Search found 2222 matches

Return to advanced search

Re: When to take Social Security

sscritic can correct me if I'm wrong, but I believe that SS stops indexing one's wages to inflation for benefit calculation purposes at about age 60. If your wages are truly flat from age 66 to 70, the additional earnings may not matter at all. Again, technovelist is correct, if you don't have 35 ye...
by Peter Foley
Fri Aug 29, 2014 3:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: When to take Social Security
Replies: 4
Views: 559

Re: Which book to start with?

Based on your college studies, I too would recommend starting with the Bogleheads' Guide to Investing. After that I would recommend the Four Pillars of Investing (Bernstein) as that will provide you with a good understanding of the rationale behind index investing. From there I would go to Rick Ferr...
by Peter Foley
Fri Aug 29, 2014 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which book to start with?
Replies: 6
Views: 290

Re: Looking for advice/critique

Stephan wrote: Questions: 1. Is our international and emerging, as compared to domestic equity allocation unhelpfully aggressive, even with a 30-40 year time horizon? I'm fine with your choices given the long time horizon. 2. Should we be putting less money towards extra principal on our mortgage? N...
by Peter Foley
Thu Aug 28, 2014 9:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Looking for advice/critique
Replies: 12
Views: 1183

Re: Wiki revised - Employer Retirement Plan Overview

While the wiki may be using the language of the DOL website, as a participant in a government 457b plan, and with fair knowledge of my wife's 403b (University) plan, I find some of the terminology confusing. I will provide a couple examples. Government 457b plan is a "non-qualified tax-deferred...
by Peter Foley
Thu Aug 28, 2014 9:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wiki revised - Employer Retirement Plan Overview
Replies: 5
Views: 533

Re: Roths and Roth Converstions re tax Planning

Does your employer offer a Roth 401k? If yes then that might be a good approach for your last (partial) year of employment. It will count as income, but as long as you stay in the 15% bracket overall you are probably being pretty tax efficient. I retired in May of 2012 and switched my contributions ...
by Peter Foley
Thu Aug 28, 2014 6:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roths and Roth Converstions re tax Planning
Replies: 16
Views: 926

Re: Who else's IRA would you (do you) fill?

Off and on we have contributed to our daughters' Roths. Neither they, nor their husbands, are in high paying jobs but they are all doing okay and are careful with their money. The cost of daycare has not allowed them much breathing room financially over the past year so I expect we will help out for...
by Peter Foley
Thu Aug 28, 2014 6:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who else's IRA would you (do you) fill?
Replies: 18
Views: 1191

Re: Personal Financial Planning question

There seem to be a very broad array of services for sale. You can hire a retirement coach, for example. I would guess that there are few "needs" that are not available for purchase. IMHO, it is the cost of those services and perhaps their availability (in person) in less populated areas th...
by Peter Foley
Tue Aug 26, 2014 4:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Personal Financial Planning question
Replies: 4
Views: 489

Re: Schwab - now endorsing Index Funds

I have owned the Schwab 1000 fund in an IRA since inception in 1991. My only taxable stock mutual fund holding is the Schwab Total Market fund. They were into index funds early. Some (all?) of their funds are proprietary and use sampling to approximate indexes.
by Peter Foley
Tue Aug 26, 2014 3:46 pm
 
Forum: Investing - Theory, News & General
Topic: Schwab - now endorsing Index Funds
Replies: 24
Views: 2094

Re: What are you up YTD?

Since it is not mid year,, nor year's end and I am a long way from any rebalancing bands, I have no clue. Since I only own a couple of stock mutual funds, I could look up what I am up there. But that represents less than half my portfolio. One advantage of having a conservative portfolio ( based on ...
by Peter Foley
Tue Aug 26, 2014 3:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: What are you up YTD?
Replies: 94
Views: 6263

Re: using the 15% tax bracket

Rusty wrote Peter Foley wrote: Rusty wrote: Yeah, no one gets excited when I describe my two-class strategy either. Reckon it's too much trouble I guess. I'm starting to think that too, as I invariably keep the equity conversion. Of course, I've only employed the strategy since 2010, and one of thes...
by Peter Foley
Mon Aug 25, 2014 9:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4304

Re: Schwab Financial Consultant

123 wrote I've had a Schwab account for a long time. I've found they generally will respect your request not to be called. Just tell them you're a "do-it-yourselfer". If you contact them to ask for product information that's not online they may call you to follow-up. I've found they may ca...
by Peter Foley
Mon Aug 25, 2014 9:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Schwab Financial Consultant
Replies: 10
Views: 917

Re: Death of family member - what to do financially

In addition to looking at entries in the check and checking the mail, I would review income tax forms over the past few years. If there were any additional bank account there should have been an interest statement. As to the safe deposit box key. I had two keys to my box and forgot to surrender one ...
by Peter Foley
Mon Aug 25, 2014 8:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Death of family member - what to do financially
Replies: 26
Views: 3195

Re: S&P500 over 2000

Doubling over the part 16 years has been very profitable for those who stayed the course with periodic investing to their deferred accounts. The period included a couple of major recessions when additional shares could be purchased a bargain prices.
by Peter Foley
Mon Aug 25, 2014 2:48 pm
 
Forum: Investing - Theory, News & General
Topic: S&P500 over 2000
Replies: 68
Views: 5319

Re: Trying to understand the 1040 Tax Table

If you use Turbo Tax and run multi-year comparisons, it will list your current year tax rate (11.25% for example). They refer to it as your "effective tax rate".
by Peter Foley
Mon Aug 25, 2014 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trying to understand the 1040 Tax Table
Replies: 36
Views: 2270

Re: using the 15% tax bracket

Rusty wrote: Yeah, no one gets excited when I describe my two-class strategy either. Reckon it's too much trouble I guess. I'm starting to think that too, as I invariably keep the equity conversion. Of course, I've only employed the strategy since 2010, and one of these days the equity will under-pe...
by Peter Foley
Sun Aug 24, 2014 9:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4304

Re: 87 Year Old Grandmother Has $600,000 In the Bank

If they are open to suggestions I would be inclined to simplify if the tax consequences were not too great. There may be a lot of long term capital gains that could receive a stepped up basis at some point in time. This would complicate the calculation.
by Peter Foley
Sat Aug 23, 2014 9:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: 87 Year Old Grandmother Has $600,000 In the Bank
Replies: 42
Views: 5470

Re: Do you take all of your allowed paid vacation time?

The amount of vacation time I received and the amount I took changed over my 31 years with my employer. In the early years I got two weeks and took almost all of it - I always tried to save a couple days for emergencies. When I got to the 5 weeks vacation plateau, I continued to use most of it but s...
by Peter Foley
Sat Aug 23, 2014 9:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you take all of your allowed paid vacation time?
Replies: 88
Views: 5620

Re: To be truly rich, take stock of your life before investi

Meg77 wrote: Linking your financial goals to your values helps you stay motivated to reach them. It can also encourage you to spend in line with things that really matter to you. That vacation could be just an expense, or it could be the achievement of a small financial goal which embodies your valu...
by Peter Foley
Sat Aug 23, 2014 12:15 am
 
Forum: Investing - Theory, News & General
Topic: To be truly rich, take stock of your life before investing
Replies: 30
Views: 4498

Re: using the 15% tax bracket

Rusty

I think your basic premise, use the 15% tax bracket to your advantage is sound. How one can best use it will vary based on where assets are held, from where it makes sense to draw funds to live on, and the potential for stepped up basis for heirs.
by Peter Foley
Fri Aug 22, 2014 8:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4304

Re: just out of the gate, thanks for your help

While you are in the 25% tax bracket I would prefer to see you defer income rather than fund a Roth. If you can reduce your income to the 15% bracket, then I would pay off some of the student loans. Consider the student loan payoffs a bit like a bond investment. Why would you invest in bonds at thei...
by Peter Foley
Fri Aug 22, 2014 12:23 am
 
Forum: Investing - Help with Personal Investments
Topic: just out of the gate, thanks for your help
Replies: 11
Views: 1080

Re: Motorcycle for short commute?

toto

Just a thought. Before you invest in a scooter, why don't you see if you can rent it for a week? That would give you an appreciation for how safe you feel and if you can arrive at work comfortably in spite of the summer heat.
by Peter Foley
Thu Aug 21, 2014 3:43 pm
 
Forum: Personal Consumer Issues
Topic: Motorcycle for short commute?
Replies: 63
Views: 3699

Re: So am I a terrible father? [inheritance question]

dickenjb wrote Ideally you do not leave money to your heirs in an TIRA at all. (my emphasis) In order of preference: 1) Roth IRA - earns tax free for life of heir 2) Appreciated assets in taxable account - basis gets stepped up at death 3) TIRA - withdrawals are taxed This is my philosophy as well. ...
by Peter Foley
Thu Aug 21, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: So am I a terrible father? [inheritance question]
Replies: 31
Views: 4453

Re: Why only stocks in a taxable account at retirement?

While I, like many others, also mix some bonds in taxable, I think the real premise that needs to be challenged is withdrawals from taxable, tax deferred and Roth in that order. dh states: The rigid strategy of taxable, followed by IRA, followed by Roth seems to not use those lower tax brackets very...
by Peter Foley
Wed Aug 20, 2014 4:03 pm
 
Forum: Investing - Theory, News & General
Topic: Why only stocks in a taxable account at retirement?
Replies: 26
Views: 1843

Re: Retiree Poll: Do you do any volunteer work?

It is hard to define "a lot". I regularly volunteer 3-4 days a week for 2-4 hours a day. Last fall, in addition to my regular volunteer stint I volunteered for 4/hours per day for 20 days over a two month period. I checked "a lot".
by Peter Foley
Wed Aug 20, 2014 1:01 pm
 
Forum: Personal Consumer Issues
Topic: Retiree Poll: Do you do any volunteer work?
Replies: 32
Views: 2308

Re: Roth IRA Question

At your age I would put it all in the LifeStrategy Growth Fund. See how you handle things during a market correction and then decide if you have made an accurate assessment of your risk tolerance.
by Peter Foley
Tue Aug 19, 2014 11:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Question
Replies: 7
Views: 445

Re: Vanguard allocation Question

I would prefer to go with the second option that DSInvestor suggests. Take a look at the Callan Table and you will see that investment returns vary a lot for market segments. I think it is best to hold the whole market.
by Peter Foley
Tue Aug 19, 2014 11:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard allocation Question
Replies: 4
Views: 664

Re: Rebalancing After a Correction

Go back and read the Trinity Study and some of the other studies/papers on withdrawal rates. Based on these analyses I think the sweet spot is somewhere between 40% and 60% equities. You are getting a little on the low side for my taste. With an already low withdrawal rate, is there a need to be so ...
by Peter Foley
Tue Aug 19, 2014 11:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rebalancing After a Correction
Replies: 13
Views: 1313

Re: Retirement Planning

I think when you are in the 25% tax bracket or higher it generally makes sense to max out your deferred space. At very high income levels ($300,000 AGI) you start to lose deductions (ATRA phaseout) and may have additional taxes relative to the Affordable Care Act. I can imagine two physicians gettin...
by Peter Foley
Tue Aug 19, 2014 11:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning
Replies: 14
Views: 1529

Re: Bad(?) advice given about Target Date Retirement funds

While I have a slight preference for Life Strategy Funds over Target Retirement Funds, it is not always possible to use the LS funds. If you review the portfolios posted by individuals seeking advice it is very common to see an array of TR funds in the individual's 401k or 403b. LS funds do not seem...
by Peter Foley
Mon Aug 18, 2014 8:58 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6367

Re: So am I a terrible father? [inheritance question]

There are a number of books about wealth and happiness. The research suggests that after reaching a certain level of income, additional income does not equate with a concomitant increase in happiness. I would do what I could to help relieve my daughter of her most basic money worries so that she cou...
by Peter Foley
Mon Aug 18, 2014 8:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: So am I a terrible father? [inheritance question]
Replies: 31
Views: 4453

Re: Retirement Planning

Your clarifying statement regarding your professions was helpful. Given your tax bracket I would suggest that you contribute the $10,000 to your 403b. While not great, you have S&P 500, Mid Cap and Small Cap options that are not horrible. For the time being I would invest there. You might consid...
by Peter Foley
Sun Aug 17, 2014 10:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning
Replies: 14
Views: 1529

Re: Point of clarification - ETFs in Roth

Aside from the tax issues, there may be a greater cost to purchase ETF funds on a periodic basis than buying shares of an equivalent mutual fund. Even though transaction fees for stock and ETF purchases have come down considerable at some brokerages, I would not want to pay those charges every two w...
by Peter Foley
Sat Aug 16, 2014 10:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Point of clarification - ETFs in Roth
Replies: 12
Views: 569

Re: When did you downsize?

We "rightsized" 4 years after our youngest daughter finished graduate school. The two are unrelated as she really did not live at home when she was in grad school. We "rightsized" one year prior to our retirement. I use the term rightsize because our finished square footage did n...
by Peter Foley
Sat Aug 16, 2014 10:42 pm
 
Forum: Personal Consumer Issues
Topic: When did you downsize?
Replies: 35
Views: 3263

Re: Is the goal in sight? Should I relax?

betterinvestor2012 asked" To your point, I do wonder if people's savings increase closer to retirement. I am interested if most people find that to be true. In our case it did, and I would hazard a guess that is the case for many dual income couples. During our last 5 years of employment we bot...
by Peter Foley
Fri Aug 15, 2014 9:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is the goal in sight? Should I relax?
Replies: 19
Views: 2324

Re: What Allocation Makes Sense

For someone who has their basic needs met and may not need their IRA funds in retirement, a very broad range of asset allocation percentages are acceptable. Mainstream advice would probably be somewhere between 40% and 60% stocks. If you didn't panic and sell during the last recession, the roughly 6...
by Peter Foley
Thu Aug 14, 2014 11:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Allocation Makes Sense
Replies: 9
Views: 1165

Re: Selling stocks and minimizing taxes

lmg Welcome to the forum. A few thoughts regarding how to minimize taxes. First, have you ever heard of a donor advised fund? If you give regularly to some charities, you could gift appreciated shares of stock rather than cash. A donor advised fund is an easy way to do so. You donate the stock to th...
by Peter Foley
Tue Aug 12, 2014 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Selling stocks and minimizing taxes
Replies: 16
Views: 792

Re: Motorcycle for short commute?

First of all I live in Minnesota, so perhaps not a valid comparison. I commuted on a motorcycle April thru October for over 20 years. The distance was about 5-6 miles one way. Going into work was never a problem, even on a hot, humid summer day. It was about 15 minutes on local streets. If I were do...
by Peter Foley
Tue Aug 12, 2014 3:10 pm
 
Forum: Personal Consumer Issues
Topic: Motorcycle for short commute?
Replies: 63
Views: 3699

Re: Newly Minted Boglehead - Several Questions.

I think you have made some good selections and there is no significant need to change anything. You did not list what the expense ratios were for the funds in the 401k. If the Vanguard bond fund is low cost, I would increase my bond allocation there while at the same time decreasing my bond allocati...
by Peter Foley
Mon Aug 11, 2014 9:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newly Minted Boglehead - Several Questions.
Replies: 8
Views: 1085

Re: Where do you buy clothes?

I've been retired for a little over 2 years. The only clothing I've bought is underwear. By next spring I may need some athletic socks - probably Target. (I don't think I will ever need dress socks again.)

I buy running shoes from a local running store. I buy one pair a year.
by Peter Foley
Mon Aug 11, 2014 8:57 pm
 
Forum: Personal Consumer Issues
Topic: Where do you buy clothes?
Replies: 105
Views: 9107

Re: What's an acceptable stable value fund rate?

My personal opinion is that a stable value is not worth it if you are losing buying power. The 1.6% return is a guaranteed loss when we have been seeing inflation in the 2% range. I feel very fortunate to have sable value that ranges from 3.5 to 4.5 (depending on when the funds were deposited). Were...
by Peter Foley
Mon Aug 11, 2014 6:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: What's an acceptable stable value fund rate?
Replies: 18
Views: 1370

Re: Beginner, needing some pointers on finding info

Maybe I am missing something. I simply looked up Novartis in Yahoo Finance. I clicked on Novartis AG and the summary page showed an EPS of 3.92. The profile page indicates that it is a Swiss firm.

Did you want more recent data? Did you want to calculate it yourself?
by Peter Foley
Sat Aug 09, 2014 11:50 pm
 
Forum: Investing - Theory, News & General
Topic: Beginner, needing some pointers on finding info
Replies: 11
Views: 693

Re: Insulation Question

I've done blown in cellulose in two house I've owned and fiberglass bats in two others. I rented the machine to do the cellulose - a horribly messy job. Much worse for a do it your self project than unfaced fiberglass. Given the length of time you are going to be in the house I would use one of thos...
by Peter Foley
Sat Aug 09, 2014 11:35 pm
 
Forum: Personal Consumer Issues
Topic: Insulation Question
Replies: 25
Views: 2012

Re: Beginner, needing some pointers on finding info

Yahoo Finance is a good source. Type in the stock symbol and it will bring up a summary with EPS as one of the entries.
by Peter Foley
Sat Aug 09, 2014 1:55 pm
 
Forum: Investing - Theory, News & General
Topic: Beginner, needing some pointers on finding info
Replies: 11
Views: 693

Re: Any suggestions/feedback is appreciated

I agree with Duckie's answers, however . . . Do you and you wife both have income deferral possibilities through your employer? You = 401k?, Wife = 403b? If you do and taking advantage of these options gets you into the 15% bracket it is probably to your advantage to do so. Depending on what investm...
by Peter Foley
Fri Aug 08, 2014 8:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any suggestions/feedback is appreciated
Replies: 19
Views: 1086

Re: Asset allocations help

I would agree. You have access to the Spartan extended market and international funds for much lower cost than you are currently incurring with your small cap and international choices.
by Peter Foley
Fri Aug 08, 2014 5:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocations help
Replies: 2
Views: 195

Re: Energy & precious metal location within portfolio

I think one way to do this would be to own a broad commodities index that contained both energy (oil and gas) and some metals. If I were going to go this route I would expect some volatility and would therefore hold it in taxable for potential tax loss harvesting purposes.
by Peter Foley
Fri Aug 08, 2014 3:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Energy & precious metal location within portfolio
Replies: 8
Views: 608

Re: Timing cap gains & losses fun

I would be inclined to do as you are suggesting. You are probably in the 25% tax bracket (or higher) so you will have a loss in 2014 that is worth 25% in tax savings and a gain in 2015 that will likely cost you 15% in additional taxes. In addition, it might allow you to do a regular Roth in 2014. Th...
by Peter Foley
Fri Aug 08, 2014 11:11 am
 
Forum: Investing - Theory, News & General
Topic: Timing cap gains & losses fun
Replies: 8
Views: 476

Re: Questions from a novice

I too tend to lean toward tax deferred investing now if one is in the 25% tax bracket. I think if one is in the 15% bracket it is more of a toss up. My reasoning is that many people like to retire early or delay SS when they retire. These two groups of individuals often have a few low tax years wher...
by Peter Foley
Thu Aug 07, 2014 6:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions from a novice
Replies: 17
Views: 957

Re: Dilbert Creator: If everyone indexed...

Neil wrote: To be fair though, some investment advisers do recommend index funds, and some provide worthwhile financial planning services such as helping an investor look her financial picture as a whole, helping her determine her willingness and ability to take equity risk, and helping her maintain...
by Peter Foley
Thu Aug 07, 2014 4:04 pm
 
Forum: Investing - Theory, News & General
Topic: Dilbert Creator: If everyone indexed...
Replies: 28
Views: 3252

Re: An 'Inversion' Deal Could Raise Your Taxes

As you imply, if you hold a broad enough index fund this is not likely to be an issue. Some investors do like to invest in health care sector index funds. Some of these funds may see more capital gains distributions as companies are liquidated. Health care companies are not the only ones involved in...
by Peter Foley
Wed Aug 06, 2014 3:22 pm
 
Forum: Investing - Theory, News & General
Topic: An 'Inversion' Deal Could Raise Your Taxes
Replies: 14
Views: 1117
Next

Return to advanced search