Search found 2608 matches

Go to advanced search

by Peter Foley
Mon May 11, 2015 8:46 pm
Forum: Investing - Theory, News & General
Topic: International - Who really is at 40%
Replies: 93
Views: 6611

Re: International - Who really is at 40%

I don't know. It isn't time to check yet. I might check in a month or so. I wasn't when I checked last year. I greatly underweight International so I am unlikely ever to get there.
by Peter Foley
Sat May 09, 2015 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking ahead about how to do Social Security
Replies: 29
Views: 2250

Re: Thinking ahead about how to do Social Security

Debi First, I happy to see that Mike Piper responded. He is well respected here. I'm not sure you need a CPA regarding Roth conversions. You would likely get a lot of feedback if you posted here. There are many things to consider. Some couples find that prior to retirement they should stop contribut...
by Peter Foley
Thu May 07, 2015 9:47 am
Forum: Investing - Help with Personal Investments
Topic: IBond/TIPS Or Not
Replies: 37
Views: 3790

Re: IBond/TIPS Or Not

My approach has been to own some TIPs in a tax deferred account. I have limited this to about 10% of my bond portfolio. I am deferring SS and have a pension that is partially indexed to inflation. I have a few inherited I-Bonds as well. With these additional "inflation protectors" I have s...
by Peter Foley
Tue May 05, 2015 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: CD ladder at Ally - multiple durations or just one
Replies: 20
Views: 2528

Re: CD ladder at Ally - multiple durations or just one

If the penalty for early withdrawal is not substantial (e.g. loss of 6 month's interest), I would put it all in 5 year CD's. There was a thread about using this approach a couple months ago.
by Peter Foley
Tue May 05, 2015 5:10 pm
Forum: Personal Consumer Issues
Topic: Wisconsin vacation ideas
Replies: 34
Views: 2323

Re: Wisconsin vacation ideas

Minnesota :happy The fishing is better.
by Peter Foley
Tue May 05, 2015 5:05 pm
Forum: Investing - Theory, News & General
Topic: best financial gift for very young child
Replies: 19
Views: 1638

Re: best financial gift for very young child

I would advise that you put some money into a UGMA. Perhaps $10,000 is a reasonable amount. There are a lot of post secondary expenses that cannot be paid for with 529 plan funds. It can also be used for high school class trips, swimming lessons, and other extracurricular activities. Some of these t...
by Peter Foley
Mon May 04, 2015 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing Money from Roth IRA / TSP in Retirement
Replies: 12
Views: 999

Re: Withdrawing Money from Roth IRA / TSP in Retirement

There may be times in retirement when it will be to your advantage taxwise to withdraw from both the TSP and your Roth in the same year.
by Peter Foley
Mon May 04, 2015 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawing Money from Roth IRA / TSP in Retirement
Replies: 12
Views: 999

Re: Withdrawing Money from Roth IRA / TSP in Retirement

gulf wrote: I think I will gradually reduce my stocks in my TSP, and at the same time, gradually increase my stock allocation in my Roth IRA - (over years?). This is how I would do it. If there were a significant rise or drop in the market and you felt it was to your advantage to accelerate (or slow...
by Peter Foley
Tue Apr 28, 2015 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Required minimum distributions from after-tax plan
Replies: 6
Views: 752

Re: Required minimum distributions from after-tax plan

As Alan stated, the earnings come out first. We recently went though this with my mother-in-law (age 94) after the death of my father-in-law (age 93). We had her cash in a smaller annuity in the year he died. That year the tax filing was married filing jointly and almost all of the earnings were pai...
by Peter Foley
Mon Apr 27, 2015 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement with 401(k)'s and IRA's
Replies: 16
Views: 2001

Re: Early Retirement with 401(k)'s and IRA's

Sara - you raise a good point. One of the things an early retirees should consider is the tax consequences of withdrawals. You have to think in terms of spendable income, not just income. For some very early retirees, having sufficient funds in a taxable account may provide more spendable income in ...
by Peter Foley
Mon Apr 27, 2015 8:40 am
Forum: Personal Consumer Issues
Topic: South America [vacation recommendations]
Replies: 32
Views: 2553

Re: If You Were Going To S. America ...

We have traveled to Peru. The time spent in Cuzco, the Sacred Valley and Machu Picchu was truly memorable. There are rainy seasons, however, and you might want to take that into account when choosing your destinations.
by Peter Foley
Fri Apr 24, 2015 7:57 pm
Forum: Investing - Theory, News & General
Topic: Quickie to clarify confusion re: 0% long-term capital gains
Replies: 29
Views: 2214

Re: Quickie to clarify confusion re: 0% long-term capital ga

I believe the confusion lies here: OP wrote: Married couple 15% tax bracket is income $18,150 to $73,800. Next bracket above that is 25%. The $73,800 is taxable income not adjusted gross income. [2014 figures] A rough guide to translate taxable income into "ordinary income" would be to add...
by Peter Foley
Fri Apr 24, 2015 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on this allocation/glide path
Replies: 9
Views: 698

Re: Opinions on this allocation/glide path

Just commenting on the AA: When one is still contributing, 80/20 or 70/30 makes sense. When one can see the light at the end of the tunnel, throttling back to 60/40 seems prudent. I'm a believer of the 50/50 AA school upon retirement. If one happens to retire into a rising market and after a few yea...
by Peter Foley
Fri Apr 24, 2015 7:22 pm
Forum: Personal Consumer Issues
Topic: Best (Available)Red Wine for under $15 preferrably under $10
Replies: 64
Views: 5376

Re: Best (Available)Red Wine for under $15 preferrably under

I too like the McManis Petite Sirah. The Concannon Petite Sirah is a close second. Both are, to my taste a step up from the 3 buck chuck Sirah and Cabernets (at about double the price on sale).
by Peter Foley
Fri Apr 24, 2015 2:21 pm
Forum: Investing - Theory, News & General
Topic: Retirement Allocations
Replies: 13
Views: 1291

Re: Retirement Allocations

I don't know what your plans are for SS benefits. I would be inclined to set aside a little more in the cash and CD bucket - at least 3 years, if not 5. That safety net would get you to SS eligibility age, which would then allow you the option of taking SS early and lowering your withdrawal rate. I ...
by Peter Foley
Thu Apr 23, 2015 10:27 am
Forum: Investing - Theory, News & General
Topic: Who follows Age in Bonds
Replies: 62
Views: 4723

Re: Who follows Age in Bonds

Professor Emeritus wrote: Age is only a proxy for life expectancy. as you get older life expectancy becomes much easier to deal with 60 is a convenient year to shift from worrying about age to worrying about life expectancy it fundamentally changes your portfolio asset allocation strategy. I hadn't ...
by Peter Foley
Sat Apr 18, 2015 11:13 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation strategies at very large sums
Replies: 13
Views: 1526

Re: Asset allocation strategies at very large sums

Regardless of the amount of money, if you had 20 times more than you needed, a valid approach would be to set aside the amount that you need in "safe" investments and put the rest in equities. One might characterize this as a two bucket approach. Imagine you had a pension that was inflatio...
by Peter Foley
Sat Apr 18, 2015 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Still having a hard time on retiring
Replies: 43
Views: 6471

Re: Still having a hard time on retiring

Another thought. If you set your AA so that you can live off the bonds only, that should allow you to invest the rest in stocks for your heir(s). That was part of the reasoning behind my 45/55 AA upon retirement. You can build some inflation into the calculation by delaying SS. This works especially...
by Peter Foley
Fri Apr 17, 2015 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Still having a hard time on retiring
Replies: 43
Views: 6471

Re: Still having a hard time on retiring

Although I am a confirmed do-it-yourself-er, my wife and I have talked to a couple financial planners overs the years. We were very clear about our interest in investing only in low cost mutual funds. With those parameters we actually got a lot out of the meetings. Some of what we got was a confirma...
by Peter Foley
Wed Apr 15, 2015 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: Just retired, help with allocation
Replies: 7
Views: 1245

Re: Just retired, help with allocation

You have a good plan and have saved and invested well based on your assets. Congratulations. Financially you should be fine. Other things to think about would be simplification and charitable giving and "gifting'. You seems to have given some thought to those areas as well. One last considerati...
by Peter Foley
Wed Apr 08, 2015 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for retirement to supplement a pension
Replies: 16
Views: 1766

Re: Saving for retirement to supplement a pension

With 401k, 403b and 457 plans and a pension, this sounds like a public university. I would advise that he use one the supplemental plans. If he is in the 25% bracket, he should use one of the deferred options not the Roth. If he is in the 15% bracket I would go with the Roth. The 457 account has adv...
by Peter Foley
Tue Apr 07, 2015 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help with personal retirement planning
Replies: 20
Views: 1817

Re: Help with personal retirement planning

I too would suggest that you keep your old 401k. However, I would also advise that you be a bit more conservative there because your best option in your new 401k is the S&P 500 fund. For the time being use only that account in your new 401k. As you will be contributing to this account on an ongo...
by Peter Foley
Mon Apr 06, 2015 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: When to give adult children their inheritance?
Replies: 57
Views: 6836

Re: When to give adult children their inheritance?

Our approach has been to gift some it now to help our adult children with the expenses of owning their first homes and paying for some our grandchildren's childcare expense. These "early" gifts can really help to reduce stress in young families - it helps them to enjoy their own children (...
by Peter Foley
Mon Apr 06, 2015 2:51 pm
Forum: Investing - Theory, News & General
Topic: life expectancy and taxable versus tax deferred accounts
Replies: 17
Views: 1417

Re: life expectancy and taxable versus tax deferred account

Possibly your friend is coming from the point of view that for those who die younger, their taxable assets get a set up basis. As is usually the case, a one size fits all solution is not the best answer for everyone. I would think that the size of the estate would matter. If the holdings are exclusi...
by Peter Foley
Mon Apr 06, 2015 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Boglehead-portfolio Help
Replies: 8
Views: 821

Re: Newbie Boglehead-portfolio Help

A second opinion . . . ruralavalon wrote: His 401k (have 7% of pay going to fund; company match- 100% up to 3%, .50% up to 5%) 40%, Vanguard 500 Index Adm - VFIAX, ER 0.05% 10%, Vanguard Extended Market Index Adm - VEXAX, ER 0.10% 20%, American Beacon International Equity Index Institutional - AIIIX...
by Peter Foley
Sun Apr 05, 2015 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: (When) should I stop contributing to my 401k?
Replies: 21
Views: 2904

Re: (When) should I stop contributing to my 401k?

OP asked: Are there any thoughts from those who are in retirement and have encountered situations where one wishes they contributed more to a particular "bucket"? Yes - I had a Roth 457 account available about the last 3 years before retirement. I should have used it all three years instea...
by Peter Foley
Sat Apr 04, 2015 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: (When) should I stop contributing to my 401k?
Replies: 21
Views: 2904

Re: (When) should I stop contributing to my 401k?

sambb wrote: There is no way in the world that we can know what tax rates will be in 10 or 20 years. Therefore, there is no way to know for sure whether a roth or traditional tax deferred account is better. It is flawed to base assumptions on current tax rates. How can anyone predict income tax rate...
by Peter Foley
Sat Apr 04, 2015 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Sell "stable" stocks for index?
Replies: 31
Views: 2158

Re: Sell "stable" stocks for index?

I too would suggest that you diversify more (either total market or S&P 500). However, you don't have to do this all at once. I would start by reducing my holdings in the more volatile, more cyclical companies. Johnson and Johnson and Proctor and Gamble are probably more stable than the others. ...
by Peter Foley
Sat Apr 04, 2015 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: (When) should I stop contributing to my 401k?
Replies: 21
Views: 2904

Re: (When) should I stop contributing to my 401k?

Welcome to the forum. Interesting question, not one I have seen posed in exactly this manner. I'll start with the ideal final result for many entering the withdrawal stage - some in tax deferred, some in Roth and some in taxable. This combination allows one to pick and choose their income source to ...
by Peter Foley
Fri Apr 03, 2015 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax Deluxe: $25 Refund [for those forced to upgrade]
Replies: 5
Views: 1095

Re: TurboTax Deluxe: $25 Refund [for those forced to upgrad

Before filing 2014 I got an e-mail from Turbo Tax saying basically - "we messed up and we are willing to refund $25 if we forced you to upgrade from TT Duluxe 2013." I saved the e-mail, filed my 2014 return, then followed in instructions in the e-mail and requested a $25 refund. I got the ...
by Peter Foley
Fri Apr 03, 2015 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Glide path design
Replies: 27
Views: 1958

Re: Glide path design

The opinions I have seen on this are mixed. I think if you have only a narrow margin for error (market correction) then the glide path approach seems prudent. That being said, a lot of folks here are of the opinion that holding close to 50/50 throughout retirement is the way to go. I'm in agreement ...
by Peter Foley
Thu Apr 02, 2015 9:20 pm
Forum: Investing - Theory, News & General
Topic: Difference between holding fixed income in bondETFs or banks
Replies: 9
Views: 925

Re: Difference between holding fixed income in bondETFs or b

I'm sorry - I just can't decipher the acronyms. . . . The topic looks interesting however.
by Peter Foley
Wed Apr 01, 2015 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Minimizing income taxes in retirement
Replies: 54
Views: 5408

Re: Minimizing income taxes in retirement

You indicate that you are in the 25% bracket now. The range for the 25% bracket in taxable income is 74,901 to $151,200 in 2015. The standard deduction is $12,600 for married filing jointly, and personal exemptions are $4000/person. So $151,200 in taxable income is close to $171,800 in AGI. So you a...
by Peter Foley
Tue Mar 31, 2015 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Investments and Deductibles
Replies: 6
Views: 574

Re: Help with Investments and Deductibles

I took a quick look at my tax return. How the program defines "interest" income could impact the numbers greatly. Some may include short term capital gains realized by a mutual fund held by the taxpayer. My interest number is much higher than the average you stated, but our bank interest i...
by Peter Foley
Tue Mar 31, 2015 11:39 pm
Forum: Personal Consumer Issues
Topic: [living in] Minneapolis-St. Paul
Replies: 55
Views: 3541

Re: [living in] Minneapolis-St. Paul

It is a very broad question and anecdotal answers, while interesting, are just that. There is an active Minnesota Bogleheads group. I'm a member of the steering committee. I think most people would find the 6 of us very welcoming. We would certainly like to have more active members! I've lived in Mi...
by Peter Foley
Tue Mar 31, 2015 9:49 am
Forum: Investing - Theory, News & General
Topic: Did you learn anything from 2008?
Replies: 105
Views: 9026

Re: Did you learn anything from 2008?

Yes I did. But I actually learned more from the 2000 recession. My oldest daughter graduated from high school that year and my youngest daughter graduated in 2002. I had custodial accounts set up for their college education. Both daughter's total assets were about 75% indexed mutual funds and 25% US...
by Peter Foley
Mon Mar 30, 2015 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab / Vanguard Fund & Allocation Advice
Replies: 18
Views: 2211

Re: Schwab / Vanguard Fund & Allocation Advice

You asked: 1. Please provide any feedback on the target allocations. Are allocations too conservative / aggressive for a 35 year old with the above parameters. Should I consider more heavily weighting the portfolio towards US Stocks. Your proposed AA is fine - well within accepted parameters. 2. The...
by Peter Foley
Sun Mar 29, 2015 11:12 pm
Forum: Personal Consumer Issues
Topic: How long do sofas really last
Replies: 46
Views: 4713

Re: How long do sofas really last

We bought our current couch in 1992. It is beginning to show a little wear, but still looks nice. It is in a room where it does not get daily use. I think we paid about $800 for it - I'm sure I still have the sales ship in my files. Quality is an issue - ours was a good quality couch. We have never ...
by Peter Foley
Sun Mar 29, 2015 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie planner with windfall and no real portfolio: help!
Replies: 35
Views: 2855

Re: Newbie planner with windfall and no real portfolio: help

Dale hit the nail on the head. Why pay 5% when you can only get 2%-3% max on ultra safe investments. I always considered my mortgage to be like a negative bond. When my mortgage rate was higher than what I could receive in a relatively short term CD, I made extra mortgage payments. Skip a good porti...
by Peter Foley
Sat Mar 28, 2015 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Two Legged Stool [Figuring out when to take Social Security]
Replies: 26
Views: 3146

Re: Two Legged Stool [Figuring out when to take Social Secur

As mentioned, there are a couple of on line apps that can perhaps help with the analysis. I personally would be inclined to delay at least your (high earner) SS until full retirement age. Drawing down a bit more now from tax deferred and a bit less later is a good strategy for those in a lower tax b...
by Peter Foley
Sat Mar 28, 2015 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Collective wisdom for a portfolio design?
Replies: 7
Views: 479

Re: Collective wisdom for a portfolio design?

Welcome to the forum. With your non retirement funds you certainly have enough to retire at a very young age. As you mention, you do need to keep some of it in equities. If you are not familiar with the Trinity Study you should read about it on the Wiki. For very long period of time it seems to supp...
by Peter Foley
Fri Mar 27, 2015 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: 457 or 403(b)
Replies: 6
Views: 528

Re: 457 or 403(b)

I know this is a long way off, but if you were considering retiring before age 59.5 (many school teachers do), the 457 is a slight better option because funds can be withdrawn w/o penalty upon separation. There are some provisions for early withdrawal from a 403b, but I believe certain criteria must...
by Peter Foley
Fri Mar 27, 2015 12:01 am
Forum: Investing - Help with Personal Investments
Topic: Can you really know your AA until you've hit a bear market?
Replies: 74
Views: 5660

Re: Can you really know your AA until you've hit a bear mark

I may have the figures slightly off (I didn't look them up) - the MN Bogleheads group took a risk tolerance quiz in the late fall of 2008. We then polled the individuals who had previously taken an assessment. Of those who had, about 8 in 11 had test results that showed a lower risk tolerance (from ...
by Peter Foley
Wed Mar 25, 2015 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: 457(b) Question
Replies: 8
Views: 587

Re: 457(b) Question

I personally believe in diversification in non equities as well. While total bond is fine, you might have a stable value fund that offers a reasonable return with almost no risk. If one of the fixed rate options offered something int he 3% range I would put 50% of my "bond" allocation there.
by Peter Foley
Wed Mar 25, 2015 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Employer offering first 401k--lemonade out of lemons?
Replies: 21
Views: 2082

Re: Employer offering first 401k--lemonade out of lemons?

I would not try to replicate the three fund portfolio in the 401k. Use the lower cost Index 500 and mid cap. Hold your international in taxable and your bonds elsewhere. With interest rates as low as they are you are just about guaranteed to lose buying power with the PIMCO Total Return fund. 2/3 in...
by Peter Foley
Tue Mar 24, 2015 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement question [Take vacation time or pay?]
Replies: 23
Views: 2829

Re: Pre-retirement question

Unless the lump sum were directed to a health care savings account, the additional vacation and sick leave accrual you mention would be bonuses for taking your vacation rather than cashing it out. You may also get a couple extra months of employer paid health insurance. Our vacation leave went into ...
by Peter Foley
Tue Mar 24, 2015 11:15 pm
Forum: Investing - Theory, News & General
Topic: CNBC - "401(k) plans have fallen short"
Replies: 4
Views: 880

Re: CNBC - "401(k) plans have fallen short"

My limited experience was that the personnel department (human resources) leadership made some of the "retirement benefit" choices. Having know some of them personally, I could attest that they did not have much knowledge about personal finance. Their specialties were legal issues as relat...
by Peter Foley
Tue Mar 24, 2015 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: 403b Question
Replies: 26
Views: 2038

Re: 403b Question

You are likely in the Federal 25% tax bracket and New Jersey appears to have about a 2.5% ??? income tax rate for married filing jointly. (I looked at the tax tables for $100K). Grabiner can correct me if I am wrong as I trust his tax research and I believe he has been a NJ resident. At that rate of...
by Peter Foley
Mon Mar 23, 2015 3:27 pm
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7876

Re: The one area I disagree with Jack

There are so many factors to consider when setting one's AA for retirement planning purposes, that I think considering SS as equivalent to a bond allocation is poor framing of the issue. The real issue is the gap between known reliable sources of income (let's call these A) and the fixed costs of re...
by Peter Foley
Sun Mar 22, 2015 11:15 pm
Forum: Investing - Help with Personal Investments
Topic: FA needs investment advice
Replies: 25
Views: 2538

Re: FA needs investment advice

If my income were tied to market returns (S&P 500 for example) my inclination would be for my investments to be more conservative; maybe 50/50 AA, certainly not 80/20.

Go to advanced search