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Re: Hardship Withdrawal From 401K/Profit Sharing

placeholder wrote:My plan requires exhausting other funds in the account before hardship so employer match or after tax would need to be withdrawn first (not sure if that's a plan feature or the law).


This plan doesn't allow for loans.
by sari
Sun Jul 13, 2014 1:54 pm
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1607

Re: Hardship Withdrawal From 401K/Profit Sharing

I agree a loan is better if it's feasible. Part of hardship requirements is to consider a possible loan first, unless doing so increases the hardship. I've never heard of a plan requiring a 6 month suspension of elective deferrals following a loan, but it's a requirement following a hardship distri...
by sari
Sat Jul 12, 2014 6:50 pm
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1607

Hardship Withdrawal From 401K/Profit Sharing

An colleague wants to withdrawal from his pretax deferrals in a 401k plan. The plan requires at least 1000 hours a year to move up on the vesting ladder. The plan states "if you take a hardship distribution, you may not contribute to the plan or other qualifying company plans for 6 months"...
by sari
Thu Jul 10, 2014 11:55 pm
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1607

Converting a Traditional IRA to Roth IRA

My sibling just completed graduate school and has 2 traditional IRAs under the money market account with Fidelity with less than 5K total. He will begin working next month with a pay that will qualify him to contribute to a Roth IRA. He will like to move the money into a Lifestrategy growth fund wit...
by sari
Fri Jul 04, 2014 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Converting a Traditional IRA to Roth IRA
Replies: 2
Views: 434

Re: Please Help with Estate Planning

...if you have no heirs you may not need a living trust. ... It's often the opposite. I missed that. Your heirs (the persons who would inherit absent a Will) may be interested parties, so you may have to establish the absence of any heirs. If your closest relatives are your cousins, it can sometime...
by sari
Thu Jan 23, 2014 2:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please Help with Estate Planning
Replies: 10
Views: 855

Re: Please Help with Estate Planning

We have retirement accounts, a home that's paid off and a family LLC for taxable accounts. We have no heirs and no debts. Tax bracket is a little over 39%. Retirement in 20-25 years. Do we need a trust? Other asset protection plans? Thanks for your time. I think we'd like to hear about the benefits...
by sari
Thu Jan 23, 2014 2:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please Help with Estate Planning
Replies: 10
Views: 855

Re: Please Help with Estate Planning

I posted the general question because a friend sent me this link from suze orman which implies that everyone needs a revocable living trust. http://www.bankrate.com/brm/news/Financ ... ?caret=73a
by sari
Thu Jan 23, 2014 4:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Please Help with Estate Planning
Replies: 10
Views: 855

Please Help with Estate Planning

We have retirement accounts, a home that's paid off and a family LLC for taxable accounts. We have no heirs and no debts. Tax bracket is a little over 39%. Retirement in 20-25 years. Do we need a trust? Other asset protection plans? Thanks for your time.
by sari
Wed Jan 22, 2014 4:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please Help with Estate Planning
Replies: 10
Views: 855

Suze Orman AND Individual Municipal Bonds

Suze Orman said on her show today to buy individual municipal bonds (not bond funds) through a good advisor as rates are around 5%. How does one pick a "good advisor" in this case? Someone on the show had an additional 100K to invest after her retirement account/debt were fulfilled. Please...
by sari
Sat Nov 16, 2013 10:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suze Orman AND Individual Municipal Bonds
Replies: 10
Views: 3326

Re: Investment Choices for Kids

Some of the parents already have a 529 set up already which I will contribute, the others are financially unable to set up this account. I'm looking for long term other choices they can you if needed towards college expenses. From a financial aid perspective, it might be better to set up new accoun...
by sari
Sun Nov 03, 2013 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment Choices for Kids
Replies: 5
Views: 386

Investment Choices for Kids

For the upcoming holidays, I would like to contribute to an established 529 plan for nieces/nephews (10 kids, ages 2-10, $100 each) instead of the usual toys. Some of the parents already have a 529 set up already which I will contribute, the others are financially unable to set up this account. I'm ...
by sari
Sun Nov 03, 2013 9:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment Choices for Kids
Replies: 5
Views: 386

Re: Roth 401K Option

6) I disagree with your choice of Asset Location. Read this easy to understand paper http://papers.ssrn.com/sol3/papers.cfm? ... id=2317970[/quote]

May you please expand on this? I read the article, but need help understanding which asset locations will be more suitable in my case. Thanks.
by sari
Sat Sep 21, 2013 4:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401K Option
Replies: 10
Views: 673

Re: Roth 401K Option

At that tax rate I would stick with the Traditional 401K so you get the current year tax savings. $17,500 x 2 = $35,000 $35,000 x (0.396 + 0.055) = $15,785 less tax paid per year, more than $300K in tax savings over the next 20 years. This is a sure thing that does not require speculation about you...
by sari
Sat Sep 21, 2013 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401K Option
Replies: 10
Views: 673

Roth 401K Option

Our retirement plan has an option for a Roth 401K. Would this make sense for me to consider? Have over 20 years before retirement. Tax bracket 39.6% (fed) 5.5% (state). No debt. Asset allocation: 70% stocks/30% bonds. Also, is a back door roth IRA part of the equation here? Thanks in advance for you...
by sari
Sat Sep 21, 2013 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401K Option
Replies: 10
Views: 673

Re: What To Invest in a Taxable Account

Thank you. So then I leave the lifestrategy fund (80/20) in the tax advantaged account and possibly mimic the same allocation in a taxable account with total stock market + total international = (80%) and munis (20%, munis bond fund or just munis?) to get the 80/20 here also? You certainly could, b...
by sari
Mon Aug 26, 2013 6:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: What To Invest in a Taxable Account

Perhaps the confusion for me is that I keep reading on these posts (ie. Municipal Bonds - Pro's and Con's) that if you are in a high income tax bracket and have maxed out your retirement plan then the next best placement of fund should be in munis. Assuming I am willing to take changes on losing/ga...
by sari
Mon Aug 26, 2013 1:28 am
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: What To Invest in a Taxable Account

Let us assume that loosing money is no longer part of the equation. Assuming I can contribute at least 150K yearly to a taxable account and 51K to a tax advantaged account (max for a 401K). What strategy would you recommend to keep an asset location of 70/30-60/40? I'm currently in the 80/20 lifestr...
by sari
Sun Aug 25, 2013 10:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: What To Invest in a Taxable Account

I think it is not "have maxed out your retirement plan", but that one has made their tax-advantaged accounts 100% bond funds, so that there is no more room for bond funds except in their taxable account. That's when folks use munis and tax-exempt bond funds. If there is still room in the ...
by sari
Sun Aug 25, 2013 1:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: What To Invest in a Taxable Account

To be 80/20 in the 401k and decide that in taxable investing you can't experience any negative change in principal at all makes no sense. The real question is what level of return and risk do you want for your investments as a whole. After that you can locate those investments in accounts according...
by sari
Sun Aug 25, 2013 1:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: What To Invest in a Taxable Account

This is one I'm thinking about and would like some feed back. Thanks. From Schwab website: "With PIMCO Municipal Bond Ladder managed accounts: Access five professionally managed strategies, available only at Schwab, that seek to generate income by leveraging opportunities in the muni bond marke...
by sari
Sun Aug 25, 2013 12:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: What To Invest in a Taxable Account

Don't want to lose the money? How about losing a little bit now and then? How about losing 20% sometimes? How about losing 50% once in a while? But also making it all back, too? Also, it is clear from your other investments that you don't mind losing principal every now and then in your other accou...
by sari
Sun Aug 25, 2013 12:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

What To Invest in a Taxable Account

I received much help from this forum which has helped me simplify our retirement account. Now, I need your advise on what and how to invest in a tax efficient taxable account. We have over 500 K to invest and don't want to loose this money so we are thinking about municipal bonds (vs. municipal bond...
by sari
Sun Aug 25, 2013 12:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Invest in a Taxable Account
Replies: 17
Views: 1600

Re: 401K AND taxable account

Hi sari, I already answered much of this in my reply to your PM. What about my answer didn't you understand? It's hard to coordinate replies to PMs and replies to posts if there's no coordination between the two. It seems as if you either did not read or did not understand my PM reply. Shall we pos...
by sari
Wed Jul 31, 2013 7:42 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K AND taxable account
Replies: 13
Views: 1324

Re: 401K AND taxable account

If I choose the Lifestrategy fund 80/20 for the max contribution to the 401K, the components are: 1. Vanguard Total Stock Market Index Fund Investor Shares: 56.3% 2. Vanguard Total International Stock Index Fund Investor Shares: 23.6% 3. Vanguard Total Bond Market II Index Fund Investor Shares: 16.2...
by sari
Tue Jul 30, 2013 10:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K AND taxable account
Replies: 13
Views: 1324

Re: 401K AND taxable account

Default User BR wrote:
sari wrote:Would a back door roth 401K

What is that?


Brian


I meant Roth 401K.
by sari
Sat Jul 27, 2013 9:38 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K AND taxable account
Replies: 13
Views: 1324

Re: 401K AND taxable account

Would a back door roth 401K be advisable since my tax bracket will definitely go down (assuming the current scale stays the same) during retirement? Won't I still have to pay taxes at the current rate to roll it into a back door 401K? Also, since I will be maxing out at 51K for the 401K, I don't bel...
by sari
Fri Jul 26, 2013 11:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K AND taxable account
Replies: 13
Views: 1324

Re: 401K AND taxable account

Wow, what a great choice of funds!!! The LifeStrategy and Target Retirement funds are great if you want simplicity. The next step up in complexity is to use the three underlying funds directly: Total Stock, Total International, Total Bond, split 70/30 US/International and whatever split you want fo...
by sari
Fri Jul 26, 2013 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K AND taxable account
Replies: 13
Views: 1324

401K AND taxable account

I received much help from this forum with our new 401K setup (see below). Thank you. I would like some insights into which fund to select among the choices below. Also, I have additional money to invest in a taxable account and needs ideas that will be tax efficient (ETF index?) Age: mid 40's, marri...
by sari
Fri Jul 26, 2013 9:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K AND taxable account
Replies: 13
Views: 1324

Re: Target date vs. Lifestrategy fund

I'm the employer so I am working with employee fiduciary to move our portfolio to index funds. Interestingly, my 4 employees have all selected the vanguard's target date funds based on the fund's allocations and not the retirement date (I learned this here). I have not rolled my 401K into a Roth 401...
by sari
Wed Jul 17, 2013 8:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Target date vs. Lifestrategy fund
Replies: 12
Views: 2220

Re: Target date vs. Lifestrategy fund

I do not qualify for a Roth. The SEP IRA and current 401K are both in managed account earning about 6.5% before subtracting the 2% total fees. I am trying to combine both into an index fund in the new 401K setup (target vs. lifestrategy funds). Thank you.
by sari
Wed Jul 17, 2013 1:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Target date vs. Lifestrategy fund
Replies: 12
Views: 2220

Re: Target date vs. Lifestrategy fund

The expense ratio for the Wellington fund is also low. Is this a better option over Target or Lifestrategy? I've read in numberous places that actively managed funds in most cases do not beat the index.
https://personal.vanguard.com/us/funds/ ... IntExt=INT
by sari
Wed Jul 17, 2013 7:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Target date vs. Lifestrategy fund
Replies: 12
Views: 2220

Target date vs. Lifestrategy fund

I have a SEP IRA and a 401K which are both in actively managed portfolios. I will be moving the 401K from a managed account into all index funds. I'm considering the Vanguard Target Date Fund or the Lifestrategy fund. Is it wise to roll the SEP IRA into the new 401K plan? Retirement is 21-25 years a...
by sari
Tue Jul 16, 2013 9:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Target date vs. Lifestrategy fund
Replies: 12
Views: 2220

Re: 401K setup

This is helpful. Thank you! A simple variation combining and expanding on the ideas of behind #2 and #3, just 8 choices plus TR and LifeStrategy: MM Fund: Vanguard Prime Money Market (VMMXX): 0.23% Bond fund: Vanguard Total Bond Market index Fund (VBTSX): 0.12% Domestic Stock: Vanguard Total Stock I...
by sari
Sun Jul 14, 2013 11:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K setup
Replies: 5
Views: 641

Re: Why do so many do the opposite of Mr. Bogle suggests?

I am new at this. May you provided examples of the 3 specific allocation/fund name you would suggest for the total stock, bond and international? I have read several rules: subtract age from 100 or 110 to arrive at the total stock allocation; If you are for example 33, then 33% of the allocation sho...
by sari
Sun Jul 14, 2013 10:57 am
 
Forum: Investing - Theory, News & General
Topic: Why do so many do the opposite of Mr. Bogle suggests?
Replies: 76
Views: 5588

401K setup

I'm an employer who wants to move our small office (under 10) actively managed 401K plan to low cost index funds. These are the choices I came across that others have used elsewhere. Thoughts/suggestion on what funds to offer? Thank you in advance. Option 1: Employee's husbands work Choices: Vanguar...
by sari
Sat Jul 13, 2013 11:30 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K setup
Replies: 5
Views: 641

Re: 401K/advisor

I recommend this article about the different types of fiduciaries for 401K plans http://www.401khelpcenter.com/401k/unscrambling_fiduciary_confusion.html When you say advisor, do you mean investment advisor? My $0.02 is that the 401K providers with high ERs try to scare you about who will take fidu...
by sari
Thu Jul 11, 2013 10:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K/advisor
Replies: 10
Views: 696

Re: 401K/advisor

It would help to clarify exactly what you're asking. There are really three possibilities: (a) getting a no-frills plan with a limited selection of index funds, thereby limiting the opportunities for mischief among your employees, and NOT having an advisor at all; (b) getting an outside advisor who...
by sari
Thu Jul 11, 2013 1:12 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K/advisor
Replies: 10
Views: 696

401K/advisor

Is it prudent to act as the advisor for you and your employees in a 401K plan or are you required to hire an advisor? Especially if your main interest is to provide low cost index funds in the plan? Thank you.
by sari
Wed Jul 10, 2013 10:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K/advisor
Replies: 10
Views: 696

Re: Employer 401 k choices

He has some wonderful choices, it would be hard to get it too wrong. He has no prior investment experience . . . . . . . . They have no knowledge of investment terms and I don't believe they will want to learn. If so, a Target Retirement fund would be a good idea such as: Vanguard Target Ret 2025 F...
by sari
Sat Jul 06, 2013 1:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Employer 401 k choices
Replies: 11
Views: 556

Re: Employer 401 k choices

Looks like very good options. We need the fund expense ratios within the 401k to choose. These are usually different from the retail fund ERs. Vanguard Prime Money Market (VMMXX): 0.16% Vanguard Short Term Treasury Index (VFISX): 0.2% Vanguard Interim Term Treasury Index (VFITX): 0.2% Vanguard Long...
by sari
Sat Jul 06, 2013 10:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Employer 401 k choices
Replies: 11
Views: 556

Re: Employer 401 k choices

They have no knowledge of investment terms and I don't believe they will want to learn.
by sari
Sat Jul 06, 2013 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Employer 401 k choices
Replies: 11
Views: 556

Employer 401 k choices

A friend's husband needs help with selecting an employer's 401K. He had an IRA from a previous job which he'll roll over to the new employer's 401K. He has no prior investment experience and work did not provide assistance just paperwork. Age 52. Plans to retire by age 72. Salary is 45-55K. Selectio...
by sari
Sat Jul 06, 2013 8:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Employer 401 k choices
Replies: 11
Views: 556

401 K/ profit sharing [Help with plan]

I'm an employer with 4 employees. We have a 401K/profit sharing retirement plan which contain actively managed mutual funds. We are paying an advisor's fee of 1.5% as well as the fees for the funds. The cost is about 2.5-3%. I would like to only offer a target date retirement funds (ie Vanguard's Ta...
by sari
Thu Jul 04, 2013 12:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401 K/ profit sharing [Help with plan]
Replies: 0
Views: 237

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