Search found 2624 matches

by Peter Foley
Tue Jun 23, 2015 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Best Advice [Best single piece of advice to give a new investor]
Replies: 56
Views: 4361

Re: Best Advice [Best single piece of advice to give a new investor]

The best single piece of advice to give a person is live below your means.

Now that that person (new investor) has money to invest there have been a number of good suggestions already mentioned. One that I think is important is don't invest in something that you don't understand.
by Peter Foley
Mon Jun 22, 2015 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation across multiple accounts
Replies: 9
Views: 1278

Re: Asset allocation across multiple accounts

You have a good plan. It is well diversified and appropriate for your age. As livesoft suggests, be a bit flexible with the AA percentages. Directing your deposits will likely provide the rebalancing effect you will need for many years.
by Peter Foley
Mon Jun 22, 2015 8:46 pm
Forum: Investing - Theory, News & General
Topic: Stable Value Fund & Bonds
Replies: 9
Views: 1280

Re: Stable Value Fund & Bonds

My wife and I both have access to stable value funds yielding 3.5% to 4.25%. Well over 50% of our non equity portfolio is there. I don't really view it as a substitute which would allow me to be more aggressive elsewhere. I view is as a conservative approach to limiting risk in non equities. I do ho...
by Peter Foley
Mon Jun 22, 2015 4:41 pm
Forum: Personal Consumer Issues
Topic: Your Top 10 Books
Replies: 56
Views: 6812

Re: Your Top 10 Books

Interesting thread - I'm seeing books listed that I really liked but haven't thought of in years: To Kill a Mockingbird, Dune, Catcher in the Rye, The Stranger ( which I read in French and enjoyed - I think I understood it pretty well.) If you want to throw in a theater piece, La Vida es Sueño (Life...
by Peter Foley
Mon Jun 22, 2015 4:31 pm
Forum: Personal Consumer Issues
Topic: Canoe recommendations
Replies: 23
Views: 1750

Re: Canoe recommendations

I own an older 17' aluminum Grumman. It is a fine canoe if you are planing to use it in running water where there is a chance of hitting rocks. A better canoe for lakes is a Wenonah. Their Sundowner is a fine canoe, made of Kevlar, and is durable and lighter than an aluminum canoe. It also paddles m...
by Peter Foley
Sat Jun 20, 2015 10:38 pm
Forum: Investing - Theory, News & General
Topic: Does the tax efficiency of fund placement depend on your time horizon?
Replies: 24
Views: 1811

Re: Does the tax efficiency of fund placement depend on your time horizon?

A simple answer is yes it can. Consider the following scenario: You are relatively high income and are approaching RMD's (fairly short time horizon). You have a significant portion of your savings in tax deferred accounts. RMD's will result in fairly high federal and state income taxes. It may be to...
by Peter Foley
Sat Jun 20, 2015 9:03 pm
Forum: Personal Consumer Issues
Topic: Your Top 10 Books
Replies: 56
Views: 6812

Re: Your Top 10 Books

Pezblanco wrote: What??? And where is Ficciones and El Aleph??? I considered listing Ficciones, but I was trying to stay away from short story collections. I took a graduate seminar on Borges and have read all his short stories and poetry. If one were to include short stories I would also list Guerr...
by Peter Foley
Fri Jun 19, 2015 9:33 pm
Forum: Personal Consumer Issues
Topic: Your Top 10 Books
Replies: 56
Views: 6812

Re: Your Top 10 Books

1. 1984 2. 100 Years of Solitude 3. Lord of the Rings (trilogy) 4. Azimov's Foundation trilogy 5. Lazarillo de Tormes 6. Don Quijote 7. Este Domingo (This Sunday - Donoso) 8. The Only Investment Guide You Will Ever Need 9. Gifts Differing (a Myers-Briggs book) 10. Learned Optimism (Martin Seligman -...
by Peter Foley
Wed Jun 17, 2015 9:15 pm
Forum: Personal Consumer Issues
Topic: The cost of walking el Camino de Santiago
Replies: 72
Views: 7967

Re: The cost of walking el Camino de Santiago

I have thought about doing the Camino as a linguistic experience. (I speak Spanish, French, and some Portuguese and Italian.) This would only make sense if there were groups of individuals who spoke those languages along the way. Staying in touch with some individuals that one might meet would be a ...
by Peter Foley
Wed Jun 17, 2015 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: AA - how to reach a compromise?
Replies: 21
Views: 2110

Re: AA - how to reach a compromise?

If you review the asset allocation pages in the wiki you will come across this - We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with a consequence inverse range of 75% to 25% in bonds. There is an impl...
by Peter Foley
Tue Jun 09, 2015 11:06 pm
Forum: Personal Consumer Issues
Topic: Social Security: "file and suspend" ?
Replies: 7
Views: 1346

Re: Social Security: "file and suspend" ?

NYNative

Just to follow up on Mike's comment . . . the likely reason for unsuspending back to your FRA would be some major change in one's life. A change in one's health, a catastrophic expense, death of a spouse are a short list of possibilities.
by Peter Foley
Mon Jun 08, 2015 11:02 pm
Forum: Personal Consumer Issues
Topic: Social Security: "file and suspend" ?
Replies: 7
Views: 1346

Re: Social Security: "file and suspend" ?

JohnFiscal wrote: In my opinion, not only is it desirable to maximize SS but you really need to optimize the entire retirement income stream/assets. Considering maximizing SS can't be done in isolation without regard to the effect on other assets. John - I certainly agree. One of the key considerati...
by Peter Foley
Fri May 29, 2015 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Plan
Replies: 10
Views: 773

Re: 529 Plan

Utah and New York both have highly rated 529 plans. The chance of investor panic with a 529 plan are relatively low in my estimation. You are being sold a bill of goods by your broker. Go elsewhere. He is acting in his best interest, not yours. Quite frankly, after this transaction and his response ...
by Peter Foley
Fri May 29, 2015 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax-Effective Retirement Distibution Strategy Advice Requested
Replies: 26
Views: 1883

Re: Tax-Effective Retirement Distibution Strategy Advice Requested

Because of their tax efficiency I would use total stock market and total international in taxable. Keep in mind that you are not putting more money into equities, you are just swapping a portion of your equities in your tax deferred account with your taxable account. I'm in my third year of doing Ro...
by Peter Foley
Thu May 28, 2015 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: When to go conservative, College near
Replies: 4
Views: 663

Re: When to go conservative, College near

My personal experience influences my advice. I waited too long. I had too much in equities when my eldest daughter started college in 2000. At that time I held 1 year in bonds and 3 years in stocks. It should have been the reverse. I suffered from recency bias. Previous downturns had been very brief...
by Peter Foley
Thu May 28, 2015 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax-Effective Retirement Distibution Strategy Advice Requested
Replies: 26
Views: 1883

Re: Tax-Effective Retirement Distibution Strategy Advice Requested

randomguy wrote: 1) There is no reason for you hold any stocks in a tIRA right now. All the stocks you hold should be in taxable. You are not trying to grow your tax deferred space. You are trying to drain it efficiently. 2) Once you take stocks out of the tIRA, it solves much of the RMD issues. It ...
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: 7294

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: 2454

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: 3942

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: 2675

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: 2468

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: 1847

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: 1127

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: 1127

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: 777

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: 2103

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: 2765

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: 2290

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: 730

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: 5875

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: 1414

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: 5328

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: 1557

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: 48
Views: 8399

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: 48
Views: 8399

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: 1287

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: 1843

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: 1910

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: 7199

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: 1485

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: 870

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: 3034

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: 3034

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: 2266

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: 3034

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: 1125

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: 2047

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: 1088

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: 5608

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: 613

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...

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