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Re: Diversification between account types

As I understand your question, it's about the choice between Roth and traditional tax-advantaged accounts. A simpler way is to put higher growth into Roth. A slightly more complicated, but also more correct way is discounting holdings by how much tax you expect to pay on them (http://www.bogleheads...
by mamarachel
Mon Sep 23, 2013 4:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Diversification between account types
Replies: 4
Views: 239

Re: Diversification between account types

I should have clarified more I think. I do not need (at this time) to dabble in taxable accounts. Tax-efficient account space covers 19.3% of our current income and we are "on-track" for our retirement goals at that rate. I still have plenty of space in tax-efficient beyond that (20K). As ...
by mamarachel
Mon Sep 23, 2013 4:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Diversification between account types
Replies: 4
Views: 239

Re: Effective Duration vs. Effective Maturity

Thank you, basically affirmed what I thought I would do. So as not to be a "market timer", can I move this over anytime? Or should I wait until my next re-balancing date? Part of me says not to bother with it mid-year. I re-balance annually in April, when I change my contribution amounts d...
by mamarachel
Mon Sep 23, 2013 4:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Effective Duration vs. Effective Maturity
Replies: 2
Views: 668

Diversification between account types

Is it better to diversify higher risk, potentially higher yield investments into a ROTH or keep the low-expected yield investments there? I'm thinking for the purposes of taxation upon withdrawal, if I have a 70/30 total AA, it would be wise to have all 30 of my cash-value and bond allocation in the...
by mamarachel
Mon Sep 23, 2013 4:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Diversification between account types
Replies: 4
Views: 239

Re: Rental Houses Debt vs. Building the 529 plans

All of your income from the houses is taxable, the 529 gains are not. Add that to your thought process. Also, you are in fixed rate low-interest loans, which (in general) only get cheaper and easier to pay down with inflation of rents and salary. Your gross rents will come up in addition. I think yo...
by mamarachel
Fri Sep 20, 2013 5:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rental Houses Debt vs. Building the 529 plans
Replies: 9
Views: 798

Effective Duration vs. Effective Maturity

Hi all, Quick question. I have two very similar (seemingly) bond fund choices in my 401K. VBTSX (.16) Vanguard Total Bond Market Index and PTTRX (.46) PIMCO Total Return Instl. VBTSX is new in my choices this month and I'm considering switching due to ERs, but I want to make an informed choice becau...
by mamarachel
Fri Sep 20, 2013 4:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Effective Duration vs. Effective Maturity
Replies: 2
Views: 668

Re: 401K rollover and my MBA

How are you paying for said Master's program? I would not live off of my savings if I had to finance a Master's program.
by mamarachel
Mon Aug 12, 2013 3:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K rollover and my MBA
Replies: 3
Views: 280

Dividends and return question

Does the return report I get from my account holder (in this case TRP) include the return from dividends? For example, if they quote YTD return of 15.48%, does that include the dividends?

Thanks
by mamarachel
Wed Aug 07, 2013 6:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dividends and return question
Replies: 1
Views: 184

Re: Retiree needs advice

If your wife is 62, is she now getting the spousal SS benefit? So your current fixed income is your SS, her spousal benefit, and your pension?
by mamarachel
Fri Aug 02, 2013 6:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiree needs advice
Replies: 14
Views: 1989

Re: Buying a House and Retirement Savings

Are you planning to have children? If so, I'd go ahead and get a ballpark for what daycare will run you and make a mock budget to determine if you can afford all of these payments and childcare at the same time. Childcare is extremely expensive. Can you float everything, including the 10%, on just o...
by mamarachel
Fri Aug 02, 2013 2:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buying a House and Retirement Savings
Replies: 7
Views: 775

Re: less people in 401k at work, some $ returned, now taxabl

I'd ask HR to clarify if they think this will happen again this year. If so, take steps now.
by mamarachel
Wed Jul 31, 2013 12:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: less people in 401k at work, some $ returned, now taxable
Replies: 18
Views: 2006

Re: Should I get a MBA?

Seek out a small start up, local business, with a large upside and volunteer your services (or do some sort of pay reward on success). Start your own gig privately. Get great at web-design, or find a talented web-designer working freelance and partner on an upstart. Make something from nothing. Pour...
by mamarachel
Tue Jul 30, 2013 1:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I get a MBA?
Replies: 37
Views: 3064

Re: Should I get a MBA?

To be honest, those scores mean diddly in the real world. So you can take a test! Whoopie! (not being derogatory, just pointing out that it isn't some magic formula). Your career thus far has been lackluster, and it will prevent you from getting into an Ivy League school. You haven't been given the ...
by mamarachel
Tue Jul 30, 2013 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I get a MBA?
Replies: 37
Views: 3064

Re: Student Loans and the Correct Course of Action

Minimums on everything. Save up and marry her with a low-budget wedding. Then, with combined incomes you have combined power. You can then set a household budget and kill this debt in about 4 years. Teamwork works best. If you love her and she loves you, shacking up isn't in either of your best inte...
by mamarachel
Mon Jul 29, 2013 5:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Student Loans and the Correct Course of Action
Replies: 44
Views: 2526

Re: Primary residence to investment property

Comparables do not cover WSG and are at $1200 with quick turn-arounds (same day or same week occupancy). Just for ease of management, we'd prefer to charge a bit more and cover these expenses because unpaid water, sewer bills are the responsibility ultimately of the property owner (via lien), and t...
by mamarachel
Fri Jul 26, 2013 6:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary residence to investment property
Replies: 14
Views: 912

Re: Primary residence to investment property

Can you all help me evaluate the numbers on this property? Am I doing this right? I get slightly different numbers than you but your numbers are similar enough that it does not matter. You have a healthy maintenance and capital improvement reserve on a new building so that is all good. You are acco...
by mamarachel
Fri Jul 26, 2013 3:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary residence to investment property
Replies: 14
Views: 912

Re: Primary residence to investment property

You aren't including anything for repairs, and there's almost always something that needs fixing occasionally. And sometimes it can be costly. It's less likely to be catastrophic (like a new roof) with relatively new construction, but there still *are* repairs needed sometimes. Do you have reserve ...
by mamarachel
Fri Jul 26, 2013 3:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary residence to investment property
Replies: 14
Views: 912

Re: Primary residence to investment property

A lot of people on this site recommend looking at the cap rate for your property. This is the gross rents less non-financing expenses over the total purchase price (including closing costs). Gross Rent = 1225 * 12 = 14,700 Non-financing Expenses = (389 * 12) + 2100 + 650 = 7,418 Purchase Price = 14...
by mamarachel
Thu Jul 25, 2013 2:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary residence to investment property
Replies: 14
Views: 912

Re: Primary residence to investment property

You don't provide the value of the home, but if you could sell at a gain, you might want to make sure that you don't lose the opportunity to use the Sec. 121 exclusion. We'd sell without renting it so there would be no need to consider the exclusion for residency. We live in it now. The only time t...
by mamarachel
Thu Jul 25, 2013 2:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary residence to investment property
Replies: 14
Views: 912

Primary residence to investment property

Can you all help me evaluate the numbers on this property? Am I doing this right? Purchase price net 143K (after seller assist). Bought with 5% down. Loan 139K, 4.25%, 30 years fixed. Risky but it was a builder foreclosure and about 15% below market value at time of purchase. Expenses: Loan (P&I...
by mamarachel
Thu Jul 25, 2013 2:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Primary residence to investment property
Replies: 14
Views: 912

Re: Owner of term life policy

From what I understand, the self-owned policy is income tax free to my husband, but would be considered part of our estate and is bumping up against the State-level estate taxes. Having him be the owner it isn't part of our estate, so it avoids that tax as well. Is that wrong? Or does it not really ...
by mamarachel
Tue Jul 23, 2013 8:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Owner of term life policy
Replies: 6
Views: 416

Re: What's more important - Term Life or Disability Ins?

How much would your social security benefit be to your spouse until your children are 18 if one of you passed away? Use that number plus each individual income to make widow/er budgets and see how short you fall. Will being debt free fix the income gap? If so, purchase enough insurance to cover your...
by mamarachel
Tue Jul 23, 2013 5:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: What's more important - Term Life or Disability Ins?
Replies: 18
Views: 1844

Owner of term life policy

Hello, I think this is a quick question... I have a total of about 1M in term life insurance in 2 policies which I am the "owner" of at this time (one through work, one privately purchased). Would it be beneficial to move the ownership of the privately purchased policy to my husband to avo...
by mamarachel
Tue Jul 23, 2013 5:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Owner of term life policy
Replies: 6
Views: 416

How do I determine my asset classifications (TRP acct)

I'm in need of some help. I have a pie-chart in my account, which shows my asset allocation between stocks, bonds, cash and other. I'm looking for something similar for the international piece, to determine if I'm where I need to be for my IPS (for rebalancing, etc). I suspect (highly) that I am und...
by mamarachel
Wed Jul 03, 2013 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do I determine my asset classifications (TRP acct)
Replies: 3
Views: 208

Re: Long-Term-Care Insurance Leaves Customers Groping

Genworth Financial Inc., with about a 33% market share of long-term-care policies sold to individuals, said in May that it is seeking premium increases averaging more than 50% to stave off more losses in its oldest policies. Informative article. Thanks for posting the link. The long-term-insurance ...
by mamarachel
Tue Jul 02, 2013 2:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long-Term-Care Insurance Leaves Customers Groping
Replies: 61
Views: 5150

Re: Are we saving enough?

I honestly have no idea how the basis works. That is something I need to look into. We are non-residents. I'll add it to my pile to research.
by mamarachel
Tue Jul 02, 2013 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Are we saving enough?

Only 60% of our income is subject to SIT of 9%. We are non-residents of the taxing state.
by mamarachel
Tue Jul 02, 2013 12:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Are we saving enough?

FIT solid 28% SIT 9% I don't think you're in the 28% bracket. $210,000 max gross income - $5,000 dependent care FSA - $2,500 health FSA - $27,000 401k contributions (could be $35,000) - $3,500 pre-tax health, dental, and disability insurance premiums withheld from your pay (guess) --------------- $...
by mamarachel
Tue Jul 02, 2013 12:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Are we saving enough?

Last year we paid 23K in FIT, 8K in State. I can't imagine our federal doubled. You made $200k, didn't even max your 401k, and paid under 12% effective?? Dang! What's your secret? Last year our AGI was 149.9K. Commission sales is variable, I got a promotion as well. Our income is up this year. No s...
by mamarachel
Mon Jul 01, 2013 7:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Are we saving enough?

Our income is between 180-210 gross (salaried + commissions & bonuses). 110 is salary only. Thoughts or ideas on how to analyze this are welcome You need to figure out where all the money will be going to next year when the debt you mentioned is paid off; You will be paying maybe; $12,000 a yea...
by mamarachel
Mon Jul 01, 2013 7:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Are we saving enough?

Thank you for the above links. I will check them out.

the TRP calculator I used said we'd need 10K per month, but it didn't take into account that of our $8100 fixed expense budget today, $3500 is related to the children and mortgage, and thus those payments "go away".
by mamarachel
Mon Jul 01, 2013 6:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Starting our IPS - a little feedback?

So should I link all of my posts together LadyGeek?
by mamarachel
Mon Jul 01, 2013 5:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting our IPS - a little feedback?
Replies: 8
Views: 718

Re: Spanked on Retirement, Gen X Still Doesn't Get It

^^ Very interesting thoughts. What I fail to see is how you end up ahead if you contribute more than you can technically afford, then withdraw it with a 10% penalty + marginal rate. Unless you are not receiving the full match with what you can afford, the account return will not cover your losses wo...
by mamarachel
Mon Jul 01, 2013 4:51 pm
 
Forum: Investing - Theory, News & General
Topic: Spanked on Retirement, Gen X Still Doesn't Get It
Replies: 60
Views: 11496

Re: Starting our IPS - a little feedback?

Thank you Peter for your thoughts.
by mamarachel
Mon Jul 01, 2013 4:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting our IPS - a little feedback?
Replies: 8
Views: 718

Are we saving enough?

As the question asks, "are we saving enough"? We are "late" to the savings game, after a lot of being beat-down from the economic circumstances (and a lot of poor choices) in the last 15 years. I won't make excuses, 50% of our beat-down was self-inflicted. Throw in student loans ...
by mamarachel
Mon Jul 01, 2013 4:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we saving enough?
Replies: 19
Views: 3102

Re: Starting our IPS - a little feedback?

I think this is just the "outline" of our first IPS. Thus, the goals stated are an order in which to pursue things. The next step would certainly be to identify our risk tolerances, long-term goals, etc., and write them in. I've looked at the IPS examples, and this stuff I did above doesn'...
by mamarachel
Thu Jun 27, 2013 7:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting our IPS - a little feedback?
Replies: 8
Views: 718

Re: Starting our IPS - a little feedback?

For clarity. We have the option of an HSA at this time, but due to not having our Emergency Fund complete, and the high expected contributions, we've decided to maintain our PPO insurance for another year at a premium of $200 per month. The PPO insurance is very good, with 90/10 coverage and a very ...
by mamarachel
Thu Jun 27, 2013 12:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting our IPS - a little feedback?
Replies: 8
Views: 718

Starting our IPS - a little feedback?

We are just starting our IPS. We've been saving for a while, but with no real targets, meaning, or strategy aside from "put something in the 401K". We've never drawn from the 401K, but we have wavered in contribution amounts. We are a mid-30s couple, 2 young children and considering a 3rd....
by mamarachel
Thu Jun 27, 2013 12:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting our IPS - a little feedback?
Replies: 8
Views: 718

Re: Retirement projections modeling - am I missing something

I have kids in preschool and I'm using a much more conservative college number than you are. Tuition growth (IMO) will likely slow, but it's still rapidly out-pacing inflation. If the "student loan" crisis comes to fruition (some say it's already begun), schools may become more selective a...
by mamarachel
Wed Jun 26, 2013 7:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement projections modeling - am I missing something?
Replies: 20
Views: 1710

Re: Spanked on Retirement, Gen X Still Doesn't Get It

The retired household with $60K in investment net worth is not going to be booking the last oceanfront room at the Hilton ahead of you. They are probably booking it now though, in their 30s/40s :o Don't get me wrong, I totally agree, but I'm just putting it out there that the choice is oft now or l...
by mamarachel
Wed Jun 26, 2013 4:06 pm
 
Forum: Investing - Theory, News & General
Topic: Spanked on Retirement, Gen X Still Doesn't Get It
Replies: 60
Views: 11496

Re: Spanked on Retirement, Gen X Still Doesn't Get It

This aligns much more closely with my experience than the results of the study. The reality is the SS trust fund, under current law and taxes, is set to be exhausted in 2033, 5 years into the retirement age of Gen-X. It was 2037 for a while, a year near and dear to my retirement heart... but even t...
by mamarachel
Mon Jun 24, 2013 6:54 pm
 
Forum: Investing - Theory, News & General
Topic: Spanked on Retirement, Gen X Still Doesn't Get It
Replies: 60
Views: 11496

Re: Use or lose backdoor Roth

Is your employer small or open to requests for changes in 401K plans? We grouped together and requested a move to a new plan holder, and it worked. In addition, due to EE requests, they added a ROTH 401K option. Our company is about 1000 seats. With ERs this high, it might be worth asking (suggestin...
by mamarachel
Mon Jun 24, 2013 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Use or lose backdoor Roth
Replies: 5
Views: 972

Re: tax basis, dividend funds, in a 401K

Thank you, that answered my question perfectly. The dividends are re-invested back into the account at my contribution mix rates. I feel okay with that for now.
by mamarachel
Thu Jun 20, 2013 1:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: tax basis, dividend funds, in a 401K
Replies: 3
Views: 176

tax basis, dividend funds, in a 401K

I have some funds in my 401K that have distributed dividends. Is this okay in a deferred tax account? I'm confused about how my basis is determined, and if I need to be keeping records of this stuff to determine my basis down the road. I don't have records of my basis from when I first started this ...
by mamarachel
Thu Jun 20, 2013 1:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: tax basis, dividend funds, in a 401K
Replies: 3
Views: 176

Re: 401K Loan -- Sanity Check

I'm not trying to be snarky here, and I'm a newbie on this forum so take this with that grain... Cash flys out as fast as you can pile it up? You have a car loan, will have a HELOC or 203K loan, and are contemplating a 401K loan. Do you have a budget, written and agreed upon by your spouse? Does it ...
by mamarachel
Wed Jun 19, 2013 7:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Loan -- Sanity Check
Replies: 32
Views: 1839

Re: Portfolio Balancing

Frengo wrote:Aren't you less than 20% ex-USA ? That's underweight.
Very likely the three Vanguard funds have lower cost than all the others and you can replicate the total domestic market just using them.


I don't understand this question. What is the "right" weighting?
by mamarachel
Fri Jun 14, 2013 6:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: [ETA Expense Ratios] Portfolio Balancing
Replies: 5
Views: 413

Re: Portfolio Balancing

Bump - added expense ratios. I have no idea what the fund choices are on our other accounts, but I will find out. I think my husband is in 100% 2040 at Fidelity for his 401K, and a few of the index Vanguard funds on a rollover IRA he maintains (very low balance ~12K?) I get 100% of 4% on this accoun...
by mamarachel
Fri Jun 14, 2013 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: [ETA Expense Ratios] Portfolio Balancing
Replies: 5
Views: 413

Re: Financial Checkup for 25 y/o

I'd eliminate your debt, then save again, and don't get too much cash sacked away before getting toward saving in tax deferred accounts. My concern is this: You are young and have (likely) some expensive life changes coming up. Save for intermediate and short-term items, then invest. Weddings, Honey...
by mamarachel
Fri Jun 14, 2013 12:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Financial Checkup for 25 y/o
Replies: 5
Views: 612

Re: Financial Checkup for 25 y/o

Your budget seems incomplete and is missing categories for things like car repairs, registration, household goods (lest your shower curtain mildews), medical & dental co-pays, car replacement, travel, license renewals, gasoline for the car, etc etc etc. I like to budget in categories: Transporta...
by mamarachel
Thu Jun 13, 2013 8:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Financial Checkup for 25 y/o
Replies: 5
Views: 612

Re: Social Security - Guide

I am doing what I can to set my family up, I am not hoping for any inheritance. I think it would be a shame if there was one and they didn't fruitfully enjoy their retirement for wanting to pass on money. That's just silly. I am most concerned about strategy to give the surviving spouse to most inco...
by mamarachel
Thu Jun 13, 2013 2:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security - Guide
Replies: 20
Views: 1529
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