Search found 4796 matches

by FiveK
Sun Jun 17, 2018 6:46 pm
Forum: Investing - Theory, News & General
Topic: FIRECalc/Pension vs Lump Sum Question
Replies: 1
Views: 209

Re: FIRECalc/Pension vs Lump Sum Question

Since the pension is fixed and not adjusted for inflation, the 4% SWR is not a good comparison. Yes, exactly this. A pure math look (see the 'Misc. calcs' tab of the personal finance toolbox spreadsheet) is below. The blue curve is if your spouse predeceases you. The green curve is if your spouse s...
by FiveK
Sun Jun 17, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: How to prioritize 457, Roth/Regular 403 b and Roth IRA
Replies: 2
Views: 182

Re: How to prioritize 457, Roth/Regular 403 b and Roth IRA

rabidoctopi, welcome to the forum. For someone desiring very early retirement, traditional accounts, not Roth, are probably best. One exception might be this year, if you will have only ~1/2 year of income - but the saver's credit might still make traditional a winner. See Investment Order and links...
by FiveK
Sun Jun 17, 2018 11:08 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2405

Re: Why is risk adjusted return important?

dbr wrote:
Sun Jun 17, 2018 9:43 am
I'm answering someone's question. Other people will have to tell me what you do with it.
If risk adjusted return could provide a one-size-fits-all answer to "pay debt vs. invest," that would be significant.
by FiveK
Sun Jun 17, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2405

Re: Why is risk adjusted return important?

Possibly this method is corresponds best to the idea of "What return would I have if the risk were the same as something else I am comparing it to?": https://en.wikipedia.org/wiki/Modigliani_risk-adjusted_performance Based on that article, the Modigliani risk adjusted return of VTSAX (or similar to...
by FiveK
Sun Jun 17, 2018 7:02 am
Forum: Investing - Help with Personal Investments
Topic: 401 k to. Roth rollover - min taxes?
Replies: 12
Views: 585

Re: 401 k to. Roth rollover - min taxes?

Or your parents will. Might be worth reading about the 2018 kiddie tax - Google Search.
by FiveK
Sun Jun 17, 2018 6:43 am
Forum: Investing - Help with Personal Investments
Topic: How to prioritize paying down loans vs. savings
Replies: 7
Views: 819

Re: How to prioritize paying down loans vs. savings

If the student loan interest rate is already low enough, or you can refinance to make it so, with that combined income you should be able to fill all the normal tax-advantaged investment space: see Investment Order.
by FiveK
Sat Jun 16, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: NQDC Plan - Should I drop to to minimum for match?
Replies: 1
Views: 155

Re: NQDC Plan - Should I drop to to minimum for match?

Machine99, welcome to the forum. Much depends on the rest of your portfolio. Consider Investment Planning - Bogleheads.org and then the link at the bottom of that post. Having said that, some generic comments: - Have you asked the employer to convert to a safe harbor 401k? Under that setup, all empl...
by FiveK
Sat Jun 16, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: 47 and clueless - direction needed
Replies: 45
Views: 4682

Re: 47 and clueless - direction needed

I actually have not heard of savers tax credit until the response of this post. Someone mentioned that if my AGI was 33,000 and I contributed $2000 to my IRA or the other eligible retirement plans, I would have received the credit. Correct me if I'm wrong. I just want to go over this with last year...
by FiveK
Sat Jun 16, 2018 12:54 am
Forum: Investing - Help with Personal Investments
Topic: portfolio checkup - move more money to Roth?
Replies: 10
Views: 863

Re: portfolio checkup - move more money to Roth?

1. I am not sure if I should be moving a bit of money from IRA to Roth IRA? On the one hand, recent tax cut plus relatively stable future incoming potential, current tax rate might the lowest I see for a while unless I retire early or take long break from work (in general, I like my current work). ...
by FiveK
Fri Jun 15, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: If going Roth, do conversion or 403b?
Replies: 7
Views: 422

Re: If going Roth, do conversion or 403b?

My task will then be to decide whether doing pretax 403b + Roth conversion is more advantageous vs. doing the Roth 403 option. I guess is boils down to tax bracket and AGI. As grabiner said, "pretax 403b + Roth conversion" is equivalent to the Roth 403 option. See Traditional versus Roth - Boglehea...
by FiveK
Fri Jun 15, 2018 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: If going Roth, do conversion or 403b?
Replies: 7
Views: 422

Re: If going Roth, do conversion or 403b?

grabiner wrote:
Fri Jun 15, 2018 9:38 pm
These are equivalent from a tax perspective [compared with contributing to]...a traditional 403(b).
If that is the comparison, then yes.

If the comparison is to "make no contribution" then the conversion will increase taxable income by $10K while the Roth 403b will not change taxable income at all.
by FiveK
Fri Jun 15, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Personal finance HELP
Replies: 19
Views: 1216

Re: Personal finance HELP

I am unsure what to do with the rest of this money to make the best use for it. Any ideas are greatly appreciated! Here are a variety of good resources, starting with - what else? - the Getting started wiki: Getting started - Bogleheads Investment Order Stock Series www.etf.com/docs/IfYouCan.pdf
by FiveK
Fri Jun 15, 2018 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: If going Roth, do conversion or 403b?
Replies: 7
Views: 422

Re: If going Roth, do conversion or 403b?

Option 1) will not increase your taxes compared to doing nothing. Option 2) will increase your AGI and also require you to pay taxes on that income. +1 That's the big difference. It's unusual for taxable Roth conversions to be favorable while one is working, but unusual does not mean impossible.
by FiveK
Fri Jun 15, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: help deciphering past taxed IRA to roth conversion pros/cons
Replies: 6
Views: 439

Re: help deciphering past taxed IRA to roth conversion pros/cons

By rolling "the pre-tax amounts over which would avoid the tax-hit now" you mean the 7k in gains I've currently made on my 22k basis can be rolled over into a 403b if allowed by my plan, and then my 22k can be rolled over to a roth tax free? Yes. Alternatively, you mention "IF" I were to convert th...
by FiveK
Thu Jun 14, 2018 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: 47 and clueless - direction needed
Replies: 45
Views: 4682

Re: 47 and clueless - direction needed

Annual living expenses $1200.00 mnth (14,400 yr) which is being generous. Wow! That would impress even the folks at The Money Mustache Community . You might do a Case Study there and teach them a thing or two. ;) Some recommendations were VTSAX, VTI and Target Retirement 2040. The VTSAX and VTI alm...
by FiveK
Thu Jun 14, 2018 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: 47 and clueless - direction needed
Replies: 45
Views: 4682

Re: 47 and clueless - direction needed

FBLAX is back although it's advertised as front but I haven't seen any fees whatsoever on this unless I'm overlooking something....which is possible. It's possible that the load is being waived because you already have another fund with them. Class A shares (that's the "A" in Franklin Balanced A ) ...
by FiveK
Thu Jun 14, 2018 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: ~1 year from FIRE - Tax diversification strategy?
Replies: 24
Views: 2655

Re: ~1 year from FIRE - Tax diversification strategy?

I know I didn't explain this thoroughly, maybe someone can point you to the appropriate place in the Wiki... There is the Marginal tax rate wiki that addresses the general concept of marginal rates and how they can differ from nominal bracket rates. Tax law isn't the most straightforward thing (yes...
by FiveK
Thu Jun 14, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gains and Tax Bracket
Replies: 14
Views: 1471

Re: Long-term gains and Tax Bracket

Note this is using the Tax Computation Worksheet formulas. The picture using Tax Tables would be more jagged. While I compute tax to the penny using the tax brackets, IRS rules require using tax tables when taxable income is less than $100,000. Yes. I thought about modifying that spreadsheet to use...
by FiveK
Thu Jun 14, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K vs Taxable
Replies: 23
Views: 1328

Re: Help with 401K vs Taxable

thedane wrote:
Thu Jun 14, 2018 3:12 pm
Yes. Not sure what others end up doing... I feel as the 401K HCE limit kicks in rather low. Especially in higher income/cost of living areas.
Many employers have a safe harbor 401(k) that allows everyone to contribute at least the $18.5K.
by FiveK
Thu Jun 14, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Calculating the Roth conversion amounts
Replies: 11
Views: 552

Re: Calculating the Roth conversion amounts

Another question on this: while calculating the non-deductible contributions, say it's $5500 in 2010, is that all that is exempt from taxable event? What about the growth of it, now it's $6000? How does one calculate that and make it all exempt since the basis was nondeductible anyway? I apologize ...
by FiveK
Thu Jun 14, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Calculating the Roth conversion amounts
Replies: 11
Views: 552

Re: Calculating the Roth conversion amounts

To be clear: I isolate the non-deductible, keep it in the IRA, and rollover previously rolled over amounts to the 401K or 403b if it will allow it? This may have been implied, but to be sure: a) You roll over previously rolled over amounts and all earnings to the 401k. b) The only amount you should...
by FiveK
Thu Jun 14, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: "Bad" 401K or Taxable Account
Replies: 11
Views: 1039

Re: "Bad" 401K or Taxable Account

ExitStageLeft wrote:
Thu Jun 14, 2018 7:45 am
The calculation on which is better depends....
See [Wiki suggestion] Invest in taxable or 401(k)? - Bogleheads.org for a couple of spreadsheets referenced in that thread, which one may use to quantify one's own situation.
by FiveK
Thu Jun 14, 2018 12:15 am
Forum: Investing - Help with Personal Investments
Topic: 47 and clueless - direction needed
Replies: 45
Views: 4682

Re: 47 and clueless - direction needed

Pretty much agree with previous posters advice. One slight difference: if you put $2000/yr into a traditional IRA or 401k, that (assuming $33K gross income) would give you a $200 saver's credit and 22% savings. Beyond that $2000, if you can handle the cash flow, a Roth IRA or Roth 401k may make sens...
by FiveK
Thu Jun 14, 2018 12:02 am
Forum: Investing - Theory, News & General
Topic: When did you start teaching your kids about investing ?
Replies: 6
Views: 618

Re: When did you start teaching your kids about investing ?

1. We hope "from an early age, by us not being profligate spenders." But that's difficult to measure. Yes, they had saving's accounts, and some stock and saving's bonds gifted by relatives, but it's hard to say those made much of an impression. Realistically, the first lesson that probably took hold...
by FiveK
Wed Jun 13, 2018 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gains and Tax Bracket
Replies: 14
Views: 1471

Re: Long-term gains and Tax Bracket

So, for MFJ taxable income that includes LTCGs between 77,200 and 77,400 you have a LTCG rate of 15%, 3 points HIGHER than the ordinary income rate of 12? It depends.... E.g., assume $60K gross for either ordinary income or LTCGs. Then look at the marginal rate as the other income hits $41,200. Wit...
by FiveK
Wed Jun 13, 2018 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Confused about 2018 capital gains tax rules
Replies: 11
Views: 1216

Re: Confused about 2018 capital gains tax rules

I am asking about Federal Tax only. Is my understanding correct? You can generate a picture of tax rates on LTCGs for your situation. E.g., see the second picture in this post in Long-term gains and Tax Bracket - Bogleheads.org . That persons's situation differs from yours, but the tool referenced ...
by FiveK
Wed Jun 13, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2300

Re: converting some traditional IRA to Roth

No problem, glad I asked. Makes a big difference on how much conversions can be done this year. (I was pretty happy there for a moment, but after your clarification, now, not so much) :( Trying to keep all these different terms the IRS uses squared away is a daunting task for sure! :? Thanks! The t...
by FiveK
Wed Jun 13, 2018 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gains and Tax Bracket
Replies: 14
Views: 1471

Re: Long-term gains and Tax Bracket

Below are the marginal rates for your situation on LTCGs assuming you have $10K W-2 income. FiveK, the left side of your second chart looks strange. Why do you show a 7.5% marginal rate from $0 to about $4,000 where it spikes before dropping to 0%? First, great line drawings of the stacked tax zone...
by FiveK
Tue Jun 12, 2018 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)
Replies: 34
Views: 2696

Re: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)

When making the trad vs Roth decision, you don’t know when you will retire until fairly close to retirement and you don’t know what your spending needs will be. If you will withdraw it all to buy a spaceX ticket you want Roth funds. But if you live modestly, you don’t want to pay tax on a dollar co...
by FiveK
Tue Jun 12, 2018 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gains and Tax Bracket
Replies: 14
Views: 1471

Re: Long-term gains and Tax Bracket

For example, say I'm a single earner for 2018, and I only have a W-2 for $10,000, and LTG (long-term gains) of $50,000. This puts me in the 22% bracket. How much tax would I owe in this overly-simplified example? Agree with dodecahedron's $1410. Below are the marginal rates for your situation on W-...
by FiveK
Tue Jun 12, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401K vs Taxable
Replies: 23
Views: 1328

Re: Help with 401K vs Taxable

thedane wrote:
Tue Jun 12, 2018 12:14 pm
So would you agree that the below should be the best order of investment:
1: Fund 401K to employers match
2: Max out Roth IRA
3: Max out remainder 401K
4: IRA (?)
5: Taxable (?)
See Investment Order for common suggestions about this.
by FiveK
Tue Jun 12, 2018 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: "Bad" 401K or Taxable Account
Replies: 11
Views: 1039

Re: "Bad" 401K or Taxable Account

See Expensive or mediocre choices for some guidance on this.
by FiveK
Tue Jun 12, 2018 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: help deciphering past taxed IRA to roth conversion pros/cons
Replies: 6
Views: 439

Re: help deciphering past taxed IRA to roth conversion pros/cons

My understanding is I would have to file form 8606 for all prior years (2015-present), and then convert and file the 8606 for this year. In future years I would do the swift ~2 day turnaround IRA contribution and Roth IRA conversion etc, and file the 8606 annually. Is this correct? Yes. You could u...
by FiveK
Tue Jun 12, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2300

Re: converting some traditional IRA to Roth

No problem, glad I asked. Makes a big difference on how much conversions can be done this year. (I was pretty happy there for a moment, but after your clarification, now, not so much) :( Trying to keep all these different terms the IRS uses squared away is a daunting task for sure! :? Thanks! The t...
by FiveK
Tue Jun 12, 2018 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)
Replies: 34
Views: 2696

Re: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)

The point is that you can exert control over marginal rate in retirement with withdrawal strategies. Sure. In the extreme, not withdrawing anything from traditional accounts means that you never pay tax on that money at all. That leads to questions about what marginal rates your heirs will pay, and...
by FiveK
Tue Jun 12, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)
Replies: 34
Views: 2696

Re: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)

If all of your retirement accounts were Roth funds, you would be withdrawing money that would have been untaxed in the zero bracket but that you paid taxes on at your marginal rate at contribution time. Yes. You are taxed on withdrawals based on your aggregate tax rate not marginal tax rate. Not as...
by FiveK
Tue Jun 12, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2300

Re: converting some traditional IRA to Roth

I read many times "to retire early to have many years to do Roth conversions at lower tax rates". In the strictly financial sense and if you do not mind working, is it more advantageous to retire than to keep working/earning to do Roth conversion? Yes, you pay more taxes, but your net worth may be ...
by FiveK
Mon Jun 11, 2018 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding Estimated Tax Penalty - Safe Haven
Replies: 7
Views: 881

Re: Avoiding Estimated Tax Penalty - Safe Haven

If you can withhold enough from the RMD, that will work.

Rather than making estimated tax payments during the year (are you doing this because you can't withhold enough from the RMD alone?), it might be simpler to withhold more from the pension.
by FiveK
Mon Jun 11, 2018 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: Left Advisory Portfolio to do it myself and fear I made mess of things
Replies: 35
Views: 2585

Re: Left Advisory Portfolio to do it myself and fear I made mess of things

what do you mean by OP? Original Post or Original Poster. See Abbreviations and Acronyms - Bogleheads . Are target funds really a good idea which is what Fidelity Freedom Funds are (I will look at the index freedom funds as indicated). Are they really better than trying to piece together 3 or 4 fun...
by FiveK
Mon Jun 11, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Confused by Two DinkyTown Calculators
Replies: 8
Views: 1220

Re: Confused by Two DinkyTown Calculators

Thanks for the comments to everyone. Cruncher, I was hoping you'd chime in on this thread so big thanks to you as well. I've been thinking more about this and perhaps the easiest thing to do is determine the math to calculate monthly available spending dollars based on these data points... Starting...
by FiveK
Mon Jun 11, 2018 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a tax adviser?
Replies: 4
Views: 533

Re: How to find a tax adviser?

I can't count the number of times that I had to do an amended return for someone who had free help from a volunteer (like AARP tax help) where mistakes were made. I would not recommend that as an option. It all depends who one gets, whether at a tax office or a VITA/AARP site. There are no doubt ex...
by FiveK
Mon Jun 11, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2300

Re: converting some traditional IRA to Roth

Please explain why you wouldn't put more than $18.5k in every year. I ask because I've done that plus the over 50 catch up and don't plan to stop. I'm 61. I have too much in a tIRA to do back door roths (2 commas worth) and make too much to do a normal roth. If one in a relatively high bracket whil...
by FiveK
Mon Jun 11, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Left Advisory Portfolio to do it myself and fear I made mess of things
Replies: 35
Views: 2585

Re: Left Advisory Portfolio to do it myself and fear I made mess of things

The Fidelity fund has a .66% ER and the Vanguard fund has a .14%. It appears there is confusion between FFTWX - Fidelity Freedom ® 2025 Fund | Fidelity Investments for FQIFX - Fidelity Freedom ® Index 2025 Fund - Investor Class | Fidelity Investments . One has a .66% ER and the other has a .15% ER....
by FiveK
Mon Jun 11, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2300

Re: converting some traditional IRA to Roth

Charon wrote:
Mon Jun 11, 2018 1:17 pm
(Although you still have to consider marginal rate vs. average rate, which you haven't. This is discussed on the wiki page...)
Hmm - which wiki page is that? We'll have to correct it if that is what it says. :?
by FiveK
Mon Jun 11, 2018 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: ~1 year from FIRE - Tax diversification strategy?
Replies: 24
Views: 2655

Re: ~1 year from FIRE - Tax diversification strategy?

First, see How to withdraw funds from your IRA and 401k without penalty before age 59.5 . You can have penalty-free withdrawals of large fractions of your tIRA and Roth accounts at any age. Not tax-free from the tIRA, though, which leads to the main question. The percentages are much less important ...
by FiveK
Mon Jun 11, 2018 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a tax adviser?
Replies: 4
Views: 533

Re: How to find a tax adviser?

You might try Free Tax Return Preparation for You by Volunteers | Internal Revenue Service for the tax prep issue. Don't know how many of those sites are open this time of year. Also might be worth posting the tax advice question here. If you get a sensible answer then you're done. If not, you're no...
by FiveK
Mon Jun 11, 2018 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: converting some traditional IRA to Roth
Replies: 45
Views: 2300

Re: converting some traditional IRA to Roth

And of course you have to keep in mind what's being paid at the overall tax rate vs. the marginal rate. Actually you don't, unless you are committing to do in all subsequent years what you choose to do this year. You could do that, but why would you? The overall tax rate is irrelevant because it in...
by FiveK
Sun Jun 10, 2018 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Left Advisory Portfolio to do it myself and fear I made mess of things
Replies: 35
Views: 2585

Re: Left Advisory Portfolio to do it myself and fear I made mess of things

delamer wrote:
Sun Jun 10, 2018 5:17 pm
For now, move all your IRA funds into the Fidelity Freedom 2025 Fund....
I suspect the intended fund is the Fidelity Freedom® Index 2025 Fund.

Whether that stock/bond ratio fits one's desire is another question.