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Re: How to auto invest VTI/VXUS with no fees??

You could consider using no-transaction-fee iShares ETFs at Fidelity. Or no-transaction-fee Vanguard ETFs at TD Ameritrade. Might be manual though. I'm pretty sure you can auto invest at Vanguard in VG mutual funds, but I'm not sure you can do that with ETFs. You are not being cheap. You should not ...
by retiredjg
Sat Jan 24, 2015 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to auto invest VTI/VXUS with no fees??
Replies: 9
Views: 600

Re: Is a financial advisor going to help?

We recently talked to a couple of financial advisors, and we are wondering if we are the type of family who would actually benefit from paying one. They all charge 1% AUM which seems like a lot. We've been managing our own portfolio, and don't mind putting everything in index fund. However, where w...
by retiredjg
Sat Jan 24, 2015 1:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is a financial advisor going to help?
Replies: 11
Views: 625

Re: Separating 5-10 yr investments from retirement portolio

Looks like a fine plan to me if your tax bracket is high enough to warrant the tax-exempt bonds.
by retiredjg
Sat Jan 24, 2015 12:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Separating 5-10 yr investments from retirement portolio
Replies: 8
Views: 566

Re: Should I open a Roth IRA ?

mistike wrote:We'll see. Now is the time for saving as much as I can, not for making decisions I can't afford to make yet.

I think this is the right approach. Good luck!
by retiredjg
Sat Jan 24, 2015 8:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I open a Roth IRA ?
Replies: 25
Views: 1770

Re: Newbie needing help with investments

So for the Roth IRA , would the Target retirement funds be recommended, like Vanguard Target Retirement 2050 Fund (VFIFX) with expense 0.18% or trying the three fund portfolio recommended by some on this site? For now, I'd use the Target Retirement fund that contains the stock to bond ratio you dec...
by retiredjg
Sat Jan 24, 2015 7:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie needing help with investments
Replies: 17
Views: 901

Re: Newbie needing help with investments

Just bought my first VTI ETF. My guess is the recommendation would be to convert over to more Vanguard funds...but I'd be interested to hear what folks have to say. I'm not talking large sums of money, about 12k in Roth and 9k in taxable savings...with no real job yet. It does not have to be Vangua...
by retiredjg
Fri Jan 23, 2015 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie needing help with investments
Replies: 17
Views: 901

Re: Should I sell tax inefficient mutual funds?

Remember that Bogleheads tend to be over-optimizers when it comes to tax-efficiency. Much of the investing world pays little attention to this. If the other 90% of your portfolio is relatively tax-efficient, I would not give this another thought.
by retiredjg
Fri Jan 23, 2015 9:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I sell tax inefficient mutual funds?
Replies: 18
Views: 1072

Re: Tsp C fund S fund and brokerage account

This is true, but the expense ratio for the Vanguard fund is almost 5 times higher than the I-Fund (0.14% vs. 0.029%). "Five times higher" is true, but mathematically not the way to look at this. The difference between the two funds is .111%. For a $10k investment, that is only $11.10 a y...
by retiredjg
Fri Jan 23, 2015 9:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Tsp C fund S fund and brokerage account
Replies: 10
Views: 653

Re: Should I sell tax inefficient mutual funds?

Maybe a middle ground. There are two issues to consider - tax-efficiency and cost. Both are tax-inefficient but only one is very low cost. You can actually lower the overall cost of your portfolio by selling the Capital Appreciation. Not so much by selling the Wellesley. I would probably not sell th...
by retiredjg
Fri Jan 23, 2015 9:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I sell tax inefficient mutual funds?
Replies: 18
Views: 1072

Re: IRA to Roth Conversion + Tax Implications

equivestor wrote:So, if the conversion was for $50,000 and taxes paid from other funds there would be no penalty......just learned something new. Thanks.

This is correct. There would be the taxes due, but no penalty.
by retiredjg
Fri Jan 23, 2015 8:03 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth Conversion + Tax Implications
Replies: 7
Views: 644

Re: Should I open a Roth IRA ?

Thanks, I will read that carefully. In any case, opening the RIRA now starts the 5-years clock, so the sooner I open one, the better I am in the long run, independently of what I do with it. There is a 5 year clock for the Roth IRA. But each conversion has its own 5 year clock as well. Except that ...
by retiredjg
Fri Jan 23, 2015 7:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I open a Roth IRA ?
Replies: 25
Views: 1770

Re: Help with 401k Question

I think there is more information to be gathered, but if you need to invest in a global 60/40 fund for a year or so, that would not be a "bad situation" at all. When you are first starting out, what you invest in is almost irrelevant because it is your contributions that are growing the po...
by retiredjg
Fri Jan 23, 2015 7:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with 401k Question
Replies: 11
Views: 473

Re: Should I open a Roth IRA ?

mistike wrote:Thanks, I will read that carefully. In any case, opening the RIRA now starts the 5-years clock, so the sooner I open one, the better I am in the long run, independently of what I do with it.

There is a 5 year clock for the Roth IRA. But each conversion has its own 5 year clock as well.
by retiredjg
Thu Jan 22, 2015 8:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I open a Roth IRA ?
Replies: 25
Views: 1770

Re: 457 with solo 401k

Many people here have chosen NOT to use a non-governmental 457b. There are a couple of reasons. 1) The money is subject to the creditors of the employer. In other words, you could lose your money. This is true until you take it out which may be 20, 30 , 40 years from now. 2) There is NO PLACE to rol...
by retiredjg
Thu Jan 22, 2015 6:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457 with solo 401k
Replies: 6
Views: 219

Re: 457 with solo 401k

The 457 and the Solo 401k have separate limits for the $18k elective deferrals. So you can do $18k each. You will have up to the 415(c) $53k limit in the Solo 401k. I'm unclear on the 415(c) limit in the 457. There's something odd about it, 415(c) does not apply to a 457b plan. By the way. A governm...
by retiredjg
Thu Jan 22, 2015 6:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457 with solo 401k
Replies: 6
Views: 219

Re: The Mega Backdoor Roth IRA

Yes, by rolling the gains back to the 401(k), I'm deferring taxes. If I paid the taxes on the earnings now, the federal plus state rate would be approximately 45%, but I have hopes of taking SEPP from my 401(k) after retirement (before 59.5).... If you retire in or after the year in which you reach...
by retiredjg
Thu Jan 22, 2015 5:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 228
Views: 40548

Re: Should I open a Roth IRA ?

I wondered about the taxes too. But the poster does imply that he will be living in the condo/house in retirement. Or at least some of retirement.
by retiredjg
Thu Jan 22, 2015 5:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I open a Roth IRA ?
Replies: 25
Views: 1770

Re: LT capital gains in taxable vs retirement account

1.Invest as much money as possible into a 403b plan and then withdraw the money at age 59 1/2 (or later) and pay the marginal tax rate (estimated at 25% in my retirement) This is likely the better choice for most folks. Tax-deferral is a good thing. I should also mention that my MAGI disqualifies m...
by retiredjg
Thu Jan 22, 2015 5:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: LT capital gains in taxable vs retirement account
Replies: 8
Views: 563

Re: Help with 401k Question

I suspect some kind of misunderstanding. I can't imagine you have to build up $100k before being able to invest in some kind of mutual funds. I think the $100k minimum applies to something else.
by retiredjg
Thu Jan 22, 2015 5:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with 401k Question
Replies: 11
Views: 473

Re: 457 with solo 401k

my main job is as an independent contractor. I pay myself a "reasonable salary" via my S corp and contribute the max employer and employee contributions every year to solo 401k. my other w2 job offers a 457. does it make sense at all to contribute to the 457 and lower the employee contrib...
by retiredjg
Thu Jan 22, 2015 5:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457 with solo 401k
Replies: 6
Views: 219

Re: Surviving the Tax Bite of RMD Withdrawals in Retirement

Can't read the article since it is behind a pay wall but losing sleep over high RMDs is a waste of time. It means you have money. If your taxes are higher now than when you were working, odds are you are making more money than when you were working. That is a problem you can live with. Yes, but... ...
by retiredjg
Thu Jan 22, 2015 5:40 pm
 
Forum: Investing - Theory, News & General
Topic: Surviving the Tax Bite of RMD Withdrawals in Retirement
Replies: 70
Views: 5008

Re: Help on Converting Traditional IRA into Roth IRA

No. The IRS considers all of them one IRA (tIRA, Rollover IRA, SEP IRA, SIMPLE IRA) and they all get pro-rated together. The only one that is separate is Roth IRA.
by retiredjg
Thu Jan 22, 2015 5:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help on Converting Traditional IRA into Roth IRA
Replies: 10
Views: 428

Re: Help on Converting Traditional IRA into Roth IRA

The 02/20/2014 contribution $5,500 are non deductible. And since I converted the contribution on 2/21/2014 immediately, there was no capital gain, so the full $5,500 are non-taxable ? I thought that's the way backdoor roth IRA works. That is how the back door works if you do not have any money in t...
by retiredjg
Thu Jan 22, 2015 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help on Converting Traditional IRA into Roth IRA
Replies: 10
Views: 428

Re: Rolling over a 457b play to vanguard

It is my understanding the money in the account is still owed by the city I had worked for and could, if the city went bankrupt, be used by its creditors. It is my understanding that this is true of a non-governmental 457b plan. However, your plan seems to be a governmental 457b plan. I do not thin...
by retiredjg
Thu Jan 22, 2015 2:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rolling over a 457b play to vanguard
Replies: 6
Views: 511

Re: Newly retired, seeking wisdom

1. I don't need so much cash lying around. What would be a typical cash-on-hand amout for paying bills and an emergency fund? 6 months, a year, 2 years? Opinions vary quite a bit on this. Some have as little as a month or so. Some (following the classic bucket approach) might have up to 7 years in ...
by retiredjg
Thu Jan 22, 2015 10:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Newly retired, seeking wisdom
Replies: 10
Views: 1496

Re: IRA to Roth Conversion + Tax Implications

#1 through #3 are correct if the money in the tIRA is pre-tax. If the money in the tIRA was non-deductible, your example would be incorrect because the tax would be lower. If you take money out of the IRA to pay the taxes for a conversion, that is considered an early withdrawal from the IRA and ther...
by retiredjg
Thu Jan 22, 2015 10:01 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth Conversion + Tax Implications
Replies: 7
Views: 644

Re: Should I open a Roth IRA ?

if I do this and contribute $5.5K per year via the backdoor method, I can then withdraw all my contributions without penalty and without having to wait 5 years, right ? As long as I don't withdraw any earning, I'm fine ? Not exactly. This can be done, but you will have to be careful about how the c...
by retiredjg
Thu Jan 22, 2015 9:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I open a Roth IRA ?
Replies: 25
Views: 1770

Re: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?

Interesting that you never saw such a contribution in that many plans! Seriously. Obviously people make the contribution based on postings on here. It's hard for me to fathom that even just a few plans didn't have them after joining this site. From what I remember a few years ago, many of the peopl...
by retiredjg
Wed Jan 21, 2015 11:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?
Replies: 44
Views: 5993

Re: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?

That's interesting. Thanks for sharing. I guess it also explains why some companies have a percentage limit on how much can go into the after-tax (non-Roth) account.

Interesting that you never saw such a contribution in that many plans!
by retiredjg
Wed Jan 21, 2015 11:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?
Replies: 44
Views: 5993

Re: Closing unused credit cards - should I do it?

rec7 wrote:How long does it take them to close a card once you stop using it?

I think there is a lot of variability but they don't seem to be real quick about it. A year would be the shortest guess I would make. I've had some stay open for a few years after I stopped using them.
by retiredjg
Wed Jan 21, 2015 10:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Closing unused credit cards - should I do it?
Replies: 16
Views: 1266

Re: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?

Sorry, I should have noticed you have not been around long enough to have posted that many months back. You are one lucky dude/dudette. :happy
by retiredjg
Wed Jan 21, 2015 10:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?
Replies: 44
Views: 5993

Re: good time to invest in a Reit Index fund?

riptide wrote:Thank you for the comments stating I have a good portfolio (it seems boring to me coming from 100% individual stocks).

Some things should be boring.

Maybe you are an adrenaline junkie - go outside and get more exercise!
by retiredjg
Wed Jan 21, 2015 8:43 am
 
Forum: Investing - Theory, News & General
Topic: good time to invest in a Reit Index fund?
Replies: 40
Views: 4421

Re: 403b rollover transfer question.

I'll ask to see if there are any costs. Depending on what I find out, I may or may not. Perhaps you just want to "be done with it", but not so fast.... It will cost you an extra $200 a year to move those accounts to the new vendor. It is not just the $200 a year, which will add up to a ni...
by retiredjg
Wed Jan 21, 2015 8:35 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?

Any plan that accepts non Roth after tax contributions by lump sum check rather than payroll deduction? My plan with Fidelity allows this. Fallout, are you the person who said s/he makes a contribution on Friday and rolls it out to Roth on Monday/Tuesday when the money has posted? Sweet deal, by th...
by retiredjg
Wed Jan 21, 2015 8:08 am
 
Forum: Personal Finance (Not Investing)
Topic: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?
Replies: 44
Views: 5993

Re: Finally joined the two comma club

I have to say I've very impressed with what you have done. That's really an accomplishment! It's good you have a place to share your good news, isn't it?

And thanks for the kind words...always appreciated. :D
by retiredjg
Wed Jan 21, 2015 8:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Finally joined the two comma club
Replies: 42
Views: 6130

Re: Closing unused credit cards - should I do it?

There is another factor that counts here - I don't recall the exact term, but it is how much of your potential credit you are using at any one time. If you close the cards, your potential credit amount goes down making the ratio that you are using go up. I would not pay an annual fee for a card I do...
by retiredjg
Tue Jan 20, 2015 5:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Closing unused credit cards - should I do it?
Replies: 16
Views: 1266

Re: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?

5) Final option to develop might be the ability to transfer the after tax contributions to your Roth IRA and the earnings to the pre tax 401k account. This would be a nice touch! Any plan that accepts non Roth after tax contributions by lump sum check rather than payroll deduction? I recall one pos...
by retiredjg
Tue Jan 20, 2015 4:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does Your 401k Allow (Non-Roth) AFTER-TAX Contributions?
Replies: 44
Views: 5993

Re: good time to invest in a Reit Index fund?

Man, I wish I invested in the Vanguard Reit Fund Admiral last year! It's has been on fire! As , Nedsaid has told me, it is very high now , and overvalued, so now is not the best time to invest. I see it continuing to go up and up and looked at this past year. I really wanted to add it to my boring ...
by retiredjg
Tue Jan 20, 2015 2:00 pm
 
Forum: Investing - Theory, News & General
Topic: good time to invest in a Reit Index fund?
Replies: 40
Views: 4421

Re: Should I Declare Victory and Pack It In?

I don't get any sense of how you FEEL about the job opportunity that you have where you currently live. If it is something you might enjoy, then doing it for a couple of years will not hurt your retirement plans. I also don't get any sense of how your spouse feels about the different possibilities. ...
by retiredjg
Tue Jan 20, 2015 1:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Declare Victory and Pack It In?
Replies: 173
Views: 16362

Re: 403b rollover transfer question.

I think sales charges or transaction fees would include both the load and the dealer commission, but it would not hurt to get him to clarify. I don't see any point in combining the old with the new since the new is more expensive. About fees for moving to another vendor, it would not hurt to ask, bu...
by retiredjg
Tue Jan 20, 2015 1:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: What counts as "saving"?

Contributions to retirement plan? Savings. - Investments in taxable accounts? This is more debatable, but if you're investing for the long term then it seems like savings to me. Savings. - 529 contributions? This seems like an expense to me. You're pre-paying for college, in a sense, and it's for so...
by retiredjg
Tue Jan 20, 2015 1:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6642

Re: What counts as "saving"?

Looking up a definition in a dictionary is simple. Interpreting and applying that definition is often not as simple, which I think is the case here. Context matters and you are the only one who knows what context you are thinking about. If you want/need more specific answers, you'll have to give us...
by retiredjg
Tue Jan 20, 2015 10:07 am
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6642

Re: How should my wife and I manage our separate accounts?

I inquired about the pulling money out of Simple IRA and found that if you call your Roth IRA or Traditional IRA company, they can setup monthly "Transactions" from your Simple IRA. There are no limits or fees for this to happen. That would be dandy. Invest in American Funds money market ...
by retiredjg
Tue Jan 20, 2015 10:04 am
 
Forum: Personal Finance (Not Investing)
Topic: Delete
Replies: 14
Views: 1272

Re: How should my wife and I manage our separate accounts?

Agree on rolling it out at the 2 year mark and periodically thereafter. Not sure I'd let money sit in money market for 2 years just to avoid a front end load of 5% or thereabouts. Once the rolling out occurs, you could put new money in money market and roll it out quarterly? But there may be a once ...
by retiredjg
Tue Jan 20, 2015 9:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Delete
Replies: 14
Views: 1272

Re: 403b rollover transfer question.

I'd be interested in hearing what you learn about exchanging your current American Funds into a different one. If you have to leave it, that can be managed, but awkwardly. If you can put it all in the Income Fund of America you will only have one thing to deal with when you check your asset allocati...
by retiredjg
Tue Jan 20, 2015 8:56 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: 403b rollover transfer question.

With over 20 more years until retirement, think I might want to be more aggressive (80/20-70/30)??... Is the 70/30 the total allocation between all accounts (new 403b, idle 403b, pension and roth)? Yes. I picked the LS Moderate Growth fund at 60/40 to get your overall allocation of new 403b, idle 4...
by retiredjg
Tue Jan 20, 2015 8:54 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: 403b rollover transfer question.

Is this if I leave the current funds by themselves (idle account & active account separately) or if I combine them? I think I can exchange funds without the load & commission but I'll have to ask. I would keep them separate unless you can roll the new plan (more expensive) into the old plan...
by retiredjg
Tue Jan 20, 2015 8:45 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: 403b rollover transfer question.

How should I go about finding this out? Should I ask my current vendor guy? It might be in the plan documents and information that you already have. I'd ask the current vendor guy too although after his response about how he gets paid, I'm not sure he knows what he is doing. You could ask co-worker...
by retiredjg
Tue Jan 20, 2015 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: 403b rollover transfer question.

I'd like to know how to go about getting a better option for all of us in my school district (a Vanguard, Fidelity or Schwab index possibilities). There is an article in the wiki about this (link upper right). In the wiki, search for the word campaign . The information is mostly about 401k plans. 4...
by retiredjg
Tue Jan 20, 2015 8:39 am
 
Forum: Investing - Help with Personal Investments
Topic: 403b rollover transfer question.
Replies: 78
Views: 5793

Re: How should my wife and I manage our separate accounts?

afurry91 wrote:Sounds like we'll just stay the course. Maybe balance out the 401k and Simple IRA contributions.

What do you mean by this? If you mean contribute the same amount to the 401k and the SIMPLE, that's a step in the wrong direction if the 401k has better choices.
by retiredjg
Tue Jan 20, 2015 7:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Delete
Replies: 14
Views: 1272
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