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Re: Let's say we live for 150 years...

bertilak wrote: I am thinking in terms of an indefinite lifetime -- the lifetime of the portfolio, which I would like to be beyond my lifetime. I do not know how to deal with this. Some sort of Trust? Does it get diluted as there are more and more descendants? How to keep its integrity, keep it grow...
by Peter Foley
Thu Apr 17, 2014 4:48 pm
 
Forum: Investing - Theory, News & General
Topic: Let's say we live for 150 years...
Replies: 8
Views: 972

Re: Estate Planning Issues

I would suggest looking up information regarding inherited IRAs.
by Peter Foley
Thu Apr 17, 2014 4:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Issues
Replies: 7
Views: 302

Re: The Unemployment Game Plan

Paying off the car loan is a toss up. Other than that I would do what I could to conserve cash. That would include stopping any non matching contributions to your 401k immediately. Even if it results in a pay cut, I would look for a new job now unless you are in a high demand occupation. Once a pers...
by Peter Foley
Thu Apr 17, 2014 3:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Unemployment Game Plan
Replies: 12
Views: 737

Re: A portfolio with a 7% yield? Your thoughts?

I like the fact that it ended in 2007. It did well during a tech bubble, but how well did it do during a financial crisis?
by Peter Foley
Tue Apr 15, 2014 2:32 pm
 
Forum: Investing - Theory, News & General
Topic: A portfolio with a 7% yield? Your thoughts?
Replies: 9
Views: 1002

Re: If not dollar cost averaging...then what?

Just a note - some people distinguish between periodic investing (saving each pay period) and dollar cost averaging (investing a lump sum over time). I think for a young investor funding a Roth, it makes little difference. I have a slight preference for the periodic investing because it establishes ...
by Peter Foley
Sun Apr 13, 2014 12:10 pm
 
Forum: Investing - Theory, News & General
Topic: If not dollar cost averaging...then what?
Replies: 15
Views: 771

Re: Retirement account beneficiary; family trust?

The MN Bogleheads group invited an estate planner to talk at our last meeting. (At the time MN had a $1M inheritance tax threshold so this is a consideration for many, not just a few.) He stated that you do not want to put retirement accounts in a Trust. I don't remember the line of reasoning but I ...
by Peter Foley
Sun Apr 13, 2014 12:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement account beneficiary; family trust?
Replies: 13
Views: 1022

Re: Costa Rica?

For those of you who have traveled there, is the place overrun with US tourists? My wife and I both speak Spanish and part of the fun of a vacation to a place like Costa Rica is the ability to interact with locals. I would avoid Puerto Vallarta for that reason.
by Peter Foley
Sun Apr 13, 2014 11:54 am
 
Forum: Personal Consumer Issues
Topic: Costa Rica?
Replies: 14
Views: 1368

Re: less you need social security, earlier you should claim

Question asked: Do you or did you consider the possibility that your SS benefit will not be as high as currently promised in your decision about when to file? No. Income from SS is only a part of my retirement financial "plan". At age 63.5, my withdrawal plan and the desire to exercise som...
by Peter Foley
Sun Apr 13, 2014 11:46 am
 
Forum: Investing - Theory, News & General
Topic: less you need social security, earlier you should claim
Replies: 39
Views: 2741

Re: Wife to work as a Contractor - Advice needed

obgraham wrote: How is MegaCorp hiring this person as a contract worker, when she is not in fact an Independent Contractor, at least in the eyes of the IRS. She is working only for one firm, and they have set out the conditions of work, hours, and location. Around here, many such cases have been thr...
by Peter Foley
Sat Apr 12, 2014 5:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wife to work as a Contractor - Advice needed
Replies: 30
Views: 2006

Re: Newbie ? Roth Ira

I do ETFs where other options are not available. No big deal - for the same index they are essentially identical.
by Peter Foley
Thu Apr 10, 2014 3:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie ? Roth Ira
Replies: 26
Views: 1362

Re: "Choose an AA appropriate for your personal risk toleran

While I've posted this before, I believe it bears repeating. IMHO, you really cannot get an accurate read on risk tolerance until you have gone through a few market down cycles. There are risk tolerance questionnaires available and taking one is certainly better than guessing. Going though a down ma...
by Peter Foley
Thu Apr 10, 2014 1:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: "Choose an AA appropriate for your personal risk tolerance"
Replies: 10
Views: 813

Re: Rebalancing my Portfolio

If there were no tax implications, i.e., you can rebalance with assets in deferred accounts, I would go ahead and do so when the bands were broached. Try to avoid selling as much as possible, so if you can rebalance using future contributions that is preferable. Once a year is plenty, but more often...
by Peter Foley
Wed Apr 09, 2014 9:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rebalancing my Portfolio
Replies: 4
Views: 355

Re: Repainting a bathroom wall

One problem with sanding drywall (as opposed to plaster) is that you will raise the nape of the paper. I had problems with a bathroom ceiling and eventually had to sand the entire ceiling, topcoat it, prime, and paint. I too would suggest going to a paint store. Wallpaper would have been easier solu...
by Peter Foley
Wed Apr 09, 2014 3:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Repainting a bathroom wall
Replies: 8
Views: 550

Re: Newbie ? Roth Ira

One other consideration - think of your entire portfolio as a whole. Having cash to invest in a Roth is no different than having cash you want to invest in taxable or in one of your deferred accounts. The 53% you have in global debt is essentially a non equity holding - that could be redirected to s...
by Peter Foley
Wed Apr 09, 2014 12:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie ? Roth Ira
Replies: 26
Views: 1362

Re: Newbie ? Roth Ira

Well . . you've given enough detail for some general recommendations. Most who follow the Boglehead approach would favor low cost, broad based mutual funds over individual stocks. If you are going to hold individual stocks you should probably do so in a taxable account so you can tax loss harvest an...
by Peter Foley
Tue Apr 08, 2014 6:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie ? Roth Ira
Replies: 26
Views: 1362

Re: Investment help

Welcome to the forum. Lots and lots of information here, so I'll just note a couple of the basics. Debt. I would suspend all extra payments until the credit card debt is paid off. Once that is done you can continue making extra payments to the school loan and rental. AA - 90/10 is a little high, I w...
by Peter Foley
Tue Apr 08, 2014 6:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investment help
Replies: 12
Views: 669

Re: Newbie ? Roth Ira

Welcome. You will get much better advice if you provide more detail as to what is currently in your portfolio and what the expenses are for each investment. You don't have to provide dollar amounts, percentages will do. Check the Getting Started tab for how to lay out the information. I'm not famili...
by Peter Foley
Mon Apr 07, 2014 8:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie ? Roth Ira
Replies: 26
Views: 1362

Re: Spouse taking SS and tax consequences

Check out the Taxation of Social Security Benefits pages on the Wiki. I think you are going to be in the 25% bracket no matter what. If that is the case there is no particular tax consequences. Are there things that you would do tax wise if she delayed SS for a year? Take some capital gains while pe...
by Peter Foley
Sun Apr 06, 2014 11:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Spouse taking SS and tax consequences
Replies: 11
Views: 770

Re: Consolidation with Schwab?

I would not be at all hesitant to consolidate my taxable accounts at Schwab. (Full disclosure - I've been a Schwab customer for years.) You should be able to do transfers of assets w/o any tax consequences. I would be hesitant about consolidating all my deferred accounts in one place. You might lose...
by Peter Foley
Thu Apr 03, 2014 6:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Consolidation with Schwab?
Replies: 21
Views: 1375

Re: Retirement is 5-6 years away - need advice

Based on your past behavior I would take a minimalist approach toward equities. Some well known advisers recommend an equity exposure between 25% and 75%. If you use the Trinity Study (30 year withdrawal scenarios) as the basis for a plan, the minimum is 25% to 40% equities. With your current assets...
by Peter Foley
Wed Apr 02, 2014 11:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement is 5-6 years away - need advice
Replies: 11
Views: 1040

Re: Adjusting asset allocation

Welcome to the forum. toomuchtv28 stated: Within my IRA, I was thinking of exchanging either VFIAX or VASVX for the Vanguard total bond fund. Within the taxable account, I was thinking of exchanging the wellington funds and placing that money into the VTSAX. This is exactly what I would recommend. A...
by Peter Foley
Tue Apr 01, 2014 6:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adjusting asset allocation
Replies: 16
Views: 1090

Re: Roth IRA

Based on the description you provided, none of the $174,000 should be taxable. The following is from the IRS website (Pub. 590). I highlighted a couple of key words. "Are Distributions Taxable? You do not include in your gross income qualified distributions or distributions that are a return of...
by Peter Foley
Tue Apr 01, 2014 6:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA
Replies: 3
Views: 266

Re: Expensive hobbies and possessions? (B/c you can...)

We do a foreign trip every couple of years and have done 3 salmon fishing trips to Alaska. Will probably head back to Alaska next year. Still have salmon in the freezer from our last successful outing!
by Peter Foley
Tue Apr 01, 2014 3:42 pm
 
Forum: Personal Consumer Issues
Topic: Expensive hobbies and possessions? (B/c you can...)
Replies: 126
Views: 9141

Re: Personal Investment Portfolio Review

sampat wrote: Questions: 1. Given the debt I have, since I know I’ll be able to pay if off in 2-3 years the max, I wanted to continue to put $5.5K in my Roth IRA and start putting $5.5K in my wife’s Roth IRA (in addition to 6% contribution into my 401(k)) every year starting 2014). Is it okay doing ...
by Peter Foley
Tue Apr 01, 2014 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Personal Investment Portfolio Review
Replies: 7
Views: 753

Re: Vanguard 529 for new Grandson

Congratulations Twolfy, exciting news! Our grandson is approaching his first birthday so we have some recent experience. Do check out your own state's and you son's state 529 plans in terms of favorable tax treatment. The Utah 529 plan comes highly recommended, but the NY plan and the Nevada plan ar...
by Peter Foley
Mon Mar 31, 2014 8:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard 529 for new Grandson
Replies: 4
Views: 481

Re: Contributing to Traditional IRA and lowering AGI

If your 401k has one or two broad based, low cost index funds, it might be worth continuing to contribute there because the amount you can contribute is much greater.
by Peter Foley
Mon Mar 31, 2014 8:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Contributing to Traditional IRA and lowering AGI
Replies: 6
Views: 432

Re: Retired: When to move?

The broader question of when to move is much related to family (empty nesters), floor space, and floors. We moved about 3 years ago when I turned 60. We went from a two story house (with three story living do to family room in the basement) to a similar sized one story house. Laundry and workshop in...
by Peter Foley
Sun Mar 30, 2014 9:38 pm
 
Forum: Personal Consumer Issues
Topic: Retired: When to move?
Replies: 43
Views: 3974

Re: Do you have hardwood or tile in your kitchen?

We have hardwood in the kitchen of the house we bought about 3 years ago. Based on the previous owner's records, the floors are about 10 -12 years old. They look like new and it is little work to maintain them.
by Peter Foley
Fri Mar 28, 2014 9:56 pm
 
Forum: Personal Consumer Issues
Topic: Do you have hardwood or tile in your kitchen?
Replies: 57
Views: 3088

Re: Retired one month, now what?

Have you checked your 401k to see if Fidelity offers some sort of Stable Value fund? If they do, that would be one place to park a fair amount of the money currently earning very little. I think a second option is the one mentioned by Professor Emeritus, Wellesley. Putting some funds in Wellesley wo...
by Peter Foley
Fri Mar 28, 2014 8:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retired one month, now what?
Replies: 25
Views: 4640

Re: We Don't want to die with Money

I think I understand where you are heading. I would be tempted to set up a standard 4% withdrawal strategy. Some of this will cover the basics and some will be excess. With the excess you can increase your standard of living in any way you please as long as that increase does not require ongoing com...
by Peter Foley
Thu Mar 27, 2014 6:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: We Don't want to die with Money
Replies: 45
Views: 3745

Re: Minnesota BH meeting | Feb-1 | Edina | new format this t

buttonmyshoe Welcome - We try to have the meetings in libraries, but some libraries have restrictions regarding how far in advance one can reserve a room. We have been alternating between the Edina and the Oakdale libraries, but have had a scheduling conflict pop up from time to time. Look for an an...
by Peter Foley
Thu Mar 27, 2014 5:50 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota BH meeting | Feb-1 | Edina | new format this time
Replies: 8
Views: 822

Re: Auto repair - "Threads getting thin in oil pan drain plu

I had this happen on a car and had the plug replaced with a new self tapping plug. It was a few years ago . . .$50 tops.
by Peter Foley
Thu Mar 27, 2014 11:29 am
 
Forum: Personal Consumer Issues
Topic: Auto repair - "Threads getting thin in oil pan drain plug"
Replies: 40
Views: 1763

Re: early retirement..... any program to roth conversion??

I'm not going to say this is impossible, but working full time and converting $40,000 per year into a Roth IRA would put almost all single individuals in the 25% marginal tax bracket. The top of the 15% bracket for individuals in 2013 was $36,250 in taxable income. Two moderate income spouses might ...
by Peter Foley
Wed Mar 26, 2014 11:26 pm
 
Forum: Investing - Theory, News & General
Topic: early retirement..... any program to roth conversion??
Replies: 20
Views: 1230

Re: early retirement..... any program to roth conversion??

Jfet wrote: So you just need to ladder the conversions and have 5 years of other money available? IE, convert $40,000 from rollover 401K to Roth in 2014, live on taxable until 2019 and withdraw the $40,000 penalty free in 2020? As I suggested earlier, why would one do this? Converting TIRA to Roth i...
by Peter Foley
Wed Mar 26, 2014 8:29 pm
 
Forum: Investing - Theory, News & General
Topic: early retirement..... any program to roth conversion??
Replies: 20
Views: 1230

Re: early retirement..... any program to roth conversion??

If I were 44 and thinking of retiring at age 51, I would try to build up my taxable account and my regular Roth (not conversions) during the 6 year period. Someone who is planning to have a number of low tax years should not be converting Roths during high tax years.
by Peter Foley
Wed Mar 26, 2014 6:55 pm
 
Forum: Investing - Theory, News & General
Topic: early retirement..... any program to roth conversion??
Replies: 20
Views: 1230

Re: Investing money for children

Mountain Man wrote: UTMAs sound like a pretty good fit for what you are looking for, however, be aware of account minimums and fees. Some places, like Vanguard, charge $20 a year per account on UTMAs that have less than $10,000 in them. So if you only have $100-300 dollars in there the fees will eat...
by Peter Foley
Wed Mar 26, 2014 12:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing money for children
Replies: 15
Views: 665

Re: 457(b) vs 403(b) vs Roth IRA Question

If you are in the 25% bracket or higher I would probably use the deferred account before funding the Roth. However, if you have other funds that you want to set aside for retirement, you should also consider . . . Are you are an income level that does not allow you to contribute to a regular Roth? C...
by Peter Foley
Wed Mar 26, 2014 11:59 am
 
Forum: Investing - Help with Personal Investments
Topic: 457(b) vs 403(b) vs Roth IRA Question
Replies: 6
Views: 392

Re: Saving a % of income vs saving a $ amount?

For younger individuals just starting out, eliminating debt, having an emergency fund, working to maximize contributions to deferred accounts, and funding a Roth are reasonable goals. Saving for a house (if reasonable in a particular geographic area) and savings for children's education, while not r...
by Peter Foley
Wed Mar 26, 2014 11:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Saving a % of income vs saving a $ amount?
Replies: 23
Views: 3024

Re: Property Taxes - Doubling Up

I tied to do this a number of years ago. I attempted to make a payment in late December for the 1st half of the property taxes that were due in May. The check was returned. In Minnesota taxpayers receive an estimate of what their taxes will be before the end of the year. The tax bill itself is usual...
by Peter Foley
Wed Mar 26, 2014 11:31 am
 
Forum: Personal Finance (Not Investing)
Topic: Property Taxes - Doubling Up
Replies: 20
Views: 1211

Re: Statement of the Retirement Funding Problem

My experience while working was that incomes did not keep up with inflation. I can also say that my goverment pension has an annual 2% inflation cap. So I'm fine in a low inflation environment, but not in a "normal" or high inflation time period. My point is there are no guarrantees with p...
by Peter Foley
Tue Mar 25, 2014 6:41 pm
 
Forum: Investing - Theory, News & General
Topic: Statement of the Retirement Funding Problem
Replies: 89
Views: 5667

Re: Advice on restructuring elderly parents portfolio

I like the idea of selling the losers. Offsetting with the sale of a couple of winners is a mixed bag. It would allow you to simplify and diversify (use proceeds to buy a total stock market or total stock market international fund) at the "expense" of losing out on step up basis for some g...
by Peter Foley
Sun Mar 23, 2014 11:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice on restructuring elderly parents portfolio
Replies: 19
Views: 1297

Re: TIPS Intermediate Fund vs. International Bond Fund

I wrote: Peter Foley wrote: [...] I confess I was a bit surprised by the loss on the regular TIPS fund compared to Total Bond over the past year. While I may have overreacted by splitting my TIPS holdings in two relatively equal parts, my goal with fixed income is to not lose money. The regular TIPS...
by Peter Foley
Sat Mar 22, 2014 6:54 pm
 
Forum: Investing - Theory, News & General
Topic: TIPS Intermediate Fund vs. International Bond Fund
Replies: 35
Views: 2766

Re: TIPS Intermediate Fund vs. International Bond Fund

abuss368 wrote: The Short Term TIPS fund, I simply just do not get the need for. I confess I was a bit surprised by the loss on the regular TIPS fund compared to Total Bond over the past year. While I may have overreacted by splitting my TIPS holdings in two relatively equal parts, my goal with fixe...
by Peter Foley
Sat Mar 22, 2014 12:19 am
 
Forum: Investing - Theory, News & General
Topic: TIPS Intermediate Fund vs. International Bond Fund
Replies: 35
Views: 2766

Re: Is this Retirement plan doable?

While I have not done the calculations (and would defer to sscritic regarding your SS plan), your approach seems logical. The one thing I would do in advance would be to take a look at tax brackets and make sure you are getting the most spending money for your withdrawal and early SS dollars. If you...
by Peter Foley
Fri Mar 21, 2014 5:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is this Retirement plan doable?
Replies: 10
Views: 1143

Re: portfolio review for new BH

I'm fine with ruralavalon's' suggestions - we are on the same path he is just pushing simplification a little further than I did. Regarding the Roth: I think the ideal situation in retirement is to have funds in taxable, tax deferred and Roth. Having funds in all three allows one to pick and choose ...
by Peter Foley
Fri Mar 21, 2014 4:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: portfolio review for new BH
Replies: 11
Views: 829

Re: TIPS Intermediate Fund vs. International Bond Fund

I went the short term TIPS route recently. Offhand, I'm inclined to agree with robertalpert's insight as to the relationship between TIPS and overall AA.
by Peter Foley
Fri Mar 21, 2014 12:28 pm
 
Forum: Investing - Theory, News & General
Topic: TIPS Intermediate Fund vs. International Bond Fund
Replies: 35
Views: 2766

Re: New index funds aren't always great

Interesting article. I have considered equally weighted index funds as an alternative or compliment to a regular index fund. While low cost is an issue, "low cost" is a relative term and not an absolute. Differences of .2% + or + don't effect returns much over a 20 year period. Over 30-40 ...
by Peter Foley
Fri Mar 21, 2014 12:09 pm
 
Forum: Investing - Theory, News & General
Topic: New index funds aren't always great
Replies: 3
Views: 734

Re: Reinvesting Div/Cap Gains in Cash Taxable Accounts

I use Yahoo finance for basic information regarding mutual funds. Go to Yahoo finance, enter the fund symbol, click on historical prices and then select dividends only. Historically . . . FCNTX - dividends in mid to late Dec and in early Feb. FDGFX - Dividends in mid to late Dec and Sept. FSEVX - Di...
by Peter Foley
Fri Mar 21, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Reinvesting Div/Cap Gains in Cash Taxable Accounts
Replies: 6
Views: 690

Re: Help me settle a debate -- Risk in Retirement

IMHO the best answer is an aggressive approach as you are really investing for the next generation. I, however, would not take that course and would go a more moderate 60/40 or the 1/3, 1/3, 1/3 approach that you laid out.
by Peter Foley
Fri Mar 21, 2014 11:44 am
 
Forum: Investing - Theory, News & General
Topic: Help me settle a debate -- Risk in Retirement
Replies: 61
Views: 4214

Re: 401K - Total Bond Market and/or Short-Term TIPS?

I would split it across the two just as you have. I value asset preservation over return when it comes to non equities.
by Peter Foley
Thu Mar 20, 2014 12:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K - Total Bond Market and/or Short-Term TIPS?
Replies: 7
Views: 692
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