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Re: 457 Investment Choices

That is one ugly list. To do this right, you need to look up the expense ratio for each fund and also see if there is a load. Morningstar tells you straight out if there is a load. If you look elsewhere, if it says Class A, there is a load. Many (most) I looked at had loads. I skipped all sector fun...
by retiredjg
Sun Jan 25, 2015 5:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457 Investment Choices
Replies: 1
Views: 90

Re: Separating 5-10 yr investments from retirement portolio

I think it is more than just mental accounting. Running one portfolio with multiple goals is probably not that difficult once the portfolio reaches a certain size and once you have the experience to judge what is the right AA for multiple goals. For a small portfolio (particularly if taxable portion...
by retiredjg
Sun Jan 25, 2015 4:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Separating 5-10 yr investments from retirement portolio
Replies: 25
Views: 1203

Re: 400ft Driveway - How do I plow the snow?

I was expecting a common answer to be "ATV with plow attachment". That's what I saw people using in Utah when I lived there. Does that not work on wetter snow?
by retiredjg
Sun Jan 25, 2015 3:28 pm
 
Forum: Personal Consumer Issues
Topic: 400ft Driveway - How do I plow the snow?
Replies: 22
Views: 973

Re: Separating 5-10 yr investments from retirement portolio

I don't recall any crashes of 50% that didn't take several months to play out and down to that level. I was invested in 1987, too, so I know about some one day crashes. Does anybody really believe that a stock portfolio will drop 50% in one week? And yes, I hear folks telling me about that just bec...
by retiredjg
Sun Jan 25, 2015 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Separating 5-10 yr investments from retirement portolio
Replies: 25
Views: 1203

Re: Withdrawing Backdoor Conversions from Roth IRA

Since it looks like your conversion will be 5 yrs old (also some details about how to determine when this 5 yr clock starts will be useful), the table shows that it doesn't matter if the conversion was taxable or not..........there will not be any taxes or penalty. :oops: For those who are concerne...
by retiredjg
Sun Jan 25, 2015 2:34 pm
 
Forum: Investing - Theory, News & General
Topic: Withdrawing Backdoor Conversions from Roth IRA
Replies: 24
Views: 1513

Re: Very Basic Question on Roth IRA - Deadline?

pshonore wrote:Not SEPs, - not sure about SIMPLEs. Solo 401Ks have to be setup by 12/31 but not necessarily funded.

I knew I'd see that somewhere. Perhaps it is just Solos. It does get confusing.
by retiredjg
Sun Jan 25, 2015 2:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Very Basic Question on Roth IRA - Deadline?
Replies: 9
Views: 346

Re: Separating 5-10 yr investments from retirement portolio

So, how's this: 401(k) and Roth IRA (total balances $170k) $151k equity funds - retirement $19k bond funds - retirement Taxable (total balance $90k) $20k equity fund - retirement $70k intermediate term bond funds - to be used over next 5 years New contributions (90/10 for retirement) 401(k) and Rot...
by retiredjg
Sun Jan 25, 2015 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Separating 5-10 yr investments from retirement portolio
Replies: 25
Views: 1203

Re: Withdrawing Backdoor Conversions from Roth IRA

What happens if you made a total of $15,000 in contributions from 2000-2008, made a conversion of $100,600 in 2010, and then in 2015 withdrew $100,000 while under age 59.5? Assuming the $15k in contributions means ordinary contributions, the first $15k would come out without tax or penalty. It's no...
by retiredjg
Sun Jan 25, 2015 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: Withdrawing Backdoor Conversions from Roth IRA
Replies: 24
Views: 1513

Re: Very Basic Question on Roth IRA - Deadline?

This is sort of a backwards answer. IRS publication 590 says "A Roth IRA can be opened at any time". I realize this does not specifically address the question asked, but if they had rules about having the Roth IRA open during the year for which the contribution is being made, I think it wo...
by retiredjg
Sun Jan 25, 2015 1:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Very Basic Question on Roth IRA - Deadline?
Replies: 9
Views: 346

Re: Tax efficiency ignoring capital gains

Capital gains benefits (a lower rate on long term capital gains) is one part of the puzzle. There are other parts. As mentioned already, qualified dividends vs non-qualified dividends. Bond dividends are always non-qualified (not taxed at the lower rate). Another aspect of tax efficiency is control ...
by retiredjg
Sun Jan 25, 2015 12:46 pm
 
Forum: Investing - Theory, News & General
Topic: Tax efficiency ignoring capital gains
Replies: 4
Views: 434

Re: best way to handle incorrect name/SSN on 1099-INT

dodecahedron wrote:.... so they clearly do not consider him an owner any longer.

It appears that at least one department didn't get the message. :happy I'd get a corrected 1099.
by retiredjg
Sun Jan 25, 2015 12:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: best way to handle incorrect name/SSN on 1099-INT
Replies: 10
Views: 308

Re: Separating 5-10 yr investments from retirement portolio

I'd hold out that $70k in intermediate term tax-exempt bonds* and not consider the $70K part of my 90/10 retirement money. I'd invest the other $20k in taxable in stocks as part of the 90/10 retirement money. As for future contributions, I'd split it as above as well (retirement and not-retirement)....
by retiredjg
Sun Jan 25, 2015 12:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Separating 5-10 yr investments from retirement portolio
Replies: 25
Views: 1203

Re: best way to handle incorrect name/SSN on 1099-INT

Is it possible the change of ownership did not get completed because they didn't receive a death certificate?
by retiredjg
Sun Jan 25, 2015 12:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: best way to handle incorrect name/SSN on 1099-INT
Replies: 10
Views: 308

Re: Separating 5-10 yr investments from retirement portolio

You already have $90K in taxable which will more than cover the $70,000 of expenses you listed. Not during a crash. If you definitely want to get married and get the house regardless of what the market does, I would not go this route. I don't have a problem with the theory of all one bucket, but yo...
by retiredjg
Sun Jan 25, 2015 12:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Separating 5-10 yr investments from retirement portolio
Replies: 25
Views: 1203

Re: Very Basic Question on Roth IRA - Deadline?

Agree. The website is wrong.
by retiredjg
Sun Jan 25, 2015 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Very Basic Question on Roth IRA - Deadline?
Replies: 9
Views: 346

Re: Withdrawing Backdoor Money from Roth IRA

Example 1 : Mini-Backdoor IRA . On Day 1 I fund a T-IRA with $5,500. On Day 2 I convert all of the $5,500 $5,501 to a R-IRA. From Day 1 to Day 2 I generated $1.00 in earnings. At some point before the 5-year waiting period runs, the $5,000 has grown to $6,000, but I withdraw only $5,500 (not touchi...
by retiredjg
Sun Jan 25, 2015 10:43 am
 
Forum: Investing - Theory, News & General
Topic: Withdrawing Backdoor Conversions from Roth IRA
Replies: 24
Views: 1513

Re: Withdrawing Backdoor Money from Roth IRA

[ Here's my question : I exceed the AGI limitations that allow for deducting contributions to a T-IRA. So although I assume I cannot deduct the cream/earnings that I send to the T-IRA from my income taxes, if I employ this approach, I can defer paying taxes on those funds until withdrawal. Does tha...
by retiredjg
Sun Jan 25, 2015 10:25 am
 
Forum: Investing - Theory, News & General
Topic: Withdrawing Backdoor Conversions from Roth IRA
Replies: 24
Views: 1513

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: 686

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: 653

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: 25
Views: 1203

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: 1783

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: 934

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: 934

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: 22
Views: 1339

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: 655

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: 22
Views: 1339

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: 647

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: 1783

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: 475

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: 1783

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: 220

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: 220

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: 40576

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: 1783

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: 565

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: 475

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: 220

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: 71
Views: 5229

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: 514

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: 1499

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: 647

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: 1783

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: 5997

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: 5997

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: 5997

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: 4428

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: 5796
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