Search found 1296 matches

by bdpb
Sun Aug 02, 2015 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Request for a look at portfolio
Replies: 3
Views: 480

Re: Request for a look at portfolio

Not following the sad face on IL. State tax is 3.75%.

If you qualify for deductible IRAs, you may be needlessly paying state tax on your Roth contributions. In IL, you can make deductible IRA contributions and immediately convert to Roth and not owe any state tax. Saves about $400 in state taxes.
by bdpb
Thu Jul 30, 2015 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax 401K or Roth IRA for Bonds
Replies: 6
Views: 449

Re: Pre-Tax 401K or Roth IRA for Bonds

grabiner wrote:Therefore, given that your stock options in the 401(k) are better than your bond options, it's best to hold bonds in the 401(k).


I think you meant "it's best to hold stocks in the 401k".
by bdpb
Wed Jul 29, 2015 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for Investment Advice
Replies: 15
Views: 1061

Re: Looking for Investment Advice

Thank you very much for the advice, I appreciate it! Once student loans are paid should I target getting my mortgage down to a particular amount before taxable investing? After maxing out all tax preferred accounts, if I weren't concerned with liquidity issues, I would pay down a 4% mortgage before...
by bdpb
Wed Jul 29, 2015 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: New investor that seeks advice and opinions
Replies: 4
Views: 241

Re: New investor that seeks advice and opinions

I would disagree about total bond in roth. You want something there that is going to grow. Bonds used to be much less desirable in taxable, but with the recent horrible yields the thinking is more lenient towards having them there. http://whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ I ...
by bdpb
Wed Jul 29, 2015 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for Investment Advice
Replies: 15
Views: 1061

Re: Looking for Investment Advice

As background, I am 29 years old and make about $170,000 in gross income. New annual Contributions of $12,000 to 401k You are not saving enough (to be a Boglehead :happy). Aim for saving 20% of gross income to retirement savings for a comfortable or early retirement. You should be contributing the ...
by bdpb
Wed Jul 29, 2015 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: New investor that seeks advice and opinions
Replies: 4
Views: 241

Re: New investor that seeks advice and opinions

Tax inefficient and high expense ratios. Contribute more to deductible 457 before taxable investing. Look at your whole portfolio as one and locate your funds to minimize taxes and costs. List your lowest ER funds in 457. Likely, should allocate Total Intl index in taxable. Large Cap Core Index in 4...
by bdpb
Sun Jul 26, 2015 11:23 am
Forum: Personal Consumer Issues
Topic: Would you look down on a co-worker for driving a beater?
Replies: 180
Views: 11231

Re: Would you look down on a co-worker for driving a beater?

My co-workers haven't seen the car since I park it downtown and walk to the office. We're supposed to have a company picnic and people are going to see my car when I drive up. It will probably be the worst looking car on the lot. Rent a car for the day. Take Uber to and from the picnic. Maybe they ...
by bdpb
Sun Jul 26, 2015 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Golden handcuffs - help with vested retirement plan
Replies: 28
Views: 3016

Re: Golden handcuffs - help with vested retirement plan

Over 40% of 401k plans have immediate vesting. I would guess that it is higher for professionals. What paints an even grimmer picture on this data are the vesting schedules. Only 22% of 401K matching vests immediately. Also at 22% are ‘cliff’ vesting schedules. These plans require you to stay with ...
by bdpb
Sat Jul 25, 2015 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Golden handcuffs - help with vested retirement plan
Replies: 28
Views: 3016

Re: Golden handcuffs - help with vested retirement plan

Yes, it sucks that you have to vest, but that's the case with just about any plan that I've ever encountered. Over 40% of 401k plans have immediate vesting. I would guess that it is higher for professionals. Some kind of vesting schedule wouldn't seem like that bad of a deal, except, the OP also st...
by bdpb
Sat Jul 25, 2015 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) loan and I'm changing jobs
Replies: 17
Views: 1151

Re: 401(k) loan and I'm changing jobs

My understanding is that I need to pay off the 401(k) loan within 60 days of leaving my current job. Where does this understanding come from? Many folks think this is the law. It's not. The rules are written into the plan. Make sure this is exactly what you have to abide by. Get a loan from PenFed ...
by bdpb
Sat Jul 25, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Do I dump the Vanguard energy Fund in my 401k
Replies: 32
Views: 2883

Re: Do I dump the Vanguard energy Fund in my 401k

I have learned a lot about investing over the last year, I have started a Roth IRA that has the lazy portfolio, and I would like to get my 401k more balanced and into lower cost index funds. 3) Sell it now, eat the loss and redistribute my 401k allocation into lower cost index funds in a more balan...
by bdpb
Tue Jul 21, 2015 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Redux-APPL and Other Techs
Replies: 10
Views: 585

Re: Portfolio Redux-APPL and Other Techs

The readership over their are mostly liberal zombies that follow whatever the latest fads that sound the easiest to follow. I invest in individual stocks, increase yield throughout the year via covered calls, and have recently moved my equities to US-centric investments due to King Dollar driving f...
by bdpb
Tue Jul 21, 2015 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Father passed - helping my mom invest her assets
Replies: 24
Views: 2513

Re: Father passed - helping my mom invest her assets

Debt: Mortgage loan, ~$340k @ 4.24 maturing in 3/2030 Tax Rate: I believe it will be close to 0% Federal, 0% State (my mother is semi-retired and self employed and makes less than $20k/year.) Current total portfolio: Low six figures (~$200k) with an anticipated ~$70k from the sale of a joint rental...
by bdpb
Fri Jul 10, 2015 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: 401k review
Replies: 2
Views: 287

Re: 401k review

Don't expect a lot of comments. You've done an excellent job. Are you contributing to IRAs, too? If your wife has access to the same low cost funds, then allocating her accounts the same way is fine. Otherwise, look at all of your accounts as one portfolio and use the same AA across the whole portfo...
by bdpb
Wed Mar 11, 2015 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Portfolio Review Request
Replies: 6
Views: 881

Re: Yet Another Portfolio Review Request

His 401k (59%; adds $19.4k/yr including employer contribution = 59% of annual contributions) 55%, Vanguard S&P 500 Index Fund Admiral (VFIAX) ER 0.05% 04%, Harbor International Inst (HAINX) ER 0.77%, <= large companies in developed markets 00%, Vanguard Intermediate-Term Treasury Admiral (VFIUX...
by bdpb
Tue Mar 10, 2015 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down FHA mortgage to refinance or invest more?
Replies: 3
Views: 312

Re: Pay down FHA mortgage to refinance or invest more?

What is your state tax rate? Your fed rate is 15%. I'm not sure there is a lot to be gained by contributing to your 401k (depending on state tax rate) before the high rate debt is eliminated. Since you probably won't be maxing out the 401k after the debt is paid, you're really not losing much by not...
by bdpb
Fri Mar 06, 2015 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 3
Views: 533

Re: Portfolio review

Debt: mortgage of $220k @ 3.25% for another 12 years Contributions: Taxable - approximately $50k per year Questions: I’ve tried to follow a 3-fund portfolio and tried to use tax-efficient placement (e.g. international in taxable, bonds in pre-tax, US market in roth). Recently, I ended up adding som...
by bdpb
Mon Mar 02, 2015 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review and Strategy: Finally doing it on our own!
Replies: 3
Views: 624

Re: Portfolio Review and Strategy: Finally doing it on our o

Tax Rate: 39.6% Federal, 5% State, City 2.25% New annual Contributions $18,000 his 403b $5,200 his 403b company match $5,200 his 401a company funded on annual basis $18,000 taxable Debt : Mortgage: 573k @ 4.45%, $0 credit cards/short term debt Student Loans : 24k @ 2.77%, 47k @ 2.875% (paid down >8...
by bdpb
Sat Feb 28, 2015 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 26
Views: 2840

Re: Portfolio review

Debt: about 91k (out of 147,500) left on Mortgage at 5.5% - going to move this year sometime also about 7k left on a car loan at 3.7%, can pay off if it would be a good idea but the loan isn't too bad. Tax Rate: 25% Federal, 4.99% State Taxable – Fidelity 31% Spartan® Total Market Index Fund - Fide...
by bdpb
Sun Feb 22, 2015 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation and contribution question
Replies: 6
Views: 436

Re: 401K allocation and contribution question

Emergency Fund: $30K (working to beef it up) Debt: 264K mortgage @ 4% 401K w/ ~$180K 100% vested 15% company match/contributing 15% until 17.5K is reached 64% Balanced/36% Employer security Balanced is all in DME20 Question 1: I've selected the "Do it for me" button for 401K allocation in...
by bdpb
Sun Feb 22, 2015 12:05 am
Forum: Investing - Help with Personal Investments
Topic: Withdraw TSP to Convert Traditional to Roth?
Replies: 13
Views: 1364

Re: Withdraw TSP to Convert Traditional to Roth?

You can convert traditional IRA, too.

Make a 2014 contribution before 4/15/2015 at last year's tax rate and immediately convert at 2015 tax rate.
by bdpb
Thu Feb 12, 2015 1:52 am
Forum: Personal Finance (Not Investing)
Topic: where should i pay taxes from?
Replies: 24
Views: 1865

Re: where should i pay taxes from?

I think you have it right, but just a quick reminder. The LTCG consumes it's portion of the 25% bracket leaving less room for conversion.

Do you make sizable charitable contributions? If so, donate the taxable stocks to avoid CG tax and take former CC from income to pay for conversion.
by bdpb
Thu Feb 12, 2015 1:35 am
Forum: Investing - Help with Personal Investments
Topic: What should my next savings goal be?
Replies: 5
Views: 884

Re: What should my next savings goal be?

Debt: Mortgage 5%: 187k (~87% of original value) Student Loan at 5.125%: 3.2k One priority we have right now is to move from our townhouse into a single family home in the next few years, so I would like to save for a down payment. Pay mortgage down to remove PMI? Don't "invest" in bonds ...
by bdpb
Mon Feb 09, 2015 11:56 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement for self-employed parents
Replies: 12
Views: 763

Re: Retirement for self-employed parents

I will mostly likely open an account in their name and put $1,000 in Target Retirement 2020 every year and forget about it until it comes time to withdraw. It seems simple and worthwhile. I don't want to complicate the matter. Do you guys see any issue with this? You should check into the federal S...
by bdpb
Sun Feb 08, 2015 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Newb Dilemma
Replies: 10
Views: 1048

Re: Newb Dilemma

Our AGI on our 2014 taxes was $189,000, so just below the $191,000 eligibility cap on Roth contributions. If I've done my math/research correctly, based off of our 2014 AGI we could contribute around 3,250 towards a Roth now. However, I fully expect that our income will be beyond the $191K cap in 2...
by bdpb
Sun Feb 08, 2015 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Money into Retirement Accounts or Mortgage Payoff
Replies: 10
Views: 1320

Re: Money into Retirement Accounts or Mortgage Payoff

What are your state income tax rates?

Is there a state tax exemption for IRA/DCP withdrawals? Might you move to a different state for retirement?

What are the Expense Ratios for the funds in your 457b?

Will your tax rate be higher or lower in retirement than it is now?
by bdpb
Fri Feb 06, 2015 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1180

Re: Portfolio Advice

Here are the investment options for my employer plan at Fidelity. SPTN 500 INDEX ADV (FUSVX) (0.07%) SPTN EXT MKT IDX ADV (FSEVX) (0.07%) SPTN INTL INDEX ADV (FSIVX) (0.17%) SPTN US BOND IDX ADV (FSITX) (0.17%) These are the funds that you should use in your 401k. The same funds or similar Vanguard...
by bdpb
Wed Feb 04, 2015 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: 401K - New Fund Available - Help!
Replies: 6
Views: 574

Re: 401K - New Fund Available - Help!

You will be switching VBTLX from your IRA to your 401k. Is the ER for VBTLX the same in the 401k? Are there other charges for investing in VBTLX in your 401k?

If no additional charges or expenses, then it's a good move (given you're ok with the AA discussion above).
by bdpb
Wed Feb 04, 2015 12:06 am
Forum: Personal Finance (Not Investing)
Topic: Student Loan Payoff Advice
Replies: 11
Views: 1287

Re: Student Loan Payoff Advice

My practice of paying the minimum on a (relatively) low fixed rate student loan and investing the difference has worked well for me. I am now questioning whether to continue it, as I've had a nice run of investment returns and don't see screaming value in the markets. You should not compare your lo...
by bdpb
Tue Feb 03, 2015 11:51 pm
Forum: Investing - Theory, News & General
Topic: Help me find a topic/article to present to my class
Replies: 8
Views: 552

Re: Help me find a topic/article to present to my class

I have a financial news presentation for my intro to finance course next week. I would like to highlight passive/boglehead style investing. However, one of the requirements is that it must be something current and relevant. In other words it must have an element of "noise" and the present...
by bdpb
Tue Feb 03, 2015 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: My Traditional IRA conversion to Roth IRA dilemma
Replies: 34
Views: 2521

Re: My Traditional IRA conversion to Roth IRA dilemma

I selected 25% instead of 15% because most likely my career in the future will be better than what it is now. Also, I chose to include state taxes and chose 10% and 11%. I think CA tax rate is 10% and I'm pretty sure it'll be more than that in the future, so I chose 11% as the withdrawal tax %. The...
by bdpb
Tue Feb 03, 2015 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1180

Re: Portfolio Advice

Debt: $14k @ 5.59% Boat Taxable 8% Employer Stock Options 1% 529 Plan (Vanguard Moderate Age-Based Option) 4% Vanguard 500 Index (VFIAX) (0.05%) 2% Vanguard Life Strategy Moderate Growth (VSMGX) (0.16%) 1% Vanguard Short Term Investment Grade (VFSTX) (0.20%) His Employer Profit Sharing Plan 18% Fid...
by bdpb
Tue Feb 03, 2015 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Asset Allocation Help
Replies: 3
Views: 385

Re: 401K Asset Allocation Help

My pre-tax contribution rate will be 6%, the maximum company match. I'm trying for aggressive growth over a long period of time and plan on rebalancing annually. Any sort of thoughts, opinions, and feedback are appreciated. Make part of your plan to increase your savings rate every year until it hu...
by bdpb
Tue Feb 03, 2015 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: My Traditional IRA conversion to Roth IRA dilemma
Replies: 34
Views: 2521

Re: My Traditional IRA conversion to Roth IRA dilemma

I discovered this neat little calculator: http://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/ira_calculators/roth_ira_conversion For the $10,300 I'd like to convert from a Traditional IRA to a Roth IRA, while using a taxable income of $31,643, the results show ...
by bdpb
Tue Feb 03, 2015 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: 401K - New Fund Available - Help!
Replies: 6
Views: 574

Re: 401K - New Fund Available - Help!

My work 401K just introduced Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). It is my understanding that the funds with the highest expected gains should go into the Roth, which won't be taxed. There are reasons for moving higher expected return assets to your Roth, but those reasons ...
by bdpb
Mon Feb 02, 2015 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: How to report for Tax, Student computer purchase from 529
Replies: 22
Views: 1031

Re: How to report for Tax, Student computer purchase from 52

Will you eventually spend all of the 529 for future "normal" qualified expenses (i.e., tuition, room and board)?

If so, I wouldn't bother testing the IRS by trying to buy a computer this way. Just pay cash.

You'd prefer to keep the money in the 529 as long as possible anyway.
by bdpb
Mon Feb 02, 2015 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest taxable account?
Replies: 6
Views: 1181

Re: How to invest taxable account?

If we don't use just munis, what would you suggest. Would something like total bond make sense for a small portion since it is comprised of about 40% treasury bonds which are exempt from state taxes (I think, right?)? Why not all treasuries for anything not in munis? There is little need for anythi...
by bdpb
Sat Jan 31, 2015 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Priorities...
Replies: 14
Views: 2099

Re: Priorities...

On going Savings: Maxing his Vanguard Roth IRA with monthly deposits. Try to max her Vanguard Roth IRA at the end of each year (depends on size of his variable year end bonus) $25/ month into child 529 plan (Feel guilty not helping out the little one a bit....) Two other quick things after looking ...
by bdpb
Sat Jan 31, 2015 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Priorities...
Replies: 14
Views: 2099

Re: Priorities...

We do get a state tax break with our 529s Great. Take the 0% loan and fund the 529 with it. Unless you think you'd be putting an undue burden on the lender, I see nothing wrong with this. My guess is, the lender has the money to lend and has offered because they are in a position to help their daug...
by bdpb
Sat Jan 31, 2015 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Priorities...
Replies: 14
Views: 2099

Re: Priorities...

Should I reduce the 401k and beef up my wife's 529 to save my pride an avoid a 0% interest loan?? I would have no objection to accepting a 0% loan as long as I didn't feel like I was being held hostage in some other way. It might even make the lender feel good, too. Do you get a state tax break on ...
by bdpb
Sat Jan 31, 2015 11:17 am
Forum: Investing - Help with Personal Investments
Topic: When to harvest this gain?
Replies: 3
Views: 459

Re: When to harvest this gain?

Just do it.

It's virtually equivalent to having an extra 10k income and a higher 7k limit for Roth contributions. If you received an extra 10k income and could contribute 12.5k (5.5k actual limit plus a one time extra 7k limit just for you), you would contribute 12.5k to Roth, right?
by bdpb
Sat Jan 31, 2015 11:07 am
Forum: Investing - Help with Personal Investments
Topic: New to the forum, help with Portfolio Review
Replies: 5
Views: 642

Re: New to the forum, help with Portfolio Review

H Debt: $145000 - all student loans b/w my wife and I Interest Rate Breakdown: $32000 @ 2.33% $63000 @ 4.5% $50000 @ 6.8% Desired Asset Allocation: 80% stocks, 20% bonds Desired International Allocation: 20% of stocks His Roth IRA: 31% Vanguard Target Retirement Fund 2045 Her Roth IRA: 7% Vanguard ...
by bdpb
Sat Jan 31, 2015 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Confusing 401K & Roth IRA situations
Replies: 10
Views: 1009

Re: Confusing 401K & Roth IRA situations

Set aside savings so that you'll be able to reach 18k deductible in your 401k and 11k Roth contributions, if that's your savings goal. Don't contribute to IRAs until near the end of the year when all the variables are known. Just add the extra savings to your EF for now. Assume the best case for mid...
by bdpb
Sat Jan 31, 2015 1:57 am
Forum: Personal Finance (Not Investing)
Topic: Arguments for Saving/Investing vs Mortgage prepay
Replies: 4
Views: 488

Re: Arguments for Saving/Investing vs Mortgage prepay

Does she pay PMI? If so, is it likely that this can be eliminated at some point with extra mortgage payments? If the PMI can eventually be eliminated, her return will be much higher than her mortgage interest rate. She should have a healthy EF. Unless her parent can assist in emergencies. If she doe...
by bdpb
Sat Jan 31, 2015 1:37 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 410
Views: 67725

Re: Rick Ferri looking to internationalize his portfolio

Rick Ferri wrote:The more people who hate this idea, the better I like it. :D

Which "people" are you talking about?

TV talking heads? or Bogleheads?
by bdpb
Sat Jan 31, 2015 1:28 am
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional IRA?
Replies: 6
Views: 621

Re: Roth or Traditional IRA?

Bond yields are much lower than your mortgage interest rate. You should pay down your mortgage instead of investing in bonds, especially since you have so little tax advantage accounts where you should be holding your bonds and any other tax inefficient funds you made decide on. My mortgage interes...
by bdpb
Sat Jan 31, 2015 1:18 am
Forum: Investing - Help with Personal Investments
Topic: What is your portfolio comparison benchmark?
Replies: 11
Views: 1103

Re: What is your portfolio comparison benchmark?

Benchmark? Why is there a need for a benchmark if using index funds? I'm with pkcrafter here, except to add "... index funds and an Investment Policy Statement?" What benchmark should I use for? 20% US total market index fund 10% US SCV index fund 5% US REIT index fund 15% Intl total mark...
by bdpb
Sat Jan 31, 2015 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional IRA?
Replies: 6
Views: 621

Re: Roth or Traditional IRA?

Tax Filing Status: Married Filing Jointly Salary: $148,000 (me + wife) Federal Tax: 25% based on salaries but gains in my taxable account may push us above $151,200 and into the 28% bracket? My Taxable Account: $311,101.20 (87.9% of portfolio) Taxable Contribution: 45k Debt: 320k mortgage @ 3.875%,...
by bdpb
Sat Jan 31, 2015 12:06 am
Forum: Investing - Help with Personal Investments
Topic: Mysterious Fees in my 401(k)
Replies: 14
Views: 1469

Re: Mysterious Fees in my 401(k)

One way this can happen is if you have assets in a BrokerageLink (BL) account. In one of my 401k, I hold assets in the core account which contains institutional funds (not retail mutual funds) and assets in the BL. It used to be that all the recordkeeping costs were baked into the ER of the institut...
by bdpb
Fri Jan 30, 2015 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: How do I balance debt v. investing in my situation
Replies: 28
Views: 2103

Re: How do I balance debt v. investing in my situation

I would not give up tax deductible 403b contributions in the state of CA (probably, 9.3% tax rate) before I gave up Roth IRA contributions. If you insist on keeping the cash in your taxable account, withdraw previous Roth IRA contributions to pay of that extremely high 6.8% debt. You are not maxing ...

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