Search found 22330 matches

by retiredjg
Fri Sep 04, 2015 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Initial Roth IRA Asset Allocation - 18 year old
Replies: 10
Views: 306

Re: Initial Roth IRA Asset Allocation - 18 year old

So it seems as if the REIT may be worth a small investment? The Ryce Low was recommended for long term growth.. I'd suggest you just use a target fund or a lifestrategy fund (they contain about the same thing) until your portfolio is much larger or until you gain access to a 401k. Adding on stuff a...
by retiredjg
Fri Sep 04, 2015 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Initial Roth IRA Asset Allocation - 18 year old
Replies: 10
Views: 306

Re: Initial Roth IRA Asset Allocation - 18 year old

Vanguard Total Int. Index Fund (VGTSX) Vanguard Total Stock Index Fund Vanguard Total Bond Market Index Fund (VBTLX) These are already included in the Target fund and there is no benefit in adding any of them. Vanguard REIT Index Fund (VGSLX) Some REIT stocks are already in the target fund, but som...
by retiredjg
Fri Sep 04, 2015 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Roth dividend wrongly sent as check
Replies: 6
Views: 340

Re: Roth dividend wrongly sent as check

My GUESS is that the dividend was so small they were unable to follow the instructions and buy the TSM or whatever. So they sent it to you because there were no other choices.

I don't think you have to report a distribution that small.
by retiredjg
Fri Sep 04, 2015 5:19 pm
Forum: Investing - Theory, News & General
Topic: Anyone looking at Vanguard Reit
Replies: 15
Views: 823

Re: Anyone looking at Vanguard Reit

You should not buy REIT just because it is currently low. If you have given due consideration to REIT and already decided to add REIT to the portfolio based on other things and if you noticed "oh my, REIT is on sale just when I want it", that's a different thing. Some REIT stocks are alrea...
by retiredjg
Fri Sep 04, 2015 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over after-tax contributions
Replies: 3
Views: 125

Re: Rolling over after-tax contributions

Sometimes people confuse Roth 401k contributions with after-tax 401k contributions. They are not the same thing. But they should each be rolled to Roth IRA. All the pre-tax stuff should roll to tIRA. This should all happen at the same time.
by retiredjg
Fri Sep 04, 2015 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: My Mega Backdoor ROTH Plan
Replies: 11
Views: 560

Re: My Mega Backdoor ROTH Plan

I do 8% pre-tax and 17% after tax. If that 8% does not max out your $18k in elective deferrals, you might consider changing your ratio a little so that you get full tax deferral. I can do something (not sure what the right terminology is) as many times as I want throughout the year to make the afte...
by retiredjg
Fri Sep 04, 2015 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Opened Vanguard brokerage / Roth . Next steps ?
Replies: 2
Views: 150

Re: Opened Vanguard brokerage / Roth . Next steps ?

If the transfer is from a traditional 401k to Roth IRA, that will increase your income by $6k and taxes will be due when you next file your income tax. If that is not OK, you should put the money into traditional IRA instead of Roth IRA.
by retiredjg
Fri Sep 04, 2015 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Opened Vanguard brokerage / Roth . Next steps ?
Replies: 2
Views: 150

Re: Opened Vanguard brokerage / Roth . Next steps ?

There is no reason to string this out. Put it all in at once.
by retiredjg
Fri Sep 04, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: 401k is not set up at my new job yet...
Replies: 30
Views: 1351

Re: 401k is not set up at my new job yet...

This (SEP) is a fine idea unless the poster is planning to use the back door to fund a Roth IRA. With that much income, direct contributions to Roth may not be possible.
by retiredjg
Fri Sep 04, 2015 9:48 am
Forum: Investing - Help with Personal Investments
Topic: My Mega Backdoor ROTH Plan
Replies: 11
Views: 560

Re: My Mega Backdoor ROTH Plan

Sorry. I assumed that your lump sum to the after-tax account came from your checkbook, not your paycheck. There are a few lucky people who can do that. However, I don't recall hearing about being able to do that with your $18k elective deferrals.
by retiredjg
Fri Sep 04, 2015 8:30 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, same as contribution?
Replies: 23
Views: 866

Re: Roth conversion, same as contribution?

I've now had some time to catch up on education expenses. It does appear you can avoid the 10% penalty if there are education expenses. I'm rethinking my answer on whether turbotax will help you figure this out. I remember going through some questions with TT when I took a Roth withdrawal a few year...
by retiredjg
Fri Sep 04, 2015 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

Not sure what to make of the data exactly, but there it is. I'm not sure what to make of it either, but the thing that popped into my mind is if the contribution is $10k a year, the amount that goes to tIRA vs taxable is not all that large in the big scheme of things. I'll stick with my preference ...
by retiredjg
Fri Sep 04, 2015 8:20 am
Forum: Investing - Help with Personal Investments
Topic: My Mega Backdoor ROTH Plan
Replies: 11
Views: 560

Re: My Mega Backdoor ROTH Plan

It may be that simple.

But…if there are any earnings or any losses on that money in the time between the deposit and the distribution, there may be a little more to it.

You are one of the lucky few who can make the deposit from outside funds instead of from your paycheck.
by retiredjg
Fri Sep 04, 2015 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Books to help a couple working out a budget
Replies: 38
Views: 2580

Re: Books to help a couple working out a budget

pondering, an ordinary couple should not need bookkeeping services. It seems like you are looking for an outside solution to an inside problem. You've already identified the issue - you and your wife are spenders. Address that. Your living expenses are not unreasonable so you must just be wasting mo...
by retiredjg
Fri Sep 04, 2015 7:53 am
Forum: Investing - Theory, News & General
Topic: Does the Three Fund Portfolio need a roboadviser?
Replies: 83
Views: 6876

Re: Does the Three Fund Portfolio need a roboadviser?

The fact that Taylor recommends TLH has always puzzled me a bit because I feel it smacks in the face of the simplicity and thus majesty of the three fund approach. As I recall, Taylor's approach is simpler - he suggests selling and sitting out for 30 days. This eliminates all the hub bub about wash...
by retiredjg
Fri Sep 04, 2015 7:17 am
Forum: Investing - Theory, News & General
Topic: Comprehensive list of tax loss harvesting partners
Replies: 60
Views: 2967

Re: Comprehensive list of tax loss harvesting partners

Isn't this the same guy who said that the backdoor Roth was illegal? I'm not sure he said "it is illegal", but yes, he did question whether it might be illegal using the step doctrine as his basis. My observation is that Kitces tends toward the conservative end of most any spectrum. Just ...
by retiredjg
Fri Sep 04, 2015 7:07 am
Forum: Investing - Help with Personal Investments
Topic: 401k is not set up at my new job yet...
Replies: 30
Views: 1351

Re: 401k is not set up at my new job yet...

Someone told me to keep the higher dividend investments in my IRA. I'm not clear why that is an advantage. Anyone want to clear that up? Tax-efficiency. It is generally a good idea to keep your bonds in IRA/401k because holding bonds in taxable is not as tax-efficient. The bonds throw off dividends...
by retiredjg
Thu Sep 03, 2015 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, same as contribution?
Replies: 23
Views: 866

Re: Roth conversion, same as contribution?

The tax programs certainly have the Form 8606 to record the withdrawal from Roth. But what I'm talking about is a worksheet to fill in by hand. It should be easy if you have dates and amounts. A complete nightmare if you don't have dates and amounts. Unfortunately, most people don't keep that inform...
by retiredjg
Thu Sep 03, 2015 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

I edited my post but it looks like my edit and your new post crossed on the Interwebs highway. Anyway, didn't mean to imply you didn't understand the problem, when I know you do. Never even crossed my mind, but thanks for thinking of me anyway. :D You may be right, this may be a very difficult prob...
by retiredjg
Thu Sep 03, 2015 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, same as contribution?
Replies: 23
Views: 866

Re: Roth conversion, same as contribution?

1 & 2) I had 2 IRA's, one was a 401k transfer to IRA from a previous employer (had it in IRA for more than 10-yrs), and the other was an IRA from after tax contributions made throughout the yrs. In 2012 I converted both individually to individual Roths and then combined the 2 Roths. So there we...
by retiredjg
Thu Sep 03, 2015 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

You are leaving out a key point in favor of more after-tax contributions. In retirement, she can roll the after-tax contributions into a Roth IRA so that future earnings on those contributions will be untaxed. If she foregoes this and primarily uses a taxable account, those future earnings will be ...
by retiredjg
Thu Sep 03, 2015 4:29 pm
Forum: Investing - Theory, News & General
Topic: Comprehensive list of tax loss harvesting partners
Replies: 60
Views: 2967

Re: Comprehensive list of tax loss harvesting partners

Agree with Kevin that most people should not be investing in a taxable account (where you can harvest losses) if there is debt - unless the debt is VERY low interest (like .9% or something). In general, fill all your tax-advantaged accounts (401k, 403b, Roth IRA, 457b) before investing in taxable an...
by retiredjg
Thu Sep 03, 2015 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, same as contribution?
Replies: 23
Views: 866

Re: Roth conversion, same as contribution?

1) Do you have any ordinary contributions to Roth IRA? (Not back door, not rollover from IRA, not conversion). If you do, that money is available to you any time and you can take it and use it for whatever you want. But DO NOT take the earnings. Next is your conversions and rollovers. 2) What happen...
by retiredjg
Thu Sep 03, 2015 3:58 pm
Forum: Investing - Theory, News & General
Topic: Comprehensive list of tax loss harvesting partners
Replies: 60
Views: 2967

Re: Comprehensive list of tax loss harvesting partners

For those of you to whom this is a new concept…perhaps you are wondering about whether you are supposed to be doing this tax loss harvest thing. The answer for most of you is no. :shock: This maneuver is a nice to do or good to do if you are interested and if you have enough losses in a taxable acco...
by retiredjg
Thu Sep 03, 2015 3:47 pm
Forum: Investing - Theory, News & General
Topic: Comprehensive list of tax loss harvesting partners
Replies: 60
Views: 2967

Re: Comprehensive list of tax loss harvesting partners

I do not believe that target funds are a good choice for tax loss harvesting. However, if you hold individual funds in taxable and target funds in your IRA (and 401k if you believe that 401ks might be involved) my opinion is that would be OK. If you've only got a tiny amount in taxable (not enough t...
by retiredjg
Thu Sep 03, 2015 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, same as contribution?
Replies: 23
Views: 866

Re: Roth conversion, same as contribution?

Check out: http://www.doughroller.net/retirement-planning/the-5-year-rule-on-roth-ira-conversions/ While the logic makes sense doesn't Number 8 conflict with the flowchart on page 32 of Pub 590B? I think the author is assuming (but did not state) the Roth IRA has met its 5 year clock, but the conve...
by retiredjg
Thu Sep 03, 2015 2:15 pm
Forum: Investing - Theory, News & General
Topic: Comprehensive list of tax loss harvesting partners
Replies: 60
Views: 2967

Re: Comprehensive list of tax loss harvesting partners

feh wrote:For example, I've seen folks suggest TLHing between VFWAX and VTIAX. Personally, I wouldn't, as they appear to be identical to me.

The FTSE fund does not include small caps. In fact there is a completely separate fund that holds the small caps.
by retiredjg
Thu Sep 03, 2015 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Funds of Funds Expense Ratios
Replies: 2
Views: 210

Re: Funds of Funds Expense Ratios

You are only being charged the one ER of .18%.
by retiredjg
Thu Sep 03, 2015 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion, same as contribution?
Replies: 23
Views: 866

Re: Roth conversion, same as contribution?

This depends on some things you don't mention. Do you already have a Roth IRA and if so, how long since you first opened your first Roth IRA. Are you older than 59.5? In general, the answer is "no, a conversion is not treated like a contribution". There is a 5 year clock that ticks on the ...
by retiredjg
Thu Sep 03, 2015 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Where to park $150-200k for a down payment on house in next 1-2 years
Replies: 14
Views: 1380

Re: Where to park $150-200k for a down payment on house in next 1-2 years

I parked mine in Vanguard's Intermediate Term Tax Exempt fund. This was when we knew interest rates would not go up that year, and that is no longer true, so you might want something with a shorter duration. The upside - I made a reasonable amount of money from the dividends and that part was tax-ex...
by retiredjg
Thu Sep 03, 2015 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help with windfall - how to invest $1M wisely at 32?
Replies: 22
Views: 3654

Re: Help with windfall - how to invest $1M wisely at 32?

Yep, this is what I plan to do eventually: rollover IRA -> solo 401k, followed by tIRA -> Roth conversion. Thanks for the sanity check! Since the tIRA is full of deductible contributions, you can roll it into your 401k if/when you get one or convert it to Roth - either one. Since it is so small, it...
by retiredjg
Thu Sep 03, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

If you can do a big enough mega back door every 18 months or 2 years, you might not need to do the back door Roths anymore. How so? I would think putting as much as possible into the Roth via backdoor and/or mega backdoor would optimal. If you had a limited amount to be invested, you might get it a...
by retiredjg
Thu Sep 03, 2015 7:30 am
Forum: Investing - Theory, News & General
Topic: 401(k) IRA Rollover Promotion Money
Replies: 18
Views: 841

Re: 401(k) IRA Rollover Promotion Money

So I think what you are saying is that you had $1,000 in Roth and they liquidated it in the Roth and took $50 to close the account. Then the remaining $950 rolled to Vanguard as if $950 were the entire account. So I have that right? It would certainly make more sense than what I was thinking.
by retiredjg
Wed Sep 02, 2015 5:25 pm
Forum: Investing - Theory, News & General
Topic: 401(k) IRA Rollover Promotion Money
Replies: 18
Views: 841

Re: 401(k) IRA Rollover Promotion Money

BL wrote:AFAIK, there is no tax consequence (early withdrawal penalty and tax) involved there, either, though in this case your IRA shrinks.

I always assumed if they charge a fee to close the account, that is considered an early withdrawal if you don't make it up. Is that wrong?
by retiredjg
Wed Sep 02, 2015 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Help with windfall - how to invest $1M wisely at 32?
Replies: 22
Views: 3654

Re: Help with windfall - how to invest $1M wisely at 32?

I knew there was something I was missing. Just couldn't figure out what it was. Best guess - when/if you set up the Solo 401k, roll the Rollover IRA into the Solo 401k and then convert the tIRA to Roth IRA (assuming the tIRA is non-deductible contributions).d If for some reason the tIRA is not non-d...
by retiredjg
Wed Sep 02, 2015 4:18 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 136
Views: 9158

Re: TLH for absolute dummies [Tax Loss Harvesting]

Ok. Makes me understand better. As long as I sell and don't buy into a similar fund? Correct? But if I do so in my 457 or IRA, those are tax free? Correct. So I basically just take the loss and buy into something else? You do want to replace what you sell with something similar so that you are not ...
by retiredjg
Wed Sep 02, 2015 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Help with windfall - how to invest $1M wisely at 32?
Replies: 22
Views: 3654

Re: Help with windfall - how to invest $1M wisely at 32?

I think people might do different things. But I'd probably lump into the desired 60/40 but not worry much about getting any of the sub-allocations right at the start. An example - you could skip the REIT and small cap for now and only buy them as you are approaching your completed portfolio. This co...
by retiredjg
Wed Sep 02, 2015 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

I'm not sure why retiredjg is now singing a different tune. As far as I recall, I am not singing a different tune. I think there may be some misunderstanding though. I'm definitely not reading that entire 3 page thread thread in order to figure it out. :D If my last comments didn't straighten it ou...
by retiredjg
Wed Sep 02, 2015 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

This has definitely helped and you bring up some very good points. If I do a really mega rollover at retirement, I'm not sure I care about not being able to do backdoor Roths anymore… If you can do a big enough mega back door every 18 months or 2 years, you might not need to do the back door Roths ...
by retiredjg
Wed Sep 02, 2015 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

I don't think this is true -- I agree that this WAS the legitimate concern ... PRIOR to 9-2014… The ruling didn't change what I'm talking about. Imagine you put $10k into an after tax sub account and roll it out to Roth after 3 months. Imagine that the earnings are only $500. $10k goes to Roth and ...
by retiredjg
Wed Sep 02, 2015 3:03 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 136
Views: 9158

Re: TLH for absolute dummies [Tax Loss Harvesting]

Whats so simple about this. I thought everyone here was a "long term" investor. Why worry about tax losses, if your not selling? People are not worried about tax losses. They are collecting them in order to reduce their future income taxes. You can do this in two ways - either by balancin...
by retiredjg
Wed Sep 02, 2015 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 50
Views: 5458

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

They were always talking about how they were up 9% or 12%. And I was never getting returns like that, so I wondered whether I really made mistakes by following the simple blueprint. Being "up" 9% or 12% may not mean they got that much return. It might include the new contributions as well...
by retiredjg
Wed Sep 02, 2015 12:55 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 136
Views: 9158

Re: TLH for absolute dummies [Tax Loss Harvesting]

For all the shares with a lower price, what percentage is the sum of the loss compared to the value of those shares? Should be "sum of the losses". This version is probably a little more accurate, but also more confusing. I'm not sure there is a solution to that because of the nature of t...
by retiredjg
Wed Sep 02, 2015 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

Rox, the general feeling seems to be that it is not all that good to let the money sit in the after tax for a long time. That essentially turns the after-tax account into a non-deductible tIRA. Most folks here believe it is better to invest in taxable than in a non-deductible tIRA unless you just ne...
by retiredjg
Wed Sep 02, 2015 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

Those are good points that make me think it might NOT be worth it. I'd lose out on the match but that would be close to negated by the bonus. Do you already know where you would get the bonus and how much it would be? But then the bonus would be taxable Yes, but the match will eventually be taxable...
by retiredjg
Wed Sep 02, 2015 9:36 am
Forum: Investing - Help with Personal Investments
Topic: ?Wash sale and 529s
Replies: 7
Views: 358

Re: ?Wash sale and 529s

I don't know. Sounds like one of the grey areas, like 401k accounts. You could avoid any possibility by using a target fund in the 529.
by retiredjg
Wed Sep 02, 2015 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Is it worth losing a match to do a mega backdoor Roth?
Replies: 28
Views: 1649

Re: Is it worth losing a match to do a mega backdoor Roth?

If the brokerage is one you would consider using anyway and if there is no penalty for moving the money away some time in the future, I might try it. I suspect that the rollover bonus depends on how much money you transfer. How much money you transfer is going to depend on how many years you let the...
by retiredjg
Wed Sep 02, 2015 9:26 am
Forum: Investing - Theory, News & General
Topic: Good time for 50/50 portfolio Bonds/Equities?
Replies: 86
Views: 9265

Re: Good time for 50/50 portfolio Bonds/Equities?

This article by Larry Swedroe seems appropriate for this thread.

http://www.etf.com/sections/index-inves ... correction
by retiredjg
Wed Sep 02, 2015 9:22 am
Forum: Investing - Theory, News & General
Topic: 401(k) IRA Rollover Promotion Money
Replies: 18
Views: 841

Re: 401(k) IRA Rollover Promotion Money

Paul, it is the receiving IRA custodian who is giving the "rollover bonus", apparently by calling it "interest". Who'd a thunk?
by retiredjg
Wed Sep 02, 2015 7:57 am
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 50
Views: 5458

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

When I have to "matriculate" out of service in 10 years, I will probably roll over to a Vanguard fund. I'll be back here to check for help! Why would you do that? You have better funds in a better plan in the TSP than you would create at Vanguard, perhaps with some possible exceptions. Yo...

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