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Re: Need Help Allocating Assets

Which one is your 401k?

I'm confused about the pension thing. It apparently has a dollar value. Can that change? Is it invested in some way? Do you plan to take this as an income stream or cash it in and put it in an IRA or something?
by retiredjg
Sat Nov 22, 2014 4:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Help Allocating Assets
Replies: 5
Views: 394

Re: WiseBanyan AA question

Decide if this is a goal that you need to save for or if you can invest the money for this goal. Those are 2 different things. If your goal is a certain date or even a certain year, you need to save, not invest. CDs, money market, high yield savings, maybe a small amount in short term bonds.
by retiredjg
Sat Nov 22, 2014 3:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: WiseBanyan AA question
Replies: 5
Views: 432

Re: WiseBanyan AA question

If you need the money at a certain time, you probably don't want any of it to be invested in stocks. If your goal can easily be delayed if there is a market crash, some stocks might be OK.
by retiredjg
Sat Nov 22, 2014 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: WiseBanyan AA question
Replies: 5
Views: 432

Re: Please provide feedback on my current asset allocation

You could make your Taxable accounts simpler by going with a one fund Target Retirement Fund as you did in your Nontaxable, or one of the Lifestrategy Funds. They rebalance for you. I don't believe this is a good choice for taxable in the 33% tax bracket. The bonds are not tax-efficient and you can...
by retiredjg
Sat Nov 22, 2014 3:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please provide feedback on my current asset allocation
Replies: 10
Views: 546

Re: Questions about implementing 'mega backdoor roth'

Before you do this, you need to make a decision, or at least know your options. If you take out the after-tax money, the earnings that money has made must come with it. The earnings can go -to Roth IRA (you pay tax at ordinary rate) or -to tIRA (no tax, but the presence of this tIRA interferes if yo...
by retiredjg
Sat Nov 22, 2014 3:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions about implementing 'mega backdoor roth'
Replies: 4
Views: 475

Re: Please provide feedback on my current asset allocation

Some of the money going into taxable could be going into Roth IRA via the "back door". Otherwise, I think it looks fine if you wish to have separate allocations for your two accounts. If you wish to use CDs or I Bonds or EE Bonds, that would be fine as well. Just not as simple. http://thef...
by retiredjg
Sat Nov 22, 2014 3:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please provide feedback on my current asset allocation
Replies: 10
Views: 546

Re: After Tax Contributions to 401k???

Oh, I did not know we were talking about your specific situation. I thought we were helping people who might be considering adding money after-tax now to their 401(k)s. Well, we are and we are not. Based on my own experience, I am counseling my 23-year old son to contribute after-tax dollars to his...
by retiredjg
Sat Nov 22, 2014 2:49 pm
 
Forum: Investing - Theory, News & General
Topic: After Tax Contributions to 401k???
Replies: 16
Views: 1069

Re: After Tax Contributions to 401k???

What happens if the tax law changes again? I suppose from a tax perspective you aren't worse off than if you had invested in a brokerage account. What happened recently was not really a change in tax law, but a clarification of some muddled up stuff. People have been doing after-tax contributions f...
by retiredjg
Sat Nov 22, 2014 2:48 pm
 
Forum: Investing - Theory, News & General
Topic: After Tax Contributions to 401k???
Replies: 16
Views: 1069

Re: Am I short-changing myself? 401k vs ROTH contributions

You need to know how to figure out your tax bracket. This number is crucial to many decisions.

Compare your taxable income, line 43 on Form 1040, to this chart. http://www.moneychimp.com/features/tax_brackets.htm Be sure to click on the right year and filing status.
by retiredjg
Sat Nov 22, 2014 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I short-changing myself? 401k vs ROTH contributions
Replies: 9
Views: 483

Re: Help with my portfolio! New to investing.

Guys in my 401k hp fund, i I been invested for about 6 months now, but the only thing keeping me up is my cmpany match, otherwise i'm sitting a few dollars below what i actually put in, just doesn't seem like it growing.. im tempted to switch to these index funds that Laura suggested...... someone ...
by retiredjg
Sat Nov 22, 2014 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with my portfolio! New to investing.
Replies: 18
Views: 2343

Re: Moving current 401k funds into brokerage link?

You are not using the best choices in your 401k. From an earlier thread, it appears your choices are: HP INT'L EQUITY FUND(.51) HP INTL EQUITY INDEX(.08) <--- HP SM/MID-CAP EQUITY(.72) HP US LARGE CAP EQTY(.37) US LARGE CAP EQ INDX(.04) <--- US SM/MID CAP EQ IDX(.05) <--- HP CORE BOND FUND(.15) HP C...
by retiredjg
Sat Nov 22, 2014 8:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Moving current 401k funds into brokerage link?
Replies: 17
Views: 677

Re: IRA Contribution Question and Age

tfb makes the argument that many federal employees should be using Roth TSP instead of traditional, because of the pension. http://thefinancebuff.com/most-tsp-participiants-should-switch-to-the-roth-tsp.html I can't see any argument to put money into taxable space instead of Roth space (TSP, 401k, o...
by retiredjg
Sat Nov 22, 2014 6:50 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA Contribution Question and Age
Replies: 8
Views: 875

Re: What to do with $76000 IRA Rollover

People use the term "dollar cost averaging" in different ways, but what they usually mean is to invest money frequently. This is not new money. This is a sideways move. Just put your money in the market. If you can't do it, put in half and DCA the other half over a short time. http://www.b...
by retiredjg
Sat Nov 22, 2014 6:23 am
 
Forum: Investing - Help with Personal Investments
Topic: What to do with $76000 IRA Rollover
Replies: 10
Views: 1127

Re: Who to Use: CPA, Financial Advisor, Someone Else?

Scott62 wrote:Health insurance after retirement is probably the thing that would keep me up at night.

I've noticed several threads on the ACA (Obamacare) lately - I guess it is open season. Maybe you would find useful information there.
by retiredjg
Fri Nov 21, 2014 4:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: what is the CRSPTM1 index?

It's real name is CRSP US Total Market Index . If you plug that into the google box in the upper right, you might find what you are looking for.

Vanguard made this switch relatively recently (2012 or 2013?). Before that, they used MSCI I think.
by retiredjg
Fri Nov 21, 2014 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: what is the CRSPTM1 index?
Replies: 4
Views: 353

Re: New job / Old 401k

As mentioned, if you roll this money to IRA, it will interfere with your ability to use the "back door" to contribute to Roth IRA if you should need to. Here is some information on what the back door is.

http://thefinancebuff.com/the-backdoor- ... ow-to.html
by retiredjg
Fri Nov 21, 2014 1:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: New job / Old 401k
Replies: 8
Views: 731

Re: smartphone over wifi - still possible?

I too recommend Consumer Cellular. You can pick how many minutes you want and how much data you want, a different amount each month if you want. So you can have no data most of the time and have it available if you find you need it for something specific. I'll even sell you my smart phone that I use...
by retiredjg
Fri Nov 21, 2014 1:32 pm
 
Forum: Personal Consumer Issues
Topic: smartphone over wifi - still possible?
Replies: 29
Views: 1917

Re: Who to Use: CPA, Financial Advisor, Someone Else?

My wife and I are both engineers, so dealing with this one equation and many unknowns is painful for us. That is certainly understandable. It is counter-intuitive, but the field of investing is hardly precise.n You would think it would be very precise. But surely there must be something similar som...
by retiredjg
Fri Nov 21, 2014 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Does investing in a 401k actually save any money?

dbr wrote:That's pretty good. Maybe somebody can find a link to those charts that tfb had that show how income is stacked for purposes of assessing taxes.

Here is the thread with the income stack charts.

viewtopic.php?f=10&t=86849
by retiredjg
Fri Nov 21, 2014 1:08 pm
 
Forum: Investing - Theory, News & General
Topic: Does investing in a 401k actually save any money?
Replies: 44
Views: 3176

Re: Does investing in a 401k actually save any money?

TradingPlaces wrote:- 33% while working, but 40% in retirement (either due to over-saving, or due to tax law change)....

Again...having a marginal rate of 40% does not mean that everything is taxed at 40%. Some is not taxed, some taxed at 10%, 15%, 25%, 33% and 35% before you even get to taxing some at 40%.
by retiredjg
Fri Nov 21, 2014 1:05 pm
 
Forum: Investing - Theory, News & General
Topic: Does investing in a 401k actually save any money?
Replies: 44
Views: 3176

Re: Questions About 401k and AGI and Traditional vs Roth IRA

I'm pretty sure I've read some people using this method, possibly in conjunction with others, to completely avoid paying taxes on the conversion amounts from the 401k > IRA > Roth. I suspect a misunderstanding. There is very little money that does not get taxed at some point, either going into an a...
by retiredjg
Fri Nov 21, 2014 12:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions About 401k and AGI and Traditional vs Roth IRAs
Replies: 47
Views: 2602

Re: Who to Use: CPA, Financial Advisor, Someone Else?

If you end up in the 25% bracket, you might as well pay that now on some of your 403b. But if you end up in the 15% bracket, it would be better to have used traditional now instead of 403b. Without a crystal ball, it may be unknowable. So you just have to do the best you can and put things where you...
by retiredjg
Fri Nov 21, 2014 10:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Questions About 401k and AGI and Traditional vs Roth IRA

I don't know what a Roth conversion pipeline is. I don't either, but this is the 3rd reference to a "pipeline that I've run across recently (here at Bogleheads). I'm wondering if someone made up a new term and used it in an article or something. I'll probably explain this poorly, but it's basi...
by retiredjg
Fri Nov 21, 2014 9:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions About 401k and AGI and Traditional vs Roth IRAs
Replies: 47
Views: 2602

Re: Who to Use: CPA, Financial Advisor, Someone Else?

In my case, I am planning on the backdoor Roth to move assets I already have that have already been taxed into a tax-advantaged account, because I don't need them to live on. Just so you'll know, this does not sound like a back door. This sounds like an ordinary Roth conversion (which is step 2 of ...
by retiredjg
Fri Nov 21, 2014 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Who to Use: CPA, Financial Advisor, Someone Else?

Ok, with this new information, I'm starting to change my thinking. First, you are in the 25% bracket. Second, you said we will have pensions . You need to check what your tax bracket is likely to be in retirement, but if there are 2 pensions, there is a good possibility you will be in the 25% bracke...
by retiredjg
Fri Nov 21, 2014 9:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Questions About 401k and AGI and Traditional vs Roth IRA

I'm going to need to read up on the pro rata rule and back door Roth, but would this also cause complications for a Roth conversion pipeline? Are the back door and the pipeline the same thing, similar or completely different? I don't know what a Roth conversion pipeline is. I don't either, but this...
by retiredjg
Fri Nov 21, 2014 7:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions About 401k and AGI and Traditional vs Roth IRAs
Replies: 47
Views: 2602

Re: Investing Only In a 401k

What do you mean by "pulling out of it and investing full time into my 401k"?

If you mean not putting more money in the tIRA, that's fine and your plan looks fine. If you mean trying to take the money out of the IRA and putting it into the 401k....not so fine.
by retiredjg
Thu Nov 20, 2014 3:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k questions
Replies: 10
Views: 1138

Re: Who to Use: CPA, Financial Advisor, Someone Else?

We have a new concept for your reading pleasure. It's called "tax-efficiency". Just a heads up since you don't want to discuss specific funds right now. It boils down to placing funds in accounts in such a way that you pay less in tax. And, I actually realized we are already in the 25% tax...
by retiredjg
Thu Nov 20, 2014 3:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Who to Use: CPA, Financial Advisor, Someone Else?

In my case, I am planning on the backdoor Roth to move assets I already have that have already been taxed into a tax-advantaged account, because I don't need them to live on. Just so you'll know, this does not sound like a back door. This sounds like an ordinary Roth conversion (which is step 2 of ...
by retiredjg
Thu Nov 20, 2014 2:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Help: Three Fund Portfolio at Fidelity

Use the Spartan Total Stock Index and the Spartan US bond Index at Fidelity because these are essentially identical to the Vanguard versions. Use Vanguard's Total International Index because it is more complete than the Fido funds. If you must hold international at Fido, use the Spartan Global Excep...
by retiredjg
Thu Nov 20, 2014 2:42 pm
 
Forum: Investing - Theory, News & General
Topic: Help: Three Fund Portfolio at Fidelity
Replies: 10
Views: 1076

Re: Transferring S&P 500 index fund in kind

No. If the money were in a taxable account, you could, but not from a 401k. But you could make several transfers if you are worried about time out of the market.
by retiredjg
Thu Nov 20, 2014 2:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transferring S&P 500 index fund in kind
Replies: 13
Views: 1176

Re: Who to Use: CPA, Financial Advisor, Someone Else?

Since about 70% of our nest egg is in tax deferred (my and my wife's 401ks, and my trad. IRA), I'm thinking maybe we need to have a bit more of a hedge against future tax law changes. So, maybe for our last 10-15 years of employment (starting now), we should fill up some Roths - my 403b can be set ...
by retiredjg
Thu Nov 20, 2014 1:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Who to Use: CPA, Financial Advisor, Someone Else?

By the way, when you catch up on your reading and if you want a portfolio suggestion, we can help with that. See the link at the bottom of this message for how.
by retiredjg
Thu Nov 20, 2014 11:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Who to Use: CPA, Financial Advisor, Someone Else?

Since about 70% of our nest egg is in tax deferred (my and my wife's 401ks, and my trad. IRA), I'm thinking maybe we need to have a bit more of a hedge against future tax law changes. So, maybe for our last 10-15 years of employment (starting now), we should fill up some Roths - my 403b can be set ...
by retiredjg
Thu Nov 20, 2014 11:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Can I max out day job 401k and Individual 401k for side

I think it is like this:

    The $17,500 in elective deferrals is maxed at $17,500 no matter how many jobs you have.

    The $52,000 is per un-related employer.

So you can double up on one limit, but not the other limit.
by retiredjg
Thu Nov 20, 2014 10:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Can I max out day job 401k and Individual 401k for side biz?
Replies: 7
Views: 1012

Re: Who to Use: CPA, Financial Advisor, Someone Else?

I don't feel like I need an asset allocation advisor, or an investment plan advisor. I just need someone (maybe a tax accountant?) to help decide between (for me): Roth IRA, traditional IRA, 403b, 457, or taxable; for my wife: Roth, traditional IRA, 401k. This is actually not as hard as it seems. O...
by retiredjg
Thu Nov 20, 2014 9:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Who to Use: CPA, Financial Advisor, Someone Else?
Replies: 63
Views: 3419

Re: Adding taxable investments to retirement portfolio

Thanks for your reply. I don't quite understand the "becoming like Spock" analogy because wouldn't I simply be selling one bucket of stocks and then immediately purchasing another, albeit it another account? If it seems effortless to you, you must already be like Spock (all intellect, no ...
by retiredjg
Thu Nov 20, 2014 7:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1049

Re: Need advice on Asset Allocation

Although, upon reviewing my 401K contributions, I realized that we are currently doing only a 3% employer match. It looks like we could do as much as a 25% employer match. Perhaps it would be better to invest extra money within the 401K rather than doing a backdoor Roth? Is the amount of the match ...
by retiredjg
Thu Nov 20, 2014 7:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on Asset Allocation
Replies: 39
Views: 4457

Re: Portfolio Advice

I just looked at a few of the tax-exempt bond funds at Vanguard. The 3 I looked at (NY, Intermediate Term, and Limited Term) apparently do not come in ETF form. You should NOT buy these in mutual fund form at IB because of the transaction costs (assuming that the low trading costs you mentioned appl...
by retiredjg
Thu Nov 20, 2014 7:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 11
Views: 969

Re: Portfolio Advice

I didn't consider this angle and you make a good point, unfortunately since I've already rolled my 401K over I think it's too late? You could roll it again, assuming that your new 401k accepts incoming IRA money (most do). However, I'm really not suggesting this is the best idea. I'm leaning more t...
by retiredjg
Thu Nov 20, 2014 7:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 11
Views: 969

Re: Need advice on Asset Allocation

Sorry, not sure I understand this. I thought there were income limits for contributing to a Roth IRA and that I would not be able to contribute. Sorry. There are limits. But there is a work-around that has been called "the back door". This link will tell you something about it. I thought ...
by retiredjg
Wed Nov 19, 2014 4:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on Asset Allocation
Replies: 39
Views: 4457

Re: Help Beginner Investment with Fidelity

If you want to do this, you need to do it all please. :happy We can't suggest what you should put in your 401k because you have not told us what is available. We can't suggest how to set up the portfolio because you are married and didn't list your spouse's accounts. We can't help with contributions...
by retiredjg
Wed Nov 19, 2014 4:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help Beginner Investment with Fidelity
Replies: 10
Views: 748

Re: 20K Inheritance, now what?

notwerby wrote: For someone who's going to buy and hold, does it matter much?

No. If you already know how to use ETFs, it does not matter. Just go with your personal preference.
by retiredjg
Wed Nov 19, 2014 4:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 20K Inheritance, now what?
Replies: 46
Views: 3052

Re: After Tax Investment in 401K – Good or Bad?

So, if I will be able to roll-over to Roth - I should put allowed amount in after tax in 401k. Yes. If you can roll it out to Roth at least once or twice a year. Again, be sure you are talking about after-tax contributions, not Roth 401k contributions (which also happen to be after tax). If not - I...
by retiredjg
Wed Nov 19, 2014 4:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: After Tax Investment in 401K – Good or Bad?
Replies: 10
Views: 488

Re: After Tax Investment in 401K – Good or Bad?

They also told me that I have to be 59.5 to transfer money out. So I talked to an incompetent person? This is a complex subject so I'd hesitate to say the person was incompetent. The 59.5 rule applies to elective deferrals - that $17,500 you can put into traditional and/or Roth 401k each year. This...
by retiredjg
Wed Nov 19, 2014 4:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: After Tax Investment in 401K – Good or Bad?
Replies: 10
Views: 488

Re: Adding taxable investments to retirement portfolio

As for placing cash needs in a tax-advantaged account, my taxable account will be about $95k. Does that change things? Would it make a large difference if I exchanged some S&P 500 in my 401(k) for a money market account, and then used some of my liquid savings to buy the S&P 500 index in ta...
by retiredjg
Wed Nov 19, 2014 4:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1049

Re: Help Beginner Investment with Fidelity

YOur questions are difficult to answer accurately without knowing more about your situation. Consider gathering up the info requested in the link at the bottom of this message and posting it. You will learn a lot by just doing the exercise and get suggestions that are tailored to your specific situa...
by retiredjg
Wed Nov 19, 2014 1:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help Beginner Investment with Fidelity
Replies: 10
Views: 748

Re: IRA Contribution Question and Age

Will there be a pension?
by retiredjg
Wed Nov 19, 2014 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Contribution Question and Age
Replies: 8
Views: 875

Re: After Tax Investment in 401K – Good or Bad?

simpatico wrote:I understand that there will be tax on earnings at withdrawal from 401K…

This is why there is no advantage - the earnings would be taxed at your ordinary rate instead of the capital gains rate.
by retiredjg
Wed Nov 19, 2014 1:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: After Tax Investment in 401K – Good or Bad?
Replies: 10
Views: 488

Re: After Tax Investment in 401K – Good or Bad?

If you cannot roll the money out of the after-tax sub-account on a fairly regular basis, this thing just turns into a non-deductible IRA. It would probably be better to invest in taxable instead. But...what does "my 401K doesn’t allow direct roll-overs from it to Roth IRAs" mean? -they don...
by retiredjg
Wed Nov 19, 2014 1:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: After Tax Investment in 401K – Good or Bad?
Replies: 10
Views: 488
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