Search found 3241 matches

by FiveK
Mon Dec 11, 2017 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement - Lump Sum vs. Annuity
Replies: 28
Views: 1389

Re: Early Retirement - Lump Sum vs. Annuity

Lump Sum Retirement Offer: $1,030,000 Pension Benefits Options (No COLA) Single Life Annuity - $4,921 100% Joint and Survivor Annuity - $4,232 Charts below show the pure math results. The first for $4921/mo annuity, the second for $4232/mo annuity. On top of those one can overlay one's thoughts abo...
by FiveK
Mon Dec 11, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Which type of 401K rollover?
Replies: 9
Views: 341

Re: Which type of 401K rollover?

Reading between the lines (may be incorrect, but so it goes...) it appears this will be your lowest tax rate year for some time to come. If so, converting to Roth while staying at ~15% marginal or less seems correct. Not a state tax expert, but it seems the only VA state tax should be on earnings fr...
by FiveK
Mon Dec 11, 2017 7:11 pm
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 14
Views: 1171

Re: So... how do I need to "further" my investing knowledge?

3. Max HSA -My health insurance only allows for an FSA I believe (high deductable I think?) and FSA only allows for $500 to carry over.. so putting for example $5k into my FSA wouldn't make sense unless I planned on spending all $4,500 that calendar year - so I don't do. Might be worth checking on ...
by FiveK
Mon Dec 11, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: When to invest in a bull market
Replies: 17
Views: 1908

Re: When to invest in a bull market

Any advice on when to invest? Should I wait for the market to go down or just take a chance and invest it all on 12/22/17? Can you do better than Bob? FiveK: That article is an excellent reply to the question we often get: "Should I wait for the market to go down before investing?" I started invest...
by FiveK
Mon Dec 11, 2017 5:54 am
Forum: Investing - Help with Personal Investments
Topic: When to invest in a bull market
Replies: 17
Views: 1908

Re: When to invest in a bull market

Teddy wrote:
Mon Dec 11, 2017 12:51 am
Any advice on when to invest? Should I wait for the market to go down or just take a chance and invest it all on 12/22/17?
Can you do better than Bob?
by FiveK
Mon Dec 11, 2017 5:50 am
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 14
Views: 1171

Re: So... how do I need to "further" my investing knowledge?

Now that you know that, do you still think there are tax advantages I'm missing? Probably nothing significant. If you read through Investment Order and Prioritizing investments and can say "yes, doing all that" (or have good reasons why not) then the likelihood you are missing anything significant ...
by FiveK
Mon Dec 11, 2017 5:45 am
Forum: Investing - Help with Personal Investments
Topic: What to do when emergency fund runs out? (IPS)
Replies: 8
Views: 993

Re: What to do when emergency fund runs out? (IPS)

It might depend on whether the emergency "is continuing" or "has passed". In the latter case, probably not sell any investment but rather replenish the e-fund from new cash flow over time. In the former case, yes, withdraw similar to common retirement prioritization: taxable followed by traditional ...
by FiveK
Mon Dec 11, 2017 5:38 am
Forum: Investing - Help with Personal Investments
Topic: New Roth IRA contributor needing help
Replies: 2
Views: 186

Re: New Roth IRA contributor needing help

Apollo_Ken, welcome to the forum. For someone just starting - and even for many more experienced investors - a "fund of funds" such as the 2050 may be a fine place for 100% of your traditional and Roth investments. See Investment Planning - Bogleheads.org . If you think more discussion would be usef...
by FiveK
Mon Dec 11, 2017 12:31 am
Forum: Investing - Theory, News & General
Topic: Is Santa Claus Coming To Town?
Replies: 9
Views: 1464

Re: Is Santa Claus Coming To Town?

Have you been naughty or nice?
by FiveK
Sun Dec 10, 2017 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: 401K / Roth IRA Decision
Replies: 15
Views: 1093

Re: 401K / Roth IRA Decision

RRAAYY3 wrote:
Sun Dec 10, 2017 10:16 pm
Would you be able to roll the 401k into a Roth IRA ?
Yes. See IRS Rollover Chart.
by FiveK
Sun Dec 10, 2017 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Cashing in an annuity
Replies: 4
Views: 353

Re: Cashing in an annuity

...in particular if she should keep the annuity or invest it with Vanguard. If it's really $1101/quarter plus 2.75% * AUM, she should get out ASAP - especially if there is no surrender fee. Yes, she'll have to pay ordinary income tax on the gains but likely better to bite that bullet now and have f...
by FiveK
Sun Dec 10, 2017 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing for Filing Jointly
Replies: 6
Views: 386

Re: Preparing for Filing Jointly

4. Please let us know if there's anything else that should be on our radar about transitioning from filing single to filing jointly in the coming tax year, or combining finances in general. Health Savings Account(s)? No CA tax advantage, but you would still save 35% on federal tax. If an option, yo...
by FiveK
Sun Dec 10, 2017 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Cashing in an annuity
Replies: 4
Views: 353

Re: Cashing in an annuity

Total value of Annuity $384,731 Her financial adviser said that there wouldn't be any fees to sell it.... Her quarterly statement shows an $1101 rider fee and...the expense ratio was 2.75%. I think she should sell the investments and put the funds in a Vanguard acct -but if she does that, she will ...
by FiveK
Sun Dec 10, 2017 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1829

Re: When to start taking distributions from 401K

I asked about the fact that how is it the money paid to EJ is not considered income. I cannot declare it as a cost nor do I declare it as income. Because, I am told, is because it is all pre-tax dollars. So because of that none of the cost is deductible and as such not considered income. I thought ...
by FiveK
Sun Dec 10, 2017 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1829

Re: When to start taking distributions from 401K

Spend with a clear conscience and zero heart burn! Just don't spend too much. :happy You could easily pull $20-25k from your investments every year without being reckless. Of course, you may not want to if it puts you over the IRMAA line. nick2302, Safe withdrawal rates - Bogleheads and links there...
by FiveK
Sun Dec 10, 2017 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1829

Re: When to start taking distributions from 401K

Maybe I have been misinformed so I have another question. I had beaten into me many years ago that the Roll over IRA and 401K money was NEVER to be touched until you hit 70.5 and were forced to take it out as an RMD. You should not touch that money unless you had some horrific financial problem. Is...
by FiveK
Sun Dec 10, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: 401K / Roth IRA Decision
Replies: 15
Views: 1093

Re: 401K / Roth IRA Decision

Am I correct in determining that the 401K is still a better option due to the tax break now in a higher bracket? is the 401K despite the expensive fees a better option? It might be. What specific numbers did you use to evaluate the wiki rule of thumb, and/or what were either or both of the results ...
by FiveK
Sun Dec 10, 2017 3:22 am
Forum: Personal Finance (Not Investing)
Topic: Fed Income and Social security taxes with two jobs
Replies: 3
Views: 390

Re: Fed Income and Social security taxes with two jobs

Turbo tax recognized that I had paid excess social security taxes. However it indicated that I should ask my employer to refund the excess. It is entirely possible, that I may not have clicked exactly the right buttons to coax Turbo Tax to reconcile social security taxes with federal income taxes. ...
by FiveK
Sun Dec 10, 2017 12:16 am
Forum: Investing - Theory, News & General
Topic: Traditional vs Roth IRA at high tax brackets?
Replies: 6
Views: 711

Re: Traditional vs Roth IRA at high tax brackets?

See also Traditional versus Roth - Bogleheads, pretty much all of which's important parts have been covered already.
by FiveK
Sun Dec 10, 2017 12:06 am
Forum: Personal Finance (Not Investing)
Topic: How can someone who earns 500k/yr in w2 be in 25% tax bracket?
Replies: 17
Views: 2478

Re: How can someone who earns 500k/yr in w2 be in 25% tax bracket?

Charitable contributions? Depreciation on the properties?
Deducting country club membership, ski trips, etc. as "business expenses"?
by FiveK
Sat Dec 09, 2017 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1829

Re: When to start taking distributions from 401K

Probably would be helpful, both for responders and your own consideration, to summarize all expected - Income - Expenses - Assets - Liabilities when in retirement. - Income - Before Taxes or Medicare 5646.93 a month - Expenses @5000.00 NOT counting the house payment. - Assets @725K+ in IRA/401k @13...
by FiveK
Sat Dec 09, 2017 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Roth TSP for active duty military
Replies: 9
Views: 621

Re: Question about Roth TSP for active duty military

grabiner wrote:
Sat Dec 09, 2017 7:43 pm
it's likely to be worth waiting until 70 if you are in good health
WanderingDoc wrote:
Sat Dec 09, 2017 8:08 pm
He could be dead at 69. My thought it to take the "sure thing"
A good synopsis of why "at what age to start SS?" has no single answer.
by FiveK
Sat Dec 09, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down loans or invest
Replies: 14
Views: 1046

Re: Pay down loans or invest

I'd love to park my money in my investment accounts... I...hate these loans Ah, the eternal question, "which is stronger, love or hate?" There is no "law of nature" to guide whether you should take a sure low return or aim for a riskier but still plausible higher return. Given the numbers (e.g., yo...
by FiveK
Sat Dec 09, 2017 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: 401K / Roth IRA Decision
Replies: 15
Views: 1093

Re: 401K / Roth IRA Decision

RRAAYY3 wrote:
Sat Dec 09, 2017 6:28 pm
I assume this means max Roth, 401K up to match, rest in tax efficient index funds taxable accounts ?
Is that what the wiki rule of thumb (or either of the spreadsheet calculations) suggests?
by FiveK
Sat Dec 09, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Partial year after-tax HSA contibutions
Replies: 2
Views: 123

Re: Partial year after-tax HSA contibutions

Even though no longer employed, you may still contribute to your HSA the difference between what you are allowed to contribute and what you (and your employer) have contributed. Anything not done by payroll deduction (e.g., if you send a check to the HSA vendor) will be deducted on line 25 of Form 1...
by FiveK
Sat Dec 09, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: 401K / Roth IRA Decision
Replies: 15
Views: 1093

Re: 401K / Roth IRA Decision

Annual netcome: 95K; 28% tax bracket; Currently have Roth IRA @ Vanguard: Target Date 2050 set and forget. Planning on max contribution while still eligible. Going to be eligible for 401K in January ... can you max out Roth contribution AND 401K contribution ? Yes. 1. Max Roth and 401K? - Max 401K ...
by FiveK
Sat Dec 09, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Deferring First RMD
Replies: 16
Views: 770

Re: Deferring First RMD

As I understand the deferring of the 1st RMD under the "still working for sponsoring employer" clause, it does not have to be "full-time." It may be part-time work as long as there is some W-2 income, and the employment continues through 12/31 of a given year. That looks correct. The 26 U.S. Code §...
by FiveK
Sat Dec 09, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Deferring First RMD
Replies: 16
Views: 770

Re: Deferring First RMD

There's a still working exception. She still works full time. Ah, yes. In that case, what is the expected difference in marginal rate for the next 4-5 years vs. after that? In other words, while she is working one might expect her marginal rate to be higher than when she is retired. If she will be ...
by FiveK
Sat Dec 09, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: taking distributions from 401K Impact on IRMAA need SHIP help
Replies: 23
Views: 1829

Re: When to start taking distributions from 401K

Probably would be helpful, both for responders and your own consideration, to summarize all expected
- Income
- Expenses
- Assets
- Liabilities
when in retirement.
by FiveK
Sat Dec 09, 2017 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Deferring First RMD
Replies: 16
Views: 770

Re: Deferring First RMD

I’m not entirely clear on your proposed game plan. The way I read it, you seem to be wanting to protect the $55k from RMDs by rolling it into the 401k. But 401k’s are subject to RMDs when the holder turns RMD age. So i’m not sure what you expect to gain. +1 See Retirement Plans FAQs regarding Requi...
by FiveK
Sat Dec 09, 2017 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Pay down loans or invest
Replies: 14
Views: 1046

Re: Pay down loans or invest

Welcome to the forum.

See Investment Order and Paying down loans versus investing for some thoughts on this topic.
by FiveK
Sat Dec 09, 2017 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Personal Retirement options
Replies: 2
Views: 282

Re: Personal Retirement options

Seems a Backdoor Roth IRA would be appropriate.
by FiveK
Fri Dec 08, 2017 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Roth for my 16 y.o. child ??
Replies: 11
Views: 768

Re: Roth for my 16 y.o. child ??

Fidelity, Schwab, and Vanguard all have "Custodial IRAs" with low ($100?) minimum investments. The word "custodial" can be important when asking the vendors.

E.g., see Where to start a child's Roth IRA with very low income?.
by FiveK
Thu Dec 07, 2017 4:42 am
Forum: Personal Finance (Not Investing)
Topic: Donating appreciated securities at Vanguard and bogleheads wiki
Replies: 3
Views: 352

Re: Donating appreciated securities at Vanguard and bogleheads wiki

Is the bogleheads wiki page out of date...? Possibly. Words to that effect were in the original wiki article, now almost 10 years old. I see the same lack of that option on the form that you mention - perhaps someone will have more direct knowledge. See also Complication donating Vanguard mutual fu...
by FiveK
Thu Dec 07, 2017 4:10 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion and/or Roth Contribution for those with Few Taxable Assets?
Replies: 8
Views: 924

Re: Roth Conversion and/or Roth Contribution?

We will have pensions and social security. When will you have those? SS can (and probably should) be deferred. If you can get higher annual pension payments in return for deferring that as well, it is worth considering pension deferral also. Deferring one or both of SS+pension would provide more ro...
by FiveK
Thu Dec 07, 2017 3:57 am
Forum: Investing - Help with Personal Investments
Topic: Which fund first for multiple accounts allocation?
Replies: 5
Views: 486

Re: Which fund first for multiple accounts allocation?

Thanks ruralavalon, I have posted my details here: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=233926 I think I understand your reply but I wrote the details in that post to get more clarity. Thanks again for your help, I really appreciate it. Saw that post first. As noted there, when one ...
by FiveK
Thu Dec 07, 2017 3:50 am
Forum: Investing - Help with Personal Investments
Topic: Balancing across multiple accounts, and for tax efficiency
Replies: 11
Views: 1085

Re: Balancing across multiple accounts, and for tax efficiency

1. I want to start allocating across multiple accounts. I want to start with the 401k. Should I start allocating toward a bond fund first? Or should I allocate toward the cheapest fund first, which is the S&P 500? 2. I was then going to allocate International funds in the taxable accounts, and then...
by FiveK
Thu Dec 07, 2017 3:42 am
Forum: Forum Issues and Administration
Topic: Linking wiki articles into forum posts
Replies: 21
Views: 4551

Re: Linking wiki articles into forum posts

The "Link Text and Location Copier" for Firefox at https://addons.mozilla.org/en-US/firefo ... on-copier/ has been working well for the ~10 days I've tried it. Other than - for whatever reason? - the addon page itself.
by FiveK
Thu Dec 07, 2017 3:40 am
Forum: Personal Consumer Issues
Topic: Firefox upgrade broke my add-on, switched to Waterfox
Replies: 28
Views: 3431

Re: Firefox upgrade broke my add-on, switched to Waterfox

The "Link Text and Location Copier" for Firefox at https://addons.mozilla.org/en-US/firefo ... on-copier/ has been working well for the ~10 days I've tried it. Other than - for whatever reason? - the addon page itself.
by FiveK
Wed Dec 06, 2017 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: California HSA or 401k
Replies: 8
Views: 756

Re: California HSA or 401k

The CA tax on a TIPS fund will be zero unless the fund distributes capital gains. And any capital gains will be only the result of small price changes caused by changes in TIPS rates; the inflation adjustment is taxed as a dividend which is CA tax exempt. Just checking: the CA tax exempt quality re...
by FiveK
Wed Dec 06, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Tax Withholding
Replies: 6
Views: 538

Re: Roth IRA and Tax Withholding

If essentially all your income is occurring this month, then paying your 2017 tax via estimated taxes this month (actually, by Jan. 15, 2018) will avoid under withholding penalties. But that will require a form 2210 and schedule AI. Depending on circumstances this may be a bit of a pain. Yes, it ma...
by FiveK
Wed Dec 06, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: California HSA or 401k
Replies: 8
Views: 756

Re: California HSA or 401k

Here is one way to look at it, assuming - the HSA is used to pay medical expenses, and thus is federally tax free - 25% federal and 9.3% CA tax rates. "Growth" is Future Value (see Excel's FV function) divided by Initial Amount. E.g., for a 5% annual return for 33 years, Growth = 5. "CA_taxable_Grow...
by FiveK
Tue Dec 05, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Tax Withholding
Replies: 6
Views: 538

Re: Roth IRA and Tax Withholding

If essentially all your income is occurring this month, then paying your 2017 tax via estimated taxes this month (actually, by Jan. 15, 2018) will avoid under withholding penalties.
by FiveK
Tue Dec 05, 2017 12:23 am
Forum: Investing - Help with Personal Investments
Topic: Seeking investment/personal finance opinions
Replies: 6
Views: 564

Re: Seeking investment/personal finance opinions

See also Investment Order for yet another perspective on what to do when.

In general, if you Live Below Your Means while using excess cash flow either to invest or pay debt, you will likely do well in the long run.
by FiveK
Mon Dec 04, 2017 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Book: "A Concise Guide to Taxes in Retirement" x Bruce Larsen
Replies: 9
Views: 1398

Re: Book: "A Concise Guide to Taxes in Retirement" x Bruce Larsen

fishboat wrote:
Mon Dec 04, 2017 3:54 pm
Other books/resources?
Outline of tax considerations for investors - Bogleheads.

Haven't read the book shown in the OP.
by FiveK
Mon Dec 04, 2017 10:56 pm
Forum: Investing - Theory, News & General
Topic: Formula to figure Roth or Traditional
Replies: 10
Views: 807

Re: Formula to figure Roth or Traditional

So, fivek, what's your suggestion for me? I'm leaning toward the 547Roth just to have some flexibility to help the kids' with college in case the 529s are not enough. Between my pension, wife's 403b, and my 401k (later on). I think we will be in decent shape. I suppose we my be in a higher tax brac...
by FiveK
Mon Dec 04, 2017 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Possibilities after Roth and 401k max
Replies: 9
Views: 1309

Re: Possibilities after Roth and 401k max

trix4jit wrote:
Mon Nov 27, 2017 11:18 pm
At this point, I'm not sure what options I should be taking into account after maxing my 401k and Roth contributions, respectively.
Investment Order and Prioritizing investments have some suggestions.