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Re: College education - 529 Portfolio advise

We are not fully funding 529's in case one of the children decide not to go, and we feel that having to work a bit or get some loans will make the education more valuable to them
by rkhusky
Fri Jan 30, 2015 8:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: College education - 529 Portfolio advise
Replies: 5
Views: 209

Re: Roth IRA vs 529 vs other for college savings

Max out retirement accounts before contributing to 529 (unless 401K choices/expenses are really terrible).
by rkhusky
Fri Jan 30, 2015 4:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA vs 529 vs other for college savings
Replies: 9
Views: 475

Re: Help with 401K/ROTH IRA investments

In terms of expenses, it pays to also look at the yearly amount. With a $100K portfolio, an ER of 0.18% is costing you $180/year, which is probably not much compared to the added work of using individual funds that might be cheaper. On the other hand, if your portfolio is $1M, then the yearly cost i...
by rkhusky
Fri Jan 30, 2015 12:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with 401K/ROTH IRA investments
Replies: 14
Views: 447

Re: Tax: Filing Jointly or Single When one makes 3x More

randomguy, Thanks so much. I don't understand fully the difference between the standard vs itemized deduction in TurboTax but I will research to follow up on it - (will log into TurboTax to see how this is implemented) Itemized deductions are listed on Schedule A and include medical expenses, mortg...
by rkhusky
Fri Jan 30, 2015 12:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax: Filing Jointly or Single When one makes 3x More
Replies: 15
Views: 630

Re: Help with 401K/ROTH IRA investments

Thanks a lot! Same with ROTH IRA? That would be easiest. And while you may get slightly higher performance by choosing more small, value, and/or emerging market stocks, you would be taking more risk and having more complexity, which means that there is a non-zero probability that your performance c...
by rkhusky
Fri Jan 30, 2015 12:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with 401K/ROTH IRA investments
Replies: 14
Views: 447

Re: Help with 401K/ROTH IRA investments

TR 2050 with an ER of 0.18% sounds perfect for you. Even if you can get Total Stock, Total Bond, Total International with ER's <0.10%, you would not be saving much at this point and you would have a more complex portfolio. edit: TR 2035 is 85/15, 2040 is 90/10. So you can expect TR 2050 to be 90% st...
by rkhusky
Fri Jan 30, 2015 12:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with 401K/ROTH IRA investments
Replies: 14
Views: 447

Re: The lowest stock allocation you plan to stay with

I may drop down to 40/60 a year or two before retirement, if the market is doing well, and then move to 50/50 five or so years after retirement, or just stay at 40/60.
by rkhusky
Fri Jan 30, 2015 8:02 am
 
Forum: Investing - Theory, News & General
Topic: The lowest stock allocation you plan to stay with
Replies: 63
Views: 2309

Re: When to switch from Roth to Traditional?

Sounds like you are working for the feds. They get a pension of 1.1%/year if retiring at 62 or later. Say you are making $150K/year - you would have to have 48 years of service to get a pension of $80K. If you are making $110K/year - you would need 41 years of service to get to a pension of $50K. Do...
by rkhusky
Thu Jan 29, 2015 2:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: When to switch from Roth to Traditional?
Replies: 6
Views: 711

Re: Poll: Do you contribute max to tax-advantaged before 529

We max retirement accounts and also contribute to 529, but we do both throughout the year, as funds become available.
by rkhusky
Thu Jan 29, 2015 8:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Do you contribute max to tax-advantaged before 529?
Replies: 25
Views: 1479

Re: traditional v. roth IRA

Take a look at the chart at the bottom of this wiki page: Non-deductible traditional IRA . You will see that Traditional and Roth have exactly the same return if contributions and withdrawals in retirement are all taxed at the same rate, and one invests the tax savings realized from using the Tradit...
by rkhusky
Thu Jan 29, 2015 8:04 am
 
Forum: Investing - Help with Personal Investments
Topic: traditional v. roth IRA
Replies: 12
Views: 864

Re: Glide Path questions

If your situation has changed substantially, there is no harm in adjusting your plan to fit your new circumstances. If 55/45 is still the AA you desire at retirement, but you plan to retire earlier, a change to the glide path is warranted. If you feel that you no longer need to take the risk of a 55...
by rkhusky
Thu Jan 29, 2015 7:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Glide Path questions
Replies: 2
Views: 448

Re: Refund from the IRS? Why?

I get a lot of satisfaction when I end up owing about $500 on my Fed return and $250 on my state return. It irritates me for weeks when I make a mistake and end up getting a refund (or worse, paying a penalty).
by rkhusky
Thu Jan 29, 2015 7:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Refund from the IRS? Why?
Replies: 45
Views: 4280

Re: Max 401k - What Next?! Backdoor Roth sounds complicated

Be careful, as those results are making assumptions about future income and tax rates. A decision on what to do is made on a case-by-case basis. This is why we diversify across accounts - some goes to traditional IRA, some goes to Roth. You have no idea what will happen, so you put some in each. It...
by rkhusky
Wed Jan 28, 2015 9:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Max 401k - What Next?! Backdoor Roth sounds complicated....
Replies: 18
Views: 1686

Re: Max 401k - What Next?! Backdoor Roth sounds complicated

As Lady Geek suggested, I would also take a look at Non-deductible traditional IRA , especially the table at the bottom. It shows that a non-deductible IRA is worse than taxable. After reproducing the table in a spreadsheet, I found that, keeping everything else the same, increasing the dividends to...
by rkhusky
Wed Jan 28, 2015 7:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Max 401k - What Next?! Backdoor Roth sounds complicated....
Replies: 18
Views: 1686

Re: Is VIGIX diversified enough?

I would choose VIIIX (S&P 500) over VIGIX (Growth Index). Do you have an IRA? I would put small/mid cap into an IRA to counter-balance VIIIX. This is good advice. I haven't set up an IRA yet. I'll exchange the Lifepath and Artisan Midcap shares for VIIIX and buy some small cap fund in the IRA. ...
by rkhusky
Wed Jan 28, 2015 7:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VIGIX diversified enough?
Replies: 8
Views: 1295

Re: Too Many SpecIDs for Cost Basis. Good case to not reinve

That's what I did - all dividends go to MM fund which I can then use as i please. elgob I was thinking about getting it into external account. Doesn't moving into MM fund also generate a SpecID on it's own for the MM fund? Agreed the profit/loss is almost NIL for MM fund, but, again, it's a hassle ...
by rkhusky
Tue Jan 27, 2015 5:03 pm
 
Forum: Investing - Theory, News & General
Topic: Too Many SpecIDs for Cost Basis. Good case to not reinvest?
Replies: 8
Views: 595

Re: Moving up a tax bracket - when to avoid, when to give up

For what it's worth, I find it helpful to keep in mind the difference between marginal and effective tax rates. I made the graph below of marginal vs effective tax rates (total tax / taxable income) for 2013 tax rates for married filing jointly and it might be of some interest. If you were just get...
by rkhusky
Tue Jan 27, 2015 3:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Moving up a tax bracket - when to avoid, when to give up
Replies: 26
Views: 2560

Re: S&P 500 Index Fund in 403(b)

If I added the small and mid cap funds to approximate the Total Stock Market, would I allocate it like this? 82% - SSGA S&P 500 INDEX - SVSPX - 0.17 11% - COLUMBIA MID CAP INDEX Z - NMPAX - 0.20 7% - COLUMBIA SMALL CAP INDEX Z - NMSCX - 0.20 That's what the wiki has, although there is a footnot...
by rkhusky
Tue Jan 27, 2015 2:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Index Fund in 403(b)
Replies: 13
Views: 956

Re: Moving up a tax bracket - when to avoid, when to give up

A couple other ways to avoid the 25% bracket are to have a bunch of kids and buy an expensive house with a large mortgage.
by rkhusky
Tue Jan 27, 2015 11:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Moving up a tax bracket - when to avoid, when to give up
Replies: 26
Views: 2560

Re: Refund from the IRS? Why?

To the OP, I'm not sure I quite understand your last comment. A fraudulent return has no impact on your real return(Other than possibly delaying any refund), so it won't affect the amount you pay or receive in a refund. They are defrauding the government, not you personally, even if they are using ...
by rkhusky
Tue Jan 27, 2015 9:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Refund from the IRS? Why?
Replies: 45
Views: 4280

Re: S&P 500 Index Fund in 403(b)

It probably won't make a big difference, but could make some difference, especially during those periods when small caps are out-performing large caps. COLUMBIA SMALL CAP INDEX Z - NMSCX does not look too bad, if you decide to add it. You would probably want about a 5/1 ratio between S&P 500 and...
by rkhusky
Tue Jan 27, 2015 9:33 am
 
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Index Fund in 403(b)
Replies: 13
Views: 956

Re: Is VIGIX diversified enough?

I would choose VIIIX (S&P 500) over VIGIX (Growth Index).

Do you have an IRA? I would put small/mid cap into an IRA to counter-balance VIIIX.
by rkhusky
Tue Jan 27, 2015 8:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VIGIX diversified enough?
Replies: 8
Views: 1295

Re: Estimated Taxes for Roth Conversion

finley wrote:I am planning on converting my wife's traditional IRA to a Roth IRA so I can begin contributing to it, ...


You can contribute to a Roth for your wife, even if she has a traditional IRA.
by rkhusky
Tue Jan 27, 2015 7:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Estimated Taxes for Roth Conversion
Replies: 7
Views: 942

Re: Is VIGIX diversified enough?

VIGIX is Vanguard Growth Index.
by rkhusky
Mon Jan 26, 2015 7:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VIGIX diversified enough?
Replies: 8
Views: 1295

Re: Do Bogleheads' Children Qualify For Need Based College A

I think most Bogleheads qualify for either loans or nothing at all. That does not mean I am advocating 529s over taxable investments. Just trying to see if very many Bogleheads have qualified for need based aid. In terms of receiving need-based financial aid, are taxable investments and 529's count...
by rkhusky
Mon Jan 26, 2015 7:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Bogleheads' Children Qualify For Need Based College Aid?
Replies: 35
Views: 3106

Re: 2015 Roth IRA question

You or a spouse have to have income.
by rkhusky
Sat Jan 24, 2015 11:38 am
 
Forum: Investing - Help with Personal Investments
Topic: 2015 Roth IRA question
Replies: 5
Views: 438

Re: Can I exchange VG taxable account funds to IRA

My question is can do an exchange funds on the VG website for this process, and if so are there any negatives to doing this? You can sell shares in your taxable account and buy shares in your IRA in one transaction on the Vanguard web site. You can do a one fund to one fund, a many to one, a one to...
by rkhusky
Sat Jan 24, 2015 8:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I exchange VG taxable account funds to IRA
Replies: 10
Views: 703

Re: I'm thinking about making very large 529 contributions A

we fund 2k per year per kid as that is the max tax benefit ($100 per year per kid) and we started 3 years ago for 6 and 4 year old. It wont be a decent amount by the time they reach college but after 401k, ira and hsa, that is all we can contribute. Also our plan is not the greatest in terms of ER....
by rkhusky
Fri Jan 23, 2015 12:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: I'm thinking about making very large 529 contributions ASAP
Replies: 71
Views: 5285

Re: Fairmark: Free Tax Filing

Note that Free File Fillable Forms is not the same as the free fillable pdf forms that you can download from the IRS web site, type in your info, print out, and mail in.
by rkhusky
Fri Jan 23, 2015 12:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fairmark: Free Tax Filing
Replies: 5
Views: 563

Re: Why all the fuss about wash sales?

If the wash sale involves transactions within a tax advantaged account, there is the potential to lose your loss.
by rkhusky
Fri Jan 23, 2015 10:01 am
 
Forum: Investing - Theory, News & General
Topic: Why all the fuss about wash sales?
Replies: 4
Views: 664

Re: Tsp C fund S fund and brokerage account

For that reason, you might want to allocate all of your total stock market funds (plus the small-cap tilt) in your non-TSP accounts and use your TSP space for F, G, and I (bonds and international). This is essentially what I do, using VBR for my small cap tilt. The I Fund does not contain Emerging ...
by rkhusky
Fri Jan 23, 2015 8:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Tsp C fund S fund and brokerage account
Replies: 10
Views: 680

Re: HSA... any receipt savers?

After 65 and for non-medical expenses, the HSA would act like a non-deductible Traditional IRA, which in many circumstances is worse than a taxable account (converting cap gains into income?). but didn't the HSA get a tax deduction going in so it might still be better than taxable? You're right. So...
by rkhusky
Thu Jan 22, 2015 1:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA... any receipt savers?
Replies: 197
Views: 8622

Re: Diversity b/t t-IRA and roth-IRA

Even though I don't market time like some people apparently do, I do keep bonds in both Traditional and Roth accounts to aid in rebalancing. I keep more bonds in Traditional and keep more of the riskier holdings (which are expected to have higher returns) in Roth, since I will have to pay taxes on t...
by rkhusky
Thu Jan 22, 2015 1:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Diversity b/t t-IRA and roth-IRA
Replies: 8
Views: 543

Re: Vanguard TISM estimates low QDI?

This page says 71.53%: https://personal.vanguard.com/us/insights/taxcenter/qdi/yearend-qualified-dividend-income-2014 Follow up question. The reason I put the all my taxable in VTIAX is because I was told that the fund is tax-efficient. Would a QDI of 71 percent be considered as tax efficient? QDI ...
by rkhusky
Thu Jan 22, 2015 9:24 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard TISM estimates low QDI?
Replies: 16
Views: 1970

Re: HSA... any receipt savers?

Assume a hypothetical and this hypothetical is very representative of my current situation. I max out my HSA and will never need it. I have inferred that I do not need to ever save tax receipts; I could either 1) use the money for some unforeseen expenses medical when elderly and be able to withdra...
by rkhusky
Thu Jan 22, 2015 9:19 am
 
Forum: Investing - Help with Personal Investments
Topic: HSA... any receipt savers?
Replies: 197
Views: 8622

Re: HSA... any receipt savers?

packet wrote: (not to mention, innocent until proven guilty).

I don't think that necessarily holds when dealing with the IRS.
by rkhusky
Thu Jan 22, 2015 8:30 am
 
Forum: Investing - Help with Personal Investments
Topic: HSA... any receipt savers?
Replies: 197
Views: 8622

Re: Should I open a Roth IRA ?

Whether you contribute to a Roth IRA or put more in the 401K depends on the quality of the choices in your 401K. Ideally, you max out both the 401K and the Roth IRA. . I'm thinking of doing it, even though it doesn't seem much, if only so I have one if my income ever goes beyond the limit, and maybe...
by rkhusky
Thu Jan 22, 2015 8:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I open a Roth IRA ?
Replies: 25
Views: 1839

Re: Traditional or Roth 401K

Do you expect a pension when you retire? (If not, that favors Traditional) Do you expect your wages will significantly increase in the future? (If so, that favors Roth) Will there be a time gap between when you retire and when you collect a pension or Social Security? (If so, that favors Traditional...
by rkhusky
Thu Jan 22, 2015 8:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Traditional or Roth 401K
Replies: 5
Views: 579

Re: Traditional IRA vs Roth IRA

Are you eligible for a deductible Traditional IRA? (Modified AGI less than $61K, $71K for partial deduction) Do you expect a pension? (if not, Traditional is favored if eligible) Do you expect there to be a gap of time between retiring and taking pension or SS? (if yes, Traditional is favored if eli...
by rkhusky
Wed Jan 21, 2015 9:09 pm
 
Forum: Investing - Theory, News & General
Topic: Traditional IRA vs Roth IRA
Replies: 3
Views: 336

Re: I'm thinking about making very large 529 contributions A

As always I appreciate your thoughts. Yes - assuming all tax-advantaged retirement space already filled, does it make sense to lump sum 5 years of college savings (whatever that number is for you) today, given that current laws/rules for 529 withdrawals are quite favorable, given that the future is...
by rkhusky
Wed Jan 21, 2015 4:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: I'm thinking about making very large 529 contributions ASAP
Replies: 71
Views: 5285

Re: Tax Rate Impact on Asset Allocation

Part of the advice is based on the amount of tax you pay when you are contributing as well. Most folk try to maximize their total after-tax amount, which includes both pre- and post-retirement.
by rkhusky
Wed Jan 21, 2015 3:07 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Rate Impact on Asset Allocation
Replies: 3
Views: 330

Re: I'm thinking about making very large 529 contributions A

No, I will continue with our plan to invest up to the state match every year (although I've been putting in extra for the older children who I started out with a lower contribution). We don't have enough to make a single large contribution.
by rkhusky
Wed Jan 21, 2015 3:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: I'm thinking about making very large 529 contributions ASAP
Replies: 71
Views: 5285

Re: "When you've won the game, stop playing"

How one responded to 2008 likely depended on how old they were, how close they were to retirement, how much cushion they had in their nest egg, and what percentage they had in stocks. I would've hated to have been 60 in 2007, planning for retirement in 2010, with a projected 25% cushion in the nest ...
by rkhusky
Wed Jan 21, 2015 1:34 pm
 
Forum: Investing - Theory, News & General
Topic: "When you've won the game, stop playing"
Replies: 83
Views: 8361

Re: Stop the BS 401k and go IRA?

Keep in mind that if you make too much to directly contribute to a Roth IRA, you can instead contribute to a non-deductible Traditional IRA and then convert it to a Roth. This is known as the "Backdoor Roth". This is still limited to $5500/$6500 per year for each spouse. Note that if you h...
by rkhusky
Wed Jan 21, 2015 8:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Stop the BS 401k and go IRA?
Replies: 8
Views: 982

Re: Adjusted Livesoft Income (ALI)

How about food stamps, subsidized housing and health care. Or perks like health club or company car or plane.
by rkhusky
Tue Jan 20, 2015 8:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Adjusted Livesoft Income (ALI)
Replies: 31
Views: 3030

Re: Tax Loss Harvesting Form ?

For a point of reference, my 1099-DIV from Vanguard appears correct, but I don't have a Vanguard brokerage account. It also includes dividends from my Tax Exempt Bond fund.
by rkhusky
Tue Jan 20, 2015 2:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Harvesting Form ?
Replies: 7
Views: 492

Re: $50,000 to invest, want little to no risk. CDs? Silver?

You need to do a risk analysis. In a very rough sense, determine what are realistic risks, what are the probability of occurrences, and what is the impact if the risk occurs. Can you think of something where you would need all $50K for an emergency? Lose your job and have to live off the $50K? - the...
by rkhusky
Tue Jan 20, 2015 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: $50,000 to invest, want little to no risk. CDs? Silver? Etc?
Replies: 37
Views: 3463

Re: Traditional or Roth IRA

Thanks for the clarification. One more question, if my wife's employer-sponsored 401k is a joke, can she contibute elsewhere after doing the 3% for the matching fund and the remainder of the $18k limit in a Vanguard fund? This would reduce our combined AGI. Just a Roth IRA, if she's not eligible fo...
by rkhusky
Tue Jan 20, 2015 8:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Traditional or Roth IRA
Replies: 6
Views: 486

Re: How Can Short-Term Tax Exempt Make Sense?

I decided that I needed more than 0.5% difference before I was going to deal with the hassles of CD's. I also got tired of teaser rates on savings accounts that disappeared after a year. 0.5% of $10K is only $50. I have some money in Short Tax Exempt, some in Int. Tax Exempt and some in Hi Yield Tax...
by rkhusky
Mon Jan 19, 2015 9:29 pm
 
Forum: Investing - Theory, News & General
Topic: How Can Short-Term Tax Exempt Make Sense?
Replies: 13
Views: 1591
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