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Re: Please confirm my back door Roth understanding

Traveller wrote:Sorry for leaving out that important factor. We have approx 15 years to retirement so we should be able to come out ahead.


Just remember that ages 50+ can contribute $5,500/yr plus catchup contributions of $1,000/yr = $6,500 total.
by pingo
Wed Jul 30, 2014 7:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please confirm my back door Roth understanding
Replies: 15
Views: 1154

Re: Nisiprius on "bonds."

In my opinion, ANY low-cost, good quality, diversified, short- or intermediate-term bond fund provides a portfolio with safety and income. Well said. I agree. That should be a sticky and we can just refer almost all questions on bonds there. Agreed, as well. Also, If I am to put in a vote for favor...
by pingo
Tue Jul 29, 2014 1:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bonds!!??
Replies: 56
Views: 10440

Re: How to Allocate 401k with Company Stock

Now that I wrestled all that minutia out of you and worked out a couple suggestions...don't feel bad if you don't use them. :D I hope the discussion has been helpful, but now that it has run its course, I'll emphasize again that you had chosen very well on your own. So well, in fact, that you should...
by pingo
Tue Jul 29, 2014 1:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Allocate 401k with Company Stock
Replies: 15
Views: 1215

Re: Do any boggleheads invest in individual companies?

I have beat the market average 7 or 8 times out of ten for the last 4 or so years. Not trying to flame you, but I can't make heads nor tails of that statement. :| OP, Before joining Bogleheads and drinking the Kool-Aid I had purchased 2 individual stocks during the 2008-1009 market decline. They ha...
by pingo
Tue Jul 29, 2014 12:03 am
 
Forum: Investing - Theory, News & General
Topic: Do any boggleheads invest in individual companies?
Replies: 95
Views: 5246

Re: Higher Returns at Lower Risk - please comment

You lost me totally. My point was and is that there is a consistent small value premium, but Vanguard and Bogle seem to do there utmost to try to deny it. My apologies. I lost you because I was lost to begin with. For some reason I had walked away with the opposite impression that I should have: th...
by pingo
Mon Jul 28, 2014 4:34 pm
 
Forum: Investing - Theory, News & General
Topic: Higher Returns at Lower Risk - please comment
Replies: 59
Views: 6496

Re: Portfolio Review - Recent Grad and BogleHead

There is a current discussion that may be of interest, so I'm posting a link in case OP hasn't seen it: Traditional vs. Roth 401k when contributing the max In the thread there is also a to something that I should have included here: Bogleheads Wiki: Traditional versus Roth I hope it helps. :beer
by pingo
Mon Jul 28, 2014 2:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: 401K Target Retirement Fund or Not

I'm in favor of continuing to use the VG Target fund. You likely won't come across that great ER elseshere and you can complement it with a VG Target fund in your Roth/Traditonal IRA, if you have one. If you were to allocate the 3 proposed funds like your current target fund, you'd save a whopping 3...
by pingo
Mon Jul 28, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Target Retirement Fund or Not
Replies: 19
Views: 1022

Re: Higher Returns at Lower Risk - please comment

Professional investors have known the existence of the small value stock premium for many decades, although many seem to be in denial or try to downplay it. Vanguard doesn't want to talk about it, certainly not to me. John Bogle avoids to talk about it in his Common Sense on Mutual Funds. Vanguard ...
by pingo
Sun Jul 27, 2014 6:55 pm
 
Forum: Investing - Theory, News & General
Topic: Higher Returns at Lower Risk - please comment
Replies: 59
Views: 6496

Re: Afraid of Bonds

Am I stuck with something like a CD that will preserve my principal over the next 6 years or so (roughly the duration of an intermediate bond fund)? … I-Bonds are an option, but the interest rate there isn't much better than CDs ... I-Bonds are fine. I don't have a problem with someone using CDs an...
by pingo
Sat Jul 26, 2014 11:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Afraid of Bonds
Replies: 28
Views: 2250

Re: Portfolio Help with 401k

I made a small correction to the weighted ER. I forgot that the Old Union DCP has investor class funds, which raises the weighted ER to 0.11%. :oops:
by pingo
Sat Jul 26, 2014 11:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Help selecting bond fund for 401k

First, it just dawned on me that you may not have had as much "portfolio help" traffic because of the title of your thread, which I should have suggested once the thread went from bond selection to portfolio stuff. You can always edit the title to see what others suggest, as well. Second, ...
by pingo
Fri Jul 25, 2014 5:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Help selecting bond fund for 401k

pingo wrote:Also, please include whether the 401k offers the BrokerageLink option.


I think you missed this one. If you're plan offers BrokerageLink, check to see if there is an annual account fee. (There usually isn't one.)
by pingo
Fri Jul 25, 2014 10:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Help selecting bond fund for 401k

I also have an old Union pension account that is not having anything put into it because I am working outside of the Union, but need to leave it in place since I could potentially go back to that job, so no rollover possible. This is a Vanguard employer account - $10,793.39 total VFIFX - Vanguard T...
by pingo
Fri Jul 25, 2014 1:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Help selecting bond fund for 401k

You're soooo close. (I swear this ain't no carrot and stick routine!) :D Roughly 17k-18k by end of year including employer match. Hoping to max out next year.. Nice! So next year, hopefully you'll contribute $17,500 + _______________ . (Fill in the blank with the dollars from the employer match.) We...
by pingo
Thu Jul 24, 2014 5:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Help selecting bond fund for 401k

I was curious about that but still am unsure of how I would re-balance. Since I can't take money out of my Roth IRA and put it in my 401k, that would mean I would also have to have equities in the Roth as well, right? Money is fungible, so it isn't necessary to move money from one account to anothe...
by pingo
Thu Jul 24, 2014 3:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Help selecting bond fund for 401k

After 1 post, welcome to the forum, awester462 ! :D You chose well if not on costs alone. Costs do matter. PDIIX appears to allow itself to use a larger amount of corporate and junk bond debt. I'm sure there's other stuff I missed. Using PDIIX would not automatically be a bad thing, but it increases...
by pingo
Thu Jul 24, 2014 1:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help with 401k
Replies: 17
Views: 1273

Re: Portfolio Review - Recent Grad and BogleHead

DS on Monday was loath to sell his Indexes-Vanguards to fund the his down payment for a house that is schedule for closing on Friday . It was money more than 1 year old with LTCG, accumulated from money he did not place in a 401k. Better to pay LTCG rate on just the gains than 32%ordinary income ra...
by pingo
Thu Jul 24, 2014 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: Portfolio Review - Recent Grad and BogleHead

I disagree here as it's best to do this as a direct rollover to the IRA otherwise there will be withholding on the taxable portion which won't be a lot but will be an unnecessary complication. Thank you for pointing this out to ensure it is done properly. I've stated several times that it must be d...
by pingo
Tue Jul 22, 2014 7:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: Portfolio Review - Recent Grad and BogleHead

1. Most people have this cockamamy idea that a Roth beats Traditional every time, regardless of tax situation. ( Unicorns farting rainbows! , as stated by Mr. Taxes himself, Bob's not my name .) A Roth 401k can be a great tool, but it's all relative. On that note, I thought I'd go look at a compari...
by pingo
Tue Jul 22, 2014 2:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: Portfolio Review - Recent Grad and BogleHead

1) My plan does allow for after-tax contributions 2) Here is my plan document on in-service withdrawals https://dl.dropboxusercontent.com/u/56343499/XII.pdf According to the document it seems I can, but on the website it says "There are no withdrawals currently available for your plan". P...
by pingo
Tue Jul 22, 2014 1:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: 401K Allocations 51 years old

I added links and edited above in red. I overlooked a small, but significant detail which means the best choice is even clearer than before.
by pingo
Sun Jul 20, 2014 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K Allocations 51 years old
Replies: 7
Views: 1453

Re: 401K Allocations 51 years old

bbigg51 . It dawned on me that the expense ratios you listed are in line with other 401ks we've seen and some have Institutional ER which means their not trying to gouge on pricing. This allowed me to get a good idea of your fund ERs. As such I feel comfortable suggesting you put 100% of your 401k ...
by pingo
Sun Jul 20, 2014 2:06 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K Allocations 51 years old
Replies: 7
Views: 1453

Re: Help with asset allocation

I agree that the portfolio is very low on bonds. If it were all-Wellesley it would have plenty. Just some random comments: 15% in REIT seems high, unless you've already been using a high allocation to REIT for years and have experience staying the course with them. REIT expected returns are no highe...
by pingo
Sun Jul 20, 2014 12:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with asset allocation
Replies: 5
Views: 699

Re: Help with new 401K choices

The expensive 401k choices (with no index funds) make it too complicated to consider all accounts as one portfolio for all purposes. So, it is still probably best to consider costs first, and the need to maintain the right overall stock-bond ratio, but it may be dis advantageous to maintain a consis...
by pingo
Sat Jul 19, 2014 12:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with new 401K choices
Replies: 10
Views: 792

Re: Portfolio Review - Recent Grad and BogleHead

Roth vs Traditional : Based on what you said, I agree it may not make sense for me to be contributing to a Roth 401k. I suspect I will be debt free in retirement and my expenses will be low. I have changed it so my future contributions will go to a traditional 401k. :thumbsup Oh! I should have chec...
by pingo
Fri Jul 18, 2014 7:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: Help with new 401K choices

Thanks for the update. Something I forgot to ask: are the old 401k assets automatically being rolled into the new plan with the new advisor? Or, can the old 401k assets remain with the old 401 advisor? (If they can stay with the old 401k, what are all the fund options in that plan?) Again, do you kn...
by pingo
Fri Jul 18, 2014 1:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with new 401K choices
Replies: 10
Views: 792

Re: Help with new 401K choices

Delayed Gratification wrote:Since I’ve switched from investing in the Roth to the 401K I haven’t been really sure about how to keep the asset allocation on track.


Also, is the reason for not filling your Roth IRAs a matter of available money to save? Or, do you (plural) no longer qualify to contribute directly to a Roth IRA?
by pingo
Thu Jul 17, 2014 6:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with new 401K choices
Replies: 10
Views: 792

Re: Help with new 401K choices

Not an expert, here, but I may have some ideas. Is there any option to move the 401k to a Rollover IRA at Vanguard, rather than having to exchange assets into the new plan. It's a long shot, but sometimes one can do that. One problem: when I add up all the percents in the portfolio I get 83%. :( Whe...
by pingo
Thu Jul 17, 2014 6:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with new 401K choices
Replies: 10
Views: 792

Re: Portfolio Review - Recent Grad and BogleHead

After 1 post, welcome to the forum, JeremyPW ! You have a great 401k. Roth vs. Traditional : I feel the most comfortable when Roth contributions are made in the 15% federal bracket, except when a Roth IRA is being used to hold emergency savings which by necessity must be post-tax anyway. There are a...
by pingo
Thu Jul 17, 2014 2:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Recent Grad and BogleHead
Replies: 18
Views: 1901

Re: How to invest savings after maxing out retirement accoun

eiggub wrote:I’m currently maxing out my retirement plans (403b, Backdoor Roth, HSA, SEP IRA & taxable account) in Vanguard index funds with 20% of income. I also recently bought a home with previous savings to build equity and to get the mortgage interest deduction.
retiredjg wrote:A person with a SEP IRA should not be doing back door contributions to Roth IRA because the SEP IRA is involved in the tax calculation. Are there two of you?


I'm still curious about the answer to this one.
by pingo
Wed Jul 16, 2014 10:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest savings after maxing out retirement accounts?
Replies: 14
Views: 2740

Re: was Bogle right about ETFs?

You're doing good work, Larry and I thank you for the article and your contributions to this forum. I'll admit some of the verbage was confusing because it centered on what supposedly the ETFs did, versus their traders. For example: • Portfolio performance of the ETF user decreases as ETF usage incr...
by pingo
Wed Jul 16, 2014 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: was Bogle right about ETFs?
Replies: 26
Views: 2894

Re: 401K Allocations 51 years old

Welcome to the forum, bbigg51 ! :D It is not clear whether we have a list of all available funds in the employer-sponsored retirement savings plan. If not, please list all options. You have only included expense ratios for the proposed fund setup. We need to see the expense ratios of each option in ...
by pingo
Wed Jul 16, 2014 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K Allocations 51 years old
Replies: 7
Views: 1453

Re: Need Help with 401K Funds

(weighted average ER = 0.025% vs 0.11% for Lifepath) Yeah. There's no other word I can think of for a weighted ER of 0.025% than...well...scrumptious. Which will have strongest allure: rock-bottom pricing or simplicity with near-rock bottom pricing? I guess you already know on which side of the lin...
by pingo
Tue Jul 15, 2014 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Help with 401K Funds
Replies: 6
Views: 923

Re: 401k Advice: More Opinions

Sorry I'm late! You have received excellent advice and you have a great 401k to set up a 3 or 4 fund portfolio for her. I'm chiming in hopes that this post about the LifePath Index series offers a helpful perspective, along with how it relates to the Vanguard Target Retirement series and 3 or 4 fund...
by pingo
Tue Jul 15, 2014 2:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k Advice: More Opinions
Replies: 11
Views: 1321

Re: Need Help with 401K Funds

What hoppy08520 said. Seriously. You have a fantastic 401k, and your personal situation gives you the opportunity to keep things at their simplest. Here's a link to my post in another thread where I do my best to explain the LifePath Index series and it relates to the Vanguard Target Retirement seri...
by pingo
Tue Jul 15, 2014 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Help with 401K Funds
Replies: 6
Views: 923

Re: Portfolio Allocation and 401k questions

How does the tIRA come into play here? It doesn't anymore, mostly for reasons specified by Bob's not my name , and because we didn't know that the previous 401k is actually a Previous ROTH 401k . I think I will be fine on my emergency fund so what I'm gathering is just to roll it over into my curre...
by pingo
Tue Jul 15, 2014 9:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Allocation and 401k questions
Replies: 26
Views: 2053

Re: Portfolio Allocation and 401k questions

If this is a traditional 401k you're proposing to do a Roth conversion. The five-year rule on Roth conversions is confusing, but I believe it applies here and thus this would not make a good emergency fund. Thanks for catching that, Bob's not my name ! I mis-read OP's statement. I was thinking that...
by pingo
Mon Jul 14, 2014 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Allocation and 401k questions
Replies: 26
Views: 2053

Re: Pull-ups and Push-ups

Last week, I attended an excellent presentation by Howard Chen, MD, about physical activity preventing and fighting every chronic disease. In the context of this thread, it means that any effort is highly beneficial. One should not strive to become the most athletic Boglehead, if the alternative is...
by pingo
Mon Jul 14, 2014 1:22 pm
 
Forum: Personal Consumer Issues
Topic: Pull-ups and Push-ups
Replies: 329
Views: 39693

Re: Portfolio Allocation and 401k questions

How did you decide on 56/24 for domestic/international stock? I didn't. You did. :wink: 80% Stock Allocation x 30% of stocks for International equities = 24% of the portfolio. I read the post on barbelling and it was extremely interesting. With your 3:1 ratio you're saying 15% in the long bonds and...
by pingo
Mon Jul 14, 2014 12:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Allocation and 401k questions
Replies: 26
Views: 2053

Re: Portfolio Allocation and 401k questions

For what it's worth, I'm siding with Bob's not my name . 401k all the way. :D That said, the emergency fund makes moot the debate between the 401k and Roth IRA, at least for a while. Using the Roth to hold emergency savings also uses emergency savings to save in a Roth, which hopefully makes both no...
by pingo
Sun Jul 13, 2014 7:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Allocation and 401k questions
Replies: 26
Views: 2053

Re: Vanguard Target Retirement 2055 Fund Investor Shares

As far as I'm concerned, there's nothing inherently superior about ETFs vs. traditional index funds (the benefit of one over the other is situational) and nothing inherently superior about constructing your own portfolio from ETFs vs. using the expertly-assembled portfolio of a Vanguard Target Retir...
by pingo
Sat Jul 12, 2014 11:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target Retirement 2055 Fund Investor Shares
Replies: 14
Views: 1445

Re: Questions on my 401k options

Tamales wrote:Thanks Pingo, yes I'll work all those other aspects out on my own, and if I get stuck I'll ask a specific question.


:thumbsup



Also, my thanks to Grt2bOutdoors for the above link.
by pingo
Fri Jul 11, 2014 6:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions on my 401k options
Replies: 6
Views: 789

Re: Questions on my 401k options

BTW welcome to the forum! :D I found out that I can get out of the target date fund I'm in for my 401k and move to a limited few other options. What's wrong with the TD fund? It would be best if we could see all the right information in one spot per recommendations for asking portfolio questions . P...
by pingo
Fri Jul 11, 2014 10:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions on my 401k options
Replies: 6
Views: 789

Re: The Three Fund Portfolio

I'll second the above two posts. One doesn't have to move away from The Three Fund Portfolio to increase the risk/return profile of the portfolio: rather than adding EM, SV or whatever, one can merely increase the overall allocation to stocks in order to take on more risk. It's not perfect, it has i...
by pingo
Tue Jul 08, 2014 3:08 pm
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 822
Views: 320586

Re: How to Allocate 401k with Company Stock

Big edits above. For example, I reversed the order of my suggestions. Sorry! :oops:
by pingo
Tue Jul 08, 2014 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Allocate 401k with Company Stock
Replies: 15
Views: 1215

Re: How to Allocate 401k with Company Stock

Option 2 (lowest cost; simple enough) Her Schwab IRA (30%) 30% Schwab Total U.S. Stock (SWTSX) .09 His Vanguard Roth (21%) 20% Vanguard Total U.S. Stock - Admiral (VTSAX) .05 <--$3,667/yr. 01% Vanguard Total International - Investor (VGTSX) .22 <--$1,833/yr. Converts to (VTIAX) .14 @ $10k. His Vang...
by pingo
Tue Jul 08, 2014 2:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Allocate 401k with Company Stock
Replies: 15
Views: 1215

Re: How to Allocate 401k with Company Stock

Option 1 (simplest; recommended) Her Vanguard IRA (30%) <--I moved this account to Vanguard. :happy 30% Vanguard Target Retirement 2030 (VTHRX) .17 His Vanguard Roth (21%) 21% Vanguard Target Retirement 2030 (VTHRX) .17 Her Vanguard Roth (15%) <--$5,500/yr. 15% Vanguard Target Retirement 2030 (VTHR...
by pingo
Tue Jul 08, 2014 2:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Allocate 401k with Company Stock
Replies: 15
Views: 1215

Re: How to Allocate 401k with Company Stock

Well, I could have been clearer myself; Total Contributions His Roth-5.5k His 401k-4.5k <--Again, this is your 4% + the 2% match, or just your 4% contribution? :| His Company Stock-1.5k Sometimes the obvious eludes me, so forgive the bother. And don't worry about the figures, too much. They don't n...
by pingo
Tue Jul 08, 2014 11:00 am
 
Forum: Investing - Help with Personal Investments
Topic: How to Allocate 401k with Company Stock
Replies: 15
Views: 1215
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