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Re: Long time investor, 1st time post. Taxable vs. Tax defe

Tax Filing Status: Single Tax Rate: 28% Federal, 9% State State of Residence: CA Age: 37 Desired Asset allocation: 70% stocks / 30% bonds Desired International allocation: ?% of stocks Stash: low to mid six-figures Salary 100K year Unless you have other income you have not disclosed to us, you aren...
by JW Nearly Retired
Wed Oct 01, 2014 5:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Long time investor, 1st time post. Taxable vs. Tax deferred
Replies: 5
Views: 220

Re: Slick Airline Ticket Phishing Scam

There are 100 variations of this scam a delivery ticket from Fed Ex/UPS/USPS etc, An order you placed with xyz company for $x.xx dollars an overdue electrical bill with your local utility as the "sender" A bounced check from your bank I'm feeling left out. Aside from very crude Nigerian t...
by JW Nearly Retired
Wed Oct 01, 2014 5:23 pm
 
Forum: Personal Consumer Issues
Topic: Slick Airline Ticket Phishing Scam
Replies: 11
Views: 504

Re: Slick Airline Ticket Phishing Scam

technovelist wrote:The zip file contains a worm or other malware. Don't open it!

Didn't open it....... I had already deleted the email before I posted.
JW
by JW Nearly Retired
Wed Oct 01, 2014 4:55 pm
 
Forum: Personal Consumer Issues
Topic: Slick Airline Ticket Phishing Scam
Replies: 11
Views: 504

Re: Slick Airline Ticket Phishing Scam

earlyout wrote:It is a pretty well known scam.
Just Google "scam delta air ticket"

Yep, that's it! I googled for it before but not with those words.
Thanks,
JW
by JW Nearly Retired
Wed Oct 01, 2014 4:51 pm
 
Forum: Personal Consumer Issues
Topic: Slick Airline Ticket Phishing Scam
Replies: 11
Views: 504

Slick Airline Ticket Phishing Scam

I thought this subtle email scam that showed up in my inbox yesterday was pretty clever compared to most of the ones we see. It went like this (I’m substituting xxxxx’s for some actual letters/numbers to hopefully preserve my anonymity from the scammer): Email title was: Order #ID000xxxxx is process...
by JW Nearly Retired
Wed Oct 01, 2014 3:29 pm
 
Forum: Personal Consumer Issues
Topic: Slick Airline Ticket Phishing Scam
Replies: 11
Views: 504

Re: Working & Collecting SS Benefits

Mom is going to start collecting Social Security retirement benefits this upcoming spring at age 70. I advised her to wait as her health is good and the 8% annual return is worth the gamble, IMO. She works a part time job earning approx 10-11K per year, will there be any tax issues earning this inc...
by JW Nearly Retired
Mon Sep 29, 2014 10:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Working & Collecting SS Benefits
Replies: 6
Views: 637

Re: Rebuilding portfolio. Early retirements dreams, please h

The real estate income comes from family-owned properties. I am the third generation from the top of the family hierarchy, and the money is gifted to us annually (hence the tax-free situation). At some point, I expect to receive about double what we currently receive, about $200,000 gross. One fami...
by JW Nearly Retired
Mon Sep 29, 2014 6:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rebuilding portfolio. Early retirements dreams, please help!
Replies: 23
Views: 1948

Re: Rebuilding portfolio. Early retirements dreams, please h

Knowing that we are in the 15% tax bracket, and unlikely to ever be in a lower bracket, would you still contribute to the traditional 401k instead of the Roth? There's a high probability we will be in a higher tax bracket when we retire. If you are correct in thinking that, I'd agree that using Rot...
by JW Nearly Retired
Mon Sep 29, 2014 10:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Rebuilding portfolio. Early retirements dreams, please help!
Replies: 23
Views: 1948

Re: New Investor kindly requests your advice

2. Should I do the backdoor Roth? Note the presence of a $13k trad IRA that my 401k admin will not accept. As a result, I'd have to pay tax on that if I did backdoor Roth, but it still may be worth it if I can do the $5.5k Roth every year. Right? Yes, I certainly would do it. A Roth contribution ev...
by JW Nearly Retired
Sun Sep 28, 2014 9:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Investor kindly requests your advice
Replies: 8
Views: 645

Re: Should I take SS or wait, Penny for your thoughts,

My strategy provides the same amount for survivor benefit of $38,317 but the cumulative difference between July of 2015 when we retire and my assumed death on my birthday at age 83 is an astonishing + $137,840. What if my wife dies at her actual life expectancy 3 years later at age 84.5? That addit...
by JW Nearly Retired
Sun Sep 28, 2014 12:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I take SS or wait, Penny for your thoughts,
Replies: 14
Views: 1233

Re: Federal gift tax implications question

If it was truly a joint account then my (non-lawyer) thought is the brother's heirs now own half the account. He will have to see an estate attorney to sort this out. JW Wouldn't the surviving owner own all of it ......assuming JTWROS rather than tenants in common........? If JTWROS then my non-law...
by JW Nearly Retired
Sat Sep 27, 2014 8:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Federal gift tax implications question
Replies: 6
Views: 508

Re: Should I take SS or wait, Penny for your thoughts,

If you can afford to wait on it, SS is greatly advantaged over other income like RMDs for several reasons. It's taxed less, it has a cost of living increase, and it has survivor benefits and spousal benefits. Each year of delay gives a 7 or 8% higher benefit. The common advice is for the higher earn...
by JW Nearly Retired
Sat Sep 27, 2014 11:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I take SS or wait, Penny for your thoughts,
Replies: 14
Views: 1233

Re: Federal gift tax implications question

I have a friend ,that put his brother on his mutual fund accounts for beneficiary reasons,and has paid all the taxes himself in all those years,since Joint Account established,back in 2001. His brother passed away ,last week, and question does he still have to pay Federal Gift Taxes on the account,...
by JW Nearly Retired
Sat Sep 27, 2014 10:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Federal gift tax implications question
Replies: 6
Views: 508

Re: Considering converting SEP to solo 401k and go backdoor

Be sure your CPA knows you did two steps -non-deductible contribution to tIRA -conversion to Roth IRA If you tell your CPA you contributed to Roth IRA, things could get messed up. Be sure to specify what year the contribution is for. IMO, go even farther than this and verify the CPA does your 8606 ...
by JW Nearly Retired
Sat Sep 27, 2014 9:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Considering converting SEP to solo 401k and go backdoor Roth
Replies: 19
Views: 974

Re: What's Your Takeaway from 2014 High Valuation

Whenever I read about high valuations, I go back and read this article: http://www.philosophicaleconomics.com/2013/12/the-single-greatest-predictor-of-future-stock-market-returns/ The best 10 year predictor of stock market returns is not PE10; it's the percentage of stocks in investor's portfolios....
by JW Nearly Retired
Sat Sep 27, 2014 8:52 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4054

Re: Another pension lump sum scenario

Hello all, Been lurking here for several months learning as much as I can, but have run into a deadline that I would like another opinion on. A former employer offered to buy out my meager pension and I want to make sure I'm not making a mistake. I am 39, married with kids and plan to retire / semi...
by JW Nearly Retired
Thu Sep 25, 2014 9:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Another pension lump sum scenario
Replies: 14
Views: 1058

Re: Move to vanguard equivalents or leave alone?

My question is: would it be worth the potential tax burden to move the monies over to Vanguard and get them into lower-cost funds? The ratios themselves aren't bad, but there is also a $50/year account fee, plus another ~.25%/fund 12b-1 fee. So some of them are pushed over 1% in total. These would ...
by JW Nearly Retired
Thu Sep 25, 2014 7:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Move to vanguard equivalents or leave alone?
Replies: 7
Views: 633

Re: Backdoor Roth Step By Step

This is probably a stupid question, but... How do I "convert" the traditional IRA to a Roth IRA on the Vanguard website? I have already opened and funded the TIRA account; do I have to open a new Roth IRA and then "Exchange (sell to buy) Vanguard Funds" (one of the options I see...
by JW Nearly Retired
Thu Sep 25, 2014 11:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Step By Step
Replies: 20
Views: 2438

Re: 401K rollover and Backdoor Roth IRA

Previously, I paid the taxes on old IRAs so that I could do the backdoor Roth IRA annually. My concern is that by rolling over an old 401K, I would be creating a new IRA with funds that I would have to pay taxes on in order to continue the annual Roth. Thanks! Your concern is absolutely valid. If y...
by JW Nearly Retired
Wed Sep 24, 2014 7:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K rollover and Backdoor Roth IRA
Replies: 4
Views: 298

Re: Stubbornly Non-Boglehead Husband. What To Do?

OP: I know that this wasn't your question to the community, but I was wondering about the 60/40 split on your half. Since becoming a Boglehead myself, I have taken to heart the idea that it's best to consider all household investments as one portfolio. How, if at all, do you consider your DH's inve...
by JW Nearly Retired
Wed Sep 24, 2014 3:53 pm
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7537

Re: Tax help - Error on form 8606

Are you supposed to file a form 8606 EVERY year or just those years where there is a traditional IRA contribution?? I filed one last year but it had been 8-10 years since I filed the previous one. You are required to file it every year you make a non-deductible contribution, make a conversion, and/...
by JW Nearly Retired
Wed Sep 24, 2014 3:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax help - Error on form 8606
Replies: 16
Views: 860

Re: My IPS and rebalancing

What do you do? What would you recommend I put in my IPS? All I can tell you is what I do. I use +/- 5% bands If it approaches a band edge I would use new money to bring it back, if I have any. I only sell stocks to rebalance, never bonds. i.e., in a bad bear market I let my AA go through the lower...
by JW Nearly Retired
Wed Sep 24, 2014 12:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: My IPS and rebalancing
Replies: 12
Views: 1066

Re: Stubbornly Non-Boglehead Husband. What To Do?

If you are both managing half and that's working out okay I say leave it alone. OP, What does managing "half" the assets mean in practice? Do you put the same amount of new money into the portfolios yearly, or do you equalize the two balances periodically? Hopefully it isn't the latter. JW
by JW Nearly Retired
Wed Sep 24, 2014 9:18 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7537

Re: Take Social Security at FRA, or Early, or Delayed?

I would just urge everyone who is puzzling over this to be sure your analysis accounts for how SS is taxed compared to your "other income". If you are not making realistic comparisons based on tax software predicted after-tax income, you will be very misled. Nominal tax brackets are nearly...
by JW Nearly Retired
Wed Sep 24, 2014 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Take Social Security at FRA, or Early, or Delayed?
Replies: 49
Views: 2690

Re: Tax help - Error on form 8606

Thanks, Ill send the corrected return. I wish I had never made those contributions. Keeping track of them when I start taking distributions will be annoying...the price of ignorance. I've had basis to keep track of with 8606 forms for many many years. Several generations of different tax software h...
by JW Nearly Retired
Tue Sep 23, 2014 9:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax help - Error on form 8606
Replies: 16
Views: 860

Re: Pre-Retirement Tax reduction strategy

Our guy Bigfoot48 has a cool very detailed spreadsheet that allows you to investigate this. see viewtopic.php?f=1&t=97352

The model was recently renamed from Retiree Roth Conversion Decision Model to Retiree Portfolio Model (RPM).
JW
by JW Nearly Retired
Mon Sep 22, 2014 9:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pre-Retirement Tax reduction strategy
Replies: 3
Views: 653

Re: Need Investment Help (24 y/o, 100k/yr salary)

There is one action you should immediately take now. Increase your pre-tax 401k contributions to the maximum allowed so you have a chance to put in $17,500 this year . Do the same for subsequent years. To whatever degree this leaves you with not enough take-home pay, make up for this by taking money...
by JW Nearly Retired
Mon Sep 22, 2014 7:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Investment Help (24 y/o, 100k/yr salary)
Replies: 6
Views: 1180

Re: rebalancing at age 55

I am looking for a "new set of eyes" to take a look at my portfolio. To rebalance, should I be more concerned with underweight/overweight, sectors or both? I SECTORS: HealthCare 7.36 Consumer Staples 10.34 Information Tech 24.79 Consumer Discretionary 12.46 Industrials 7.63 Materials 2.06...
by JW Nearly Retired
Mon Sep 22, 2014 11:13 am
 
Forum: Investing - Help with Personal Investments
Topic: rebalancing at age 55
Replies: 7
Views: 777

Re: What's in your tax advantage accounts?

new2bogle2 wrote:
Thanks JW. Do you own individual bonds, or only bond funds?

Only funds.
by JW Nearly Retired
Mon Sep 22, 2014 10:41 am
 
Forum: Investing - Theory, News & General
Topic: What's in your tax advantage accounts?
Replies: 54
Views: 3931

Re: Backdoor Roth Step By Step

To hopefully further clarify a some of the endless confusion on this, the taxation of IRA to Roth conversions depends on the size of your year end "IRA" balance on line 6 of IRS form 8606. Which says: 6. Enter the value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 20xx...
by JW Nearly Retired
Sun Sep 21, 2014 6:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Step By Step
Replies: 20
Views: 2438

Re: Trusting our advisor?

26% of equities in international is near the middle of the 20%-40% usually recommended here. Not certain, but 70% of bonds in international bonds does sound high and undiversified. Maybe advisor is chasing yield, or past performance? :P Vanguard has recently added some international into the bond al...
by JW Nearly Retired
Sun Sep 21, 2014 11:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1883

Re: Backdoor Roth Step By Step

To hopefully further clarify a some of the endless confusion on this, the taxation of IRA to Roth conversions depends on the size of your year end "IRA" balance on line 6 of IRS form 8606. Which says: 6. Enter the value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 20xx ...
by JW Nearly Retired
Sun Sep 21, 2014 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Step By Step
Replies: 20
Views: 2438

Re: Help! Are we making a huge mistake?

If it was me I would prefer to return stateside for a few years before retiring. Also, I'm guessing maybe this might give you a better chance of easing into retirement.
I personally liked working half time for a year before actually pulling the trigger.
JW
by JW Nearly Retired
Sat Sep 20, 2014 9:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help! Are we making a huge mistake?
Replies: 39
Views: 5093

Re: Trusting our advisor?

I don't know about the wisdom of this particular thing you have seized on, but I'm thinking you are really questioning using an "advisor" and paying the usually considerably higher fees that entails. Suggest you might post your portfolio information in our preferred format and see what we ...
by JW Nearly Retired
Sat Sep 20, 2014 9:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1883

Re: Interesting data on large ("Romney size") IRAs

(snip) Even for someone who maximally contributed to qualifying retirement plans (both IRA and employer-based) over their entire careers, had superb investment results, and rolled everything into their IRA, it was hard for the GAO analysts to see how such high balances could have been legally accum...
by JW Nearly Retired
Sat Sep 20, 2014 7:24 pm
 
Forum: Investing - Theory, News & General
Topic: Interesting data on large IRAs
Replies: 14
Views: 1409

Re: Help! Are we making a huge mistake?

Option 1) We have been on expat assignment and my current employer has asked me to return stateside for an important new assignment with a significant raise. Both of us are excited at the opportunity to return back to our own home and to our community. It is a terrific new job opportunity and will ...
by JW Nearly Retired
Fri Sep 19, 2014 6:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help! Are we making a huge mistake?
Replies: 39
Views: 5093

Re: What's in your tax advantage accounts?

401k/IRAs: bonds/TIPs/stable value and stock index funds Roth IRAs: only stock index funds. taxable: muni bonds(5% of portfolio fixed income), stock index funds, and a few legacy individual stocks & non-index stock mutual funds. JW you mentioned 'stable value' on the top line of this quote abov...
by JW Nearly Retired
Fri Sep 19, 2014 3:54 pm
 
Forum: Investing - Theory, News & General
Topic: What's in your tax advantage accounts?
Replies: 54
Views: 3931

Re: Adjunct instructor in CA

I'm assuming CALSTRS is similar to CALPRS. If it is, you should probably be putting money in CALSTRS. You may well accumulate 5 years over various times at various employers. In the worst case that you never work long enough to get vested, as was the case for my spouse (who ended up with 3 years of ...
by JW Nearly Retired
Fri Sep 19, 2014 2:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adjunct instructor in CA
Replies: 7
Views: 805

Re: EJ Gadflies [Edward Jones]

I cannot say for certain, but the fairly obvious reason for this is the load is typically only charged on the initial investment in a fund. Subsequent additions have the load waived. I know that reinvestment of distributions don't have a load but I didn't think that was the case for new money becau...
by JW Nearly Retired
Fri Sep 19, 2014 11:27 am
 
Forum: Personal Finance (Not Investing)
Topic: EJ Gadflies [Edward Jones]
Replies: 64
Views: 6168

Re: Home Depot Breach - zip codes revealed

I have 2 credit cards where I charged something in the last few months at one of the zip code listed Home Depots. Guess I will give the 800 numbers a call and see about changing the credit card numbers. Do you think anyone will answer or are they totally swamped? I'll let you know tomorrow.
JW
by JW Nearly Retired
Thu Sep 18, 2014 9:49 pm
 
Forum: Personal Consumer Issues
Topic: Home Depot Breach - zip codes revealed
Replies: 43
Views: 5923

Re: EJ Gadflies [Edward Jones]

You're still off a little, it is if you put $1 million in the family of American Funds, it does not all have to go into one fund. If the advisor spread $1 million across 10 American Funds (it would be stupid for one since the overlap quite a bit) but the load would be zero and every exchange within...
by JW Nearly Retired
Thu Sep 18, 2014 9:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: EJ Gadflies [Edward Jones]
Replies: 64
Views: 6168

Re: Holding Cash because Tried to time Market

Another record. Well, today, 09/18/2014 we had another record in the market and we still have a lot of investors waiting for a window of opportunity to put their cash to work by entering the market. Soon or later market timers will have the opportunity to GET in, but not today, maybe tomorrow, mayb...
by JW Nearly Retired
Thu Sep 18, 2014 8:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Holding Cash because Tried to time Market
Replies: 78
Views: 6390

Re: What's in your tax advantage accounts?

Withdrawals from Roths are tax free, so you prefer your Roth investments to grow as much as possible. Therefore one idea is to use a Roth IRA to hold funds you expect to have higher growth (such as stock funds), and traditional accounts to hold funds you expect to have lower growth (such as bonds f...
by JW Nearly Retired
Thu Sep 18, 2014 1:22 pm
 
Forum: Investing - Theory, News & General
Topic: What's in your tax advantage accounts?
Replies: 54
Views: 3931

Re: Most cost effective means of protecting physical assets

I don't understand cameras. People want to buy small cameras to hide and record the feed. What good does that do? If criminals can't see the cameras it isn't a deterrent. So what if you get robbed when not at home? You probably won't get a clear enough picture of criminal to do any good. Sometimes ...
by JW Nearly Retired
Thu Sep 18, 2014 10:56 am
 
Forum: Personal Consumer Issues
Topic: Most cost effective means of protecting physical assets
Replies: 50
Views: 3990

Re: What's in your tax advantage accounts?

401k/IRAs: bonds/TIPs/stable value and stock index funds
Roth IRAs: only stock index funds.
taxable: muni bonds(5% of portfolio fixed income), stock index funds, and a few legacy individual stocks & non-index stock mutual funds.
JW
by JW Nearly Retired
Thu Sep 18, 2014 10:36 am
 
Forum: Investing - Theory, News & General
Topic: What's in your tax advantage accounts?
Replies: 54
Views: 3931

Re: Holding Cash because Tried to time Market

I kept the 529s in stock at this point because I have the cash to pay for college right now due to my bad investing choices. I can keep the 529 going with stock and transfer to my other child if necessary. Sure, if the $135k in child one's 529 turns to half that amount at a bad time, you can pay fo...
by JW Nearly Retired
Thu Sep 18, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Holding Cash because Tried to time Market
Replies: 78
Views: 6390

Re: Holding Cash because Tried to time Market

My Asset Allocation --35% Tax advantaged/retirement accounts (401(k)): mid six figures (contributing maximum amount per year). Moved basically to cash/conservative investments in 2009 and couldn’t reallocate due to protracted divorce. Always maxed out contributions. Recently reallocated as follows:...
by JW Nearly Retired
Wed Sep 17, 2014 9:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Holding Cash because Tried to time Market
Replies: 78
Views: 6390

Re: Help w/ Wife's Poor 401k Options

You said you are in a high tax bracket, so another bonds option is a Vanguard muni bond fund in your Vanguard taxable account.

Anyone giving specific recommendations on where to put bonds and international is going to need knowledge of the options in your other 401k & IRAs.
JW
by JW Nearly Retired
Wed Sep 17, 2014 7:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help w/ Wife's Poor 401k Options
Replies: 8
Views: 554

Re: Safe Withdrawl Rate

JW, OAG is "Old Army Guy". Have about $1,300,000 in taxable accounts. Financially speaking, how do you like retirement? WA "Old Army Guy". I recall that now. :oops: Financially, retirement is better than we anticipated.... except for taxes , which are worse. We do have a sizable...
by JW Nearly Retired
Wed Sep 17, 2014 10:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Safe Withdrawl Rate
Replies: 25
Views: 2384

Re: No taxes when selling stocks in an Inherited IRA?

blackwater wrote:
If I'm understanding this correctly, basically I can use an IRA as the perfect playground to practice buying and selling stocks without tax consequences?

Perfect playground? Yes and no.

Not being able to write off all your losses when the game is lost won't be much fun. :P
JW
by JW Nearly Retired
Wed Sep 17, 2014 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: No taxes when selling stocks in an Inherited IRA?
Replies: 12
Views: 1048
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