Search found 2940 matches

by Peter Foley
Wed Feb 10, 2016 12:17 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement - general questions
Replies: 5
Views: 786

Re: Early retirement - general questions

clearsky Unless your tax deferred account is a 457, you will want to withdraw from taxable until you reach age 55. After that you should withdraw at least some from tax deferred- being careful to keep yourself in a low tax bracket. If you are single you can withdraw about $10,000 from a tax deferred...
by Peter Foley
Tue Feb 09, 2016 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: 403b / 457b / Roth IRA - What order?
Replies: 7
Views: 659

Re: 403b / 457b / Roth IRA - What order?

Ericular
There is a very active local Bogleheads group. We meet 4 times a year if you are interested. The next meeting is the first Saturday in May.
by Peter Foley
Mon Feb 08, 2016 4:19 pm
Forum: Personal Consumer Issues
Topic: Traveling in Retirement
Replies: 57
Views: 4185

Re: Traveling in Retirement

My wife and I have traveled less in retirement than when we were working. One issue is aging parents in frail health - it is hard for us to plan a trip to be gone for an extended period when care obligations are being shared between siblings. Our interests are Europe and Central/South America. We ha...
by Peter Foley
Mon Feb 08, 2016 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: 403b / 457b / Roth IRA - What order?
Replies: 7
Views: 659

Re: 403b / 457b / Roth IRA - What order?

With the tax rates you mention, my guess is you are MN residents. With relatively high taxes in MN, the 457 (if it is a governmental 457) is the best option. The state employee 457 plan is a good one, as is the one from the U of M. At $150k in gross income, two maximum 457's reduce income by $36k. A...
by Peter Foley
Mon Feb 08, 2016 2:18 pm
Forum: Personal Consumer Issues
Topic: Planning European-Southern Germany Road Trip Travel-Hacks Wanted
Replies: 17
Views: 1052

Re: Planning European-Southern Germany Road Trip Travel-Hacks Wanted

You don't seem to be headed there, but I would never again drive in a large city in Italy.
by Peter Foley
Mon Feb 08, 2016 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Where to turn for investment advice...
Replies: 11
Views: 658

Re: Where to turn for investment advice...

Unfortunately, you have to have enough knowledge to be able to seek out advice or you may not be able to distinguish between good and bad advice. We see a lot of evidence of novice investors being taken advantage of in posting on this web site. Bad advice usually involves a more complicated portfoli...
by Peter Foley
Sun Feb 07, 2016 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Long time lurker, first time poster
Replies: 8
Views: 1150

Re: Long time lurker, first time poster

I am a former state of MN employee, now retired about 4 years. I'm very familiar with your plan and your options. I still have my MN 457 account. While you are in the 25% tax bracket you should use the regular 457 account rather than the Roth. With your proposed early retirement age you will have a ...
by Peter Foley
Sun Feb 07, 2016 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Live off Inheritance for 3 Years, or Withdraw from 401k
Replies: 12
Views: 1262

Re: Live off Inheritance for 3 Years, or Withdraw from 401k

Random guy wrote: Ignoring FA issues, the best is probably a mixture. Right now with the kids and HOH tax rate (assuming not married. that wouldn't really change anything), you are likely in the best tax situation you will be in for taking money out of the 401(k). And give in there is a lot of money...
by Peter Foley
Sun Feb 07, 2016 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Simplifying Portfolio: Next Steps
Replies: 5
Views: 852

Re: Simplifying Portfolio: Next Steps

I would not replicate the same holding in multiple accounts. Stock mutual funds should go in your Roths - they have the best potential for long term growth. The bonds (or equivalents) should be in her 403b and His 401k. Is the 401k the TSP? If yes, I believe there is a good guaranteed interest fund ...
by Peter Foley
Sat Feb 06, 2016 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 403-B or Individual Vanguard Account
Replies: 1
Views: 108

Re: Roth 403-B or Individual Vanguard Account

Welcome to the forum. Is there a cap on any of the fees or are they constant no matter how many dollars are in 403b? If there is no cap, this is really a poor plan in terms of fees. By chance does she have a regular 403b with lower cost options? I would be inclined to use a regular 403b if you are c...
by Peter Foley
Fri Feb 05, 2016 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years + Summary

Sandman62 From what I have read, it is the draw down of assets from the portfolio during bad market years that creates portfolio survivability issues. If there is a bad sequence of returns and you are not drawing down during this time period, your portfolio has a better chance of recovery. (The exam...
by Peter Foley
Fri Feb 05, 2016 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Best IRA account for Self Employed?
Replies: 8
Views: 369

Re: Best IRA account for Self Employed?

The best IRA would be different for high income individuals wishing to defer a lot of income than someone who does a bit of independent contracting on the side. The Solo 401k and the SEP have the highest limits at $53,000 in 2016. The SEP's limitation is that it is 25% of income - so you would need ...
by Peter Foley
Fri Feb 05, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part-B premium
Replies: 5
Views: 595

Re: Medicare Part-B premium

There is a provision the SS law that says the the part B premium cannot go up if there in no inflationary increase in SS benefits. So the premium did not go up for those receiving benefits. For those eligible for medicare who have delayed SS benfits, the premium went up. The increase was mitigated b...
by Peter Foley
Fri Feb 05, 2016 5:31 pm
Forum: Investing - Theory, News & General
Topic: Boglehead mentality re todays oil price
Replies: 15
Views: 1169

Re: Boglehead mentality re todays oil price

I admit I'm tempted. While dividends can be cut, I see oil funds and ETFs as potential income streams.
by Peter Foley
Fri Feb 05, 2016 5:26 pm
Forum: Investing - Theory, News & General
Topic: Does net worth and age determine % bond allocation?
Replies: 52
Views: 5188

Re: Does net worth and age determine % bond allocation?

SQRT wrote: This is a question that has been discussed a fair bit. Many people feel that "once you have won the game, stop playing". Ie if your assets meet your needs reduce risk by increasing FI component. Some others(myself included) think they can assume more risk if their assets are la...
by Peter Foley
Fri Feb 05, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning
Replies: 3
Views: 422

Re: Retirement Planning

You seem to have plenty of money. Unless you have am extravagant lifestyle, it will certainly last. You can safely withdraw almost $200,000 per year. What do you want to do over the next 10 years? Withdraw what you need to enjoy it. With larger sums, the question that always occurs to me is "Wh...
by Peter Foley
Fri Feb 05, 2016 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: How do you invest your DAF? [Donor Advised Fund]
Replies: 16
Views: 999

Re: How do you invest your DAF?

100% in total stock market. We give to the account about what we donate from the account every year. In my mind that makes it a longer term investment.
by Peter Foley
Fri Feb 05, 2016 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts
Replies: 44
Views: 2191

Re: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts

It would be helpful to know a few options you have available in your tax deferred accounts and their expense ratios. (A couple index funds and a couple bond funds would give us a picture.) Usually one would put their bond allocation in tax deferred - but with low interest rates there has been some d...
by Peter Foley
Thu Feb 04, 2016 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation (AA) help with 401k
Replies: 2
Views: 234

Re: Asset Allocation (AA) help with 401k

I agree that trying for the perfect portfolio is not worth it. You will only know in hindsight.

If your inclination is to simplify, I would do so modestly by dropping the mid cap and small cap funds.
by Peter Foley
Thu Feb 04, 2016 2:47 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meet Sat., Feb. 6, 2016 - UPDATE
Replies: 4
Views: 448

Re: MN Bogleheads Meet Sat., Feb. 6, 2016

Retirement Account Options is a session with general and actionable information. Contribution limits for 2016 is one item of information. There will also be summary information regarding SEPs and SIMPLE IRAs.
by Peter Foley
Thu Feb 04, 2016 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years + Summary

Thanks Cryn I wrote the first chapter of the Bogleheads' Guide to Retirement book, The Retirement Planning Process. What Color is Your Parachute in Retirement was the book that most influenced my thinking for that chapter. b4real - I'll check out Otar's zones. Thanks for the suggestion. protagonist ...
by Peter Foley
Thu Feb 04, 2016 12:03 am
Forum: Personal Consumer Issues
Topic: Best Tips for Packing & Moving?
Replies: 14
Views: 1266

Re: Best Tips for Packing & Moving?

We just helped move my daughter and her family to a new house. The U Haul medium sized boxes worked well. They were not very expensive and can probably be resold afterwards. If you get 20 they are $1.16 each according to their on line ad.
by Peter Foley
Wed Feb 03, 2016 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited Stocks - Advice on Selling (Determinations and Taxes)
Replies: 11
Views: 503

Re: Inherited Stocks - Advice on Selling (Determinations and Taxes)

I agree with Gill. If you do decide to keep a couple specific stocks, be very clear as to your reasoning. For example, you might keep a couple utility stocks for dividend potential, you might keep a couple oil company stocks because they are out of favor. Keep in mind that investments of less than 5...
by Peter Foley
Wed Feb 03, 2016 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement number calculation
Replies: 6
Views: 1078

Re: Retirement number calculation

Goru - You are laying it out the way I would. The additional item that I would consider would be the location of the retirement savings. Example: $500,000 in a Roth = $500,000 in spending money. $500,000 in a tax deferred account @ the 25% federal tax rate = $375,000 in spending money $500,000 in a ...
by Peter Foley
Wed Feb 03, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on Inherited EE Bond
Replies: 7
Views: 598

Re: Tax on Inherited EE Bond

There is no stepped up basis on EE bonds. The answer lies the tax return that was filed the year your FIL died. At that point in time the option existed for the executor to list the interest accrued to the date of death on the EE bond and pay taxes on that amount. If no taxes were paid at that time,...
by Peter Foley
Wed Feb 03, 2016 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Would love input on retirement investing strategy for a novice trying to make deep strides.
Replies: 36
Views: 1848

Re: Would love input on retirement investing strategy for a novice trying to make deep strides.

I copied the following from SC's retirement website: Employees Who Participate in the State Optional Retirement Program There is no minimum age or years of service requirement for State Optional Retirement Program (State ORP) participants. They become eligible to receive distributions when they leav...
by Peter Foley
Wed Feb 03, 2016 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years + Summary

Retirement Red Zone Summary First I wish to thank all those who contributed to this thread. Contributors presented a broad range of topics and gave me, and I hope others, new strategies to study in depth. My unabridged notes run six pages – much too long to present here. Anyone wanting a copy of tho...
by Peter Foley
Wed Feb 03, 2016 10:29 am
Forum: Personal Finance (Not Investing)
Topic: What growth rate would you use?
Replies: 75
Views: 3540

Re: What growth rate would you use?

I would use 2% to 3%. That is after inflation is taken into account. I used to use 4% but I think that is high given current interest rates. I agree with Snowjob regarding a 0% rate for cash and bonds. I-Bonds are an indicator of that low return.
by Peter Foley
Wed Feb 03, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Feedback on Asset Allocation
Replies: 4
Views: 362

Re: Feedback on Asset Allocation

You are proposing a modest slice and dice approach. My preference is for simplicity, but yours is certainly valid. I think a slice and dice approach works best over very long periods of time. A percentage point or two in return really starts to make a difference after 25 to 30 years. If that is your...
by Peter Foley
Tue Feb 02, 2016 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: What age did you retire
Replies: 84
Views: 6404

Re: What age did you retire

61.75. I could have retired a little after my 60th birthday. However, we were busy at work, I liked my work, I felt I was contributing, and I had a new boss whose philosophy regarding the treatment of employees was very similar to mine. So I stayed another year and a half with no regrets.
by Peter Foley
Tue Feb 02, 2016 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Nearing retirement but annual contribution still very significant
Replies: 40
Views: 3277

Re: Nearing retirement but annual contribution still very significant

You don't mention age - but this can be a factor. If you are 50, for example, you can't withdraw funds from a deferred account until age 55. So for a very early retiree, where you save - taxable versus tax deferred - can be important.
by Peter Foley
Tue Feb 02, 2016 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: First time doing taxes, need advice
Replies: 8
Views: 475

Re: First time doing taxes, need advice

My understanding is that you have to report interest income. With small amounts there is not need to file schedule B.

Your taxes look really simple. I would be inclined to file on paper, not for the cost savings, rather for the experience and understanding you will gain.
by Peter Foley
Tue Feb 02, 2016 10:26 am
Forum: Investing - Help with Personal Investments
Topic: 60 Years Old - Forced to Stop Working - Need Investment Advice
Replies: 30
Views: 3632

Re: 60 Years Old - Forced to Stop Working - Need Investment Advice

mouses wrote: See if you qualify for unemployment payments Good suggestion. I used to work for the Unemployment Insurance Program. While there are some differences from state to state, one of the basics is that if you are unemployed through no fault of your own you must be able, available and active...
by Peter Foley
Tue Feb 02, 2016 12:20 am
Forum: Investing - Help with Personal Investments
Topic: 60 Years Old - Forced to Stop Working - Need Investment Advice
Replies: 30
Views: 3632

Re: 60 Years Old - Forced to Stop Working - Need Investment Advice

Welcome to the forum. I too am sorry to hear about your health issues - they are putting you in a tight spot financially. While you would give up some flexibility, it makes little sense to hold money in cash and receive very little in return while making regular payments on loans with higher interes...
by Peter Foley
Tue Feb 02, 2016 12:06 am
Forum: Investing - Help with Personal Investments
Topic: Handful of questions...
Replies: 8
Views: 744

Re: Handful of questions...

In your 401k the extended market index is a better complement to the S&P 500 if it is available. Yes you are over weighted in terms of holding the whole US market. Is there a stable value fund in your 401k? Sometimes these are better than bonds funds with higher expenses. The expense ratio for P...
by Peter Foley
Mon Feb 01, 2016 11:57 pm
Forum: Investing - Help with Personal Investments
Topic: Contribution to 401(k) / 457 Plan
Replies: 5
Views: 384

Re: Contribution to 401(k) / 457 Plan

Yes she can. This is not unusual. Many colleges and universities offer multiple plans to employees. Other types of government entities may do so as well.
by Peter Foley
Mon Feb 01, 2016 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Specific Glide Paths
Replies: 5
Views: 398

Re: Asset Specific Glide Paths

Your approach is along the same line as mine, but a little more drastic. I went to 45/52/3 (the last 3 being real estate, not REITs) by my retirement date. I retired almost 4 years ago and I'm in the process of selling the real estate and have left the balance of my assets drift to 50/50. The market...
by Peter Foley
Mon Feb 01, 2016 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Giving to vs. saving for charity
Replies: 39
Views: 1934

Re: Giving to vs. saving for charity

We give appreciated stock to a donor advised fund ever year. We give about the same amount each year but could increase the donation if there were a reason to increase tax deductions in a particular year.
by Peter Foley
Mon Feb 01, 2016 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Next Week... Tips?
Replies: 30
Views: 4069

Re: Early Retirement Next Week... Tips?

A second take at your early retirement. This is based on the premise that you intend to stay in ND which is not a very high cost of living state. If you draw down about $50,000/ year you should have enough to easily cover 30 years of retirement. Your cash is earning you very little right now. I woul...
by Peter Foley
Mon Feb 01, 2016 4:43 pm
Forum: Investing - Theory, News & General
Topic: Charles Ellis' suggested portfolios by age
Replies: 53
Views: 4046

Re: Charles Ellis' suggested portfolios by age

I think that except for the first few years of investing, one should always have at least 10% in bonds. My approach was not far off from Charlie's - early on it was a back of the envelope approach, not one I arrived at after careful study. Pre Bogleheads I had never thought about risk tolerance or r...
by Peter Foley
Mon Feb 01, 2016 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years

Post Retirement: Prepare a detailed income and withdrawal strategy that covers at least 5 years. Said strategy would estimate income sources, note SS strategy, and marginal tax rates. Create a template and detail each year’s income and its source. Plan the timing of any taxable asset sales. If possi...
by Peter Foley
Sun Jan 31, 2016 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years

Loninvest I think we agree - I view a safe withdrawal rate as a planning tool during one's accumulation phase, not as strict plan to be implemented in retirement. Taylor has often posted about variable withdrawals - a practice I would suspect most people would use, and a practice I have spoken about...
by Peter Foley
Sun Jan 31, 2016 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years

PoeticalDeportment wrote Peter Foley wrote: 2. Begin to create a cash reserve (or if you wish a “safe” bucket). As a participant in this community, I consider myself honor bound to point out market timing, in any form, whenever I see it. Why is a cash reserve needed starting 5 years prior to retirem...
by Peter Foley
Sun Jan 31, 2016 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years

nedsaid wrote: As I see it, this discussion boils down to three big problems. First, the sequence of returns problem. Second, how does a retiree or near retiree deal with very low interest rates? Third, how do I keep from running out of money in retirement? I think there is another key issue, tax ef...
by Peter Foley
Sun Jan 31, 2016 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Coffeehouse-Inspired Portfolio
Replies: 11
Views: 1733

Re: Coffeehouse-Inspired Portfolio

David Jay wrote: I have been convinced by the argument that funds with the highest expected yields be put in Roth accounts (because you never pay tax on these gains) and to put tax- inefficient but relatively low yield funds in tax-deferred, as eventually you have to pay taxes on those gains. In tha...
by Peter Foley
Sun Jan 31, 2016 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: How do I pay off debt?
Replies: 22
Views: 2995

Re: How do I pay off debt?

If you paid your bills by check, there should be a bank record of those checks. Even if you have changed banks you might be able to get access to those records and to pdf files with images of the checks you wrote.
by Peter Foley
Sun Jan 31, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years

Lots of good comments and suggestions. A personal follow up to the post by carolinaman: I think that pre-retirement should include some third party review of your retirement plans My wife and I did this. While I was confident we had sufficient savings to retire, she did not. The third party process ...
by Peter Foley
Sat Jan 30, 2016 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newly retired and need help
Replies: 17
Views: 1696

Re: Newly retired and need help

With the vast majority of your assets in a deferred account I would withdraw from the qualified retirement accounts and keep my income in the 10-15% brackets A key consideration might be to use a mix so as not to greatly reduce your ACA subsidy. However, you really don't have a lot in taxable so you...
by Peter Foley
Sat Jan 30, 2016 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning advice?
Replies: 28
Views: 2940

Re: Estate planning advice?

The additional information is helpful. I think an attorney that specializes in estates and trusts would be they way to go. (There just aren't enough family member to whom to gift to make a meaningful difference, and the gifting would favor you over your sister if your wife and future child also got ...
by Peter Foley
Sat Jan 30, 2016 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10278

Re: Retirement - Ten key years

Perhaps I am obsessing about this, but I think gaining an understanding of income taxes and how different streams of income and different types of accounts are affected by the tax laws is high on my pre retirement list of activities: To quote a few others who posted in this thread . . . rrppve wrote...

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