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by retiredjg
Sat May 30, 2015 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says I owe money on Backdoor Roth
Replies: 7
Views: 361

Re: IRS says I owe money on Backdoor Roth

In Feb on this year (2015), I amended my 2013 personal return to include form 8606 since I had done a backdoor Roths for my wife and me. realized in 2015 that my accountant had been recording the contributions in the calendar year. For example, since I made the backdoor Roth in Feb of 2014 and ther...
by retiredjg
Sat May 30, 2015 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Small business move from Simple IRA to 401(k)
Replies: 3
Views: 204

Re: Small business move from Simple IRA to 401(k)

For the new people, a 401k would be preferable to a SEP or a SIMPLE if you have need to use the back door to contribute to Roth IRA. If you are not aware of this back door thing, take a look here and see if it might be helpful to you. http://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to...
by retiredjg
Sat May 30, 2015 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Poor choices in my 403(b) plan
Replies: 14
Views: 839

Re: Poor choices in my 403(b) plan

Not to beat a dead horse, but for the benefit of other lurkers and newbs I thought I'd use this thread as an opportunity point out that when I (we?) hear "extremely high expense ratios", it conjures up thoughts of expense ratios as high as 3% …. It used to conjure up that thought for me…....
by retiredjg
Sat May 30, 2015 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Fee only planner to help simply a complex portfolio?
Replies: 8
Views: 578

Re: Fee only planner to help simply a complex portfolio?

I too think you would benefit from doing the exercise over again (gathering info to post for portfolio help). Whether you post it or not is up to you. I'm just suggesting it for your benefit. And perhaps you already did this prior to your consultation with Vanguard. Please remember that unless you h...
by retiredjg
Sat May 30, 2015 10:22 am
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 12
Views: 458

Re: RMUCX

I think some back end loads are only for a certain number of years, aren't they? Either way, there are lots of good reasons to get rid of this and you can take the loss off your taxes.
by retiredjg
Sat May 30, 2015 9:19 am
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 12
Views: 458

Re: RMUCX

Also here is the proof it's a back end load type fund. I don't have any more ideas, but I did learn something. On the morningstar site, if you hover over the load, it tells you if it is front end or deferred. I had just assumed the load was front end, but if you hover it tells you it is deferred. I...
by retiredjg
Sat May 30, 2015 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Help with allocation of Bond funds
Replies: 13
Views: 729

Re: Help with allocation of Bond funds

Does one sacrifice some diversity and or increase some risk by replacing some or all of the total bond fund allocation in taxable account with a muni fund? You don't sacrifice any diversification in the sense that I use the term. In fact, you are adding more different bonds to the mix. There are pe...
by retiredjg
Sat May 30, 2015 7:55 am
Forum: Investing - Help with Personal Investments
Topic: backdoor and perhaps taxable conversion
Replies: 24
Views: 1088

Re: backdoor and perhaps taxable conversion

cherijoh wrote: Everyone with wage income can make non-deductible traditional IRA contributions.

…until age 70.5 :happy
by retiredjg
Sat May 30, 2015 6:52 am
Forum: Investing - Help with Personal Investments
Topic: backdoor and perhaps taxable conversion
Replies: 24
Views: 1088

Re: backdoor and perhaps taxable conversion

Is there a limit to the amount of $ conversion from tIRA/401k to rIRA? The reason I am asking is that I have abt 7-8 years to retirement and I want to have a year or two with no income, just live off our taxable account and I could do the conversions at a 15% tax rate or even lower if possible, the...
by retiredjg
Fri May 29, 2015 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: backdoor and perhaps taxable conversion
Replies: 24
Views: 1088

Re: backdoor and perhaps taxable conversion

radiowave wrote: What does having a job have to do with that process?

In order to contribute to IRA (traditional or Roth), you must have compensation.

http://www.irs.gov/pub/irs-pdf/p590a.pdf See pages 6 and 7 for how compensation is defined.
by retiredjg
Fri May 29, 2015 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with allocation of Bond funds
Replies: 13
Views: 729

Re: Help with allocation of Bond funds

It's all about the tax bracket. In the 15% bracket, you probably want a taxable bond like total bond market (mixed with others if you prefer). In the 25% bracket, I'd probably pick a muni bond myself, but it may be a toss up. I don't think holding total bond in taxable in the 25% bracket would be a ...
by retiredjg
Fri May 29, 2015 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: IRA rollover to solo 401k to E trade
Replies: 3
Views: 206

Re: IRA rollover to solo 401k to E trade

Have you considered using Fidelity for your Solo 401k and not moving the money back to Vanguard? Fido Solos will accept inbound IRAs (or so it is reported here) and they have an excellent set of Spartan Index funds and the Fidelity Freedom INDEX target fund series. They also have an excellent series...
by retiredjg
Fri May 29, 2015 3:19 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation and withdrawal rate for short life remaining?
Replies: 16
Views: 1047

Re: Asset Allocation and withdrawal rate for short life remaining?

I think it would be conservative to withdraw based on a 10 year life expectancy- I guess a 10% WR would do this? It would only work this way if the money is in cash, money market, CD, etc. and if whatever it is keeps up with inflation (which of course cash and money market will not do). I suppose 1...
by retiredjg
Fri May 29, 2015 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 12
Views: 458

Re: RMUCX

Here's one more guess. With expenses at 1.57% the fund may not make enough to overcome that large of an expense. Yes, the growth of $10k chart shows that it has grown and that is after expenses so no, I can't explain that either.
by retiredjg
Fri May 29, 2015 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 12
Views: 458

Re: RMUCX

I don't know the answer, but here are a couple of guesses. 1) The fund has a front end load. So if you gave them a check for $10,000, they only invested $9,900. If the load was larger back then, they invested less. 2) Are you paying an advisor for management services? 3) Could an annual IRA fee ...
by retiredjg
Fri May 29, 2015 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Selling home - unexpected competition
Replies: 97
Views: 9477

Re: Selling home - unexpected competition

So did your agent get 2.5% of $880k instead of the 4% of $850k they wanted? I suspect this is why the agent was suggesting a quick acceptance rather than waiting. . Good data point. So. What fiduciary duty does a seller's agent have toward the buyer legally? Does it change when they are agents for ...
by retiredjg
Fri May 29, 2015 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Selling home - unexpected competition
Replies: 97
Views: 9477

Re: Selling home - unexpected competition

So did your agent get 2.5% of $880k instead of the 4% of $850k they wanted? I suspect this is why the agent was suggesting a quick acceptance rather than waiting. thomasbayarea, I'm just curious. Does "no contingencies" mean there will not be an inspection? If I were a buyer, I'd be very ...
by retiredjg
Fri May 29, 2015 6:04 am
Forum: Investing - Help with Personal Investments
Topic: Which international funds to buy in a taxable account?
Replies: 6
Views: 643

Re: Which international funds to buy in a taxable account?

The answer depends on where your taxable account is and whether you want to move it. If at Vanguard, use the Total International Index. If at Fidelity, use the Spartan Global except US Index. If at other places…depends on where it is and whether you have free trades available and whether you are wil...
by retiredjg
Fri May 29, 2015 5:37 am
Forum: Investing - Help with Personal Investments
Topic: How to analyze portfolio recommendations
Replies: 20
Views: 1195

Re: How to analyze portfolio recommendations

High fees. Too many funds and a combination of funds that doesn't even make good sense. Too much complexity - would you know how to rebalance that mess? That "plan" is what we call a "shotgun" approach. Just have a lot of funds and the potential customer will assume it is good be...
by retiredjg
Thu May 28, 2015 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: backdoor and perhaps taxable conversion
Replies: 24
Views: 1088

Re: backdoor and perhaps taxable conversion

You say you want to do a back door contribution to Roth IRA. If you are retired, how can you contribute to tIRA? You must have compensation in order to contribute to tIRA. Perhaps you mean you are retired from the 401k job and have some income from another employer? If so, is the income high enough ...
by retiredjg
Thu May 28, 2015 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: backdoor and perhaps taxable conversion
Replies: 24
Views: 1088

Re: backdoor and perhaps taxable conversion

Thanks folks. Also I have downloaded the Form 5498 instructions and am wading though its 23 pages. The IRS does not make it easy. What would you do with Form 5498? That is not a form that you would fill out. Are you thinking of Form 8606 that would be used to document a non-deductible contribution ...
by retiredjg
Thu May 28, 2015 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: backdoor and perhaps taxable conversion
Replies: 24
Views: 1088

Re: backdoor and perhaps taxable conversion

I think Factual Fran is answering a question different what what you asked. You can have a distribution from traditional 401k rolled directly to Roth IRA. If you do it this way, it is not pro-rated with money you have in tIRA. So if you roll $1000, you should pay tax on $1000. If you roll from 401k ...
by retiredjg
Thu May 28, 2015 7:02 am
Forum: Investing - Help with Personal Investments
Topic: Need 60k for downpayment, take from VTIAX or VTSAX?
Replies: 11
Views: 802

Re: Need 60k for downpayment, take from VTIAX or VTSAX?

It isn't necessarily right or wrong. If you sell international, will that move your international allocation lower than you want? I would pay more attention to keeping my allocations where I want that which fund would give more cap gains. But for only $60k, it probably will not matter much.
by retiredjg
Wed May 27, 2015 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion 5 year rule
Replies: 15
Views: 1160

Re: Roth conversion 5 year rule

Jerry55 wrote:It was a VCP to rIRA Rollover in March of 2012….

That changes everything since (most of) the VCP has already been taxed…. :D
by retiredjg
Wed May 27, 2015 5:59 pm
Forum: Personal Consumer Issues
Topic: Money and cell phones when traveling to Canada
Replies: 24
Views: 848

Re: Money and cell phones when traveling to Canada

But you might want to avoid using a card that has an international surcharge….
by retiredjg
Wed May 27, 2015 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion 5 year rule
Replies: 15
Views: 1160

Re: Roth conversion 5 year rule

It is not the date you opened it. Even if you start your contributions in December, your 5 year clock started ticking in January of the year you started. So you can start distributions in January 2017 if you are 59.5 years old. Actually, if you made ordinary direct contributions, you can take the co...
by retiredjg
Wed May 27, 2015 5:35 pm
Forum: Personal Consumer Issues
Topic: Money and cell phones when traveling to Canada
Replies: 24
Views: 848

Re: Money and cell phones when traveling to Canada

Regarding money, I just used my credit cards. Last I was there was 3 or 4 years ago. No chips, no problems.
by retiredjg
Wed May 27, 2015 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Critique My 401K Rollover Investments
Replies: 3
Views: 275

Re: Critique My 401K Rollover Investments

I've chosen different institutions for each of the three index funds with a view to hedging risk (aka don't put all your eggs in one basket). I don't think this is wise. You will have no way to rebalance unless they are all at one custodian. If they are all at one custodian, you will probably have ...
by retiredjg
Wed May 27, 2015 5:14 pm
Forum: Personal Consumer Issues
Topic: Money and cell phones when traveling to Canada
Replies: 24
Views: 848

Re: Money and cell phones when traveling to Canada

Your phone won't work, but I think Skype might. Are you taking a computer with you?

I used to go to Canada pretty regularly and the phone was useless. I just used email on my laptop (on a trusted wifi). Seems like Skype should work fine if you have wifi.
by retiredjg
Wed May 27, 2015 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Regular or Roth 457?
Replies: 13
Views: 693

Re: Regular or Roth 457?

adam123 wrote:Thanks for the thoughts. Answering some of the questions, we both make about the same, and anticipate the 60% pension.

Using 2 personal exemptions and the standard deduction, what tax bracket would 60% of your salary put you in?
by retiredjg
Wed May 27, 2015 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Regular or Roth 457?
Replies: 13
Views: 693

Re: Regular or Roth 457?

This may open another can of worms, but I may eventually inherit a sizeable IRA. Does that change the equation more toward Roth? Not in my mind. You will have RMDs from this inherited IRA and they will not be affected by your other accounts. If you are wondering if you can get pushed into the 33% b...
by retiredjg
Wed May 27, 2015 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: SERP retirement account [Supplemental Executive Retirement Plan]
Replies: 11
Views: 594

Re: SERP retirement account [Supplemental Executive Retirement Plan]

Thanks all for your responses! I feel that I have a good understanding of the risks and benefits of this potential investment. I have one more question for you. If you knew the company had a Ba2 rating from Moody's, would this affect your decision of whether or not to invest in this plan? It would ...
by retiredjg
Wed May 27, 2015 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion 5 year rule
Replies: 15
Views: 1160

Re: Roth Qualified distribution

it implies (whether you meant to or not) that a non-qualified withdrawal will trigger tax or penalty. "A implies B" does not imply "not A implies not B". If anybody thinks it does they need to go back to syllogism school. :annoyed I know that and you know that. But what you said...
by retiredjg
Wed May 27, 2015 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Regular or Roth 457?
Replies: 13
Views: 693

Re: Regular or Roth 457?

If you do end up in the 28% bracket in retirement, paying 28% now vs paying 28% later is a wash. I don't think there is a strong argument for more Roth if you are filling two 457b accounts (traditional) and 2 Roth IRAs. That is close to 25% in Roth and that is a reasonable number. If you do decide t...
by retiredjg
Wed May 27, 2015 3:34 pm
Forum: Personal Consumer Issues
Topic: Opening lawn sprinker system: DIY or call company?
Replies: 9
Views: 684

Re: Opening lawn sprinker system: DIY or call company?

One good thing about paying for it….once….is that you can get the sprinkler person to educate you on the entire system. If you don't do this, you will have to figure it all out yourself. Sometimes, that means learning it the hard way. I had a sprinkler system at my last house. It is quite the blessi...
by retiredjg
Wed May 27, 2015 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion 5 year rule
Replies: 15
Views: 1160

Re: Roth Qualified distribution

However I think it's clearer to ask "Is this a qualified withdrawal?" The two pronged test is: Did the Roth IRA owner establish any Roth IRA more than 5 years ago? Is the Roth owner over age 59.5, disabled or dead? If the answers are yes and yes any withdrawal is a "qualified withdra...
by retiredjg
Wed May 27, 2015 2:16 pm
Forum: Personal Consumer Issues
Topic: Credit Terminology
Replies: 2
Views: 160

Re: Credit Terminology

A company you already have a financial relationship with may be allowed to check your credit whenever they want. These should be "soft pulls" and you may never even be aware of it. My experience makes me think that a company that is considering giving you credit may be able to do either a ...
by retiredjg
Wed May 27, 2015 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Best options when Roth is not an option
Replies: 10
Views: 612

Re: Best options when Roth is not an option

I would like to know what our best options are for retirement planning/saving/investing options from here on out. Should we open up tIRAs, or simply invest in taxable investment accounts? The first place to consider is a 401k, 403b, 457b, or SIMPLE IRA at work. If you have no such plans, you can co...
by retiredjg
Wed May 27, 2015 10:11 am
Forum: Investing - Theory, News & General
Topic: Wellington & Wellesley
Replies: 32
Views: 3698

Re: Wellington & Wellesley

I realize this falls squarely inside the box of "worshiping at the Vanguard altar"... The interesting thing is that Wellington and Wellesley aren't actually managed by Vanguard, but by Wellington Management out of Boston. Hmmm. I think I must have known that, but forgot. It does ring a be...
by retiredjg
Wed May 27, 2015 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Early/Earlier/Earliest Retirement?
Replies: 26
Views: 3712

Re: Early/Earlier/Earliest Retirement?

I thought of a few things. 1) If you have a downpayment and a reasonable income from pension and SS and nest egg, there will be no problem getting a mortgage in retirement. Not saying you need to do that, just that you should be able to. 2) As a retired Fed, having the health care benefit is a good ...
by retiredjg
Wed May 27, 2015 8:03 am
Forum: Investing - Theory, News & General
Topic: Wellington & Wellesley
Replies: 32
Views: 3698

Re: Wellington & Wellesley

I've never owned either Wellington or Wellesley Income, but I would certainly consider owning Wellesley Income (I'm retired) at some point in the future. Here's why. The active vs passive argument boils down to the two arguments already brought forward - cost and trust in active management. W & ...
by retiredjg
Tue May 26, 2015 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: What would be the best investment options for me?
Replies: 4
Views: 343

Re: What would be the best investment options for me?

I seriously doubt those are the only funds available in your plan. But once you clicked on "balanced", they might be the only balanced funds available. A balanced fund contains both stocks and bonds. Go back and do some more hunting around and I think you'll find more funds listed. The fun...
by retiredjg
Tue May 26, 2015 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Tax question
Replies: 16
Views: 1431

Re: Roth IRA Tax question

I think you will get a 5498 form from each IRA custodian every year, about May. You can't send it in with your taxes because you don't have it when most people do their taxes. The form helps you and the IRS keep up with how much you have in IRA and Roth IRA. But it is not a tax form.
by retiredjg
Tue May 26, 2015 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need to sell my REIT in taxable account?
Replies: 18
Views: 1029

Re: Do I need to sell my REIT in taxable account?

I'm under the impression that most REITS pay their dividends monthly. So you may already have some extra income on which to pay tax. I'd sell now and take the loss off your taxes. Maybe the loss will offset your dividends. Don't hold your breath for "when the interest rate rises". You migh...
by retiredjg
Tue May 26, 2015 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple Accounts Asset Allocation
Replies: 12
Views: 842

Re: Multiple Accounts Asset Allocation

So do we: 1. Go 100% bonds in our Roth IRAs (based on the assumption that bonds are better held in tax-advantaged accounts)? 2. Or go 100% stock in our Roth IRAs (not sure if there a benefit to that)? Put all your bonds in tax-advantaged accounts. That could be either 401ks or Roth IRA. Most people...
by retiredjg
Tue May 26, 2015 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: max out both 401k/403b and 457 options?
Replies: 2
Views: 188

Re: max out both 401k/403b and 457 options?

So--any thoughts on whether I should be prioritizing the 457 option instead of a taxable account? If so, would it make sense to pursue the Roth or the traditional option? Any advice or perspective would be appreciated. This is entirely dependent on whether you want to save for a house or save for r...
by retiredjg
Tue May 26, 2015 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Adjustments to a taxable account
Replies: 7
Views: 692

Re: Adjustments to a taxable account

To estimate the unrealized capital gains, I simply took the current market values minus the cost basis shown in their account statements. Not sure if that is correct or not. Did it actually say "cost basis" or do you mean the amount they paid when they bought the funds? If it said "c...
by retiredjg
Tue May 26, 2015 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Adjustments to a taxable account
Replies: 7
Views: 692

Re: Adjustments to a taxable account

In your estimation of capital gains, did you take into consideration that dividends and capital gains distributions have already been taxed?
by retiredjg
Tue May 26, 2015 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Adjustments to a taxable account
Replies: 7
Views: 692

Re: Adjustments to a taxable account

Why do they hover? Is the income different from year to year? Could they contribute more to 401k or tIRA and get into the 15% bracket with enough space to sell anything? I think your idea of waiting is fine, but not if the waiting ends up being too long because those ERs are not free and the tax-ine...
by retiredjg
Tue May 26, 2015 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Multiple Accounts Asset Allocation
Replies: 12
Views: 842

Re: Multiple Accounts Asset Allocation

1. My income does not allow me or my wife to contribute to IRA accounts (or Roth IRA). We are in the process of opening IRA accounts for non-deductible contributions and converting them to Roth IRAs (backdoor Roth IRA). We are planning on using both Roth IRAs for bond funds (VBMFX). We will go to V...

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