit, or other?
Replies: 55
Views: 2013

Re: Fitbit, Vivofit, or other?

It seems to me that current smartphones have all the functionality of a fitbit and much more, so what's the point besides perhaps size? Don't discount the size issue. My smartphone fills an entire pocket (and doesn't even fit into some of my pants pockets) and I have to take it out every time I sit...
by JW Nearly Retired
Sun Nov 23, 2014 8:59 pm
 
Forum: Personal Consumer Issues
Topic: Fitbit, Vivofit, or other?
Replies: 55
Views: 2013

Re: Retirement around the corner, seeking advice on getting

Key Points 1. Retirement next summer and will put off pension till 65 and SS until 70. Expect annual income of $74K against expenses of $45K. 2. 60/40 asset allocation, but lean towards more risk. 3. Have access to a safe 3% fund. Good idea for the 40%? Or too conservative? 4. Anxious over giving u...
by JW Nearly Retired
Sun Nov 23, 2014 12:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement around the corner, seeking advice on getting hous
Replies: 21
Views: 1854

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: 58
Views: 4872

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: 55
Views: 2013

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: 1893

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: 1893

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: 1072

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: 950

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: 2220

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: 982

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: 1690

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: 2050

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: 1690

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: 1032

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: 865

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: 2050

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: 1455

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: 346

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: 1455

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: 1455

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: 1455

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: 346

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: 346

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: 2050

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: 1822

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: 1032

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: 1822

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: 768

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: 768

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: 895

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: 976

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: 1827

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: 801

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: 9494

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: 1179

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: 1914

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: 2433

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: 2634

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: 2266

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: 3808

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: 416

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
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