Search found 2320 matches

by FiveK
Wed Jun 21, 2017 9:58 pm
Forum: Local Chapters and Bogleheads Community
Topic: Online group meetings via web conference? [Virtual online chapter]
Replies: 41
Views: 3750

Re: Online group meetings via web conference? [Virtual online chapter]

lazylarry wrote:Alright so we had 6 people who were interested - and all able to make date of June 21st at 8pm EST on the Zoom platform.
Worked great - thanks lazylarry for coordinating.
by FiveK
Wed Jun 21, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Help with %s | Traditional vs. Roth 401k
Replies: 45
Views: 1841

Re: Asset Allocation - Help with %s

MindTheGAAP wrote:So it seems like my best option might be to max out traditional contributions and use that to lower our taxable income enough to contribute to Roth IRAs with tax savings, correct?
Yes - good luck!
by FiveK
Wed Jun 21, 2017 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Help with %s | Traditional vs. Roth 401k
Replies: 45
Views: 1841

Re: Asset Allocation - Help with %s

Just curious: who are the many (or any) who believe someone in the 28% bracket (and perhaps higher marginal rate), without a defined benefit pension, should contribute to a Roth 401k? And if they so believe, what is the reasoning? See Traditional versus Roth - Bogleheads . Those who believe that si...
by FiveK
Wed Jun 21, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 989

Re: 20 pct bonus on fixed index annuity

hoops777 wrote:I do not have any specifics other than what I presented.
Unfortunately, the devil usually is in the details on these things. Caveat emptor.
by FiveK
Wed Jun 21, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - Help with %s | Traditional vs. Roth 401k
Replies: 45
Views: 1841

Re: Asset Allocation - Help with %s

In our bracket it seems like many believe it to be a toss-up as to which contribution to use. Particularly since we both max out. Just curious: who are the many (or any) who believe someone in the 28% bracket (and perhaps higher marginal rate), without a defined benefit pension, should contribute t...
by FiveK
Wed Jun 21, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 989

Re: 20 pct bonus on fixed index annuity

hoops777 wrote:How does this end after 10 years with an average market based on SP500.
What is the interest crediting formula used by the annuity, and what are the values of the parameters in that formula?
by FiveK
Wed Jun 21, 2017 2:04 am
Forum: Investing - Theory, News & General
Topic: Explain table in book -- Roth vs IRA?
Replies: 3
Views: 487

Re: Explain table in book -- Roth vs IRA?

Perhaps if you posted what's in table 10-2....
by FiveK
Wed Jun 21, 2017 2:02 am
Forum: Investing - Help with Personal Investments
Topic: 2017 SS calculator from POF
Replies: 1
Views: 485

Re: 2017 SS calculator from POF

See also the SocialSecurity tab in the spreadsheet Tools and calculators - Personal_finance_toolbox - Bogleheads, or the Social Security Detailed Calculator, etc. All roads lead to Rome. :happy
by FiveK
Tue Jun 20, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Fund of Fund Expense Ratio
Replies: 12
Views: 962

Re: Fund of Fund Expense Ratio

To verify, calculate the weighted average of the underlying fund fees. So I did that for the reference fund and got a weighted expense ratio of .086% which supports the conclusion that the reported .17% is a composite that includes all funds (including the added cost of the 529 overhead). Thanks! I...
by FiveK
Tue Jun 20, 2017 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: Fund of Fund Expense Ratio
Replies: 12
Views: 962

Re: Fund of Fund Expense Ratio

Soooooo, does that mean that 36% of my money would have an expense ratio of BOTH .18% and .17% or, is .17% a Vanguard calculated composite that includes the expenses of all underlying funds? The latter. To verify, calculate the weighted average of the underlying fund fees. E.g., for Vanguard - Vang...
by FiveK
Tue Jun 20, 2017 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Income Tax Calculation?
Replies: 17
Views: 1406

Re: Income Tax Calculation?

#Cruncher wrote:To help others use it, here are some hints:....
Nicely written!

If you have suggestions for the author of that tool, Case Study Spreadsheet updates is a thread for that purpose. Responses to requests seem reasonable.
by FiveK
Mon Jun 19, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking 2017 IRA contribution clarification
Replies: 7
Views: 388

Re: Seeking 2017 IRA contribution clarification

I do have a Roth IRA and a traditional IRA. I have not contributed for 2017. If I understand correctly, I can NOT do a backdoor Roth IRA. You can do a backdoor Roth. Whether you should do one is another question, the answer to which depends in part on the size of your current tIRA vs. the amount yo...
by FiveK
Mon Jun 19, 2017 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Income Tax Calculation?
Replies: 17
Views: 1406

Re: Income Tax Calculation?

I just entered (using TaxCaster) $20,000 in long-term capital gains/qualified dividends instead of taking an extra $20,000 from 401k and the tax is $7,154. So selling a few shares from my after-tax mutual fund appears to be a much better strategy. Is this because a long-term capital gain or stock q...
by FiveK
Sun Jun 18, 2017 11:55 pm
Forum: Personal Finance (Not Investing)
Topic: Income Tax Calculation?
Replies: 17
Views: 1406

Re: Income Tax Calculation?

Question: Why does an additional $20,000 distribution increase the total tax by so much when we are still within the 15% Marginal Tax Rate? My obviously incorrect assumption is an increased tax of $3,000. (15% of 20,000) As already noted, the 15% bracket does not guarantee a 15% Marginal tax rate ....
by FiveK
Sat Jun 17, 2017 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4082

Re: URGENT TIME SENSITIVE: Deathbed Roth

... Using the tax calculations for 2017 ... give $34K in tax. ... Given that, there may not be much difference in the heirs' after tax results. .... The benefit is much more than just the approximately 5% difference in the tax rate, since the IRA doesn't have to be distributed all at once upon deat...
by FiveK
Sat Jun 17, 2017 12:06 am
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4082

Re: URGENT TIME SENSITIVE: Deathbed Roth

IRA: $150,000 (all taxable) TaxCaster w/ SS of $22k, medical expenses of $30k, and property taxes of $5k estimates tax bill of: $31,000 With those numbers, and assuming single filer age 70, TaxCaster gave $32,881. But that's for 2016. In 2017 the medical deduction subtracts 10% of AGI for everyone,...
by FiveK
Fri Jun 16, 2017 12:03 pm
Forum: Investing - Theory, News & General
Topic: Roth 401k > Traditional 401k
Replies: 58
Views: 3247

Re: Roth 401k > Traditional 401k

One thing a lot of other people forget is marginal vs. effective tax rate. Assuming you have no other source of income your Roth is always taxed at your marginal rate vs. when you withdraw in retirement you will withdraw some at 0%. Obviously this is just one case so YMMV. People rarely forgot that...
by FiveK
Thu Jun 15, 2017 12:37 am
Forum: Investing - Help with Personal Investments
Topic: Can we discuss Investment Order
Replies: 22
Views: 2386

Re: Can we discuss Investment Order

Here is what I told my son who joined the workforce recently. ... 4. He is on parent's health insurance, so no question of HSA. If the parent's insurance is an HDHP, and the son is no longer a dependent, the son may have his own HSA - and contribute the family maximum. This is independent of what t...
by FiveK
Tue Jun 13, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Max out 401k or save for Roth Conversion?
Replies: 3
Views: 516

Re: Max out 401k or save for Roth Conversion?

dawnmo wrote:...we might fall into the 15% bracket for a few years upon retirement drawing only from our IRA (at 60-62) prior to collecting pension (65) and SS (70).
What do you expect for ages 63-64?
by FiveK
Mon Jun 12, 2017 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax
Replies: 8
Views: 998

Re: Kiddie Tax

How much of the unrealized income should I realize this year and next to make the total tax burden as low as possible? (Parent tax is max at >40%). Or should I not realize any of it? We plan on using it in the next 5 years to help pay for college. The goals of "tax burden as low as possible&qu...
by FiveK
Sun Jun 11, 2017 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Can we discuss Investment Order
Replies: 22
Views: 2386

Re: Can we discuss Investment Order

We're sort of skipping steps by maxing out the 401K ($18,000) before other options. Not sure that is the best option, but it's what we decided & we increased the contribution online. Given the very good expense ratios in your 401k, putting it before the IRA is very reasonable. An HSA allows you...
by FiveK
Sun Jun 11, 2017 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Can we discuss Investment Order
Replies: 22
Views: 2386

Re: Can we discuss Investment Order

Here is what I told my son who joined the workforce recently. ... 4. He is on parent's health insurance, so no question of HSA. If the parent's insurance is an HDHP, and the son is no longer a dependent, the son may have his own HSA - and contribute the family maximum. This is independent of what t...
by FiveK
Sun Jun 11, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: W4 exemptions question
Replies: 13
Views: 771

Re: W4 exemptions question

delamer wrote:Try the TaxCaster app (free) to get a good estimate of federal taxes that you will owe for this year. And then adjust your withholding accordingly.

Note that TaxCaster ignores certain things (e.g., saver's credit) that might be germane to someone just starting.
by FiveK
Sun Jun 11, 2017 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: W4 exemptions question
Replies: 13
Views: 771

Re: W4 exemptions question

I looked at the math you did (thanks so much for that) and it makes sense. I used the IRS withholding calculator and it also said to do 7 with-holdings for the remainder of this year so I think I should do that. Next year I'll have to re-calculate.... Looks good, and by next year you'll be an exper...
by FiveK
Sun Jun 11, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: W4 exemptions question
Replies: 13
Views: 771

Re: W4 exemptions question

I haven't started contributing to my 403b yet (had $0 in savings prior to starting my job, so I'm building up an emergency fund for now, and employer won't match until I've been there for 1 year) Seems reasonable. Here's a more detailed break down. ... Based on replies so far, what do you think you...
by FiveK
Sun Jun 11, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Can we discuss Investment Order
Replies: 22
Views: 2386

Re: Can we discuss Investment Order

Sure - what would you like to discuss? Curious about thoughts from Bogleheads on investment order recommendations. The MMM one goes into more detail than Prioritizing investments - Bogleheads - whether that is good or bad may be in the eye of the beholder. I don't see any glaring differences betwee...
by FiveK
Sun Jun 11, 2017 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: New Job & Pay Increase - Stick with Roth?
Replies: 6
Views: 664

Re: New Job & Pay Increase - Stick with Roth?

I was previously making a salary in the mid 30s but a new job has bumped my pay to 50K. I believe this now puts me in the 25% tax bracket instead of 15%. It does, but not by very much. The brackets are based on taxable income. In the simplest case, that would be your gross income minus a $6350 stan...
by FiveK
Sun Jun 11, 2017 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Can we discuss Investment Order
Replies: 22
Views: 2386

Re: Can we discuss Investment Order

Sure - what would you like to discuss?
by FiveK
Sun Jun 11, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: W4 exemptions question
Replies: 13
Views: 771

Re: W4 exemptions question

I recently started a job last month and make approximately $2,500 a week Before taxes. I initially claimed "0" on my exemption to avoid owing $$ next year. However, I'm only clearing about $1,600/week. I started 1 month ago and they've withheld $3,250 in tax thus far. $2500/wk = $130000/y...
by FiveK
Sat Jun 10, 2017 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

KATNYC wrote:https://www.studentloansguy.com/401k-invest-vs-student-loans/

401(k) Allocations vs. Student Loan Repayment
...

Seems consistent with Investment Order and Prioritizing investments.
by FiveK
Sat Jun 10, 2017 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Saltatory decumulation as a tax strategy.
Replies: 7
Views: 1040

Re: Saltatory decumulation as a tax strategy.

Here are three ways we could drawdown $210,740 over 4 years (assume zero inflation): if we draw $52,685 each year for 4 years, our total income tax would be: $29,711 If we draw $147,635 for 1 year and $21,035 for 3 years, our total income tax would be: $29,149 If we draw $72,845 for 2 years and $32...
by FiveK
Fri Jun 09, 2017 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Estimating Social Security Benefits
Replies: 9
Views: 615

Re: Estimating Social Security Benefits

Is the SSA calculator in today's dollars or inflation adjusted? For example, if I retire at 70 my benefit is estimated to currently be $3700 a month. More than I expected if that is indeed in today's dollars and not inflation adjusted. If you are referring to the anypia program, the program gives y...
by FiveK
Fri Jun 09, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Estimating Social Security Benefits
Replies: 9
Views: 615

Re: Estimating Social Security Benefits

That is a good thread. If you want a working example that lets you "see inside" the calculations, the SocialSecurity tab in the spreadsheet at Tools and calculators - Personal_finance_toolbox - Bogleheads seems to match the detailed SS program very well.
by FiveK
Fri Jun 09, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

If op decides to invest is lifestrategy/Target fund the best way to go in taxable? Speaking of subjective questions.... :wink: Particularly when the amounts are "small" the simplicity of lifestrategy/Target funds supports that approach. Defensible cases can also be made to hold the underl...
by FiveK
Fri Jun 09, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

After 4 years the net worth would be tied up in the house. It wouldn't be blank. Maybe you're missing a line to account for that in your example. They would have about 15k in the house on the investing side versus 180k on the $0 mortgage side. So 180k versus 24k. Assuming the 6% return over 4 years...
by FiveK
Thu Jun 08, 2017 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

Why 30 years of benefits for the loan payoff, but only 4 years of investment returns? To avoid "apples vs. oranges" the same length of time should be used for both scenarios. It's the same amount of time, 4 years. Payoff would be 4 years, until 2021. Instead of taking 30 years to pay, we'...
by FiveK
Thu Jun 08, 2017 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

Just curious: how much would you earn if you received the median historical return on investments over the same time it will take to pay off the loans? If we do not pay off all the loans in 4 years (saving $80K in interest over 30 years) we could invest and make about $30K in 4 years at 6%. Why 30 ...
by FiveK
Thu Jun 08, 2017 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

Not sure why you'd prioritize...investing in brokerage accounts prior to doing that. Some people prefer the guaranteed ROI of a loan payoff. Some people prefer the better returns likely (but not guaranteed) from stock investment. Both are defensible, depending on what assumptions one makes. By my c...
by FiveK
Thu Jun 08, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

Student loan interest up to $2,500 paid is [fully] deductible on your federal income tax if filing jointly and your MAGI does not exceed [$135K. The deductibility phases out over the next $30K (again if MFJ), becoming not at all deductible after reaching $165K MAGI] . Mortgage interest paid is tax ...
by FiveK
Thu Jun 08, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Work Roth 401k, check my math
Replies: 14
Views: 884

Re: Work Roth 410k, check my math

Marjimmy wrote:Currently I am in the 25% tax bracket.

The following funds they offer are listed below:
STOCKS
...
TRP EQUITY INDEX TRUST CL A (XAT) ER 0.13%

Given that, do you have any reason to do other than 100% traditional into the listed fund? There could be valid reasons, so just checking...?
by FiveK
Thu Jun 08, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

Meg77 wrote:Not sure why you'd prioritize...investing in brokerage accounts prior to doing that.
Some people prefer the guaranteed ROI of a loan payoff. Some people prefer the better returns likely (but not guaranteed) from stock investment. Both are defensible, depending on what assumptions one makes.
by FiveK
Thu Jun 08, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: 401K optimization questions
Replies: 3
Views: 407

Re: 401K optimization questions

Does the $53K IRS limit for 401K include employer matching contributions? ... Also assuming if periodic withdrawals of after tax contributions are disallowed, the after tax contributions are still worthwhile as backdoor Roth conversions of those contributions could be made after separation from the...
by FiveK
Thu Jun 08, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Work Roth 401k, check my math
Replies: 14
Views: 884

Re: Work Roth 410k, check my math

Can you explain your thought process for why you suggested a traditional might be better? If you contribute 0% to traditional and 100% to Roth your tax rate in retirement is likely to be very low. A lower tax rate when withdrawing, compared with your tax rate while contributing, means a traditional...
by FiveK
Thu Jun 08, 2017 12:41 am
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2521

Re: Pay off debts or Invest?

Questions: 1. Does it make sense to pay off/down on the student loans aggressively before opening a taxable account? The account will hold a Vanguard Target Date fund or Life Strategy fund. We just closed a taxable account at TD Ameritrade that was sitting in cash (trading account). 2. We plan to p...
by FiveK
Wed Jun 07, 2017 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Can I really pay no capital gains on $100k?
Replies: 31
Views: 5885

Re: Can I really pay no capital gains on $100k?

You guys are such a remarkable wealth of information. My divorce was finalized in 2015, but for the last two years I just gave it to a CPA friend of friend, so I didn't really explore how to file myself. Each time, it seemed more of tax preparation, rather than comprehensive tax advice. I I will de...
by FiveK
Wed Jun 07, 2017 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: question about Social Security indexing
Replies: 4
Views: 672

Re: question about Social Security indexing

Artful Dodger wrote:Simple answer - yes. Obviously affected by your current, past, and future actual earnings.
+1

Download the Social Security Detailed Calculator if more details are desired.
by FiveK
Wed Jun 07, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: 401K optimization questions
Replies: 3
Views: 407

Re: 401K optimization questions

Our current plan is to contribute pre-tax 401K the remaining $5,822 to take my new employer 401K to the IRS max (this coincidentally maximizes my company match as well). We could use guidance on how to best leverage the Roth and after tax 401K options for 2017 and 2018. Your plan looks good. For gu...
by FiveK
Wed Jun 07, 2017 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: i-ORP: Stock rate of return input?
Replies: 3
Views: 325

Re: i-ORP: Stock rate of return input?

JohnFiscal wrote:Would it seem to be too conservative to enter (1) Constant Spending with (2) Stock Investment rate of return = 2% and (3) Income/Spending Inflation Rates as "0". Too conservative a ROR? :?:
No, not if your other assumptions are "reasonable".
by FiveK
Wed Jun 07, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Work Roth 401k, check my math
Replies: 14
Views: 884

Re: Work Roth 410k, check my math

Am I missing something? It seems foolish of me to contribute to my companies Roth 401k and should just continue to invest in my Roth and Taxable through Vanguard. If something is unclear here let me know, thanks for the help. See [Wiki suggestion] Invest in taxable or 401(k)? - Bogleheads.org and t...
by FiveK
Tue Jun 06, 2017 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable or Tax advantaged re. early retirement
Replies: 5
Views: 649

Re: Taxable or Tax advantaged re. early retirement

Mad fientist has a great post on several different ways to get your tax advantaged money before 59.5, including Roth conversion ladders, 72t distributions, and paying the 10% penalty. http://www.madfientist.com/how-to-access-retirement-funds-early/ +1 See also How to withdraw funds from your IRA an...

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