Search found 3129 matches

by Peter Foley
Wed May 04, 2016 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rates
Replies: 5
Views: 529

Re: Safe withdrawal rates

For planning purposes I look to the Trinity Study and the 4% rule. For an application of swr for a retiree, it is a lot more complicated. I think Jonathan Guyton has written a number of good articles on the subject. I particularly like the following: Withdrawal Rules: Squeezing More From Your Retire...
by Peter Foley
Wed May 04, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Good book(s) for the soon to be retired?
Replies: 23
Views: 2532

Re: Good book(s) for the soon to be retired?

As one of the chapter authors, I too would recommend the Bogleheads' Guide to Retirement Planning. While researching information for the Planning Process Chapter, I tried to emphasize the need to plan your life in retirement at the same time you plan for your savings in retirement. A disconnect coul...
by Peter Foley
Wed May 04, 2016 8:53 am
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meeting May 7th
Replies: 2
Views: 214

MN Bogleheads Meeting May 7th

Hello, MN Bogleheads! Our Spring meeting agenda has been finalized. Here are the logistics: Who: All MN Bogleheads & guests What: Quarterly MN Boglehead meeting Where: Minnetonka, Ridgedale Library, Rohlf Meeting Room link: https://goo.gl/maps/2B8HWcefHgp When: Saturday, May 7th, 10:00 - noon Wh...
by Peter Foley
Tue May 03, 2016 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki article for new investors - Risk tolerance
Replies: 11
Views: 823

Re: Wiki article for new investors - Risk tolerance

Thanks to all for filling in the gap. I'm aware of Fallible's interest and research with regards to behavioral finance. This is a nice addition to support that aspect of investing. When talking to new investors I like to emphasize that there are really two risks, one is market risk which can be meas...
by Peter Foley
Tue May 03, 2016 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest or Roth conversion
Replies: 8
Views: 533

Re: Tax gain harvest or Roth conversion

Interesting question - looking at the math is certainly a very valid approach. Celia, however, hints at other considerations. I would expand on that. If you do not take the tax gain harvesting route 1. You may be able to donate some shares to a donor advised fund and substitute that for some of your...
by Peter Foley
Mon May 02, 2016 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Revisiting “Could I retire…. next week?” two years later
Replies: 12
Views: 3439

Re: Revisiting “Could I retire…. next week?” two years later

I think your AA is a little aggressive for a retiree of your age. However, with your guaranteed income stream, I would not worry. Some people consider a guaranteed income stream to be a bond equivalent. With budget needs of $61k, why are you looking at $80k of withdrawal? If you stick with the 61k f...
by Peter Foley
Sun May 01, 2016 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: Re-balancing request
Replies: 6
Views: 409

Re: Re-balancing request

I too think the Lifestyle growth approach is fine. At a minimum, if your are going to continue to hold hold segregated funds, you should hold your bond allocation in your tax deferred accounts and your stocks in your Roth accounts. One usually withdraws from Roth accounts last so having stocks there...
by Peter Foley
Sun May 01, 2016 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: IRA or Taxable ?
Replies: 11
Views: 795

Re: IRA or Taxable ?

Just so you are aware . . . there are a number of proprietary Schwab index funds that are very low cost. I'be been investing in the Schwab 1000 fund since inception (1991).
by Peter Foley
Sun May 01, 2016 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Conflicted about retirement withdrawal strategy
Replies: 11
Views: 2065

Re: Conflicted about retirement withdrawal strategy

dbr wrote: Retirees sometimes find themselves with a window between retirement and RMD's where conversion to Roth or an outright withdrawal makes sense. You pretty much have to lay out a plan for that period of time and see what the tax results might be year on year. and randomguy wrote: The convent...
by Peter Foley
Sat Apr 30, 2016 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio help
Replies: 3
Views: 381

Re: Portfolio help

I will echo iceport's advice. Leave taxable alone if you can fully fund the other accounts. As the other accounts grow with your contributions, you may want to make an effort to reduce your bond holdings in your taxable account. That is the traditional approach - it is not a mandatory approach, just...
by Peter Foley
Sat Apr 30, 2016 8:01 pm
Forum: Investing - Theory, News & General
Topic: Classic Bernstein 1 — Asset Allocation and Time Horizon
Replies: 46
Views: 4725

Re: Classic Bernstein — Asset Allocation and Time Horizon

Thanks for posting. You provided a very good explanation of what the graph shows.
by Peter Foley
Fri Apr 29, 2016 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: What's next? [investment choices]
Replies: 5
Views: 478

Re: What's next? [investment choices]

While you don't provide details on your employer plan investment options and expenses, I would be inclined to fund a low cost index fund in a regular 401k. If your commissions are relatively stable, you are solidly in the 25% tax bracket where it makes sense to go the tax deferred route.
by Peter Foley
Fri Apr 29, 2016 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed AA for life
Replies: 10
Views: 1096

Re: Fixed AA for life

mhc wrote I'm not a REIT or international bond fan. I would be closer to the following if I had to choose an AA for life: 40% TSM 20% TISM 40% TBM I concur for much the same reason. I also agree with Pharmacist that 50% bonds is too conservative to hold for a lifetime. I just can't see 50% bonds in ...
by Peter Foley
Fri Apr 29, 2016 11:22 am
Forum: Investing - Theory, News & General
Topic: When to begin taking Social Security payments?
Replies: 31
Views: 1652

Re: When to begin taking Social Security payments?

SS write: "If you live to the average life expectancy for someone your age, you'll receive about the same amount in lifetime benefits. It doesn't matter if you choose to start receiving benefits at age 62, full retirement age, age 70, or any age between. The amount of your monthly benefit, howe...
by Peter Foley
Thu Apr 28, 2016 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Help investing at age 62
Replies: 4
Views: 561

Re: Help investing at age 62

At your age (I'm a couple years older so I'm speaking from experience) I think simplification is a key ingredient. The three fund portfolio is fine. I personally would go 40% Total Stock Market, 10% Total International and 50% Total bond market. If you want to complicate things just a little, split ...
by Peter Foley
Thu Apr 28, 2016 5:15 pm
Forum: Personal Consumer Issues
Topic: Consumer Reports Magazine & Website
Replies: 99
Views: 5077

Re: What's become of Consumer Reports?

I too stopped subscribing after 30+ years. About 3-4 years ago they did a makeover - presumably to enhance readability. What I noticed was the increase in the use of charts, many of which failed to illustrate the article's conclusion or data set. I wrote to them about the changes and pointed to spec...
by Peter Foley
Wed Apr 27, 2016 8:36 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1820

Re: Handling RMDs

celia wrote: If doing charitable donations, this only takes effect after you are age 70 1/2. The custodian (eg,Vanguard) must send them directly to the charity. The funds should not go through any of your non-retirement accounts for the donation to be tax-free to you and the charity. This is correct...
by Peter Foley
Wed Apr 27, 2016 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Specific funds vs retirement fund question.
Replies: 12
Views: 904

Re: Specific funds vs retirement fund question.

I suggest you look up each of the funds on the Vanguard Web site. The description of the fund will tell you how much is invested in stocks and how much in bonds. The 2030 fund, for example is about 80% stocks. If you are aiming for a little more conservative approach try the 2025 or the 2020 fund. Y...
by Peter Foley
Wed Apr 27, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1820

Re: Handling RMDs

Perhaps this is a bit of a red herring in your circumstance, but there are a couple of additional factors/possibilities to consider. For an IRA invested moderately (say 50/50 AA) your account will likely continue to grow in the first 5 years as RMD withdrawal rates average under 4% and the portfolio...
by Peter Foley
Sat Apr 23, 2016 10:31 am
Forum: Investing - Theory, News & General
Topic: Is Coffeehouse Portfolio Not Preferred by BHs?
Replies: 54
Views: 5316

Re: Is Coffeehouse Portfolio Not Preferred by BHs?

Again welcome.

There are many BH style portfolio options. If you have not checked out the Wiki, here is a link to a number of them:

https://www.bogleheads.org/wiki/Lazy_portfolios

If you explore the Wiki a bit you will find that it is a really valuable resource.
by Peter Foley
Fri Apr 22, 2016 8:00 pm
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 7407

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

Bertilak wrote: About VWR: My investment goals are to allow me to spend as needed, not as allowed, so to me a VWR strategy is a form of failure. To me, the purpose of a strategy is to AVOID variable income, at least for the portion of income needed to cover "non-negotiable" expenses (which...
by Peter Foley
Thu Apr 21, 2016 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: When take out pension
Replies: 8
Views: 839

Re: When take out pension

I understood them to be talking about later as a period where they would have two pensions, possibly rental income, two SS benefits, and RMD's. That could easily put them into a higher tax bracket than now.
by Peter Foley
Thu Apr 21, 2016 4:54 pm
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 7407

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

terrabiped wrote: Google "Reducing Retirement Risk with a Rising Equity Glide-Path" by Wade D. Pfau. The strategy he describes makes a lot of sense to me. I agree. This is a follow up to an earlier post I made on this subject. The MN Bogleheads' group did a presentation regarding AA glide ...
by Peter Foley
Thu Apr 21, 2016 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: EDITED Need help to simplify portfolio for retirement in 5 yrs or less.
Replies: 6
Views: 782

Re: Need help to simplify portfolio for retirement in 5 yrs or less.

Welcome to the forum. A little guidance about posting. You will get more responses if you do not use stock and mutual fund symbols. I would guess that few know them by heart and it is an effort to look them up. As to the taxable trust. Could you edit the post to add an approximate total. $3 million ...
by Peter Foley
Thu Apr 21, 2016 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: When take out pension
Replies: 8
Views: 839

Re: When take out pension

You are on target with your Roth conversion strategy. I would also be inclined to delay the pension. You could take 25k from the husband's deferred account (401k/403b/457b) for the next few years to cover your expenses. [I suggest 25k/years because you will have at least 15% in taxes on that withdra...
by Peter Foley
Thu Apr 21, 2016 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Service to simplify brokerage statements for mom?
Replies: 12
Views: 883

Re: Service to simplify brokerage statements for mom?

Any chance you could opt for electronic statements and then create a template in Word or Excel that would simplify them?
by Peter Foley
Thu Apr 21, 2016 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Quick tax question
Replies: 2
Views: 337

Re: Quick tax question

Yes it may be possible if you are near the break points in terms of tax brackets. Perhaps you were in the 15% bracket when you did the tax loss harvest and reduced your ordinary income. Now you are in the 25% ordinary income bracket where long term capital gains are taxed at 15%. While the tax rates...
by Peter Foley
Thu Apr 21, 2016 9:38 am
Forum: Investing - Theory, News & General
Topic: Recommended 529?
Replies: 33
Views: 3246

Re: Recommended 529?

JMLA wrote: JLMA » Wed Apr 20, 2016 6:56 pm Peter Foley wrote: After doing some research we recommended New York to my daughter. why not Utah, Jorge Luis Borges? :) Los dos programas se parecen mucho y era difícil escoger. Si me recuerdo bien, prefería las opciones/ofertas de NY. Es interesante que ...
by Peter Foley
Tue Apr 19, 2016 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing: Tax consequences
Replies: 36
Views: 1749

Re: Rebalancing: Tax consequences

My approach is to use 5% rebalancing bands. I only rebalance in major assets classes, stocks and bonds. So in your situation I would not rebalance by buying and selling until equities reached 75%. I would avoid rebalancing in a taxable account if I could. This leaves a couple of options. As noted by...
by Peter Foley
Tue Apr 19, 2016 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Got laid off, when can I file for unemployment?
Replies: 44
Views: 4586

Re: Got laid off, when can I file for unemployment?

I used to work in Unemployment Insurance. In most states you must be laid off to file for benefits. This is because the start date for an unemployment insurance claim is the Sunday of the week in which you get laid off. Again, in most states, if you have earnings during a week that exceed your weekl...
by Peter Foley
Mon Apr 18, 2016 11:04 pm
Forum: Personal Consumer Issues
Topic: Coin Collecting (will coins increase or decrease in value?)
Replies: 36
Views: 3052

Re: Coin Collecting (will coins increase or decrease in value?)

I do not know the answer to your question. That being said . . . The buy-sell margin is huge making coins a relatively poor investment. Coin grading is as much art as science. For higher value coins the difference of one grade in terms of price can be huge. You have to be really good at grading if y...
by Peter Foley
Mon Apr 18, 2016 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: AA question? [Asset Allocation]
Replies: 4
Views: 544

Re: AA question? [Asset Allocation]

60/40 is about right for your age. As you are suggesting, it is a little better for tax efficiency to keep your bond allocation in tax deferred - although with interest rates so low this is not as big an issue as it might be. I don't do a tax adjusted asset allocation. I have about 2/3 of my portfol...
by Peter Foley
Mon Apr 18, 2016 10:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Long-term Allocation
Replies: 30
Views: 1753

Re: Help with Long-term Allocation

I'm okay with your proposed AA at your age. In part because of your age I would also agree with a small value tilt. I'm not a fan of emerging markets - in part because I really don't trust the accounting standards that may be used. But that does not mean my hesitation is valid. I do strongly believe...
by Peter Foley
Mon Apr 18, 2016 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: How To Find My (retirement) Number?
Replies: 64
Views: 4609

Re: How To Find My (retirement) Number?

The "number" is highly lifestyle dependent. One approach was published in Money magazine in May of 2013. Savings should be: Age 30 .6 X income Age 40 2.4 X income Age 50 5.2 X income Age 60 9.4 X income if you have defined pension it would be somewhat less. Another rule of thumb is for 30 ...
by Peter Foley
Sun Apr 17, 2016 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA investment funds help
Replies: 16
Views: 1360

Re: Roth IRA investment funds help

I personally would not use a 3 fund approach to a Roth. I would hold only US stock and international stock funds. Hold your bonds in a 401k.
by Peter Foley
Sun Apr 17, 2016 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Spousal 401k & Roth IRA Inheritance
Replies: 21
Views: 1305

Re: Spousal 401k & Roth IRA Inheritance

Two things not mentioned: 1. Does it make sense to do a Roth conversion of some of the 401k/IRA? If the death of the older spouse was in 2016, this year would be the last year the surviving spouse could file a joint tax return. There may be some long term tax advantage in doing so. 2. The TSP has th...
by Peter Foley
Sat Apr 16, 2016 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA investment funds help
Replies: 16
Views: 1360

Re: Roth IRA investment funds help

A recommendation to keep things simple. As suggested, use the 2035 fund in your 401k. The reason is the lower expense ratio. Use Vanguard Total Stock market in your Roth. The reason is that this is a broad based fund and you want to maximize growth potential in a Roth - ergo hold a stock fund not a ...
by Peter Foley
Fri Apr 15, 2016 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Safe money?
Replies: 19
Views: 2599

Re: Safe money?

You might want to research Vanguard Intermediate Term Tax Exempt Admiral (VWIUX). It was mentioned in a previous thread about how to earn a safe 3%. Yahoo finance lists the fund's current yield as 2.90% Price per share has been between about 13.5 and 14.5 over the past 5 years. It is now near the to...
by Peter Foley
Fri Apr 15, 2016 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Graduate Student Stipends and Taxes (Married)
Replies: 4
Views: 423

Re: Graduate Student Stipends and Taxes (Married)

You might want to check with your school and see if the stipend is taxable income. When I was in a PhD. program we had an IRS letter to the effect that our teaching assistantships were part of our training and were not taxable. There was no SS withheld and we did not pay any income taxes. Now that w...
by Peter Foley
Thu Apr 14, 2016 11:38 pm
Forum: Investing - Help with Personal Investments
Topic: Living Trust Advice
Replies: 12
Views: 1327

Re: Living Trust Advice

I honestly don't know what the best approach is for your primary residence. I've never looked into the intricacies of a community property state. I am aware that with the cost of real estate in California, real estate is a critical part, and some times the biggest part, of many estate plans. Perhaps...
by Peter Foley
Wed Apr 13, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions and the Vanishing 25% and 28% Tax Bracket
Replies: 59
Views: 8671

Re: Roth Conversions and the Vanishing 25% and 28% Tax Bracket

Quark wrote: One issue is that the RMD percentage increases each year, meaning that the dollar amount of withdrawals and therefore the tax rate would be much higher in out years than the first year of withdrawals (assuming at least a modicum of growth in tax-deferred to offset the withdrawal). Good ...
by Peter Foley
Wed Apr 13, 2016 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Living Trust Advice
Replies: 12
Views: 1327

Re: Living Trust Advice

Op wrote The living trust is not needed if each account I have has a listed beneficiary (ie wife or newborn)? I could simply leave a list of accounts I have with each financial institution? This is the route I would take. For our financial accounts we have been able to name beneficiaries and conting...
by Peter Foley
Mon Apr 11, 2016 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Living Trust Advice
Replies: 12
Views: 1327

Re: Living Trust Advice

OP wrote: I have savings, checking, brokerage accounts, multiple IRA's and a 401k. I also own a condo. I'm currently taking a class in estate planning, so this is input from a current student, not a practitioner. Savings and checking - could be joint account or Payable on death Brokerage account - T...
by Peter Foley
Sun Apr 10, 2016 11:13 pm
Forum: Personal Consumer Issues
Topic: Best crash course in Spanish?
Replies: 28
Views: 2189

Re: Best crash course in Spanish?

I admit I've not tried any of the courses recommended. The " News in slow Spanish" sounds interesting. I personally think the best way to do this is to hire a private tutor - preferably a grad student in Spanish if there is a local university. You need practice both listening and speaking....
by Peter Foley
Sat Apr 09, 2016 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Fund vs. Three Fund Portfolio
Replies: 13
Views: 1329

Re: Target Retirement Fund vs. Three Fund Portfolio

You are at the high end of the range in terms of allocation to stock mutual funds. 70/30 would be a little more mainstream. That being said, I was 80/20 at your age.

You have excellent choices and the portfolio you proposed is excellent as well.
by Peter Foley
Fri Apr 08, 2016 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: How to determine where future contributions go
Replies: 4
Views: 396

Re: How to determine where future contributions go

Welcome to the forum! You don't list the expense ratios on the accounts you have so it is a bit hard to advise. Usually the Fidelity Spartan funds are a good way to go both in taxable and tax deferred (Vanguard and Schwab also have good low cost options). bloom 2207 covers the basic sequence of wher...
by Peter Foley
Fri Apr 08, 2016 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and General Advice
Replies: 6
Views: 731

Re: Asset Allocation and General Advice

Just so I don;t have to repeat a lot, bloom 2708 wrote: 1. Pick an AA you can live with as you go forward. Age in bonds - 5 or -10, up to 40% bonds. So at age 50 you would be around 40% bonds and stay there. You don't have to be dead on your allocation. It will float around a bit. I buy toward my al...
by Peter Foley
Thu Apr 07, 2016 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Projecting taxes in retirement
Replies: 23
Views: 2279

Re: Projecting taxes in retirement

Is this helpful? Because it looks at taxable income it begins with a couple of negatives. Withdrawals from savings and Roths are tax free (unless you are incurring penalties on the Roth). This is how I plan annual withdrawals from a variety of sources. My goal is to use a combination that gets me ju...
by Peter Foley
Mon Apr 04, 2016 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trust vs Transfer on Death
Replies: 54
Views: 3610

Re: Living Trust vs Transfer on Death

Can someone confirm that the following is true? c1over8 wrote: I know someone who had two kids and wanted them to share equally in all assets. They named kid1 on all their bank accounts as joint with survivorship so all the bank accounts passed to kid1 and kid2 got nothing from these accounts. This ...
by Peter Foley
Sun Apr 03, 2016 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Long term capital gain taxes
Replies: 7
Views: 805

Re: Long term capital gain taxes

For a person in the 25% tax bracket, the federal tax on long term capital gains is 15%. Since I do not know the CT tax system, my guess is that as a percentage it would be additive with respect to LTCGs. Ballpark 20% to 21% in taxes overall on the gains.

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