Search found 2670 matches

by Peter Foley
Sat Aug 29, 2015 11:13 pm
Forum: Investing - Theory, News & General
Topic: Is tax loss harvesting always worth all the fuss?
Replies: 68
Views: 8475

Re: Is tax loss harvesting always worth all the fuss?

I too am of the opinion that unless it is a significant loss it is not worth the effort. Everyone will, of course, have their own definition of "significant loss." For me this means a loss great enough to provide income offset for multiple years in addition to some cost basis readjustment ...
by Peter Foley
Tue Aug 25, 2015 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: Minimizing taxes in retirement
Replies: 6
Views: 997

Re: Minimizing taxes in retirement

You might want to consider going through the slides on the BH Wiki: Financial Literacy Project

[url]www.bogleheads.org/wiki/Bogleheads®_financial_literacy_project[/url] The topic is "Understanding Taxes"

www.bogleheads.org/wiki/Bogleheads®_financial_literacy_project
by Peter Foley
Thu Aug 20, 2015 11:07 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Mtg. Sat. August 1, 10:00 am
Replies: 6
Views: 992

Re: MN Bogleheads Mtg. Sat. August 1, 10:00 am

For anyone interested, a slightly modified version of the PowerPoint for the Glide Path/Target Retirement presentation (August 1, 2015 meeting) was posted to the Bogleheads' Financial Literacy Project.

Thanks to Sandra, Diann, and Barb for their help on this project.
by Peter Foley
Tue Aug 18, 2015 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawal strategies for various stages of retirement
Replies: 12
Views: 1546

Re: Withdrawal strategies for various stages of retirement

You are definitely on the right track. I would suggest a slight expansion of your "periods" strategy: 1. Pre 59.5 (noting that while you can withdrawal prior to that without penalty if you follow certain rules - age 55 is also a key factor) 2. Pre Social Security (delaying until at least a...
by Peter Foley
Thu Aug 13, 2015 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner AA and Portfolio Questions
Replies: 2
Views: 273

Re: Beginner AA and Portfolio Questions

First, you seem very risk adverse at age 44 (60% bonds). You need to decide your AA and carry out a plan to get there. It's cool to be "retired" financially, but this seems low. I agree with gvsucavie03 . If you are truly this risk averse, dollar cost average into Total Stock Market in yo...
by Peter Foley
Thu Aug 13, 2015 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: withdrawl strategies across tax and non-tax advantaged assets
Replies: 14
Views: 1489

Re: withdrawl strategies across tax and non-tax advantaged assets

While there are some principles that might be followed, withdrawal strategies are not so rigid as to suggest that one size fits all. For individuals who have a mix of assets sufficient to meet their needs spread across taxable and tax advantaged accounts, the strategy that makes the most sense is on...
by Peter Foley
Thu Aug 13, 2015 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation question
Replies: 3
Views: 393

Re: Asset allocation question

Your choices and percentages are fine - well within the usual parameters recommended by folks here. I would not do it the way you proposed, but that is just personal preference not based on any studies I have done nor read. Note - age is a factor - what I would do if I were 30 is different than what...
by Peter Foley
Sun Aug 09, 2015 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Cash in my mattress
Replies: 8
Views: 1759

Re: Cash in my mattress

I would agree - look at lifestrategy funds in the range of 40% to 60% equities. You might also consider Wellesley or Wellington.
by Peter Foley
Fri Aug 07, 2015 7:52 pm
Forum: Local Chapters and Bogleheads Community
Topic: Congrats to Laura Dogu
Replies: 61
Views: 5818

Re: Congrats to Laura Dogu

Enhorabuena Laura.
by Peter Foley
Fri Aug 07, 2015 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Help with Mediocre 457 Plan
Replies: 6
Views: 451

Re: 3 Fund Portfolio Help with Mediocre 457 Plan

I agree with Duckie . . . just in case you want affirmation/confirmation of the advice he gave. Use the low cost 500 index fund equivalent and then replicate total stock market by adding midcap elsewhere. Using a more bond heavy Target retirement fund in conjunction with these is certainly the least...
by Peter Foley
Wed Aug 05, 2015 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: 1 year reading Bogleheads and this is what I have to show for it
Replies: 23
Views: 3500

Re: 1 year reading Bogleheads and this is what I have to show for it

I would take a much simpler approach until I had at least $25,000 invested. Your contributions, not your AA, will be the primary driver of your account balances for years to come. Stick to just 2-3 funds and replicate them in various accounts.
by Peter Foley
Wed Aug 05, 2015 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on this allocation/glide path
Replies: 13
Views: 1239

Re: Opinions on this allocation/glide path

Wade Pfau recently published a research paper regarding glide paths. He recommends a "rising equity guide path." I think he makes a lot of sense. There was a recent thread on this topic if you want to search for it. Here is a quote: Wade Pfau – Rising Equity Glide Path "the optimal eq...
by Peter Foley
Tue Aug 04, 2015 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: A retiree's Investment Policy Statement
Replies: 32
Views: 3400

Re: A retiree's Investment Policy Statement

A couple additional items I have in my investment policy statement: When we would start taking SS. Roth conversions. A spending plan, which accounts (taxable or non taxable) to tap for income with an eye toward keeping taxes fairly level prior to and after RMDs. Yours is well done and you may not ha...
by Peter Foley
Tue Aug 04, 2015 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement options and jobs
Replies: 6
Views: 1004

Re: Retirement options and jobs

With a 457 account and a 403b account available this sounds like a public college or university. You cannot get a 457 account with a private employer. One factor to consider is your retirement date. 457 accounts allow withdrawals without penalty after separation from service regardless of age. If I ...
by Peter Foley
Tue Aug 04, 2015 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Someone to advise my mom on RMD, taxes, allocation, gifting, etc.
Replies: 3
Views: 291

Re: Someone to advise my mom on RMD, taxes, allocation, gifting, etc.

What she really needs is someone who can set up a 3-5 year spending plan. That plan would cover from where she should draw funds for current spending and gifts - with an eye to current and future tax obligations. If you provided some details about her tax bracket, her income from SS and other source...
by Peter Foley
Mon Aug 03, 2015 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: the math of paying off debt vs investing
Replies: 15
Views: 2010

Re: the math of paying off debt vs investing

While I don't doubt your calculations, I would approach this decision differently. What is the interest rate on the debt? What is the interest rate after taxes (some interest, e.g., home mortgage, is deductible)? What interest rate can you get in a really safe medium term investment - say 5 years or...
by Peter Foley
Sun Aug 02, 2015 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Help with Sale of Grandmother's Home
Replies: 15
Views: 1308

Re: Help with Sale of Grandmother's Home

Check out "Selling Your Home" in IRS Pub. 17. [From the 2013 edition, page 110] To exclude gain under the rules of this chapter, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. Page 112 ...
by Peter Foley
Sun Aug 02, 2015 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Could Use Some Investment Advice
Replies: 4
Views: 404

Re: Could Use Some Investment Advice

You have some good low cost options in your 457. I would suggest using the SSGA Bond Index for most (if not all) of your bond allocation. You might consider putting 5% of your bond allocation into the stable value fund. Both the S&P 500 index fund and the mid cap fund have low expense ratios so ...
by Peter Foley
Sat Aug 01, 2015 2:55 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Mtg. Sat. August 1, 10:00 am
Replies: 6
Views: 992

Re: MN Bogleheads Mtg. Sat. August 1, 10:00 am

We had 28 individuals at the meeting today. The Glide Path strategies panel discussion seemed well received and the audience participated actively. Lots of good questions. There were a half dozen or so new attendees and I heard positive feedback from a couple of them. The most popular breakout sessi...
by Peter Foley
Fri Jul 31, 2015 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: 457 asset allocation
Replies: 12
Views: 750

Re: 457 asset allocation

I was 80/20 until about age 50 (year 2000). The dot com bust dropped me to about 70/30 and I stayed there. This was before I knew about Bogleheads, risk tolerance and index fund investing. Knowing what I know today (including knowing my risk tolerance better) I was a little too aggressive. Hindsight...
by Peter Foley
Fri Jul 31, 2015 2:20 pm
Forum: Investing - Theory, News & General
Topic: How has the 4% rule held up since the tech bubble and the 2008 crisis
Replies: 45
Views: 6892

Re: How has the 4% rule held up since the tech bubble and the 2008 crisis

Broken Man 1999 wrote: Our AA during the 2008 downturn was around 65% equities, 35% bonds. We didn't rebalance. In February of 2013, I changed our AA to 50% equities and 50% bonds, to better reflect our reaching age of 60. Leaning to keeping that ratio, perhaps simplifying our portfolio using three ...
by Peter Foley
Fri Jul 31, 2015 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab vs. Fidelity vs. Vanguard for Advisor Custodian Account
Replies: 15
Views: 1075

Re: Schwab vs. Fidelity vs. Vanguard for Advisor Custodian Account

I'm a little biased because I have been with Schwab for many years. I like Schwab and have been pleased with their services and low fees. We have an account adviser, but she is not custodial. I'm not sure what kind of an account you are looking to set up. Could you please clarify? I have regular, IR...
by Peter Foley
Wed Jul 29, 2015 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Independent Contractor (IC) vs. Regular Employee (RE)
Replies: 11
Views: 768

Re: Independent Contractor (IC) vs. Regular Employee (RE)

Very good point made by flying bison and others. Note that it is not just income taxes which are at issue here. Workers compensation coverage and unemployment taxes are also an issue. The Unemployment Insurance Program actively audits employers. One of their goals is to identify misclassified worker...
by Peter Foley
Wed Jul 29, 2015 9:31 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Mtg. Sat. August 1, 10:00 am
Replies: 6
Views: 992

Re: MN Bogleheads Mtg. Sat. August 1, 10:00 am

I just saw this article mentioned in another thread. It is related to the 4% withdrawal rate revisited breakout. A very interesting article on the Kitces Blog, discussing how the 4% Rule has done since 2008 and the Tech Bubble at : https://www.kitces.com/blog/how-has-the-4-rule-held-up-since-the-tec...
by Peter Foley
Tue Jul 28, 2015 9:50 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Mtg. Sat. August 1, 10:00 am
Replies: 6
Views: 992

Re: MN Bogleheads Mtg. Sat. August 1, 10:00 am

We typically try to have one in depth topic each meeting but try to set the stage for such a discussion by doing a quick review of the relevant basics for any folks who are relatively new to the group or new to the philosophy. This time the topic is glide paths so the relevant basics are risk tolera...
by Peter Foley
Tue Jul 28, 2015 9:45 pm
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 45
Views: 2730

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

I too think the Wade Pfau approach makes sense (conservative at retirement with rising equity later). I've been doing this for a couple years just by happenstance.
by Peter Foley
Tue Jul 28, 2015 2:43 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Mtg. Sat. August 1, 10:00 am
Replies: 6
Views: 992

MN Bogleheads Mtg. Sat. August 1, 10:00 am

Who: All MN Bogleheads & guests What: Quarterly MN Boglehead meeting Where: Southdale Library (Ethel Room), 7001 York Avenue South, Edina, MN 55435, Directions: https://goo.gl/maps/dIkS4 When: Saturday, August 1st, 10:00 - noon Why: Discuss personal finances! How: With this agenda: O Welcome fir...
by Peter Foley
Mon Jul 27, 2015 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated
Replies: 79
Views: 5413

Re: Recent windfall - Currently 95% of assets in single stock - Tax and asset allocation advice appreciated

You mention that your wife is in school and will start working in a couple years. I would try to take a good portion of the capital gains before your wife begins to work. Because her first year of work will likely be a partial year, plan on a lot of capital gains over the next three years. Do you do...
by Peter Foley
Mon Jul 27, 2015 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Disclaiming IRA or 401k inheritance
Replies: 3
Views: 440

Re: Disclaiming IRA or 401k inheritance

I am not an attorney, but I am not sure one can disclaim "part" of an IRA or 401k. The approach my wife and I took was to each designate our children as beneficiaries of one of our multiple retirement. For example, my wife is my beneficiary on my IRAs and my daughters are beneficiaries on ...
by Peter Foley
Mon Jul 27, 2015 7:40 pm
Forum: Personal Consumer Issues
Topic: FWD vs AWD (Vehicle)
Replies: 76
Views: 4140

Re: FWD vs AWD (Vehicle)

I live in Minnesota so snow is a significant factor in terms of vehicle choice and tire choice. We have had a FWD car and an AWD small SUV for the past 10 years. We tend to drive the AWD more in the winter. It was my wife's go to car for commuting. As mentioned tires also make a big difference. Read...
by Peter Foley
Mon Jul 27, 2015 7:30 pm
Forum: Investing - Theory, News & General
Topic: 50/50 asset allocation
Replies: 69
Views: 6153

Re: 50/50 asset allocation

There are many variables at play so the answer cannot be one that is "one size fits all". If you are cutting things close with regards to having sufficient assets to cover 30 years of retirement, it would be prudent to be more conservative. If you have some wiggle room in terms of extra mo...
by Peter Foley
Sat Jul 25, 2015 7:11 pm
Forum: Investing - Theory, News & General
Topic: Slice and Dice: why not?
Replies: 84
Views: 4978

Re: Slice and Dice: why not?

A lesson based on compound interest tables. Let's say slice and dice results in a 1% greater gain over a particular time period. For a 10 year time period the difference will be relatively meaningless. Over a 20 year period there will be a reasonable gain, but probably not enough to impact one's lif...
by Peter Foley
Sat Jul 25, 2015 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Question about my Roth & Traditional IRAs
Replies: 9
Views: 712

Re: Question about my Roth & Traditional IRAs

There is really no reason to do the conversion now unless you know you will be in a higher tax bracket later. My opinion - the 15% tax bracket is a fairly low federal bracket. State income taxes may be in addition to this. So, if you expect to stay in the 15% bracket no need to spend the money to co...
by Peter Foley
Mon Jul 20, 2015 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice for Retiring Couple
Replies: 6
Views: 803

Re: Portfolio Advice for Retiring Couple

To the extent you are able to make your changes into low cost funds, you only need total stock market and total international for your equities. I don't know what your stable value fund pays, but on the bond side I would use a combination of total bond and stable value. If you are worried about infl...
by Peter Foley
Sun Jul 19, 2015 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: A retiree's personal experience...
Replies: 39
Views: 8246

Re: A retiree's personal experience...

I retired in 2012 at age 61.5 and my wife retired from her day job a couple months later at age 56. (She consulted in her field for about 2 years after retiring.) We had ridden out the great recession quite well and I became slightly more conservative as we moved out the recession in 2010 and 2011 -...
by Peter Foley
Fri Jul 17, 2015 11:35 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement within 1 year
Replies: 33
Views: 4748

Re: Retirement within 1 year

I won't make any recommendations as to how you should invest. I will point out that it is important to understand that there are two types of risk, market risk and inflation risk. You seem to be focused solely on market risk. You should also ask yourself, "How do I protect myself from inflation...
by Peter Foley
Fri Jul 17, 2015 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: Percentages of stocks/bonds
Replies: 7
Views: 758

Re: Percentages of stocks/bonds

As mentioned, there are a number of alternative AA theories. Therefore you can expect a wide variety of answers. A recent article I read suggested that one's AA is less important when one is (relatively) young because ongoing contributions have a large impact on AA. When I first had money to manage ...
by Peter Foley
Wed Jul 15, 2015 3:44 pm
Forum: Personal Consumer Issues
Topic: Are the more expensive bikes worth paying for?
Replies: 78
Views: 4479

Re: Are the more expensive bikes worth paying for?

I'm not an expert in gearing so maybe someone will chime in with more extensive knowledge. I tend to ride the same exercise route with two of my bikes. Going downhill with similar effort, my mountain bike pedals out at about 18-19 mph while my hybrid pedals out at about 21 mph. I think this is a com...
by Peter Foley
Wed Jul 15, 2015 3:18 pm
Forum: Personal Consumer Issues
Topic: Are the more expensive bikes worth paying for?
Replies: 78
Views: 4479

Re: Are the more expensive bikes worth paying for?

I should have said something about freewheels/cassettes and gearing in general as you mentioned more speed. Road bikes tend to be geared for more speed and mountain bikes are definitely geared for less top end speed. Hybrids, as the name implies are in the middle. I prefer the upright riding positio...
by Peter Foley
Wed Jul 15, 2015 2:55 pm
Forum: Personal Consumer Issues
Topic: Are the more expensive bikes worth paying for?
Replies: 78
Views: 4479

Re: Are the more expensive bikes worth paying for?

I've posted about bikes before from a couple points of view: As a Boglehead I don't want to spend a lot but I do want enough quality/value to make riding pleasant; also since retiring 3 years ago I have been working in a bike shop where we repair and restore older bikes. Many manufacturers have mult...
by Peter Foley
Wed Jul 15, 2015 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions please on moving our IRA's from target retirement into four funds
Replies: 7
Views: 499

Re: Opinions please on moving our IRA's from target retirement into four funds

I think your proposal is fine. Wade Phau, a respected academic, has done some research to suggest that one be conservative in the first years of retirement when they have the most assets at risk and the longest retirement time horizon. I would tend to agree with him especially if one does not have m...
by Peter Foley
Sun Jul 12, 2015 11:14 am
Forum: Personal Consumer Issues
Topic: Learning Spanish
Replies: 62
Views: 5244

Re: Learning Spanish

cfs and hexdump wrote versions of the following with some corrections: Aprender español es fácil. Aprender espanol no es facil, es muy dificil para mi. Pero estas recomendaciones estan muy buenas. Y aqui estan mis tres centavos. Mil gracias. Here is how I would say it if speaking to someone from Lat...
by Peter Foley
Sun Jul 12, 2015 11:03 am
Forum: Personal Consumer Issues
Topic: Learning Spanish
Replies: 62
Views: 5244

Re: Learning Spanish

I'm a former college level Spanish teacher with a Ph.D. in Spanish Linguistics. Based on my own study abroad experience while in college and my years of teaching in the US and in Spain (for a semester), the real key is a tutor if you want to learn to speak. Yes, there are exercises that can help wit...
by Peter Foley
Sat Jul 11, 2015 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Where are people putting their investment money if they see a correction coming in US stock market
Replies: 69
Views: 7725

Re: Where are people putting their investment money if they see a correction coming in US stock market

A market correction would be a great opportunity to do a Roth conversion at a lower tax cost. (I'd like to convert about 50% of my TIRA, so if the market were down when I did so I would pay less in taxes.)
by Peter Foley
Mon Jul 06, 2015 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: retiring by end of year, maybe sooner
Replies: 31
Views: 3772

Re: retiring by end of year, maybe sooner

It would be nice to have some more confirmed details before offering advice. Are you married (and filing jointly)? Are you (and your wife?) currently receiving the pension income you mention? What are your annual expenses? With a high percentage of your retirement funds in a deferred account, a coup...
by Peter Foley
Wed Jul 01, 2015 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Help with investment for my Mother
Replies: 5
Views: 542

Re: Help with investment for my Mother

I would look into something like an Ally bank guaranteed shorter term CD. You might get something in the 2% range. That is safe, conservative and liquid.
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: 5057

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: 1339

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: 1439

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: 7588

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...

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