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Would maxing a Roth and 401k each year be enough?

If someone starts at age 30 and maxes out their Roth and 401k each year, will this be enough to retire comfortably by age 60? How much could this person expect to have by age 60?
by ugaDAWGS09
Thu Jan 22, 2015 5:48 pm
 
Forum: Investing - Theory, News & General
Topic: Would maxing a Roth and 401k each year be enough?
Replies: 17
Views: 2584

What age did you pay off your "forever" home

What age did you pay off your "forever" home and how did you do it? My wife and I built our forever home in 2011, and we are working hard to pay it off. We started small by paying one extra payment a year the first two years, but now we are adding 850 a month to the principal (started abou...
by ugaDAWGS09
Wed Jan 21, 2015 12:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: What age did you pay off your "forever" home
Replies: 52
Views: 3985

Re: Worth upgrading from Delta Gold to Platinum?

I think it's worth it if you fly a couple delta flights a year. My wife and I are flying to Colorado this weekend and saving $450 on the flight with her companion ticket. It was very easy to use and the times we were allowed to choose from were great times to fly out. Also, we save 50 dollars each w...
by ugaDAWGS09
Tue Jan 20, 2015 3:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Worth upgrading from Delta Gold to Platinum?
Replies: 4
Views: 354

Re: backdoor roth when under AGI limit

Sorry, I was thinking the original poster was in my boat and wanting to contribute without knowing his or her MAGI for 2014.
by ugaDAWGS09
Tue Jan 20, 2015 1:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth when under AGI limit
Replies: 16
Views: 1171

Re: backdoor roth when under AGI limit

He said go ahead and fund the traditional and then covert to Roth, and it wouldn't matter if I was under or over the MAGI limit for 2015. If you find you are under the MAGI limit, consider a recharacterization to Roth instead of a conversion. If you convert, you will pay taxes on the gains. If you ...
by ugaDAWGS09
Tue Jan 20, 2015 1:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth when under AGI limit
Replies: 16
Views: 1171

Re: backdoor roth when under AGI limit

I called Vanguard about this topic. They told me you can fund a traditional IRA anytime (assuming you don't hold any other IRA), and convert it over to a Roth. I wanted to go ahead and fund my 2015 Roth now instead of waiting till Dec to determine my MAGI. He said go ahead and fund the traditional a...
by ugaDAWGS09
Tue Jan 20, 2015 12:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth when under AGI limit
Replies: 16
Views: 1171

Re: backdoor roth when under AGI limit

However, I do wish we could find some confirmation on this subject. Would be nice to know that there is indeed no penalty.
by ugaDAWGS09
Mon Jan 19, 2015 8:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth when under AGI limit
Replies: 16
Views: 1171

Re: backdoor roth when under AGI limit

I asked this yesterday and was told it doesnt' matter. We are so close each year and have to wait till December based on income, but this year we are going to go ahead and do the backdoor roth and contribute for 2015. I think the only difference is if you do a backdoor vs regular Roth you can't with...
by ugaDAWGS09
Mon Jan 19, 2015 6:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: backdoor roth when under AGI limit
Replies: 16
Views: 1171

Backdoor Roth question

Both my wife and I maxed out Roth last year using the backdoor method. Our MAGI was about 3k above the phase out limit. What I wanted to ask was if we think we are going to be over again can we go ahead and fund the traditional IRA tomorrow, then convert to a Roth. I'm not sure if there is any penal...
by ugaDAWGS09
Sun Jan 18, 2015 10:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth question
Replies: 1
Views: 230

Re: EE bonds vs iBonds

Quick question about the taxes you pay with these bonds. With EE bonds assuming I contribute 20k and make 20k. I will pay taxes on the full 20k amount when I cash them in after 20 years?
by ugaDAWGS09
Sun Jan 18, 2015 12:00 am
 
Forum: Investing - Help with Personal Investments
Topic: EE bonds vs iBonds
Replies: 29
Views: 2349

Re: EE bonds vs iBonds

Right now, given the current economic data, it's projected the inflation rate for I bonds for May will be 0% and the fixed rate may be somewhere between 0-.20%. If that holds, your composite rate of 1.13% is going to have to be a heck of a lot higher in the following six months come November. Why d...
by ugaDAWGS09
Sat Jan 17, 2015 4:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: EE bonds vs iBonds
Replies: 29
Views: 2349

EE bonds vs iBonds

My wife and I are looking to purchase some EE bonds next week. The reason I like these bonds is the guaranteed double on your initial investment, and the exemption from state taxes. We are investing the full 20k, so our return after our 28% federal taxes should be 34,400 after the full 20 years. I l...
by ugaDAWGS09
Sat Jan 17, 2015 11:41 am
 
Forum: Investing - Help with Personal Investments
Topic: EE bonds vs iBonds
Replies: 29
Views: 2349

Re: How much does a large payment reduce mortgage

With the Penfed ARM I would be locked in at 2.75% for five years, but why is the APR different and what does it mean? Also, are you saying it could jump to 4.75% at most in 5 years but there isn't really any way to know this?
by ugaDAWGS09
Fri Jan 16, 2015 4:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much does a large payment reduce mortgage
Replies: 34
Views: 2655

Re: How much does a large payment reduce mortgage

I don't know why the calculator is giving me wrong numbers then. I plugged in some extra payments we have made over the past couple of years, and added in the 850 extra a month we have been paying for about a year. The calculator had my numbers matching exactly what my wife's excel spreadsheet had ...
by ugaDAWGS09
Fri Jan 16, 2015 12:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much does a large payment reduce mortgage
Replies: 34
Views: 2655

Re: How much does a large payment reduce mortgage

I don't know why the calculator is giving me wrong numbers then. I plugged in some extra payments we have made over the past couple of years, and added in the 850 extra a month we have been paying for about a year. The calculator had my numbers matching exactly what my wife's excel spreadsheet had c...
by ugaDAWGS09
Fri Jan 16, 2015 11:11 am
 
Forum: Personal Finance (Not Investing)
Topic: How much does a large payment reduce mortgage
Replies: 34
Views: 2655

Re: How much does a large payment reduce mortgage

Ok, I was able to go back and track all my payments and used the calculator provided. An extra 10k payment next month would reduce the term of my mortgage by 8 months, and save me $4711 in interest, but this doesn't figure in the mortgage deduction lost which I guess is going to be 4711 x .28 ( my f...
by ugaDAWGS09
Fri Jan 16, 2015 8:07 am
 
Forum: Personal Finance (Not Investing)
Topic: How much does a large payment reduce mortgage
Replies: 34
Views: 2655

How much does a large payment reduce mortgage

My wife and I built a home and have a 215k mortgage that started in Nov 2011. Interest rate is 3.875 for the 30 year mortgage. We have been paying extra and have our principal down to 187 k. We would like to put a 10 k lump sum on the mortgage but wanted to know how much interest it would save and i...
by ugaDAWGS09
Thu Jan 15, 2015 11:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much does a large payment reduce mortgage
Replies: 34
Views: 2655

Re: Fixed Income 2015

I guess what I have to consider is if I'm 100% going to hold the bond for 20 years, then I would think the EE bond would have to be worth more at that time. It seems that ibond rates have been dropping for a couple of years, but then again that could change at any time. Maybe it would make more sens...
by ugaDAWGS09
Wed Jan 14, 2015 9:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fixed Income 2015
Replies: 16
Views: 1954

Re: Fixed Income 2015

Hey I'm very interested in this topic. Being in my late 20's is there any reason for me to prefer ibonds over ee bonds? Seems ee is like a 20 year 5% CD that earns all interest at once. I bonds seem up and down
by ugaDAWGS09
Wed Jan 14, 2015 7:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fixed Income 2015
Replies: 16
Views: 1954

Re: EE bonds vs 5 yr CD's vs iBonds

Thanks everyone, this has been very helpful. My wife and I were just about to open a 50k 5 year CD at 2.25, but now we are going to do 10k each of EE bond and only 30k in the CD. I spoke with her about iBonds and we may do some next year, or even later in the year. However, she doesn't like the chan...
by ugaDAWGS09
Wed Jan 14, 2015 8:05 am
 
Forum: Investing - Help with Personal Investments
Topic: EE bonds vs 5 yr CD's vs iBonds
Replies: 8
Views: 891

Re: EE bonds vs 5 yr CD's vs iBonds

Also, with EE bonds doesn't it make the most sense to "cash them in" after 20 years, since the remaining 10 years could have a really low interest rate.
by ugaDAWGS09
Tue Jan 13, 2015 10:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: EE bonds vs 5 yr CD's vs iBonds
Replies: 8
Views: 891

EE bonds vs 5 yr CD's vs iBonds

I've just began reading up on EE bonds. If I'm understanding it correctly, the interest rate you earn will be adjusted every six months, but the bond will be worth at least double it's face value (purchase amount) if held for 20 years. Can this bond be worth more than double face value depending on ...
by ugaDAWGS09
Tue Jan 13, 2015 10:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: EE bonds vs 5 yr CD's vs iBonds
Replies: 8
Views: 891

Re: What is your opinion of this strategy?

My wife and I were talking about investing last night and she proposed a new strategy for me to consider. We are both 29 years old and make about 180-200k combined a year. We are currently maxing our tax-deferred accounts with an AA of 70/30, which comes to about 46k per year. Instead of investing ...
by ugaDAWGS09
Mon Jan 12, 2015 9:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

Re: What is your opinion of this strategy?

Sounds like your wife is conservative, which is fine and good to recognize what she's comfortable with. Personally this allocation is too conservative for my tastes, especially at your age, but you're saving rate is so high (~1 year expense per year), even cash will get you to your goal. Congrats. ...
by ugaDAWGS09
Mon Jan 12, 2015 9:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

Re: What is your opinion of this strategy?

What specific problem is the 5 yr CD ladder strategy trying to solve? My wife just likes the idea of having a large amount of money in a guaranteed 5 yr rolling CD ladder. She doesn't mind risking money pre-tax because it's out of sight out of mind, but as I stated she just likes to be MUCH more co...
by ugaDAWGS09
Mon Jan 12, 2015 6:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

Re: What is your opinion of this strategy?

While you have to decide the annual amount, I think have a rolling CD ladder as part of one's fixed income portfolio is a sound decision. I would say that CDs as such are a perfectly reasonable investment, but I would not say that a plan to just invest everything over and above tax deferred investm...
by ugaDAWGS09
Mon Jan 12, 2015 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

Re: What is your opinion of this strategy?

My wife and I were talking about investing last night and she proposed a new strategy for me to consider. We are both 29 years old and make about 180-200k combined a year. We are currently maxing our tax-deferred accounts with an AA of 70/30, which comes to about 46k per year. Instead of investing ...
by ugaDAWGS09
Mon Jan 12, 2015 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

Re: What is your opinion of this strategy?

If it is figured into your overall AA, I think it's fine Have you considered splitting between cd's and iBonds? The iBonds would defer taxes until sale and might come with some tax reduction if used for college tuition I'm very inexperienced with iBonds and don't really know how they work? Are they...
by ugaDAWGS09
Mon Jan 12, 2015 5:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

What is your opinion of this strategy?

My wife and I were talking about investing last night and she proposed a new strategy for me to consider. We are both 29 years old and make about 180-200k combined a year. We are currently maxing our tax-deferred accounts with an AA of 70/30, which comes to about 46k per year. Instead of investing o...
by ugaDAWGS09
Mon Jan 12, 2015 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: What is your opinion of this strategy?
Replies: 28
Views: 1623

Re: Need help increasing my bond/fixed income portion

So the general consensus is go with the bond fund and accept the risk and hope for a larger after tax return than the CD provides?
by ugaDAWGS09
Sat Jan 10, 2015 2:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help increasing my bond/fixed income portion
Replies: 11
Views: 1285

Re: Need help increasing my bond/fixed income portion

Which would you expect to have the better return over five years? The CD will yield me 1.49% after state and federal taxes, but wouldn't it be impossible to figure the intermediate yield? I would definitely re-invest my dividends.
by ugaDAWGS09
Thu Jan 08, 2015 9:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help increasing my bond/fixed income portion
Replies: 11
Views: 1285

Re: Need help increasing my bond/fixed income portion

Thanks, I didn't realize the ER was so much higher for the GA bond fund.
by ugaDAWGS09
Thu Jan 08, 2015 7:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help increasing my bond/fixed income portion
Replies: 11
Views: 1285

Re: Need help increasing my bond/fixed income portion

53timr wrote:Some people like the T. Rowe Price Georgia Tax-Free Bond Fund GTFBX


I have never heard of this bond, I will need to compare it to Vanguard Intermediate Tax exempt. Thanks.
by ugaDAWGS09
Wed Jan 07, 2015 2:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help increasing my bond/fixed income portion
Replies: 11
Views: 1285

Re: Need help increasing my bond/fixed income portion

victork wrote:Are municipal bonds available in Georgia?


I haven't found any other than individual ones and I don't want that risk.
by ugaDAWGS09
Wed Jan 07, 2015 12:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help increasing my bond/fixed income portion
Replies: 11
Views: 1285

Need help increasing my bond/fixed income portion

My wife and I are looking to add more money to our fixed income/bond portion of our account. We are currently considering Vanguard Intermediate tax-exempt or a Nationwide 5 year CD at 2.25% to add to our CD ladder. We are 29 years old and are in the 28% federal tax bracket, and live in Ga so we have...
by ugaDAWGS09
Wed Jan 07, 2015 11:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help increasing my bond/fixed income portion
Replies: 11
Views: 1285

Re: Am I being too conservative?

I feel more comfortable at 70/30 then say 80/20, and I'm not near as likely to be concerned with short term or even longer term fluctuations in the market. However, I don't want to be conservative that my wife and I can't retire until our mid 60's. We would both love to retire in our mid to late 50'...
by ugaDAWGS09
Sun Dec 21, 2014 9:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Am I being too conservative?
Replies: 19
Views: 1568

Re: Am I being too conservative?

My wife and I are both 29, and I was wondering if you think we are being too conservative at our age? We currently both have very stable jobs, and make about 180-200k per year combined (depending on bonuses). Our investment accounts are set at 70/30. For the stock portion we use about 40% large cap...
by ugaDAWGS09
Sun Dec 21, 2014 8:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Am I being too conservative?
Replies: 19
Views: 1568

Re: Am I being too conservative?

I think you are doing just fine with your 70/30 portfolio. My portfolio is approximately 70/30 and I am 55 years old. Maybe I am being too aggressive. The amount of fixed income to hold in a portfolio is an individual decision. It really is your sleeping point, the amount of bonds and cash you need...
by ugaDAWGS09
Sun Dec 21, 2014 8:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Am I being too conservative?
Replies: 19
Views: 1568

Re: Am I being too conservative?

That allocation seems perfectly reasonable to me. Question: we're you invested during the 2008/2009 crash? And if so what were you invested in and how did you react? Did you lose sleep over your portfolio. Could you go 80/20? Maybe. Could you go 60/40? Sure why not. Asset Allocation isn't an exact ...
by ugaDAWGS09
Sun Dec 21, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Am I being too conservative?
Replies: 19
Views: 1568

Am I being too conservative?

My wife and I are both 29, and I was wondering if you think we are being too conservative at our age? We currently both have very stable jobs, and make about 180-200k per year combined (depending on bonuses). Our investment accounts are set at 70/30. For the stock portion we use about 40% large caps...
by ugaDAWGS09
Sat Dec 20, 2014 4:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I being too conservative?
Replies: 19
Views: 1568

How long should I wait to convert to Roth

I just contributed to my non-deductible TIRA last Friday, how long should I wait to convert to Roth? When I call Vanguard to convert, does it take place the same day (like end of business day)? The market has had a decent pullback (almost 1,000 points) so it would be good to go ahead and get it conv...
by ugaDAWGS09
Tue Dec 16, 2014 6:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: How long should I wait to convert to Roth
Replies: 3
Views: 723

Re: Vanguard Turbo Tax prices anounced

Is the premier version needed to fill out the Roth conversion paperwork? This is my first time converting a traditional IRA to Roth.
by ugaDAWGS09
Sat Dec 13, 2014 8:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Turbo Tax prices anounced
Replies: 86
Views: 13956

Re: Backdoor Roth for a beginner

Thanks to you all for the help. I just called Vanguard and opened my traditional IRA in the money market, and will do the conversion next week.
by ugaDAWGS09
Fri Dec 12, 2014 3:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Re: Backdoor Roth for a beginner

Sorry, another question: I currently have my Roth invested 100% in Wellington, and I'm going to open the traditional IRA in Wellington also. When I convert the account to a Roth, will the new account just combine with my old Roth since they are both at Wellington, or will it show up separate. I jus...
by ugaDAWGS09
Fri Dec 12, 2014 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Re: Backdoor Roth for a beginner

Sorry, another question: I currently have my Roth invested 100% in Wellington, and I'm going to open the traditional IRA in Wellington also. When I convert the account to a Roth, will the new account just combine with my old Roth since they are both at Wellington, or will it show up separate. I just...
by ugaDAWGS09
Fri Dec 12, 2014 12:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Re: Backdoor Roth for a beginner

DS I'm not sure what that means. Are you saying make sure I pay taxes on my earnings between my converting from traditional to Roth?
by ugaDAWGS09
Thu Dec 11, 2014 10:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Re: Backdoor Roth for a beginner

One more question, the maxed pre-tax 401k has no affect on the backdoor Roth correct?
by ugaDAWGS09
Thu Dec 11, 2014 9:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Re: Backdoor Roth for a beginner

Thanks so much to the both of you. I looked at my MAGI, and it appears we will be at the very top of the phase out limit so we should go ahead and set up the TIRA then convert it over. If I call Vanguard are they allowed to help me with the conversion?
by ugaDAWGS09
Thu Dec 11, 2014 9:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Backdoor Roth for a beginner

I'm almost positive my wife and I are going to make too much this year to contribute to a Roth without going the backdoor route. I have no idea what a backdoor Roth is or how to start one. If we are going to do one, do we have until tax time next year just like with a normal Roth? Do I have to pay t...
by ugaDAWGS09
Thu Dec 11, 2014 6:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth for a beginner
Replies: 16
Views: 1216

Wellesley acutally outperforms Total Market/Intermed. Tax Ex

I was looking at after tax comparisons between the Wellesley fund and a 35/65 combo of Total stock Market and Intermediate Tax-exempt, and was surprised to see that Wellesley actually outperformed the other two funds. 5 yr after tax: Wellesley 8.36% TSM/Int Tax Ex 8.04% 10 yr after tax: Wellesley 5....
by ugaDAWGS09
Mon Dec 08, 2014 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Wellesley acutally outperforms Total Market/Intermed. Tax Ex
Replies: 5
Views: 990
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