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Re: Are we really in the 0% bracket?

Long term capitol gains are taxed at 0% for those in the 10 or 15% bracket. Once one hits the 20% bracket they are taxed at 15%. So one would have to be in the 20% bracket without long term gains to trigger the tax. It does seem odd that if one dollar puts one into the 20% bracket than all the gain...
by retiredjg
Thu Oct 30, 2014 8:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Are we really in the 0% bracket?
Replies: 28
Views: 3111

Re: fleeced by an adviser, is there a recourse?

As an advisor, I can tell you the odds are stacked against the consumer. Everything is disclosed but it's disclosed in such a way that the "so what" is buried deep in a thick document and in such a technical way that the consumer has virtually no chance of understanding. Advisors attend t...
by retiredjg
Wed Oct 29, 2014 8:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 69
Views: 5883

Re: Questions on bond funds in taxable

Just for the sake of my education, how you would have answered the original poster's question? Before the edit, the poster thought the tax bracket would be 25% or 28%. Right now I would recommend direct CDs. The yield comparison with Treasuries, which is apples to apples (well, close enough) and wh...
by retiredjg
Wed Oct 29, 2014 4:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions on bond funds in taxable
Replies: 21
Views: 1331

Re: Asset Location

- Suppose you want to alter your risk exposure as you age. Send more money to bonds (or stocks) in your 401k/403b, IRAs, etc. - Or a new fund is introduced that does better job of hitting your desired factor tilts? -Maybe the fund takes advantage of newer, better passive funds that weren't availabl...
by retiredjg
Wed Oct 29, 2014 3:58 pm
 
Forum: Investing - Theory, News & General
Topic: Asset Location
Replies: 13
Views: 620

Re: Asset Location

1. Rebalancing or liquidations have tax consequences in the taxable account This would be a problem if you held only stocks in one account and only bonds in the other account. But that is not the suggestion. The suggestion is to fill all available tax-advantaged accounts (401k, 403b, IRA, Roth IRA,...
by retiredjg
Wed Oct 29, 2014 3:47 pm
 
Forum: Investing - Theory, News & General
Topic: Asset Location
Replies: 13
Views: 620

Re: Questions on bond funds in taxable

The argument goes like this: would it be correct to compare the after-tax yield of Treasuries and corporates? Whatever your tax situation, you'd conclude the corporates are the better deal. But of course, that comparison would ignore risk and it would be wrong -- in any tax bracket. It's the same f...
by retiredjg
Wed Oct 29, 2014 3:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions on bond funds in taxable
Replies: 21
Views: 1331

Re: Liquidating some pre-Vanguard assets, need advice

Are you suggesting that I get out of Target Retirement 2035? It is a bit stock heavy now (US Stock 58.50%, Intl 24.70% / US Bond 13.40% Intl Bond 3.40%) but I can change this asset allocation, I think. The advantage here is that the fund changes holdings automatically as one ages. The stocks it hol...
by retiredjg
Wed Oct 29, 2014 2:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Liquidating some pre-Vanguard assets, need advice

Sorry I cannot figure out this selective quote command. :oops: Lots of ways to do it. Easiest is probably highlighting what you want to quote and then hit the quote tab at the top left side of the box you type in. If there is something in there you don't want, just delete it. Or start with the quot...
by retiredjg
Wed Oct 29, 2014 2:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Medicare Part D

Recommended reading: Check out the Medicare for Dummies book. The author, Patricia Barry, writes the "Ask Ms. Medicare" column for AARP. I was so impressed with the book when I got it out of the library, I ended up buying my own copy. It really untangles a lot of the confusion. (One short...
by retiredjg
Wed Oct 29, 2014 1:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D
Replies: 22
Views: 1075

Re: Liquidating some pre-Vanguard assets, need advice

Here's a basic Boglehead portfolio idea with a touch of REIT. You would exchange all you have now into this and then maintain it with your contributions. This idea is a complete WAG since we don't know what is available in His 401a/403b. Since you have a variety of Vanguard funds, I'll just assume y...
by retiredjg
Wed Oct 29, 2014 1:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Liquidating some pre-Vanguard assets, need advice

Thanks for the advice and efforts. I am fine with a re-balancing so I achieve a 70/30 split. This could refer to two different things. What do you mean? I have also calculated the percentages, including percentage of each asset class, based on the percentages that Vanguard reports. This is pretty m...
by retiredjg
Wed Oct 29, 2014 1:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Questions on bond funds in taxable

I am surprised that people recommend muni bonds without adjusting for risk. If a person must hold bonds in taxable in order to achieve an asset allocation and if the person is in a high tax bracket and so should probably use tax-exempt bonds , how do you suggest they adjust for risk? That person sh...
by retiredjg
Wed Oct 29, 2014 12:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions on bond funds in taxable
Replies: 21
Views: 1331

Re: Liquidating some pre-Vanguard assets, need advice

Concerning your reluctance to use Roth IRA.... Roth IRA always trumps taxable, both for you and for your heirs. The money is going to be taxed anyway. Why not avoid taxes on the earnings? For you it would be incredibly simple. You'd put $5,500 into tIRA and invest it in money market. A few days late...
by retiredjg
Wed Oct 29, 2014 12:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Liquidating some pre-Vanguard assets, need advice

Admiral, the new information (that your taxable account is for uncertain expenses and long term goals) swings the pendulum back to the other way...once again. Since that is the case, I suggest that you manage all your accounts as one portfolio and also try to achieve some tax efficiency which you do...
by retiredjg
Wed Oct 29, 2014 11:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: fleeced by an adviser, is there a recourse?

dbr wrote:...even as out of the other side of my mouth I call for jail time for predatory investment advising.

Only jail time? I'm thinking more honey and fire ants.
by retiredjg
Wed Oct 29, 2014 10:42 am
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 69
Views: 5883

Re: fleeced by an adviser, is there a recourse?

In some perverted sense, this guy did you a favor by doing such a bad job that you woke up to smell the coffee!

Now you can invest ALL of your money in a better way. In the long run, this switch may even make you more wealthy. :twisted:
by retiredjg
Wed Oct 29, 2014 9:35 am
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 69
Views: 5883

Re: Questions on bond funds in taxable

Call_Me_Op wrote:I am surprised that people recommend muni bonds without adjusting for risk.

If a person must hold bonds in taxable in order to achieve an asset allocation and if the person is in a high tax bracket and so should probably use tax-exempt bonds, how do you suggest they adjust for risk?
by retiredjg
Wed Oct 29, 2014 9:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions on bond funds in taxable
Replies: 21
Views: 1331

Re: Liquidating some pre-Vanguard assets, need advice

Is there something particular in your 403b plan that ties up your funds at early retirement? The IRS doesn't require it to stay "tied up," and my 403b funds are available upon separation from employment with no age limit. Perhaps I'm misunderstanding, but this seems misleading. Money in a...
by retiredjg
Wed Oct 29, 2014 7:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Questions on bond funds in taxable

If they are in the 15% bracket in retirement, taxable bonds (like total bond market) would be fine. Or CDs. If they end up in the 28% bracket, they should almost certainly use tax-exempt bonds (munis). In the 25% bracket, you might need to calculate it using a bond yield calculator . Here's a like ...
by retiredjg
Wed Oct 29, 2014 7:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions on bond funds in taxable
Replies: 21
Views: 1331

Re: Questions on bond funds in taxable

It all depends on the tax bracket so you need to nail that down a little better. What is the tax bracket now while working? Compare their taxable income (line 43 on Form 1040) to this chart making sure you click the right year and the right filing status. http://www.moneychimp.com/features/tax_brack...
by retiredjg
Tue Oct 28, 2014 2:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions on bond funds in taxable
Replies: 21
Views: 1331

Re: Prudent Investment Portfolio for 58-year Old w/20M Net W

He didn't build his wealth, his extremely eldery father did. He's so unknowledgeable about investing that he could easily lose half his wealth to financial advisors. That's why I'm hoping to assess this the Boglehead's way. I think it would be wise to steer this friend to the new Vanguard Advisory ...
by retiredjg
Tue Oct 28, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prudent Investment Portfolio for 58-year Old w/20M Net Worth
Replies: 26
Views: 1870

Re: Any tax advantages to ETF's vs mutual funds?

As I understand it, there is no tax advantage for either when you are using Vanguard products - because the ETF version and the MF version are just different share classes of the same thing.
by retiredjg
Tue Oct 28, 2014 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any tax advantages to ETF's vs mutual funds?
Replies: 3
Views: 286

Re: Liquidating some pre-Vanguard assets, need advice

Well, that sort of brings us back to your question as you originally posted it. If the money in your taxable account not for retirement, what is it for and when do you plan to use it? You don't have to be specific. The asset allocation of that account depends on when you need the money. If it is for...
by retiredjg
Tue Oct 28, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Your Thoughts on my Portfolio

Here's a basic plan that covers all the bases - slight modification of the three fund portfolio. You could add some small cap value if you want. Taxable Total Stock Total International tax-exempt bonds, CDs, etc. Tax-advantaged Bonds Here's a slice and dice plan that a lot of people here like Taxabl...
by retiredjg
Tue Oct 28, 2014 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Your Thoughts on my Portfolio
Replies: 16
Views: 1290

Re: Asset Allocation and Rebalancing

Whether you keep the TIPS fund is strictly personal preference. A few years ago, people routinely suggested using half total bond and half TIPS. That has sort of fallen by the wayside - I don't know why but it is probably some return chasing which is sort of a misdemeanor instead of a felony when it...
by retiredjg
Tue Oct 28, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Your Thoughts on my Portfolio

Thanks JG. I agree that simplicity is something that I don't really have at this point. Just kind of woke up one day with all of these funds/stocks. Can't say it takes a lot of time to maintain though. Plus it gives me something to do when I can't play golf. Don't want to incur taxes (something I r...
by retiredjg
Tue Oct 28, 2014 9:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Your Thoughts on my Portfolio
Replies: 16
Views: 1290

Re: Does Timing Matter for Mega Backdoor Roth Conversion?

simpatico, most plans do not allow you to put after-tax contributions in money market while the pre-tax contributions are going into something else. Yours might. but it would be unusual. If you have already completed contributing your $17,500 for this year and are now only putting in after tax money...
by retiredjg
Tue Oct 28, 2014 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Does Timing Matter for Mega Backdoor Roth Conversion?
Replies: 11
Views: 1034

Re: Traditional Medicare vs Medicare Advantage

dolphinsaremammals wrote:Because I don't like an insurance company dancing on my head. I had enough of that before I retired.

What does this mean? Can you explain your response a little more please?
by retiredjg
Mon Oct 27, 2014 6:18 pm
 
Forum: Personal Consumer Issues
Topic: Traditional Medicare vs Medicare Advantage
Replies: 26
Views: 1411

Re: Help with moving from lifecycle to index funds

Would I be looking at the 30 Day Effective Yield of 1.82% on that site to decide? I'm sorry. I don't know the answer. Maybe someone else will. Or you might have to wait until you get the appropriate paperwork. My personal preference is to use a real bond fund instead of a stable value fund if a rea...
by retiredjg
Mon Oct 27, 2014 6:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with moving from lifecycle to index funds
Replies: 11
Views: 1246

Re: Help with moving from lifecycle to index funds

PIMIX PIMCO Income Fund (0.45) Bond - Multi-Sector <---I think this is a reasonable bond fund.

I'd use this one unless the Stable Value fund is paying quite a lot. Do you know what it is currently paying?
by retiredjg
Mon Oct 27, 2014 4:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with moving from lifecycle to index funds
Replies: 11
Views: 1246

Re: Your Thoughts on my Portfolio

We tend to look at risk in terms of need (to reach your goal), willingness (how much loss can you experience and still sleep at night) and ability (if the market crashes, do you have enough time and/or money to be OK?). You have no need to increase your asset allocation, you apparently do have a wil...
by retiredjg
Mon Oct 27, 2014 4:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Your Thoughts on my Portfolio
Replies: 16
Views: 1290

Re: Backdoor Roth. Calendar year vs tax filing year

Apparently Vanguard thinks your contribution in February was for tax year 2014. You could have inadvertently told them it was for 2014 or that might have been the default unless you specified 2013. You might be able to straighten that out on the phone. Did you record the contribution on a Form 8606 ...
by retiredjg
Mon Oct 27, 2014 4:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth. Calendar year vs tax filing year
Replies: 3
Views: 388

Re: Liquidating some pre-Vanguard assets, need advice

This is a big chunk to chew right off the bat, but I'll post it so you can see what I'm talking about. If only some of it makes sense the first time through, that's fine.

http://www.bogleheads.org/wiki/Principl ... _placement
by retiredjg
Mon Oct 27, 2014 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Liquidating some pre-Vanguard assets, need advice

Admiral, around here people pay pretty close attention to tax-efficiency. It's a concept that sometimes does not get enough attention in other arenas. Even financial advisors don't give it a lot of attention. Only one of the funds you have in taxable would be considered tax-efficient - the small cap...
by retiredjg
Mon Oct 27, 2014 3:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Liquidating some pre-Vanguard assets, need advice
Replies: 34
Views: 1393

Re: Asset Allocation and Rebalancing

Up front for a surgery could be a problem if the surgery is an emergency. Many of the things I suggest would take a couple of weeks. Tough decision - good luck!
by retiredjg
Mon Oct 27, 2014 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Does Timing Matter for Mega Backdoor Roth Conversion?

If I recall correctly, we've only had one poster who could contribute money from outside his paycheck and one poster who could choose what to invest in (independent of the other accounts). That means that most people will have to contribute over time and most people will not be able to just hold the...
by retiredjg
Mon Oct 27, 2014 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does Timing Matter for Mega Backdoor Roth Conversion?
Replies: 11
Views: 1034

Re: Asset Allocation and Rebalancing

Did you have a 6 month emergency fund before? Do you think you should build up your emergency fund to something larger? If you leave the money in the old 401k for now, in the event of an emergency you could roll it into an IRA and use one of the exceptions to take the IRA money without penalty. The ...
by retiredjg
Mon Oct 27, 2014 1:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Investment Advice

I think you have done pretty well with the expense ratios - .53%, .77%, and .85%. Not great, but not bad for managed funds (although Vanguard's costs are lower). It appears the PIMCO fund has a sales charge of 3.75% unless you were able to avoid that somehow. I could not find any information about t...
by retiredjg
Mon Oct 27, 2014 11:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment Advice
Replies: 15
Views: 1125

Re: How to fund my ROTH IRA in the future

ps: OP said he/she was married. Thanks. I had missed it. If pension alone will put you in the 25% bracket (today's rate), paying 25% now vs paying 25% later will be a wash assuming no phase-outs. So paying it now is not particularly harmful but putting it off isn't going to cost you anything either...
by retiredjg
Mon Oct 27, 2014 10:14 am
 
Forum: Investing - Help with Personal Investments
Topic: How to fund my ROTH IRA in the future
Replies: 18
Views: 1981

Re: Investment Advice

You want to take about 4.2% from this portfolio for maybe 20 to 30 years. It is possible that will not be sustainable without investing in more stocks than you currently hold. It might work out, but if either of you lives another 30 years and if the market is not good to you during this time, the po...
by retiredjg
Mon Oct 27, 2014 9:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment Advice
Replies: 15
Views: 1125

Re: Bucket Approach Redux

What to Do When I Get Stupid....love the title!
by retiredjg
Mon Oct 27, 2014 8:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Bucket Approach Redux
Replies: 35
Views: 2552

Re: Asset Allocation and Rebalancing

Alto Astral wrote:I updated my original post with the funds that would support my desired 3-4 fund portfolio.

It's good that you have the old 401k because if you didn't you might have to use some of that expensive Core Bond!
by retiredjg
Mon Oct 27, 2014 7:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Asset Allocation and Rebalancing

Just be sure that new money will flow into your plan easily or things become cumbersome. You mean new money via my&wife's current 401k contributions? Yes. Sometimes people will set up their funds in a way that works for that point in time, but makes contributions awkward. See how the contributi...
by retiredjg
Mon Oct 27, 2014 7:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: How to fund my ROTH IRA in the future

You are talking as if you are single. And if you are single, even a modest (but not tiny) pension will push you into or near the 25% bracket. So your reasons for using Roth 401k now are much sounder than it appeared earlier. Just one thing. If you are single now and married later, it is quite possib...
by retiredjg
Sun Oct 26, 2014 6:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to fund my ROTH IRA in the future
Replies: 18
Views: 1981

Re: Asset Allocation and Rebalancing

I'm not following your numbers, but I'm guessing you are moving things around to lower the expense ratios. That's fine. You don't have to have all three asset classes in each account. You can split these things up any way you want and you can do it overnight or over time. And when you add on the Rot...
by retiredjg
Sun Oct 26, 2014 6:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Max Out Retirement Funds or Payoff Debt

Do you have friends without a truck? Maybe you could work up a tiny little side business pulling huts around on the ice or talking people out to hunt. Not suggesting you get into the guide business or anything, just assist people who need a truck for something occasionally. Hauling a TV or mattress ...
by retiredjg
Sun Oct 26, 2014 6:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Max Out Retirement Funds or Payoff Debt
Replies: 29
Views: 1925

Re: Asset Allocation and Rebalancing

Spot on! I will take your advice and do my first contribution in and for 2015. Thanks again! In that case, you will record the tIRA contribution on the front side of Form 8606 (when you file your 2015 taxes) and record the conversion to Roth IRA on the back side of the same piece of paper. Give it ...
by retiredjg
Sun Oct 26, 2014 3:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Moving money that's in the market

Not to worry - just fix it and move on. This will not make or break your retirement.
by retiredjg
Sun Oct 26, 2014 3:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving money that's in the market
Replies: 7
Views: 617

Re: Asset Allocation and Rebalancing

Its the first time I am doing AA across 2 401k accounts and wanted to share my strategy in case there are any gotchas or any holes in my plan. I also wanted to know if there was a better fund strategy other than my plan. I have my spreadsheet open and I was trying different combinations. I guess I ...
by retiredjg
Sun Oct 26, 2014 3:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883

Re: Asset Allocation and Rebalancing

You don't seem to be aware that you can contribute to Roth IRA through a "back door". You are right. I was not aware of the non-deductible Traditional IRA. Thanks! I had a Roth IRA at Vanguard at one point but needed to withdraw the contributions. It has some negligible amount now. Vangua...
by retiredjg
Sun Oct 26, 2014 2:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Rebalancing
Replies: 21
Views: 1883
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