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I'm nowhere near that amount, but I think it should be fairly easy for most of us. For starters, the exemption is $5.12 million in 2013, which I believe is indexed to inflation so even at 2% inflation you can count on it going up 100k+ annually. So if you desire to leave a large estate behind I'd se...

At 36 I think you've still got time to build up taxable assets later on to access between 55-59. I'd focus on continuing to max out the 401k and Roth, and then maybe at 40 re-evaluate. If you project that your tax-advantaged space will provide the retirement you want, continue contributing up to the...

+1 on your choices not being that bad. The S&P 500 index fund at 16 bps is a pretty awesome choice. I'd contribute more than just the match if you can, the ER is not that high at all. And while the JPM bond fund at 74 bps is considered outrageous for us Bogleheads, its not a terrible option if y...

For starters, have him to his best to stay of debt (to include student loans). If loans are necessary to pay for school, try to get rid of them as fast as possible as debt is the biggest drag on people accumulating wealth. Next, since he's in high school and already thinking about money, he should c...

I'm just taking a guess, but I figure that between the 401k at 17.5k and IRA at 5.5k an individual can put 23k (plus any employer contributions) into tax-advantaged space. Which if done over the course of a working lifetime can lead to some serious cash over time. In reality if most people contribut...

I recommend going with Target Retirement Fund. It is more diversified than the STAR Fund and has a lower expense ratio. That said, I recommend you rethink your AA. At 18 years old you have a VERY LONG time to go. 4 decades+ before you will even be able to withdraw from an IRA. You will only be 30 ye...

Because I work to hard to have my money pay for some Wall St big shot's next Maserati. I'd rather save enough to live a comfortable life without having my money sucked up by the vultures.

With that much money I'd want some serious allocation to tax-exempt bonds, given that you are in very high tax brackets at the federal and state level. I'll let others chime in on the estate law components as there are things that come with that high of a net worth that I am not qualified to comment...

^If your interest rate is 3.25%, I would NOT pay extra on the mortgage. That is very low, and with 27 years left on it you should let gradual inflation erode the % of your monthly income devoted to the mortgage. Max out all tax-advantaged space before you even think of making extra mortgage payments...

^Agreed. I'd also say it depends on your interest rate. If you bought the house in the mid 2000s you very well may be paying 5-6% or higher. If you got it fairly recently you are likely paying below 4%. If you can't refinance, I'd say make extra payments on the 5% plus mortgages, but not the sub 4% ...

I believe you are making a big mistake by having so much money in the health care sector. If you buy TSM you will have exposure to the health care sector, I think it is incredibly risky to be tilting so much to one particular sector. I agree!! Which is why I'm here asking questions on a good way to...

I believe you are making a big mistake by having so much money in the health care sector. If you buy TSM you will have exposure to the health care sector, I think it is incredibly risky to be tilting so much to one particular sector.

First, I'd double-check on the loads. A lot of funds that are load funds to retail investors do not apply the sales loads to 401k investors. Even without the loads, those ERs are absolutely terrible. I would definitely contribute up to the match, since that is a guaranteed return. After that, with e...

Not sure what state you're in and what the tax benefits are. I know in NY you can deduct up to $10k in 529 contributions for MFJ couples each year. Even if you had the cash on hand, you can contribute $10k to the 529 and pay the school from the 529 the following day (using a MMF to prevent change in...

Even the most cost-efficient companies will make unwise expenditures. Was this a waste of $28k? Who knows, but what I do know is that my portfolio at Vanguard has a weighted ER of less than 10 bps, so I'm not complaining.

I understand the desire to not have all your money "locked up" inside a 401k. That said, at 24 I think it is unwise to not max out tax-advantaged space first. Time is your biggest asset right now. You have the ability to set yourself up for a secure retirement by maxing out a Roth IRA and ...

Why is calling it a "rain tax" creative? I guess in your judgment a "fee" is not creative? Here in NY we have a lot of tolls on our roads. They aren't really tolls but instead are taxes. Ask anyone who lives here about the absurd debate about replacing the Tappan Zee Bridge. Turn...

I think the answer may be philosophical rather than directly financial. Most European counties are more Socialist than the US e.g. all European countries have socialized/government medical care. In some countries such as France, people are openly hostile to companies in some industries such as oil ...

I don't take any now or plan on taking any in the next few decades. I'd rather retire earlier and take more frequent, inexpensive weekend trips/excursions.

I would suggest this is indeed actionable. Yet another tax/fee that doesn't exist elsewhere, should definitely be of interest to those looking to retire in Maryland or build their lives in Maryland. These are always very slippery slopes of course, I'm sure a "rain tax" would have been unim...

$17,500 is you are under 50.

That number is for all 401k contributions, in any mix of Roth and Traditional.

If you are a long-term investor, I wouldn't worry about it. The monthly re-invested dividends will be buying shares on the cheap if the NAV goes down, same thing for your semi-monthly 401k contributions.

Recommend going with the Traditional 401k if you are in the higher tax brackets.

Seems to me that you can significantly lower the ER in your 401k going with Vanguard Institutional Index, Extended Market Index and the PIMCO Total Return Bond Fund. Just a thought, the Target Date Fund you are currently in isn't terrible in ER but you can definitely get your effective cost ratio do...

You have an awful lot of money coming your way. As the poster above noted, I recommend buying real estate as a place to live, don't do it purely for an investment (my opinion). You should be maxing out all tax-advantaged investment space (401k/Roth IRA) and pay off any student loans or other debt. A...

I couldn't possibly care less about improving the past performance feature. Better insights going forward? Gimme a break, most people here are closely mirroring a 3-fund portfolio. I'm making changes based on maintaining my AA, not an analysis of the previous 5 years.

I think a lot depends on you and your children. If you have bright children, they will do fine in an "average" school district. By the way, Who is the one judging this average-ness anyway? I personally think it is a bit overrated and hyper=parenting to a point. Agree with this point. I th...

^I don't think they're getting carried away. While I agree at a certain point the reduction in cost isn't necessary and could probably be put to better use in servicing customers, I don't think they are there yet.

Private schools in the area would probably run to about $25k/yr. It would seem that if I put that 25K into a higher mortgage payment in a better school district, that would be a better use of the money, but am open to arguments. I am wrestling with this right now in making a first-time home purchas...

I'd go with the PIMCO Fund or go with TBM in my Roth IRA and stick to just the equity funds in the 401k (providing they are decent).

I believe the point of the 2% target is to keep it below 2%, not at least 2%. I'm not an economist (not that they've ever proven to have all the answers though) but I think that some modest inflation is inevitable with an expanding economy. As there is more money chasing after the same amount of goo...

Never too late. Not sure what your options are in the plan or what the rollover criteria/eligibility is for 457b plans. If you are able to roll it over a good place to start would be a Target Retirement Fund that has an AA that meets your risk tolerance and objectives. You mentioned you can live off...

I think 75/25 is way too aggressive for you. While you have nice pension income, in my opinion there is no need to take added risk. Everyone wants to increase their stock allocation when the market is on fire, but I think you should pick an AA for the long haul and stick with it no matter what. So t...

The Vanguard Target Retirement Income Fund consists of TBM, TSM, TISM, TIPS and a small allocation to MM. ER of 16 bps, it seems to a nice place to have an all-in-one approach for someone looking for a one-fund solution. At ~30% equities, ~65% fixed income and ~5% cash it seems to be a very reasonab...

I think the "age in bonds" has always been intended as a guiding principle and not an absolute. I believe Jack also says that one should never be more conservative than 20/80, so needless to say it appears that he doesn't follow age in bonds to the letter himself. Become more conservative ...

Not sure how much it would cost you, but I'm willing to bet that the value of your home will increase as a result. Right now I am in the market for a house. All else being equal, gas heat is exponentially more attractive than oil heat. For starters, the gas equipment in all of the houses have been f...

If all one cares about are the dividends and don't plan to sell, who cares if the NAV drops because interest rates go up. Over time you will get more dividends. True, and if the NAV goes down you'll be able to soak up shares on the cheap if you're still in the accumulation phase. A lot of these fin...

Don't let emotions drive investment decisions. As others have already noted, on an inflation-adjusted basis we are nowhere near the all-time highs. Nominal value vs. real value. Unless you are retired and want to take a distribution from your recently achieved gains, I see no point in doing anything...

Looks to me like you can definitely retire. You have a nice pension, have health care covered, and won't need more than 2% annually from your portfolio (which you expect to receive in dividends/interest alone). I'd have your husband delay Social Security for as long as possible in order to maximize ...

I am a fan of the Vanguard Total Stock Market Index fund. Low ER, provides exposure to the entirety of the US equity market.

How many of the accurately predicted the last crash? Nothing they have done in the past leads me to believe that they'll see the next one coming. Even if a few active fund don't go down as much as the index in the next crash, chances are they didn't participate in as much upside to begin with, so wh...

Vacations. I wouldn't want to move somewhere that I hadn't thoroughly researched and spent a lot of time there. Not sure where you're living right now but making a decision like this is a big deal. I'd got as many weekends/vacations as possible to make sure you like the place before making a decisi...

I wouldn't go less than 20% equities either. No point, really. You need some sort of protection against inflation (other than Social Security) and you want at least some exposure to the equity markets.

It looks like you've already picked the funds with the lowest ERs. You've got some diversification among the different funds. Diversification and low costs are absolute must-haves, so while your 401k lineup might not be awesome, it doesn't appear to be terrible. I'd probably go with just the Balance...

Since you plan on retiring early the first thing that comes to mind is: 1. Max out all tax-advantaged space 2. Contribute any excess to taxable investing, since you'll need some taxable accounts to withdraw from before 59.5 unless your wife's income and your PT income will be sufficient 3. I'd work ...

Rebalance if it the declines of the day are likely to throw your AA off enough that it triggers the rebalancing criteria in your IPS.

am wrote:Munis will lose value when they lose some of their tax exempt status. I dumped mine earlier in the year.

Please tell the rest of us when that will happen so that we can plan appropriately!

Develop a plan and stick with it. There is no right way to do it. The market goes up and goes down. You could just as easily lose more money by investing one lump sum as you could make money. So I'd stick with your plan and don't deviate no matter what is going on with the market.

Good job getting this started right out of the gate. At 23 time is your biggest asset. Here's what I'm thinking: -In the 401k I'd go with the Dreyfus S&P 500 fund and the PIMCO Total Return fund. In order to own the entire market, I'd open a Roth IRA with the Small Cap Index Fund. This way you a...

If the funds were intended for the down payment, you should sell them for the down payment. I wouldn't do the 401k loan. Taxes are part of life. I'd guesstimate what your tax liability for the year will be after the cap gains and set aside roughly that amount so you won't have to scramble next year ...