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Re: Tax planning for long term capital gains

The 0% cap gains only applies to the long term capital gains, not short term. Think of your capital gains as "sitting on top" of the rest of your income, in a column. The long term gains in the 15% bracket (if any) are taxed at 0%. The part that slops over into the 25% bracket is taxed at ...
by retiredjg
Fri Oct 24, 2014 7:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax planning for long term capital gains
Replies: 6
Views: 344

Re: More Aggressive AA Post Home Purchase

Sounds about right to me. :D
by retiredjg
Fri Oct 24, 2014 7:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: More Aggressive AA Post Home Purchase
Replies: 16
Views: 709

Re: Help needed for tax efficient fund placement

Taxable Total Stock Total International bonds if necessary, tax-exempt if in a higher tax bracket and/or I Bonds and/or CDs 401k 500 index best bond or stable value fund available even if not low cost <--what bond funds or stable value fund are available here? Rollover IRA bonds Roth IRA REIT if yo...
by retiredjg
Fri Oct 24, 2014 5:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help needed for tax efficient fund placement
Replies: 4
Views: 276

Re: Help Choosing Investments and Coordinating Debt Paydown

I get it. There is often a problem with trying to solve a debt problem with more debt vehicles. For most people, it would just be more of the same mistake...again and again. I don't think that is what you are doing. In this case, it seems very reasonable to me. But...only your behavior, not your int...
by retiredjg
Fri Oct 24, 2014 5:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help Choosing Investments and Coordinating Debt Paydown
Replies: 32
Views: 1430

Re: Help Choosing Investments and Coordinating Debt Paydown

I'd say you lucked out. The new CC is a little concerning, but if it will help you get out of this mess it is probably cheaper than the Home Equity Loan.

Give us an update in a year or so!
by retiredjg
Fri Oct 24, 2014 4:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help Choosing Investments and Coordinating Debt Paydown
Replies: 32
Views: 1430

Re: Example of Investment advisor fraud

Ugly. He may find his time in prison to be just as bad.
by retiredjg
Fri Oct 24, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Example of Investment advisor fraud
Replies: 2
Views: 488

Re: is optimization(TLH+tax credit) worth cost(time,behavior

If you go to the Wiki and use the search function, you will often (not always) find what you are looking for. Here's the TLH page. http://www.bogleheads.org/wiki/Tax_loss_harvesting When the really big TLH time comes (next crash), there will be so many threads talking about it that you will have ple...
by retiredjg
Fri Oct 24, 2014 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: is optimization(TLH+tax credit) worth cost(time,behavior)?
Replies: 14
Views: 814

Re: The Mega Backdoor Roth IRA

Can this be done in addition to the normal "Backdoor Roth IRA"? Yes. You can do both. The mechanics are a little different. Back Door contributions to Roth IRA must go through tIRA so you have to make sure your tIRA balances are $0 by the end of the year to avoid pro-rating. This thing ca...
by retiredjg
Fri Oct 24, 2014 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 173
Views: 25313

Re: More Aggressive AA Post Home Purchase

I was 100% equities during the crash. I continued to contribute on auto-pilot. It wasn't too hard for me, but I was also single and did not have a beautiful wife and baby girl. The one thing you didn't mention is how your beautiful wife weathered the crash. If she is not/was not as fearless as you ...
by retiredjg
Fri Oct 24, 2014 2:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: More Aggressive AA Post Home Purchase
Replies: 16
Views: 709

Re: Feeling rich to feeling poor overnight

Unless you get very lucky, you only have time to find something that is likely to be temporary (even up to a year can be temporary). While you are in that temporary situation, the solution to your dilemma will likely become apparent. If you are willing to sell your furniture, that last option might ...
by retiredjg
Fri Oct 24, 2014 12:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 36
Views: 3905

Re: Need help - selling stocks and buying funds today

I don't know how much you can time this. If you "purchase" this late in the day, you may not actually purchase today - it might be Monday's after-hours NAV instead of today's. And if you "sell" individual stocks, does that happen during the trading day or after? Sorry, I don't kn...
by retiredjg
Fri Oct 24, 2014 12:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help - selling stocks and buying funds today
Replies: 6
Views: 429

Re: More Aggressive AA Post Home Purchase

It might be fine. It might not. What was your stock to bond ratio in 2007- 2008 when the market crashed? If you were near 90/10 and sailed through that without a moment's bit of worry or crabbiness, 90/10 would likely work fine for you. If you were at 75/25 back then, do you think that seeing more o...
by retiredjg
Fri Oct 24, 2014 12:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: More Aggressive AA Post Home Purchase
Replies: 16
Views: 709

Re: Keep My 50/50 AA -- but modify the pieces

I don't know that I'd worry too much about it. Morningstar's risk is based on the fund's category - we don't really know all that is in the categories. It could be a very broad category and Intermediate Term is just on the riskier end. That does not mean it is risky. Vanguard rates them both as a 2 ...
by retiredjg
Fri Oct 24, 2014 10:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Keep My 50/50 AA -- but modify the pieces
Replies: 17
Views: 1088

Re: Keep My 50/50 AA -- but modify the pieces

I think your idea is fine. I also think the other idea is fine, but you probably don't need the tax-managed fund if you are in the 15% bracket. I think the first idea might be a bit better when you get to RMDs. With most of the stocks in taxable and Roth and all of the bonds in tIRA, there would be ...
by retiredjg
Fri Oct 24, 2014 9:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Keep My 50/50 AA -- but modify the pieces
Replies: 17
Views: 1088

Re: Should I Sue?

I don't think I'd sue, but if you do it should almost certainly be in small claims court. And I'd be surprised if you get a lot more than $1,200 anyway. You mentioned water stains, not structural damage. $1,200 should go a long way toward reupholstering, shouldn't it? But it does seem like you shoul...
by retiredjg
Fri Oct 24, 2014 9:12 am
 
Forum: Personal Consumer Issues
Topic: Should I Sue? [couch damaged in garage of rental]
Replies: 32
Views: 2365

Re: Any downside to a Fidelity i401k?

what is the ER of the Total Market ETF from VG if purchased through TD Am? anyone know off hand? https://personal.vanguard.com/us/funds/snapshot?FundId=0085&FundIntExt=INT I think the ETF would be .05%. The ER is built into the investment. It does not change depending on where you buy it. The E...
by retiredjg
Fri Oct 24, 2014 7:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Any downside to a Fidelity i401k?
Replies: 20
Views: 1180

Re: 457b Question

I want to make sure that I am correct in thinking that I will be able tof make withdrawals anytime after separation from the university, regardless of my age. The fidelity rep I spoke with didn't seem to have much information about withdrawals post separation. Yes, that is correct. There is no pena...
by retiredjg
Thu Oct 23, 2014 10:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457b Question
Replies: 10
Views: 650

Re: 457b Question

It's not clear what you are asking. Can you try again?
by retiredjg
Thu Oct 23, 2014 8:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457b Question
Replies: 10
Views: 650

Re: Is Wells Fargo misleading my friend?

I thought C shares had a back end load. I found that confusing since there is a front end load as well, but it is relatively small compared to some.
by retiredjg
Thu Oct 23, 2014 8:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Wells Fargo misleading my friend?
Replies: 18
Views: 1554

Re: Is Wells Fargo misleading my friend?

Of course Nisiprius is correct. :D There are red flags all over the place...to a Boglehead. However, I try not to be too critical about subjects I don't know much about. That would include this portfolio. I could think it is a really bad idea (I do) but there could be redeeming factors I don't know ...
by retiredjg
Thu Oct 23, 2014 6:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Wells Fargo misleading my friend?
Replies: 18
Views: 1554

Re: Fidelity

chabil, it is possible that advisor is going to try to steer you to the Fidelity Advisor Funds. If you value the Vanguard approach or the Boglehead approach, moving into the Fidelity Advisor Funds (or any other actively managed fund at Fido) would be a huge mistake. If you like Vanguard, the only Fi...
by retiredjg
Thu Oct 23, 2014 6:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity
Replies: 14
Views: 1426

Re: Close roth for tax deduction and open new one in same yr

How can this be a good idea? Do you not expect the investments to eventually recoup? Or why not just sell what you have and replace it with a better investment that will recoup it's losses as the market goes back up. Even if you can deduct it, how is that helpful? It's not like you get $100 back in ...
by retiredjg
Thu Oct 23, 2014 5:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Close roth for tax deduction and open new one in same yr?
Replies: 9
Views: 537

Re: Any downside to a Fidelity i401k?

TD Ameritrade does not sell Vanguard mutual funds without a commission. The do sell Vanguard ETFs without a commission (last I saw the list). The expense ratio would be the same as at Vanguard.
by retiredjg
Thu Oct 23, 2014 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any downside to a Fidelity i401k?
Replies: 20
Views: 1180

Re: Is Wells Fargo misleading my friend?

Never mind, those may be things you are not accustomed to looking up. Those are not funds that people here would suggest. The first one has a high expense ratio and a load (the investing fees are high), a lot of turnover, and a great deal of risk. The others are not so bad, but still are not things ...
by retiredjg
Thu Oct 23, 2014 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is Wells Fargo misleading my friend?
Replies: 18
Views: 1554

Re: Stay-at-home mom looking to invest

Yes, investing in the total stock market and the 500 index at the same time has a lot of overlap and the two funds perform almost identically. However, there are times when it works best that way because only a 500 index is available in a 401k or other work plan. You need to post a lot more informat...
by retiredjg
Thu Oct 23, 2014 5:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stay-at-home mom looking to invest
Replies: 6
Views: 829

Re: investing during retirment

You are only considering taking income from your portfolio. This means you have to have A LOT of high paying bonds or A LOT of dividend paying stocks. Neither of these is a particularly good idea. Vanguard wrote a paper several years ago that encouraged people to consider total return (dividends, in...
by retiredjg
Thu Oct 23, 2014 5:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: investing during retirment
Replies: 20
Views: 1837

Re: Advice needed for next 10 years: Save, spend borrow?

I had probably an extra $100,000 in savings 10 years ago, but have slowly used some of it up. So in other words, you used 10k per years to put in two ROTH IRA. You didn't increase income but your spending did increase by average of 10K for past 10 years. So you had to dig into saving to put in ROTH...
by retiredjg
Thu Oct 23, 2014 4:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice needed for next 10 years: Save, spend borrow?
Replies: 26
Views: 3203

Re: Loaning money to invest?

Something else that came to mind about how these two situations are not the same. For a mortgage, you should be able to pay it even in a market crash. Your mortgage was granted on your income - your ability to pay - not on what the market does. The exception is if you lose your job but the mortgage ...
by retiredjg
Thu Oct 23, 2014 4:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Loaning money to invest?
Replies: 13
Views: 1201

Re: Any downside to a Fidelity i401k?

So we've all suggested different places and different things....but the answer to your primary question is that there probably is no downside to a Fidelity i 401k other than you can't buy Vanguard mutual funds at Fido without a transaction fee for each purchase/sale. The Fidelity Spartan mutual fund...
by retiredjg
Thu Oct 23, 2014 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any downside to a Fidelity i401k?
Replies: 20
Views: 1180

Re: Young Investors Plan – I'm Firing Questions!

I'd recommend you start at 80/20 rather than work your way to it. A Vanguard Target fund or LifeStrategy Aggressive Growth would do fine. You seem to be trying to lower fees by using a temporarily 100% portfolio. The savings will not be that much and being close to your risk target is more important...
by retiredjg
Thu Oct 23, 2014 11:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Young Investors Plan – I'm Firing Questions!
Replies: 8
Views: 951

Re: Question about nondeductible traditional IRAs

Almost all plans will accept pre-tax money from tIRA. Since you know your basis, convert that to Roth IRA and send all other tIRA money to your 401k before the end of the calendar year in which you do the conversion . It does not matter if you do them both this year or next year, but you don't want ...
by retiredjg
Thu Oct 23, 2014 11:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Question about nondeductible traditional IRAs
Replies: 6
Views: 416

Re: Loaning money to invest?

So if you believe in taking a 30 year mortgage, do you also believe in taking a personal loan to invest for 10+ year time frame into a taxable account? No. I think this is a very poor idea and it is NOT the same thing as holding a mortgage. With a mortgage, you get something of value - a place to l...
by retiredjg
Thu Oct 23, 2014 11:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Loaning money to invest?
Replies: 13
Views: 1201

Re: Credit Score Question

I think there is value in maintaining a good credit score. This score not only affects credit, but such things as how much your car insurance and your house insurance cost. Even if you never plan to use debt, I'd buy something on credit (some furniture or something) and pay it off in 3 months or 6 m...
by retiredjg
Thu Oct 23, 2014 11:08 am
 
Forum: Personal Finance (Not Investing)
Topic: Credit Score Question
Replies: 6
Views: 402

Re: Any downside to a Fidelity i401k?

Fido offers the Spartan index funds which are very similar to the basic Vanguard funds we usually discuss. There is some difference in the Global except US (no small caps) but that fund is certainly adequate if you are at Fido. There is a cheaper class of these funds similar to the Admiral funds, bu...
by retiredjg
Thu Oct 23, 2014 8:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Any downside to a Fidelity i401k?
Replies: 20
Views: 1180

Re: 401K to IRA. After-tax contributions Issue

If you didn't do the Form 8606 back when you were supposed to you can do it now using the information still available at Fido. You aren't supposed to fill out 8606 when it's rolled in only when you take it out of the IRA see the reference to pub 575 above. Yes, I see that I read it too quickly. :oo...
by retiredjg
Thu Oct 23, 2014 8:04 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K to IRA. After-tax contributions Issue
Replies: 8
Views: 461

Re: 2 Fund + International?

Does His 401b have good choices? Not really. I was going to switch it to Spartan 500 index. 80% Spartan Extended Market 20% They both have an expense ratio of .07 I think most here would call these very good choices. :happy And there's probably a decent bond fund in there as well. It appears to me ...
by retiredjg
Thu Oct 23, 2014 7:55 am
 
Forum: Investing - Help with Personal Investments
Topic: 2 Fund + International?
Replies: 13
Views: 825

Re: 2 Fund + International?

Looking at it, though, I think it might be easiest to keep His 401b in a Fidelity Freedom fund and manage His IRA, Her IRA, and Taxable as one asset allocation. This would reduce the amount of bonds that need to go into taxable.

Does His 401b have good choices?
by retiredjg
Wed Oct 22, 2014 9:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2 Fund + International?
Replies: 13
Views: 825

Re: 2 Fund + International?

So do I understand correctly he does not have any plan at work to defer any part of his salary? If that is correct, what you seem to be doing (contributing to two traditional IRAs) is a good approach and everything after that would go into taxable. Tax rate- 25%+. Not entirely sure, I'm guessing on ...
by retiredjg
Wed Oct 22, 2014 9:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2 Fund + International?
Replies: 13
Views: 825

Re: Help Choosing Investments and Coordinating Debt Paydown

If you were asking about buying a new Pilot....you know what the answer would be. But the Pilot is already 6 years old. I have to say I'm surprised it is worth that much, but I'm assuming it is. She just needs to drive it for several years after it is paid off. Once your bills are paid, put $440 a m...
by retiredjg
Wed Oct 22, 2014 5:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help Choosing Investments and Coordinating Debt Paydown
Replies: 32
Views: 1430

Re: My First Aggressive Portfolio - Mid-Cap/Small-Cap Tilt

I can't help but think you are going about this backwards - picking funds first. The first thing you should consider is "space". Fill all your 401k space and an IRA before considering putting retirement money into taxable. Tax-deferral almost always trumps taxable and Roth IRA always trump...
by retiredjg
Wed Oct 22, 2014 5:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: My First Aggressive Portfolio - Mid-Cap/Small-Cap Tilt
Replies: 9
Views: 769

Re: 401K to IRA. After-tax contributions Issue

By the way, you can fix this. Convert all the basis to Roth IRA (no tax) and roll all the rest of the money into your current 401k if they accept rollovers. "All the rest" would mean all non-Roth IRAs (tIRA, SEP IRA, SIMPLE IRA).
by retiredjg
Wed Oct 22, 2014 5:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K to IRA. After-tax contributions Issue
Replies: 8
Views: 461

Re: 401K to IRA. After-tax contributions Issue

If you didn't do the Form 8606 back when you were supposed to you can do it now using the information still available at Fido. It would be a very good idea to do this. If you don't, that money will be taxed a second time. Old Forms 8606 are available on the internet and the IRS has been very graciou...
by retiredjg
Wed Oct 22, 2014 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K to IRA. After-tax contributions Issue
Replies: 8
Views: 461

Re: Any downside to a Fidelity i401k?

Sounds like what you really want is a Vanguard Solo401k. A lot of people are choosing Fidelity because they can roll an IRA into it and Vanguard does not allow that. But that does not seem to be an issue for you. If you want Vanguard funds, why not use Vanguard? Or maybe you already checked and Fido...
by retiredjg
Wed Oct 22, 2014 4:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any downside to a Fidelity i401k?
Replies: 20
Views: 1180

Re: My First Aggressive Portfolio - Mid-Cap/Small-Cap Tilt

No Roth IRA? Here are a few things that may be an error in your thinking. 1) You are looking at percentage of account. But it is the percentage of portfolio that counts. The way you have it set up now, if your taxable account is tiny, your allocations will be one thing. If your taxable account is a ...
by retiredjg
Wed Oct 22, 2014 4:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: My First Aggressive Portfolio - Mid-Cap/Small-Cap Tilt
Replies: 9
Views: 769

Re: 2 Fund + International?

Retired - no savings plan at work ( don't work). Although my husband has a pension and also a 401-? With Fidelity that is employer funded, only about $1,500/year, right now it's invested automatically invested into a Freedom Fund, which I am working on changing. There aren't many good options with ...
by retiredjg
Wed Oct 22, 2014 3:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2 Fund + International?
Replies: 13
Views: 825

Re: IRS Relents! Notice 2014-54 permits Basis Isolation

dillrob, note that if you do have them split the distribution into tIRA and Roth IRA, the presence of the tIRA will interfere with your ability to do back door contributions to Roth IRA. Is that an issue for you? It is an issue for some people who want to do both things (after-tax rolled into Roth ...
by retiredjg
Wed Oct 22, 2014 3:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Relents! Notice 2014-54 permits Basis Isolation
Replies: 85
Views: 7893

Re: IRS Relents! Notice 2014-54 permits Basis Isolation

dillrob, note that if you do have them split the distribution into tIRA and Roth IRA, the presence of the tIRA will interfere with your ability to do back door contributions to Roth IRA. Is that an issue for you? It is an issue for some people who want to do both things (after-tax rolled into Roth ...
by retiredjg
Wed Oct 22, 2014 3:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Relents! Notice 2014-54 permits Basis Isolation
Replies: 85
Views: 7893

Re: 2 Fund + International?

P.S. There are other alternatives for fixed income in your taxable account. I Bonds and CDs come to mind. The Wiki has information about I Bonds.
by retiredjg
Wed Oct 22, 2014 3:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2 Fund + International?
Replies: 13
Views: 825

Re: 2 Fund + International?

The balanced funds are only a good idea if they have what you want. Neither has international and adding international changes the stock to bond ratio. What results from that may or may not be the stock to bond ratio you want. So you always have to juggle back and forth to get the percentages you wa...
by retiredjg
Wed Oct 22, 2014 2:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2 Fund + International?
Replies: 13
Views: 825

Re: Portfolio Strategy Suggestions? (Transamerica, TSP, 529?

Since a SEP only receives employer contributions, the limits are different from the $17,500 we ordinarily think of. The limit right now is the lesser of 25% of compensation or $52,000. Whatever the employer puts in the SEP does not affect how much you put in your own tIRA or Roth IRA. We still don't...
by retiredjg
Wed Oct 22, 2014 2:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Strategy Suggestions? (Transamerica, TSP, 529?s)
Replies: 12
Views: 816
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