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Re: Taxable account

Welcome to the forum. Do note that your retirement accounts and your wife's retirement accounts are independent. What you do with your accounts has no impact on hers.
by Peter Foley
Mon Oct 20, 2014 9:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable account
Replies: 3
Views: 655

Re: Shoes for Plantar Fasciitis?

I suffered from Plantar Fasciitis for a few years before figuring out what it was. I switched running shoes to a New Balance model designed to counter PF. It went away over the course of a couple months and has never returned. I was also told that I was wearing my shoes too long - that they were not...
by Peter Foley
Mon Oct 20, 2014 6:59 pm
 
Forum: Personal Consumer Issues
Topic: Shoes for Plantar Fasciitis?
Replies: 42
Views: 1429

Re: Help me choose... [Retirement withdrawal strategy]

I would go with either the age in bonds or the bucket approach. However, with more details I would be able to say more definitively which of those two I would prefer. Questions: 1. Do you expect to spend most, if not all of your retirement savings, or are you likely to leave a substantial inheritanc...
by Peter Foley
Sun Oct 19, 2014 11:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Help me choose... [Retirement withdrawal strategy]
Replies: 12
Views: 1204

Re: What will you do when you retire?

My solution to retirement activities took a lot of advance planning. 30 + years ago we had two children. We got them married off [ :wink: ] about 5 years ago. We retired in May of 2012 and our first grandchild was born in September (just after I had finished my to do list). Our second grandchild was...
by Peter Foley
Sun Oct 19, 2014 11:31 am
 
Forum: Local Chapters and Bogleheads Community
Topic: What will you do when you retire?
Replies: 37
Views: 3567

Re: Youngish Investor Advice?

Welcome to the forum. With little debt and some savings you are on track for your age. The following is from Fidelity: While every individual’s situation will differ greatly based on desired lifestyle in retirement, the average worker may replace 85 percent of his pre-retirement income by saving at ...
by Peter Foley
Fri Oct 17, 2014 6:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Youngish Investor Advice?
Replies: 6
Views: 660

Re: Teaching A Class, What Investment Advice Do I Give?

I've given a few seminars on investing. One of the visuals I use is the Callan table of investment returns. It shows that some outset classes out perform for a few years then under perform. I also talk about the psychology of investing - avoiding pain and seeking pleasure make us poorly wired for bu...
by Peter Foley
Thu Oct 16, 2014 3:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Teaching A Class, What Investment Advice Do I Give?
Replies: 19
Views: 1562

Re: Marginal Tax Rate Question/Confusion

While the 15% bracket tops out a $73,800 in 2014, that's not going to help much. After reducing your income with your 401k contributions, you will have about $130,000 in AGI. Estimate your itemized deductions at 20,000 and 4 exemptions @3950 = 15,800. That gets you to $95,000 in taxable income. Soli...
by Peter Foley
Thu Oct 16, 2014 3:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Marginal Tax Rate Question/Confusion
Replies: 16
Views: 1086

Re: Advice with medium-term investing

One option would be to invest in a utility fund that pays a decent dividend. This is not risk free, however, and you might want to make adjustments elsewhere to maintain your desired AA. IMHO 5 year CD rates are not a good option. With those, one is likely to lose buying power to inflation. There ar...
by Peter Foley
Thu Oct 16, 2014 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice with medium-term investing
Replies: 6
Views: 480

Re: Please help with my assest allocation I think I did it r

I think you got it right. You have a broadly diversified portfolio and have chosen low cost funds where available. That does not mean you couldn't do things a bit differently, as you are a little light on fixed income. ( I count only the stable value and her total bond.) Your choices in the 457b are...
by Peter Foley
Wed Oct 15, 2014 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please help with my assest allocation I think I did it right
Replies: 12
Views: 903

Re: Help on Turbo Tax Long term cap gains

I probably muddied the waters a bit. I know that neither pension is particularly generous, in fact one is fairly small.
by Peter Foley
Wed Oct 15, 2014 5:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help on Turbo Tax Long term cap gains
Replies: 21
Views: 1095

Re: Withdrawal Strategies

Without more details it is hard to say. If your father is single and is planning on income of $50,000 per year from various sources, a mix of withdrawals from taxable and tax deferred will likely give him the most spendable income (lower taxes) over a long period of time. At a modified AGI of $34,00...
by Peter Foley
Wed Oct 15, 2014 12:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawal Strategies
Replies: 4
Views: 454

Re: Help on Turbo Tax Long term cap gains

If I remember your situation correctly, your pension + you wife's pension + SS? might be what is causing the increase. Put in a smaller amount and see if it goes up. If it does it is probably an increase in taxation of SS benefits.
by Peter Foley
Tue Oct 14, 2014 6:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help on Turbo Tax Long term cap gains
Replies: 21
Views: 1095

Re: Roth or Traditional IRA

Something to consider: $73,800 in taxable income is the top of the 15% tax bracket. You make $110,000/ year. Let's ballpark your deductions and exemptions at $25,000 so that puts you at about $85,000 in taxable income. If you put $15,000 in your 401k, you will be at $70,000 in taxable income. That i...
by Peter Foley
Tue Oct 14, 2014 6:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional IRA
Replies: 5
Views: 363

Re: Am I on track? Please take a look.

You are doing just fine. Both Fidelity and Money Magazine recently had articles regarding age based savings. Here is a quote from Fidelity: While every individual’s situation will differ greatly based on desired lifestyle in retirement, the average worker may replace 85 percent of his pre-retirement...
by Peter Foley
Tue Oct 14, 2014 5:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I on track? Please take a look.
Replies: 4
Views: 667

Re: Relatively new here. What did you do in 2008/09

I was a relatively new Boglehead. I rebalanced a few times on the way down but could not pull the trigger to rebalance below about 1000 on the S&P 500. As I was planning on a late 2010 retirement I didn't feel I could put more at risk. I also rebalanced on the way up in 2010 and moved a bit towa...
by Peter Foley
Tue Oct 14, 2014 5:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Relatively new here. What did you do in 2008/09
Replies: 106
Views: 6686

Re: Please Help: Portfolio Advice

I like Duckie's suggestion. The main point I would make is that you can be very well diversified with a portfolio that is easier to manage. You have good choices in your 401k. You can limit your Roth to a single fund that compliments your other holdings.
by Peter Foley
Mon Oct 13, 2014 5:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please Help: Portfolio Advice
Replies: 2
Views: 272

Re: AA: taxable versus non-taxable and allocation calculatio

I don't regularly tax adjust my AA. I have done so but it is really just an estimate. What will your tax rate be when you make withdrawal from a 401K? Will you be in the 15% or 25% bracket when you take some profits in taxable? In other words, you can approximate, but it is really hard to be accurat...
by Peter Foley
Mon Oct 13, 2014 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: AA: taxable versus non-taxable and allocation calculations
Replies: 11
Views: 571

Re: Is Probate Required?

bsteiner I know from prior posting that you are an expert in this area. Doesn't probate for small estates depend primarily on state law? I know ownership of real estate can be an issue. My wife's parents are both in their mid 90's and she and her siblings have tried to simplify things in recent years.
by Peter Foley
Sun Oct 12, 2014 10:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Probate Required?
Replies: 9
Views: 845

Re: I Bonds - Best redemption strategy

I'm with John on this one . . . I'll hold them for as long a I can. I do believe that they can be cashed tax free for certain educational expenses - I don't know the details, but that may be part of the solution for some.
by Peter Foley
Sun Oct 12, 2014 10:47 am
 
Forum: Investing - Theory, News & General
Topic: I Bonds - Best redemption strategy
Replies: 13
Views: 1372

Re: Sell Taxable to Fund Roth?

I would say yes if you are in the 15% marginal tax bracket.
by Peter Foley
Sun Oct 12, 2014 10:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Sell Taxable to Fund Roth?
Replies: 6
Views: 464

Re: Fixed Income Investments In Tax Deferred Accounts?

rbj112 wrote: Conventional advice is also to delay withdrawals from the tax deferred accounts as long as possible, preferably until age 70 1/2 for the Required Minimum Distributions. The reason for not withdrawing from the tax deferred accounts is because 100% of that is subject to income tax upon w...
by Peter Foley
Sun Oct 12, 2014 10:41 am
 
Forum: Investing - Theory, News & General
Topic: Fixed Income Investments In Tax Deferred Accounts?
Replies: 6
Views: 488

Re: Portfolio Review Question

Be mindful that a government 457 account is more flexible in terms of withdrawals than a 401k. If you think your wife might retire early ( pre 59.5), the 457 is a no brainer.
by Peter Foley
Sat Oct 11, 2014 11:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Question
Replies: 18
Views: 1124

Re: Threshold for [Resetting Roth Conversion]

Alan S. wrote: I think more people use strategies less focused on minimizing the conversion cost and use recharacterization strategies on the back end of the time window. One popular strategy is to do multiple conversions invested in ways that have minimal correlation with each other. They will look...
by Peter Foley
Fri Oct 10, 2014 11:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Threshold for [Resetting Roth Conversion]
Replies: 14
Views: 1053

Re: Market at a glance: 52-week and today

This is a helpful perspective. Thanks.
by Peter Foley
Fri Oct 10, 2014 11:18 pm
 
Forum: Investing - Theory, News & General
Topic: Market at a glance: 52-week and today
Replies: 16
Views: 2753

Re: What to do after maxing out retirement fund?

Assuming the target retirement is in a 401k or equivalent, the two simple answers are to pay off all debt and to invest in taxable. Total stock market and total stock market international are usually recommended for taxable accounts. If this puts too much into stocks relative to bonds he could chang...
by Peter Foley
Fri Oct 10, 2014 11:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do after maxing out retirement fund?
Replies: 14
Views: 847

Re: Stable Income Fund vs. Total Bond Market

Welcome to the forum. I worked in government ( now retired) and had access to both a stable value and total bond. My stable value still pays 3.4%. While I used the two in combination I've reallocated to stable value over the past 5 years because I saw more risk in total bond and I was still able to ...
by Peter Foley
Fri Oct 10, 2014 8:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stable Income Fund vs. Total Bond Market
Replies: 32
Views: 2167

Re: Rebalancing Bands

One could argue either way. I prefer the 5% band if you are talking about major asset classes - and it takes a major move in the market to breech the band if you are about 50/50. I would guess the 10% band would allow one to let winners run a little more before rebalancing. The only time I've used b...
by Peter Foley
Fri Oct 10, 2014 8:50 pm
 
Forum: Investing - Theory, News & General
Topic: Rebalancing Bands
Replies: 15
Views: 1139

Re: New 457 plan - how much and how should I contribute?

My wife and I both had options for a government 457 and 403b. As mentioned the 457 is preferable if there are low cost options because of increased flexibility with regard to withdrawals. If your taxes will be higher in retirement (maybe you are inheriting a large traditional IRA for example) I woul...
by Peter Foley
Fri Oct 10, 2014 3:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: New 457 plan - how much and how should I contribute?
Replies: 8
Views: 495

Re: Roll Call for the Retirement Class of 2014!

Congratulations to you all from a class of 2012 graduate. I think interesting additions to this thread might include how you are spending your time, and perhaps how you think you will spend your time once you adjust. In my case I tried to increase my physical activity (I added biking to running) and...
by Peter Foley
Tue Oct 07, 2014 11:47 am
 
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2014!
Replies: 228
Views: 21246

Re: Helping dad with his 401k

There was a recent article in Money magazine that suggested that a person have 9.4 X their current salary saved by age 60. Even if you father has a generous pension that might reduce that in half, he is well behind where he should be. Your best fund is the Spartan total market index. If he can stand...
by Peter Foley
Sat Oct 04, 2014 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping dad with his 401k
Replies: 21
Views: 1584

Re: Withdrawals in retirement from balanced fund

jeff raises a good point: When you talk about having one or two (or more) years of expenses in cash, don't forget about dividends and interest. If you plan to withdraw 4% annually, your portfolio yield may be about 2%. So, if you withdraw interest and dividends as they are paid, then you only need t...
by Peter Foley
Sat Oct 04, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: Withdrawals in retirement from balanced fund
Replies: 10
Views: 917

Re: New investor in need of portfolio advice

I pretty much agree with what nedsaid wrote. I would add, however, that holdings of less than 5% do not add much diversification to a portfolio nor are they large enough to affect one's overall return. I would try to simplify a bit more. For example, there is no reason for you and you wife to hold s...
by Peter Foley
Sat Oct 04, 2014 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: New investor in need of portfolio advice
Replies: 6
Views: 649

Re: Schwab to unveil their own robo-broker service

I use Charles Schwab and have an adviser assigned to me at no cost. (Perhaps based on my account balance with them.) If I didn't have an adviser I would be tempted to use the robo adviser as a confirmation/second opinion regarding what I am currently doing. Has anyone here used a robo-adviser and be...
by Peter Foley
Sat Oct 04, 2014 5:22 pm
 
Forum: Investing - Theory, News & General
Topic: Schwab to unveil their own robo-broker service
Replies: 25
Views: 2782

Re: Paying off a 6.5% mortgage

I agree with the advice to pay off the mortgage. I would do it in three chunks, however. Pay 1/3 now, 1/3 in a month and 1/3 before the end of the year. This approach would sacrifice a little interest savings but would also allow you some flexibility to buy into the market should it drop to a level ...
by Peter Foley
Sat Oct 04, 2014 5:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paying off a 6.5% mortgage
Replies: 46
Views: 3514

Re: What will you do during the next crash?

Per my plan, I have a set aside dollar amount in bonds that I will not touch. During a crash I will rebalance to my desired AA until that threshold is met. I'm retired and could live off my bond allocation if I had to.
by Peter Foley
Fri Oct 03, 2014 11:12 pm
 
Forum: Investing - Theory, News & General
Topic: What will you do during the next crash?
Replies: 63
Views: 4003

Re: File and suspend Social Security

While I sent you a pm, here is where I read the information: technovelist » Fri Aug 15, 2014 5:13 pm RustyShackleford wrote: sscritic wrote: RustyShackleford wrote: Sorry to be dim, but what is a scenerio where it'd be helpful ? Let's say I "file and suspend" at FRA (66yo for me). If, some...
by Peter Foley
Fri Oct 03, 2014 11:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: File and suspend Social Security
Replies: 8
Views: 1278

Re: Tell me about Paris

You absolutely want to have a museum pass. The long lines to get into museums is the purchase ticket line. If you have the pass you can skip the line and walk in. It saves a lot of time (in addition to money if you are going to visit a number of museums). Versailles: I've been there twice. I'm much ...
by Peter Foley
Fri Oct 03, 2014 3:02 pm
 
Forum: Personal Consumer Issues
Topic: Tell me about Paris
Replies: 65
Views: 3567

Re: reorganzing parents finances including annuities

Welcome to the forum. I am not an expert when it comes to annuities so take my advice with a gain of salt. I believe that if an annuity is in a taxable account (not an IRA) the withdrawal of earnings is taxable and the withdrawal of principal is not. The rules are complex, however, and you might fin...
by Peter Foley
Fri Oct 03, 2014 2:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: reorganzing parents finances including annuities
Replies: 8
Views: 857

Re: Please help - When to take Social Security

While I am not an expert, from what I have read here individuals who are delaying taking SS should file and suspend at age 66. If health problems develop later they can "unsuspend" back to the date that they suspended. It strikes me as being a good insurance policy for those who want to de...
by Peter Foley
Fri Oct 03, 2014 2:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please help - When to take Social Security
Replies: 14
Views: 1531

Re: Get some Exercise!

If you have not already done so, you should read up a bit about sarcopenia (muscle loss due to aging). If one is going to plan on 30 years of retirement you need some exercise to lesson the natural effect of muscle loss during aging or you will be pretty weak in your later years. Different number ar...
by Peter Foley
Fri Oct 03, 2014 2:10 pm
 
Forum: Personal Consumer Issues
Topic: Get some Exercise!
Replies: 23
Views: 2419

Re: TLH questions

Welcome to the forum.

I agree with livesoft that one's dividends are likely to be less than any tax loss harvesting. I too, would recommend buying back shares immediately. The S&P 500 correlates pretty closely to total stock market so I would be inclined to use that.
by Peter Foley
Fri Oct 03, 2014 1:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: TLH questions
Replies: 6
Views: 554

Re: rebalancing towards bernstien philosophy

If I added correctly you have about $6M. Putting half of it in fixed and managing the other half at 70/30 is a very conservative approach. I would probably manage the second half at 80/20 so as to be closer to 40/60 overall. Also, I would pay off my mortgage now. If you are in the highest tax bracke...
by Peter Foley
Tue Sep 30, 2014 3:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: rebalancing towards bernstien philosophy
Replies: 3
Views: 412

Re: When should someone "not stay the course"?

crake wrote I would say the time "not stay the course" would be when the inputs which went into creating your initial IPS have changed or when you acquire some new knowledge which you didn't have at the time you created your IPS. I agree with crake. I would guess that most of us here have ...
by Peter Foley
Tue Sep 30, 2014 3:32 pm
 
Forum: Investing - Theory, News & General
Topic: When should someone "not stay the course"?
Replies: 43
Views: 2550

Re: 401k GICs, Fixed Accounts, etc.

Will, So much depends on the viability of the company when it come to their stable value fund. I would be tempted to stay with it for another year or two until we see how the market responds to changes in interest rates. Are all of your holding with the previous employer in the "fixed account&q...
by Peter Foley
Tue Sep 30, 2014 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k GICs, Fixed Accounts, etc.
Replies: 4
Views: 256

Re: Help for New Investor

Some thoughts . . . You are fairly well diversified but have some overlap among your funds. I think your AA is a bit high, I prefer 80/20. For now I would not worry about TIPS and REITS. May take a look at them when you have $50,000 in your retirement account and you feel a need for more diversifica...
by Peter Foley
Tue Sep 30, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help for New Investor
Replies: 5
Views: 363

Re: Portfolio Help, Please

reyarey

Ruralavalon did a very thorough job of how to invest should the TD Ameritrade option be viable with respect to costs. I would follow his advice.

If it is not, The Dryfus S&P 500 should be your principal holding in your 403bs with Lincoln.
by Peter Foley
Sun Sep 21, 2014 11:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help, Please
Replies: 14
Views: 1519

Re: About to Retire, Need Help!

To decide from where to draw income during their first years in retirement, you have to know what their taxable income will be in each year. The top of the 15% federal tax bracket in about $74,000 for married filing jointly. The rental real estate income makes this difficult for individuals posting ...
by Peter Foley
Sun Sep 21, 2014 10:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: About to Retire, Need Help!
Replies: 25
Views: 3079

Re: Portfolio Help, Please

Welcome to the forum. You are correct that you do not have a lot of low cost options available in your 403bs, especially those with Lincoln Financial. You don't mention what the cost is to invest with TD Ameritrade other than the cost per trade. Is there an annual management fee? Ignoring the TD Ame...
by Peter Foley
Fri Sep 19, 2014 9:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help, Please
Replies: 14
Views: 1519

Re: When did you feel "Out of the Woods"?

I was 30 when my wife and I married. We had a house but rented out the upstairs to college friends for the first 5 years we owned it. About the time my second daughter was born (I was 34) I got a promotion and a decent pay raise. By age 35 we were saving a bit and paying down our mortgage. Day care ...
by Peter Foley
Fri Sep 19, 2014 8:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: When did you feel "Out of the Woods"?
Replies: 42
Views: 5447
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