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Re: Taxable savings to Roth IRAs?

If you are worried about realizing too much gain in one tax year you could fill up the 2014 Roth IRA'S now, before April 15th. Then, next year max out your 2015 Roth IRA s before April 15th 2016. That will spread out the tax consequences over two years. It depends on your tax bracket whether this is...
by jj
Sat Apr 04, 2015 8:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Taxable savings to Roth IRAs?
Replies: 8
Views: 1059

Re: Advice needed for investing proceeds of property sale

I'll respond to bump you up, hoping that someone with more experience can analyze your situation. I think 85/15 stock/bond ratio is too high for your ages and funds accumulated. That is why you are hesitant with this extra 33% of the portfolio that your asset allocation requires you to invest in mos...
by jj
Sat Apr 04, 2015 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice needed for investing proceeds of property sale
Replies: 1
Views: 208

Re: How to invest in retirement

Welcome to the forum!

$12,000/month withdrawal from a $2.5M portfolio is a 5.76% withdrawal rate. This is unsustainable, long term, even with low investment costs (yours likely aren't!) At 72/64 one of you could well have 35 years ahead of you.
by jj
Sun Mar 29, 2015 6:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest in retirement
Replies: 13
Views: 1355

Re: Strategy for avoiding tax hit on rebalancing?

You say 80% of their assets are taxable which means 20% are tax deferred. If there are any stocks in their 401k/IRA accounts they can exchange those for taxable bonds with no tax consequences. If they want to make any gifts to family, gift appreciated stocks to those who are in a lower tax bracket t...
by jj
Sat Mar 28, 2015 8:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy for avoiding tax hit on rebalancing?
Replies: 4
Views: 616

Re: [Poll] Would you be disappointed if VG advertised more?

JDCarpenter wrote: I don't recall ever seeing or hearing an ad...


I hear their ads on my local NPR station, and see ads online. Nothing flashy though, as befits the 'steady' brand image.
by jj
Thu Mar 26, 2015 8:41 am
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] Would you be disappointed if VG advertised more?
Replies: 19
Views: 1361

Re: How to plan for early retirement: Healthcare costs

If you are not employed you can still contribute to an HSA. There are various financial institutions that provide them. Look on thefinancebuff.com (he posts on Bogleheads too) for pointers on the best account for your situation. The Boglesheads wiki must also have some info, or a site search will pu...
by jj
Tue Mar 17, 2015 7:58 am
 
Forum: Investing - Help with Personal Investments
Topic: How to plan for early retirement: Healthcare costs
Replies: 53
Views: 6185

Re: 27 yr old Starting from $0, Paid off CC

Congratulations on the new job, paying off your credit card balance and finding the Bogleheads site! Firstly, set your 401k contribution to 6% and forget about it. This is ‘free’ money, it’s really part of your salary which you can claim by contributing to your 401k, or forego if you don’t. Contribu...
by jj
Mon Mar 16, 2015 10:33 am
 
Forum: Investing - Help with Personal Investments
Topic: 27 yr old Starting from $0, Paid off CC
Replies: 27
Views: 2991

Re: How to plan for early retirement: Healthcare costs

We left the corporate world almost 10 years ago when we still had 4 kids at home. It was an 'early retirement' package which gave us access to their employee HI at full prices. This was important as we did not want to negotiate the realm of private insurance pre-ACA when we could be cut off or price...
by jj
Mon Mar 16, 2015 9:58 am
 
Forum: Investing - Help with Personal Investments
Topic: How to plan for early retirement: Healthcare costs
Replies: 53
Views: 6185

Re: How to pull money out of investments to backfill E-fund

Is that flawed to pump up tax advantaged accounts (+$75K-$100K/year) even if it means withdrawing from taxable (-$25 to 50K/year)? I don't think so. Maximizing tax deferred space is almost always a good idea. Think of it as consumption smoothing. You're at a fairly expensive time in your lives with...
by jj
Sat Mar 14, 2015 10:23 am
 
Forum: Investing - Help with Personal Investments
Topic: How to pull money out of investments to backfill E-fund
Replies: 12
Views: 1007

Re: Which 529 plan are you using?

Illinois' Direct sold "Bright Start" plan - Vanguard index options with low expense ratios (0.19 to 0.21 mostly). Do make sure to avoid the Oppenheimer funds.
by jj
Fri Mar 13, 2015 8:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Which 529 plan are you using?
Replies: 49
Views: 2963

Re: The More I learn, the fewer changes I make

grabiner wrote:
Started reducing my bond allocation by 2% per year as retirement eventually approaches.


Really? You're reducing your bond allocation...
by jj
Sat Mar 07, 2015 9:32 am
 
Forum: Investing - Theory, News & General
Topic: The More I learn, the fewer changes I make
Replies: 25
Views: 3241

Re: ...it is madness to risk losing what you need in pursuin

OP - If you're going to copy a quote to start a new thread, don't you think it would be proper to place it in context to what Warren Buffett wrote in his annual report? Did you just read the quote and read straight through the rest of what was said following it? The statement was made in the contex...
by jj
Fri Mar 06, 2015 10:20 pm
 
Forum: Investing - Theory, News & General
Topic: ...it is madness to risk losing what you need in pursuing wh
Replies: 48
Views: 5245

...it is madness to risk losing what you need in pursuing wh

This quote is taken from this year's BRK annual shareholder letter and is, of the many erudite things in that letter, the part which resonated most with me. It hit me like a smack in the face with its simplicity. I suspect most readers read straight past it. "It is madness to risk losing what y...
by jj
Mon Mar 02, 2015 9:00 am
 
Forum: Investing - Theory, News & General
Topic: ...it is madness to risk losing what you need in pursuing wh
Replies: 48
Views: 5245

Re: Am I saving properly for retirement?

Spirit Rider wrote: In 2015 the maximum Roth contribution is $6K.



Let's not confuse the issue... 2015 contribution limits stay the same as 2014 at $5500, and $6500 including catch-up for the 50 and older set.

http://www.irs.gov/Retirement-Plans/Pla ... ion-Limits
by jj
Tue Feb 17, 2015 3:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I saving properly for retirement?
Replies: 54
Views: 3548

Re: Preparing for 2 months incommunicado

gatorman wrote:I asked my friend Arthur Dent, who is a very experienced traveler, what one piece of advice he could offer and he said to tell you "Don't forget your towel!"
gatorman


:D
by jj
Tue Feb 17, 2015 2:25 pm
 
Forum: Personal Consumer Issues
Topic: Preparing for 2 months incommunicado
Replies: 142
Views: 6728

Re: Preparing for 2 months incommunicado

We leave every year for an overseas trip of about two months' duration. Last year we decided to contact our flagship rep to put a 'hold' on our Vanguard account. We both enrolled for voice verification and set our security computer settings to only allow transactions for the two computers at home. W...
by jj
Tue Feb 17, 2015 10:05 am
 
Forum: Personal Consumer Issues
Topic: Preparing for 2 months incommunicado
Replies: 142
Views: 6728

Re: US citizen vs green card

There is no 'portability' for estate taxes when one member of a married couple is only a green card holder, and the other a citizen. If joint assets are +/-$5.5M there need to be testamentary trusts or there will be taxes at the second death.
by jj
Fri Jan 30, 2015 1:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: .
Replies: 37
Views: 3722

Re: 2015 BOGLEHEAD CONTEST REGISTRATION

1959.35
by jj
Thu Jan 01, 2015 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: 2015 BOGLEHEAD CONTEST REGISTRATION
Replies: 556
Views: 20549

Re: How to convert from TIRA to Roth IRA

Firstly, check to see if you can move your TIRA to your current 401k plan. If you can do this it will be your cheapest option. If you can't do that, converting to a Roth IRA at Vanguard will cost you taxes on whatever the value is when you make the conversion. So, if the value is $25,000 on the even...
by jj
Sat Dec 13, 2014 12:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to convert from TIRA to Roth IRA
Replies: 11
Views: 921

Re: Tax Planning - Bunching of Deductions

I believe your understanding is correct. Unless you can 'bunch' to the point where your itemized deductions are lower than the standard deduction every other year (and therefore take the higher standard deduction for your taxes that year) there is no point in deferring any deductions.
by jj
Mon Dec 08, 2014 12:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Planning - Bunching of Deductions
Replies: 12
Views: 1226

Re: ACA Horizon BCBS Advantage or Advance EPO Tradeoff Decis

Tis the season for health insurance decision-making angst. Aint that the truth! I have spreadsheets galore listing doctors that we know of, checking which plans they're 'in'. My perspective is if the cheaper HMO plan has all the doctors that you have used in-network, I would go for that plan and po...
by jj
Thu Nov 27, 2014 9:22 am
 
Forum: Personal Finance (Not Investing)
Topic: ACA Horizon BCBS Advantage or Advance EPO Tradeoff Decision
Replies: 15
Views: 1451

Re: Store or cut up un-needed credit cards?

Although I don't disagree with the advice given in this thread, I think this highlights the sick nature of the credit scoring system, the way it encourages people to have more credit available than they need. We paid off our mortgage more than a decade ago, haven't gotten a car loan in 30 years (an...
by jj
Tue Oct 28, 2014 10:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Store or cut up un-needed credit cards?
Replies: 28
Views: 2779

Re: Best use of tax-deferred space

With only 20 years to retirement a couple's yearly $20k allocation to I Bonds (or more if you want to have trusts or buy paper ones with your tax refund) will increase your tax-deferred fixed income allocation. In effect this will be a ladder to be 'cashed' after you have retired with the benefit of...
by jj
Fri Sep 05, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Best use of tax-deferred space
Replies: 14
Views: 1434

Re: what gender are you?

It's interesting to me to see an approximately 75/25 M/F split. Would any more forum members like to vote? Only 295 have thus far.
by jj
Sun Aug 24, 2014 6:00 am
 
Forum: Local Chapters and Bogleheads Community
Topic: what gender are you?
Replies: 27
Views: 5575

Re: Buying adult child a house vs paying their rent

Houses need maintenance and upkeep. Will the offspring be able to cope with unblocking a toilet, fixing a minor leak, etc. etc. when something happens? Or is the mom in a position to either do this herself or pay someone to do it? Will she even know that something needs fixing to be able to protect ...
by jj
Sat Jul 05, 2014 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Buying adult child a house vs paying their rent
Replies: 37
Views: 4560

Re: how to protect us from ourselves

Thank you for posting - it sounds like a very interesting book. Especially in the light of the continuing bull market and the euphoria being expressed around here just recently.
by jj
Wed Jul 02, 2014 8:18 pm
 
Forum: Investing - Theory, News & General
Topic: how to protect us from ourselves
Replies: 3
Views: 748

Re: IRS 8938 (Foreign Assets) and Income Repatriation Questi

The deadline for the FBAR is 30th June. It must be filed when overseas banking or financial assets exceed $10,000 in aggregate, not per account. Look at the IRS guidelines for details, it is completed online from this year onward. (When we came to the USA and one of the major accounting firms did ou...
by jj
Mon Jun 16, 2014 4:40 am
 
Forum: Personal Finance (Not Investing)
Topic: IRS 8938 (Foreign Assets) and Income Repatriation Question.
Replies: 9
Views: 448

Re: New to investing at 54 years old

    Sinistress wrote:13,000 goes to health insurance.

    There is no way a couple with income of only $36,000 should pay $13,000 for health insurance under the ACA. Unless there is masses of unearned income (doesn't seem likely) subsidies should be substantial to reduce this.
    by jj
    Wed Jun 04, 2014 4:08 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: New to investing at 54 years old
    Replies: 17
    Views: 2803

    Re: 33 year old Portfolio Check & TransitionalQuestions as I

    You can actually do up to $5,500 per individual to the Roths. ...and $17,500 to the 401k and $6550 to a family HSA. Have you considered I bonds @$20k per annum for a couple, extra if you have trusts and up to $5k from your tax return? At your age, within 30 years of retirement, I would choose them ...
    by jj
    Thu May 29, 2014 2:00 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: 33 year old Portfolio Check & TransitionalQuestions as I age
    Replies: 5
    Views: 1120

    Re: Resources for UK Citizen living in US?

    The British Expats forum would be a place to start britishexpats.com It is a massive forum covering expats around the world. It has a lively USA section, also with one for expats returning to the UK. You may find existing posts there or could post your own questions. There are a few British expat me...
    by jj
    Sat May 17, 2014 6:59 am
     
    Forum: Personal Finance (Not Investing)
    Topic: Resources for UK Citizen living in US?
    Replies: 2
    Views: 446

    Re: Need help with opening kids' Roth IRA

    I called Vanguard to inquire about this, and they told me that the kids will have access to all accounts with their social security numbers on it. They both have UGMA and UTMA that we gifted them over the years and we prefer that we keep that separate from accounts funded by them. Yes, they will be...
    by jj
    Fri May 02, 2014 5:41 am
     
    Forum: Investing - Help with Personal Investments
    Topic: Need help with opening kids' Roth IRA
    Replies: 11
    Views: 1017

    Re: "Spinning Off" my 20 Year Old Son

    pshonore wrote: No EIC if you're under 25 and do not have a qualifying child.


    http://www.irs.gov/Individuals/EITC-Inc ... aw-Updates

    Yes, must be age 25, but no qualifying child is required - although the AGI limits to qualify without a child are very low...
    by jj
    Wed Mar 26, 2014 2:47 pm
     
    Forum: Personal Finance (Not Investing)
    Topic: "Spinning Off" my 20 Year Old Son
    Replies: 71
    Views: 6974

    Re: Need health insurance advice (medicaid/obamacare)

    My point to her also was if she gets a serious illness without insurance she could bankrupt me even though I have a nice nest egg and good insurance. and also, I want her to be free to get the best if she gets a serious illness. +1 I have made it part of our IPS that our kids, when they are adults,...
    by jj
    Mon Mar 17, 2014 8:04 pm
     
    Forum: Personal Finance (Not Investing)
    Topic: Need health insurance advice (medicaid/obamacare)
    Replies: 16
    Views: 1709

    Taxes for Summer Internships - withholding calculator

    http://www.irs.gov/Individuals/IRS-Withholding-Calculator Thanks to poster 2cents2 for posting this link in another thread. My son had a college internship last summer and yesterday I helped him do his taxes for the very first time. He had W2 income of around $11,500 which was 12 weeks salary, plus ...
    by jj
    Mon Mar 17, 2014 12:16 pm
     
    Forum: Personal Finance (Not Investing)
    Topic: Taxes for Summer Internships - withholding calculator
    Replies: 0
    Views: 183

    Re: TAYLOR'S UPCOMING 90th BIRTHDAY

    Taylor,

    Many, Many Happy Returns!

    jj
    by jj
    Thu Jan 23, 2014 3:12 pm
     
    Forum: Local Chapters and Bogleheads Community
    Topic: Taylor's 90th Birthday
    Replies: 272
    Views: 23713

    Re: Annuities not needed if you can fund a 30-year retiremen

    You still need someone you trust to manage things even if its just to check that the annuity check is deposited. If things are set up so basic living expenses are covered by annuity+social security deposits each month, the couple or survivor can manage their expenses with fairly low risk if they ca...
    by jj
    Sat Jan 18, 2014 5:43 pm
     
    Forum: Investing - Theory, News & General
    Topic: Annuities not needed if you can fund a 30-year retirement
    Replies: 26
    Views: 2421

    Re: AA at age 55 too safe? Seeking advice

    My reaction to your predicament would be to accurately assess my situation. A first step would be to prepare a post using the forum guidelines as suggested by ofcmetz earlier. Rather than pulling back to a very small stock allocation my thought would be to save as much as I could and look to reduce ...
    by jj
    Sun Jan 12, 2014 8:04 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: AA at age 55 too safe? Seeking advice
    Replies: 9
    Views: 1457

    Re: Rebalancing when money is in taxable account

    I would model this situation for the next few years ahead if I were you. You say you are at 39% equity at the moment when your target is 25-30%. After another 6 years of withdrawing purely from the fixed income side of the portfolio, what does your asset allocation look like then, assuming for ease ...
    by jj
    Sun Jan 12, 2014 7:08 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: Rebalancing when money is in taxable account
    Replies: 21
    Views: 1823

    Re: REGISTRATION FOR THE 2014 BOGLEHEAD CONTEST

    I'll go for 1959.35

    jj
    by jj
    Wed Jan 01, 2014 6:22 pm
     
    Forum: Investing - Theory, News & General
    Topic: REGISTRATION FOR THE 2014 BOGLEHEAD CONTEST
    Replies: 537
    Views: 16039

    Re: Roth Conversion vs Tax Gain Harvest

    3. If you're the over-saving "any withdrawal rate over 0.6% is not safe" type, then you need to be thinking about the dispersement of all of those millions that will be leftover when you pass on, and whether, by tax gain harvesting, you are increasing the cost basis of an investment whose...
    by jj
    Sat Dec 14, 2013 9:28 am
     
    Forum: Investing - Theory, News & General
    Topic: Roth Conversion vs Tax Gain Harvest
    Replies: 15
    Views: 1217

    Re: Help with investing a windfall

    Some good suggestions here so far. It appears as if your current 401K plan is good, the Vanguard TSM Institutional fund is listed but no expense ratios shown. Look into moving your rollover IRA into your current 401K. This will allow you to do Back Door Roth IRAs every year without a lot of taxes to...
    by jj
    Fri Oct 04, 2013 1:41 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: Help with investing a windfall
    Replies: 4
    Views: 689

    Re: 59 1/2 to Social Security critical tax plan execution ti

    Yes, and you don't have to wait until 59 1/2 to do it.

    The early retirement strategy of Roth IRA conversions and/or harvesting capital gains from taxable accounts at low tax brackets is available to you at any age.
    by jj
    Fri Sep 27, 2013 2:26 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: 59 1/2 to Social Security critical tax plan execution time?
    Replies: 12
    Views: 744

    Re: Guaranteed Retirement Income

    You don't give your age but if you are younger than 70 consider deferring your Social Security until then. Use your nest egg to fund your expenses until you get there. Deferring Social Security is a good way to cost effectively increase your guaranteed (cost of living adjusted) income in retirement....
    by jj
    Mon Sep 23, 2013 9:41 am
     
    Forum: Investing - Help with Personal Investments
    Topic: Guaranteed Retirement Income
    Replies: 16
    Views: 1992

    Re: Gift money to parent for Roth IRA

    Good luck getting a medallion signature guarantee. Just went through the ordeal a few days ago.... Well, I know I can do it. I have banked at the same place for 15 years and I did it a few years ago. But, do I really want to go to the time and trouble of doing it? That's the problem. I think the in...
    by jj
    Sat Sep 14, 2013 7:55 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: Gift money to parent for Roth IRA
    Replies: 50
    Views: 3005

    Re: Gift money to parent for Roth IRA

    Vanguard has made this extraordinarily easy if you enroll in their Voice Recognition program. You no longer need the gold medallion signature guarantee. All you have to do is call a representative after your voice has been recognized, tell them what you want to transfer, and to which account, and i...
    by jj
    Sat Sep 14, 2013 9:53 am
     
    Forum: Investing - Help with Personal Investments
    Topic: Gift money to parent for Roth IRA
    Replies: 50
    Views: 3005

    Re: Just applied for Social Security

    Two topics spring to mind: Inflation - while $125k is a great retirement income, how much of that is COLA'd? If only the SS part has a cost of living increase component think about deferring the higher of your two SS amounts until age 70. You may also consider investing some of your income for futur...
    by jj
    Fri Sep 06, 2013 9:36 am
     
    Forum: Personal Finance (Not Investing)
    Topic: Just applied for Social Security
    Replies: 36
    Views: 3226

    Re: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]

    I was more paranoid back then. There's no move, that I know of, to remove SS from people who expatriate. Expatriating would make my taxes a lot simpler and increase my investment options. Also if my IRA to ROTH rollover strategy works, as a US NRA living in the UK all my retirement money would be t...
    by jj
    Sun Sep 01, 2013 8:01 am
     
    Forum: Personal Finance (Not Investing)
    Topic: Forms FT F 90-22.1 and 8938 [US Tax Forms, Living in UK]
    Replies: 16
    Views: 855

    Re: Help me prepare for Diminished Value Claim

    This happened to me a couple of years ago on my 7-month-old car. Car hit in a parking lot when I was walking toward the car, saw it happen, damaged to the tune of $1000+ and, of course, even when it is repaired as well as it can be a Used Car appraiser will still know that a repair has been done and...
    by jj
    Sun Aug 18, 2013 9:28 pm
     
    Forum: Personal Finance (Not Investing)
    Topic: Help me prepare for Diminished Value Claim
    Replies: 4
    Views: 812

    Re: Simple 3 Fund plan for minor IRA

    According to TurboTax, you need to be above the personal exemption amount: At What Income Does a Minor Have to File an Income Tax Return? A minor in this situation doesn't 'have' to file a federal income tax return but would be well advised to do so as they have likely paid too much in income taxes...
    by jj
    Sun Aug 18, 2013 2:02 pm
     
    Forum: Investing - Help with Personal Investments
    Topic: Simple 3 Fund plan for minor IRA
    Replies: 7
    Views: 332

    Re: [Sad news - Pat Larimore]

    Taylor,

    With my deepest sympathy on the loss of your dear wife.

    Kind regards, jj
    by jj
    Fri Jul 19, 2013 1:48 pm
     
    Forum: Investing - Theory, News & General
    Topic: [Sad news - Pat Larimore]
    Replies: 225
    Views: 16607
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