Search found 5201 matches

Return to advanced search

Re: Stop 401K To Save More Cash

Just in case you have not seen it; http://www.bogleheads.org/wiki/Roth_IRA_as_an_emergency_fund If you put the money in a 401k or pay the taxes and save it your tax adjusted net worth would be about the same either way which is why this decision is so hard. It would be good to do dummy tax returns, ...
by Watty
Thu Jan 29, 2015 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Stop 401K To Save More Cash
Replies: 5
Views: 607

Re: Save More or Travel More ?

One thing that I did for a while when I was younger when I had a hard time spending money on travel was to have about 2% of my paycheck automatically deposited into a separate account which was my travel fund. I started that after I got a larger raise so it I was not cutting back on my savings. When...
by Watty
Thu Jan 29, 2015 4:38 pm
 
Forum: Personal Consumer Issues
Topic: Save More or Travel More ?
Replies: 17
Views: 1313

Re: What to do with spare cash?

With maxing out your 401k and Roth you are doing great. One thing you might want to do is to review your “now verses later” balance and start saving up to do things like taking some trips now if you are not already doing that. There are a lot of things that are lot easier to do and less expensive wh...
by Watty
Thu Jan 29, 2015 4:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with spare cash?
Replies: 22
Views: 1801

Re: 2.875% mortgage pay-off financially justifiable?

is there anyway to financially justify paying off this mortgage rather than investing the cash? A couple of benefits in paying it off; 1) It improves your monthly cash flow. 2) If you keep 6 months expenses in an emergency fund, then you can reduce the size of your emergency fund because your expen...
by Watty
Thu Jan 29, 2015 3:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2.875% mortgage pay-off financially justifiable?
Replies: 25
Views: 1982

Re: "Retiring in a Low-Return Environment"

Well, one bright spot might be the assumption of using a 50 basis point management fee. As low cost Bogleheads whose expenses are likely 1/3 of that, I wonder how the numbers would change? The difference could directly be added or subtracted from your safe withdraw rate. The extra money is being wi...
by Watty
Thu Jan 29, 2015 12:14 pm
 
Forum: Investing - Theory, News & General
Topic: "Retiring in a Low-Return Environment"
Replies: 37
Views: 3286

Re: US citizen vs green card

Could be deported if convicted of a crime I live abroad and try hard not to break any laws. But this problem has certainly crossed my mind and it is a non-theoretical risk. And it does not even take a conviction. Non-deportability (is that a word?) is a real benefit to being a citizen. There are al...
by Watty
Thu Jan 29, 2015 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: US citizen vs green card
Replies: 29
Views: 2201

Re: MAGI too high for planned deduction of tIRA. Backdoor Ro

Don't forget to look at your state tax situation too.
by Watty
Wed Jan 28, 2015 11:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: MAGI too high for planned deduction of tIRA. Backdoor Roth?
Replies: 11
Views: 913

Re: US citizen vs green card

Unless there is some sort of tax treaty with Canada then there could be situations where she moves back to Canada, like after a divorce or your death, and eventually your US accounts could be subject to the Non-Resident Alien Estate tax which can be ridiculously high. She might also be giving up acc...
by Watty
Wed Jan 28, 2015 6:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: US citizen vs green card
Replies: 29
Views: 2201

Re: Payoff Mortgage with investments in taxable accounts

One option would be to see if your lender would "recast your mortgage" (google this) if you paid half the mortgage balance. This would cut your required mortgage payment in half. A few considerations I have not seen mentioned; Would you have to pay capital gains taxes if you sold your inve...
by Watty
Wed Jan 28, 2015 6:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Payoff Mortgage with investments in taxable accounts
Replies: 22
Views: 1623

Re: Cheaper to rollover old 401k?

The only that I can think of are; It would make a back door Roth harder to do because the calculations look at all your IRA's. If the old 401k was from prior to a marriage then you might be mixing it with post marriage money which could cause problems in a divorce. Depending on your state laws the 4...
by Watty
Wed Jan 28, 2015 6:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cheaper to rollover old 401k?
Replies: 1
Views: 188

Re: HELP! Mortgage company is denying my PMI termination req

Agree/Disagree? Please help. I'm not sure about the rules of the situation but now if you have not done it now is a good time to start putting everything in writing and send it to them by snail mail and to get a signed receipt that they received it. You do not need to write a long letter, just requ...
by Watty
Wed Jan 28, 2015 4:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: HELP! Mortgage company is denying my PMI termination request
Replies: 22
Views: 2531

Re: What age did you move out?

About a week after my high school graduation I went off to stay in a dorm for summer school at college. I was youngest kid in the family and the only one still at home. My Dad had a chance to take an extended six week business trip to Europe that summer which was very unusual for him since he only h...
by Watty
Tue Jan 27, 2015 10:59 pm
 
Forum: Personal Consumer Issues
Topic: What age did you move out?
Replies: 117
Views: 4676

Re: SS Conclusion for Mom...Tell me if i'm right.

marshallv wrote:Watty
Thanks. Again though, even without looking at numbers this implies she is better waiting right? I am really just trying to maximize my moms long term security given the arrangement with hubby.


That is what I would think.
by Watty
Tue Jan 27, 2015 9:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Conclusion for Mom...Tell me if i'm right.
Replies: 12
Views: 1295

Re: SS Conclusion for Mom...Tell me if i'm right.

Any other thoughts / comments/ concerns? The after tax numbers need to be looked at to. http://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits Anything she gets now would likely be have 85% of the social security taxed at what is likely a high tax bracket so that would diminish the val...
by Watty
Tue Jan 27, 2015 8:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Conclusion for Mom...Tell me if i'm right.
Replies: 12
Views: 1295

Re: Advice Please Have 40,000 in a IRA want to move to Vangu

Here is a good place to get started. https://www.bogleheads.org/wiki/Getting_started The target retirement funds are a good default investment in a retirement account. I also want to establish a college savings plan for both of my kids one is 6 and the other is 1 month. At first I was thinking of a ...
by Watty
Tue Jan 27, 2015 7:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice Please Have 40,000 in a IRA want to move to Vanguard
Replies: 4
Views: 421

Re: Bank adviser did some terrible advising...Help please

Generally speaking large of an amount are your dealing with? It you are talking about hundreds of thousands of dollars then it might be worth getting a lawyer involved or filing a claim herself because there are some rules about inappropriate investments that even that "adviser" would have...
by Watty
Tue Jan 27, 2015 6:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bank adviser did some terrible advising...Help please
Replies: 25
Views: 1816

Re: 36 yo looking for early retirement

Questions: 1. I have about $300,000 in cash that has been accumulated over the last 4 years outside of my retirement savings. I am at a loss of what to do with it. At such low interest rates on my debt I hate to pay that off right away. It would be paid off prior to retirement however. Should I: a. ...
by Watty
Tue Jan 27, 2015 4:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: 36 yo looking for early retirement
Replies: 24
Views: 3535

Re: Moving up a tax bracket - when to avoid, when to give up

For what it's worth, I find it helpful to keep in mind the difference between marginal and effective tax rates. I made the graph below of marginal vs effective tax rates (total tax / taxable income) for 2013 tax rates for married filing jointly and it might be of some interest. To calculate the eff...
by Watty
Tue Jan 27, 2015 4:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Moving up a tax bracket - when to avoid, when to give up
Replies: 26
Views: 2545

Re: Preparing for RMDs

If all the conditions are met then you may be able to claim your parents as dependents on your taxes and in addition to getting the extra exemption you might be able to deduct their medical expenses that you pay. That would be worth researching and planning for that possibility since you might need...
by Watty
Tue Jan 27, 2015 4:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Preparing for RMDs
Replies: 63
Views: 4450

Re: SS benefit question for Mom (not sure where to turn)?

It would be good to make an appointment to go into the social security office and ask them what her options are. If possible when you make the appointment you might try to let them know that you have a complex situation so that they can try to make your appointment with someone that has more experie...
by Watty
Tue Jan 27, 2015 1:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS benefit question for Mom (not sure where to turn)?
Replies: 2
Views: 517

Re: Moving up a tax bracket - when to avoid, when to give up

The question, which I think is a good one because I'm in a similar situation, is essentially is it worth switching from Roth to Traditional to stay out of the 25% bracket. The Roth was an easy call when we were solidly in the 15% bracket. Now I'll have to switch my wife's IRA contributions to Tradi...
by Watty
Tue Jan 27, 2015 12:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Moving up a tax bracket - when to avoid, when to give up
Replies: 26
Views: 2545

Re: How are we doing? I'm feeling lost

1. Sell our current home to move to upgrade home. We'll cash out between $35K-$50K to use as: $20K for 10% DP towards new house (Q1-Q2 2015), along with the $24K in Fidelity, then the rest to payoff personal loan ($17K) It would be good to reconsider if you really need to get an upgraded house NOW ...
by Watty
Tue Jan 27, 2015 8:50 am
 
Forum: Investing - Help with Personal Investments
Topic: How are we doing? I'm feeling lost
Replies: 12
Views: 1954

Re: Engineered wood floors?

If you are looking at the engineered wood floors to save money be sure to also price solid hardwood floors and don't assume that the engineered wood will save you much. When we did our floors we found that there was not much of price difference between them (I don't remember the exact numbers.) We e...
by Watty
Mon Jan 26, 2015 8:15 pm
 
Forum: Personal Consumer Issues
Topic: Engineered wood floors?
Replies: 20
Views: 2011

Re: Parents Retirement

Get them a copy of one of the Boglehead books and go through the relevant parts with them;

http://www.amazon.com/s/?search-alias=a ... Bogleheads

for their retirement accounts the target date funds would likely be a good choice.
by Watty
Mon Jan 26, 2015 4:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Parents Retirement
Replies: 7
Views: 898

Re: Pension plan lump sum for low balance?

It would be good to get the numbers before deciding. If the pension is inflation adjusted and has the option of starting the pension at 65 then it could be worth a lot in 35 years. I have an old discontinued cash balance pension that has a guaranteed return of the greater of 5% or the ten year T-bil...
by Watty
Mon Jan 26, 2015 4:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pension plan lump sum for low balance?
Replies: 11
Views: 656

Re: How are we doing? I'm feeling lost

1. Sell our current home to move to upgrade home. We'll cash out between $35K-$50K to use as: $20K for 10% DP towards new house (Q1-Q2 2015), along with the $24K in Fidelity, then the rest to payoff personal loan ($17K) It would be good to reconsider if you really need to get an upgraded house NOW ...
by Watty
Mon Jan 26, 2015 12:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: How are we doing? I'm feeling lost
Replies: 12
Views: 1954

Re: Success stories of NOT buying more/too much house

how did you do it, Getting a house with an unfinished basement really helps make a smaller house work well. In our neighborhood I would guess that only about half the houses have basements. The price difference in the houses is in the ballpark of ten to fifteen thousand dollars because of the basem...
by Watty
Mon Jan 26, 2015 12:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Success stories of NOT buying more/too much house
Replies: 65
Views: 5927

Re: Scary taxes :(

Am I missing something here, or is it normal taxation based on my situation? You likely deducted your state taxes on your tax federal return so your totals may have been a bit overstated. If you got a 401k match, employer paid health insurance, etc, then the value of that should be added to your gr...
by Watty
Mon Jan 26, 2015 11:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Scary taxes :(
Replies: 18
Views: 3153

Re: Time to stop driving for 85 yo MIL

One thing that some people don't realize is that in some areas you can hire taxis by the hour for doing things like running errands or going to doctors appointments and the driver will wait for you then take you to your next destination. The hourly price may not be all that expensive during low dema...
by Watty
Sun Jan 25, 2015 11:37 am
 
Forum: Personal Consumer Issues
Topic: Time to stop driving for 85 yo MIL
Replies: 69
Views: 3668

Re: rebalancing after an inheritance

There could be some sort of special case but usually you would want to completely fill up your retirement accounts with bonds before buying bonds on your taxable account

http://www.bogleheads.org/wiki/Principl ... _placement
by Watty
Sun Jan 25, 2015 11:06 am
 
Forum: Investing - Help with Personal Investments
Topic: rebalancing after an inheritance
Replies: 7
Views: 721

Re: Rental Car Prices - is this the new normal ?

If that is airport price, check for off airport. Also one-way can sometimes be ridiculously inflated. +1 Often the airport prices include lots of special tax and fees that are not charged in other locations. To avoid these for longer rentals I have done things like taken a light rail for a ten minu...
by Watty
Sun Jan 25, 2015 10:57 am
 
Forum: Personal Consumer Issues
Topic: Rental Car Prices - is this the new normal ?
Replies: 69
Views: 5259

Re: Preparing for RMDs

I would think the AA in my roth would need to be adjusted so that the overall AA between both accounts remains as close as possible to the 50/50 AA. Yes you want to look at your overall asset allocation, if you have much in taxable accounts you would also want to have the most tax efficient asset c...
by Watty
Sun Jan 25, 2015 10:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Preparing for RMDs
Replies: 63
Views: 4450

Re: TIPs, what do they really add

Keep it simple... nominal treasuries = real rate + premium for bearing real rate term risk + inflation expectations + premium for bearing risk of unexpected inflation TIPS = real rate + premium for bearing real rate term risk + actual inflation If you want to hold the risk premium for unexpected in...
by Watty
Sun Jan 25, 2015 12:23 am
 
Forum: Investing - Theory, News & General
Topic: TIPs, what do they really add
Replies: 33
Views: 2838

Re: Time for me to buy a condo?

If you find a condo you like you can very likely either buy or rent one in the same building so which is best financially really depends on the numbers in your situation. See these links for more information. http://www.bogleheads.org/wiki/Owning_vs_renting http://www.nytimes.com/interactive/2014/up...
by Watty
Sat Jan 24, 2015 11:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Time for me to buy a condo?
Replies: 15
Views: 1103

Re: Investing Options for Mom

Her $105k retirement account CD matures in June, and I wanted to look into other options for her. It sounds like she has that CD and the house for a net worth of around $200K. If that is correct then the $105K is her emergency money so I think a ladder of CD's would be about the best choice since s...
by Watty
Sat Jan 24, 2015 11:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing Options for Mom
Replies: 2
Views: 284

Re: Preparing for RMDs

Pension will cover my expenses and allow me to save 1000-1500 a month. This sounds like more of an estate planning issue than anything else. If you live a long time then, at least under current tax laws, there is an upside for your estate if you have to take an unneeded RMD. That is that the RMD mo...
by Watty
Sat Jan 24, 2015 10:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Preparing for RMDs
Replies: 63
Views: 4450

Re: 4% Withdrawal Rate Question

What are people's opinions on treating your annual social security income as part of your bond allocation? I've heard Bogle say that in one his interviews. They way that I treat it is that it reduces my needed income and then I use the remaining income need to see if my investments will be able to ...
by Watty
Sat Jan 24, 2015 9:34 pm
 
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal Rate Question
Replies: 16
Views: 2025

Re: Reorganizing Portfolio question

Ya basically I went from being a resident physician to attending physician 3 years ago. I spent the last few years literally dumping all of my money (perhaps too aggressively) into paying off debt. I'm not in the medical field so I don't follow it but a regular poster here runs the white coat inves...
by Watty
Sat Jan 24, 2015 6:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reorganizing Portfolio question
Replies: 8
Views: 841

Re: Which mortgage to pick?

It depends on how long you you have the mortgage.

If you will be there for the full 30 years, and never refinance then the one with with the lowest APR and highest fees would be best.
by Watty
Sat Jan 24, 2015 11:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Which mortgage to pick?
Replies: 8
Views: 1263

Re: Reorganizing Portfolio question

2. How do I distribute the funds? As i mentioned earlier the majority of my money is in a tax deferred account but that will change pretty rapidly over the next couple years. I understand that certain things are better off in certain accounts. Should I just set up the entire portfolio in the the ta...
by Watty
Sat Jan 24, 2015 11:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Reorganizing Portfolio question
Replies: 8
Views: 841

Re: Reorganizing Portfolio question

one of the "perks" of my job was access to a financial advisor. I had a lot of scattered accounts so she was pretty good at consolidating things. However, when I tried to do my own research on the funds she was investing in a few months ago a started getting confused at the complexity. I ...
by Watty
Sat Jan 24, 2015 11:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Reorganizing Portfolio question
Replies: 8
Views: 841

Re: Newbie nearing retirement

Like my original post stated, I'm tempted to toss the while portfolio into a Target Retirement fund and call it a day. That would be a very reasonable choice especially since it does not appear that you have any need to take additional risk now. It would also be a lot safer to manage as you age or ...
by Watty
Sat Jan 24, 2015 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie nearing retirement
Replies: 6
Views: 1371

Re: How to climb up in a megacorp

It would also be good to work to have very good relations with any customers or suppliers that you deal with since an opportunity might open up with them or they might have other contacts in the industry. Having a key customer ask upper management for you to be on a project would not hurt your caree...
by Watty
Fri Jan 23, 2015 11:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to climb up in a megacorp
Replies: 37
Views: 4866

Re: 4% Withdrawal Rate Question

The 4% figure in the studies was for a specific asset allocation. If you change the asset allocation the safe withdraw rate that is calculated from the historical data will change the SWR percentage, see the details in the tables here; http://www.bogleheads.org/wiki/Safe_withdrawal_rates Typically t...
by Watty
Fri Jan 23, 2015 11:11 pm
 
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal Rate Question
Replies: 16
Views: 2025

Re: Yearly Expenses - How am I doing?

One thing to add to your list is how much your car depreciated over the last year. If you buy a $20,000 car and sell it eight years later for $4,000 it cost you $2,000 a year on average for the depreciation. It would also be good to double check your paycheck to make sure you got all the payroll ded...
by Watty
Fri Jan 23, 2015 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Yearly Expenses - How am I doing?
Replies: 21
Views: 2278

Re: Foreclosed-Law Firm pursuing amount of second lo

I am not a lawyer but you need to be very careful with dealing with them or you could accidentally allow them to to extend the amount of time that they can legally collect the debt. http://www.nolo.com/legal-encyclopedia/time-barred-debts-when-collectors-29805.html It very well could be that their g...
by Watty
Fri Jan 23, 2015 10:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreclosed-Law Firm pursuing amount of second lo
Replies: 31
Views: 2300

Re: Getting close to retirement

IMHO I would suggest to take the 8 % garantueed increase a year in Social security and wait to take social security at 70 1/2 if you think you will survive to your early 80's . Use your nest egg to make it to 70 without social security payments and change you IRA in Roth while you can till 70. +1 B...
by Watty
Fri Jan 23, 2015 9:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Getting close to retirement
Replies: 4
Views: 993

Re: Would maxing a Roth and 401k each year be enough?

tainted-meat wrote:If you can't retire on that then everyone in America is in big trouble. Most retire on way less than that.


+1

Especially if you have a paid off house by then and are done with child raising and college costs.
by Watty
Fri Jan 23, 2015 9:10 pm
 
Forum: Investing - Theory, News & General
Topic: Would maxing a Roth and 401k each year be enough?
Replies: 17
Views: 2803

Re: How do you recommend investing 1.5 million?

Be sure to know the capital gains tax situation before you sell your old holdings. It can sometimes be better to keep something that is less than ideal than to pay the taxes to to sell it.
by Watty
Fri Jan 23, 2015 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you recommend investing 1.5 million?
Replies: 9
Views: 1604

Re: Young Couple Need Advice

I usually drive the lady's vehicle..... The way you phrased that was a bit odd. If you are not married yet then it is asking for trouble to start merging your financial plans. That has gotten a lot of people into trouble. I am not in the medical field so I don't follow it but the White Coat Investo...
by Watty
Thu Jan 22, 2015 11:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Young Couple Need Advice
Replies: 21
Views: 2138
Next

Return to advanced search