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Is this book for someone who only invests in 401k and ROTH IRA?

I don't have enough money for taxed investing accounts.

Thanks

Where is the extra $1000 per month coming from? This is my question as well. If you are going to buckle down during the bad times and actually increase your savings for awhile, I don't see a problem with it. Makes more sense than doing a really buckle down sprint when the market is high. :D But if ...

if a bear market occurs,

How do you know when a bear market occurs? Also, when is a bull market?

Strep: I would like our seasoned investors to educate me. This is what seasoned investors say: "The stock market will fluctuate, but you can't pinpoint when it will tumble or shoot up. If you have allocated your assets properly and have sufficient emergency money, you shouldn't need to worry.&...

I admire MMM, but me... NO way, I can't be frugal like that. I enjoy eating out with family and friends. I enjoying buying whatever I want to buy. I don't care if its overspending. That's just me. Now, I am not a dummy and live beyond my means, but I love fancy car with V8 engine and leather seats a...

AtlantaFamily-2013 wrote:$140,000 left on home mortgage. Pay $1094 per month at 6.5%

You really need to refinance this house to lower interest rate. Interest rates are very very low, yours is too high.

This will reduce your payment, and can use the money for more saving in 401K or add to mortgage payment.

Hello .... I'm not sure what my Asset Alocation should be at 51 and hoping to retire in 10-15 years. My 401k is set up like this right now... T.Rowe Price Retirement 2030 - 69% ($179.934.94) Fee - 0.75% T.Rowe Price Retirement 2040 - 22% ($57.850.44) Fee - 0.78% *All new money from my check goes in...

wow,

$26 million. Do you really even need to invest? That's not enough?

stemikger wrote:Of course if you dollar-cost-average that is the best plan of attack.

This is my 401K IRA money I rolled over to Vanguard, so I will not be contributing to it again unless i change job. Its only $28K in there.

I think the size of the portfolio matters a lot in these cases. If you are 33 with 50k in investments, 100% stocks is fine. Just remind yourself to pare it back as you move along. If you're 33 with $1m in investments, I think 100% stocks is insane. I only have about $28K. My other 401k AA is 80/20 ...

There is atleast one advantage to having some money in bonds, if you can actually stomach a 100% stock allocation. That is, when the market dips big time, like 2008, you have some money in reserve to buy stocks at much lower prices. Thank you Backofbeyond. I read all the post and there were good, b...

momar wrote:Have you considered how much more return you might expect for a 100/0 portfolio vs 75/25?

Thanks, no I have not? I am not sure how to do this?

OK, thanks let me read that thread.

And its 70% US stocks and 30% international.

Hello, I am thinking of building a 100% stock (I am aware its high risk) portfolio with my IRA rollover 401K, what would you suggest: 1. 100% VTSAX or VTSMX (whats the difference besides lower cost?) 2. (100% VTSAX or VTSMX) and 30% VGTSX Currently the portfolio is set to Vanguard Target Retirement ...

It's tax time, and I'm diligently working my way through the process. But while doing the taxes I got to wondering... and this is a question really for Taylor -- What was the "inspiration" for the three fund portfolio? Was there some process that naturally led to its construction (e.g. si...

I don't think that DCAing is market timing. With a 7 figure portfolio I'd be very wary about dumping it all in at once as well. At this point I'm letting this all sink in. Getting as much advice as I can. I really did not expect the planner to even mention this as a choice for us. He did explain th...

100% stocks huh?? Why on earth would I do this? I am 33 now and currently 80/20, couldn't bear the risk of all stocks. Only reason for anyone older than 40 going 100% stocks is greedy or probably didn't save enough in 20s and 30s and now trying to play catch up. I am not worried about leaving money ...

http://i45.tinypic.com/2ic5izs.jpg I am simple. Let me make sure I understand you correctly. That picture speaks a thousand words. Rather than fooling around with this timing market stuff and wasting time, all someone had to do was just stick with the Vanguard Balanced Index Fund and still beat tha...

... My point was, maybe investors should consider holding some of those other asset classes in greater-than-market proportions given they don't tend to move in lockstep with US and non-US large cap companies and have provided a diversification benefit? We also know their expected returns are higher...

Hi goodoboy, Long answer: my 60/40 portfolio, including my planned asset allocation adjustments as I progress toward my goals. Short answer (which, ironically, is longer than the long answer): anything reasonable Eric claims I could outperform by following his advice based on the last thirteen year...

against my personal portfolio to guarantee I'll outperform over the next thirteen year period, 2013 - 2025 inclusive

What are you trying to outperform? the SP500 or TSM?

Thanks,

With interest rates at historical lows, young investors should think very, very hard before they go adding bonds to portfolios. Eric can someone explain this to me? What does interest rates has to do with bonds? And why should we think hard on this? I am not being funny. I don't understand the logic.

Thought we would start her off this year with a Roth IRA and put all the funds in the Vanguard Target 2040 fund (VFORX). 1) Does that make sense for her? Our tax bracket at the moment is 15% but presumably will be higher by retirement... http://www.bogleheads.org/forum/viewtopic.php?f=1&t=10910...

Hello! I've been lurking around here for a few years now. I recently passed 100k in my retirement accounts, so I figured it would be a good time ask for some feedback. I've made plenty of mistakes in investing, but I'm pretty much on autopilot right now. My first few years of investing were a full ...

Congrats on paying off your student loan. I just paid off my student loan @44k, 5.5% interest. And it feels great. I also refianced the house at 30 year, 3.25%, and pay additional per month to be done in 15 years. The only remaining debt is car loan at 2.99% and mortage. If you struggling what to do...

I am not worried one ounce about the stock market or the world politics. I'm 34 I max out my 401k and starting this year will max ROTH IRA every year til I retire as long as I am working. And that's it. By next year will only have a mortage payment at 3.25% and no plans on ever getting another loan ...

How often do you check your investments? What tips can you provide to avoid peeking? I only have 401K now and plan to start a ROTH IRA this month. I never check my 401K balance or the daily return. Besides a few weeks ago when I made some contribution changes and re-balancing, I haven't checked in ...

LH wrote:Wondering if anyone was currently taking advantage of lowest rates ever, and refinancing mortgage, taking money out, and investing it.

Refinanced to 30 year 3.25%, and paying extra per month to pay off in 15 years.

Thanks everyone, but I give up. Sending more to 401k will reduce my tax bill and that's all I need to know. By how much, i have no idea. i will see next year at tax time. 8-). I will run my taxes for 2012 and whatever I owe this year, i will just subtract about $1500 from it and call it a day. Whate...

livesoft wrote:

goodoboy wrote: What's your taxable income?

how do I calculate taxable income?

http://www.paycheckcity.com/calculator/401k/us/texas/401kresult.html when i run that it gives the withholding per pay check. here i can play with the # of Federal Allowances, to get the witholding and multiply by 26 (i get paid bi-weekly 52/2 = 26) for the year. Then to get the wages I just , 98000 ...

Are we missing something about your question? If you take between $0 and $17.5K away from your taxable wages in taxcaster you answer the question you are asking. Yes, I can get the taxable wages part by subtracting whatever extra i contribute to 401K, but does the withholding remain constant? I thi...

yes that's is basically correct, but you need to make sure you are in the 25% bracket, and that depends on your filing status (single, married, etc) and your taxable income (FTI in notation above). For example, you can't owe only $4500 in federal taxes if you are married filing jointly and in the 2...

dbr wrote:

goodoboy wrote:
Are we missing something about your question?

If you take between $0 and $17.5K away from your taxable wages in taxcaster you answer the question you are asking.

Yes, I can get the taxable wages part by subtracting whatever extra i contribute to 401K, but does the withholding remain constant?

Are you making the same salary this year as last? Do you know your marginal tax bracket? Mine is 25%. If I contribute $1000 more to 401k this year than last year, I will pay 1000*25% = $250 less in Federal Income Tax than last year. . Thank you for the help. I want the easy way out. 8-) Ok, lets fo...

I agree with the relatively few themes above that say you need to pay OFF your debt now! Beyond the obvious that they are generating a negative return for you while you are putting money in bond funds that are not likely to pay you more in the near future. The market is at a current 5 year high, so...

I'm not sure why you need the information and what you think you have to figure out. Every dollar you put in your 401k reduces your tax bill. It is hard for them to tax a dollar they consider doesn't exist. Overall, I am basically trying to see how much money I need to save this year (2013) to pay ...

I'm not sure why you need the information and what you think you have to figure out. Every dollar you put in your 401k reduces your tax bill. It is hard for them to tax a dollar they consider doesn't exist. Overall, I am basically trying to see how much money I need to save this year (2013) to pay ...

What you withhold is irrelevant to what you pay in tax. You could withhold $10 million a year or $0 a year and your tax bill wouldn't change. Now if you withhold $0 and don't pay estimated tax, you would probably owe a penalty, but that's not really a "tax" (it's a penalty on your tax, so...

How do I calculate taxable income to so i can play with the number to see if maxing out 401K to $17.5K will decrease tax bill? I am using http://www.wsu.edu/payroll/cgi-bin/withhold2013.cgi to calculate withholding and http://turbotax.intuit.com/tax-tools/calculators/taxcaster/ to estimate 2013 tax ...

At the moment yes. I'm sure I'll have some questions next week after the dust settles, but I've got some steps ahead of me at least to starting making happen. The fun part is likely going to be with rebalancing the 401ks. Thank goodness it's all tax-deferred or there would be lots of heart burn! Yo...

That's just my opinion. I like keeping things very very simple. You can keep the student loan if needed. I just belive in following a systematic approach, pay debt, max out tax sheltered accounts and then play in the stocks market if you have extra money and time. Most people would say no debt is t...

Why wait 6 years and you can pay off now? use some of the gains to pay off the capital gain taxes. How much is your student loan remaining balance and how much money in taxable account? If enough to pay off student loan, I will pay this off. I was in a similar situation like you, I recently sold of...

I don't know if that will work for me, though I'd agree with that in general. After today's selloff of capital losses (to effectively harvest in March), my other taxable holds would take a significant tax hit. Atop that, I'm already maxing the 401k and Roth annually, so any savings would go towards...

Hello, Consider this: 1. Sell your taxable account. No sense in having this playing with the market with student loan debt. 2. Take your previous job 401K and rollover to Vanguard IRA. Consider a target fund that meets your allocation, I think the 2030 will work. I am using 2035 with a 80/20 allocat...

Taxable (17%) - 14.25% Large Cap individual stocks (like MMM, XOM, JNJ, KRFT, etc.) - 0.31% Commonwealth REIT (CWH) - 0.64% Vanguard Mid Cap ETF (VO) - 0.36% Vanguard MSCI EAFE ETF (VEA) - 0.89% Vanguard MSCI EMRG ETF (VWO) - 0.16% Vanguard Small Cap ETF (VB) - 0.14% Vanguard Health Care ETF (VHT) ...

BrandonBogle wrote:Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 33% of stocks

The 80% stocks includes the allocation of international stocks as well.n

So you can mix it like this:

80% stocks / 20% bonds

60% -Total Stock Market Index
20% - International Stocks
20% - Bonds

If you are looking for how much you will save in taxes, for every dollar you are contributing to your 401k, you will save 32.65% in total taxes (currently in 25% tax bracket for 2013 + FICA taxes of 7.65%). Just running the numbers quick, with $4800 in insurance premium deductions for the year, and...

bondebj26 wrote:Just running the numbers quick, with $4800 in insurance premium deductions for the year, and $20,000 total 401k contributions, you would have $80,200 in taxable income for 2013. .

Thanks, how do you calculate $80,200 in taxable income for 2013? Thank you

In the scenario you are you showing, your total Federal tax bill would be about $12,000, $1925 of which is for the $7700 of income taxes at the 25% tax bracket. If your husband uses 6 exemptions he would be paying about $240/paycheck withheld each pay period, which is about $250/mo short of total w...