Search found 3486 matches

by Peter Foley
Tue Dec 06, 2016 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Need info on taxes on death of father
Replies: 5
Views: 479

Re: Need info on taxes on death of father

Sorry for your loss. There is probably not an estate tax return unless your parents were wealthy. Many states that have an estate tax have provisions so that the estate is not taxed when it is passed to the spouse. If you are talking to a CPA, do it quickly or feel free to post information here. Nex...
by Peter Foley
Mon Dec 05, 2016 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: Dad's Retirement Account
Replies: 19
Views: 1770

Re: Dad's Retirement Account

He does not have a lot of capital so he cannot afford to take a lot of risk.

ruralavalon offered three good possibilities. If he is in good health I wouldn't go as low as 20% stocks, but that still may be the best choice if he has a low tolerance for risk.
by Peter Foley
Mon Dec 05, 2016 11:47 pm
Forum: Investing - Help with Personal Investments
Topic: New cash into a retirement portfolio
Replies: 6
Views: 572

Re: New cash into a retirement portfolio

I would DCA the funds into the stock market over a period of 2-3 years if it is unlikely that you will have to use the inheritance for living expenses during that time period.
by Peter Foley
Mon Dec 05, 2016 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: Helping mom with retirement
Replies: 5
Views: 646

Re: Helping mom with retirement

One of the first things I would do would be to look at her tax rate this year as married filing jointly versus next year as single. Also try to estimate what her income might be if she were taking RMDs and possibly required to take withdrawals from the deferred annuity. It is possible that doing a R...
by Peter Foley
Mon Dec 05, 2016 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Finance recordkeeping
Replies: 7
Views: 880

Re: Finance recordkeeping

In some states there is also such a thing as a transfer on death deed.

I was thinking beneficiaries on accounts and a will for real and personal property.
by Peter Foley
Mon Dec 05, 2016 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Lost: Could really use some advice on our next round of financial goals
Replies: 25
Views: 2080

Re: Lost: Could really use some advice on our next round of financial goals

There doesn't seem to be a consensus here with a lot of posters I respect offering slightly different opinions. To further muddy the water . . . 1. Max out both 401ks. 2 or 3: Pay down the mortgage. (I like this choice because it can be done in lieu of some of your bond allocation and bond interest ...
by Peter Foley
Sun Dec 04, 2016 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 100k with Schwab
Replies: 7
Views: 922

Re: Investing 100k with Schwab

I have a Schwab bank account, Schwab brokerage accounts, and a Schwab donor advised fund. Service is excellent and web site is user friendly. I only hold Schwab total stock market in taxable and Roth IRAs; no other mutual funds or ETF's. My 457 account holds my bond allocation and my international. ...
by Peter Foley
Sun Dec 04, 2016 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: How do you save copies of your tax forms and supporting docs?
Replies: 25
Views: 1573

Re: How do you save copies of your tax forms and supporting docs?

Paper with just the basic return going back 25 years. Paper with paper documentation going back seven years. About 20 years of tax returns via Turbo tax burned to CDs. Maybe overkill, but the basic return does not take up much space. My brother, a cousin, and I own the old family farm/homestead. We ...
by Peter Foley
Sun Dec 04, 2016 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Finance recordkeeping
Replies: 7
Views: 880

Re: Finance recordkeeping

You absolutely need beneficiary designations on all accounts. In addition, they should be aware that they are designated as some entities do not notify beneficiaries, they wait to be notified by the beneficiary. Contingent beneficiaries on accounts are recommended as well.
by Peter Foley
Sun Dec 04, 2016 8:31 pm
Forum: Personal Consumer Issues
Topic: Need Advice on France for my son
Replies: 12
Views: 773

Re: Need Advice on France for my son

He should have a US bank account with a cash card that does not have foreign exchange fees. We use the Schwab Bank card. Paris has a very good metro system. Plan on using it to get to and from work. Get to know the neighborhoods (arrondissements) and pick somewhere safe to live that is near the metr...
by Peter Foley
Sat Dec 03, 2016 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: possible to do IRA to Roth conversion & Roth withdrawals?
Replies: 15
Views: 778

Re: possible to do IRA to Roth conversion & Roth withdrawals?

Fivek wrote:

You might benefit by being more aggressive in your earlier Roth conversions. Try http://www.i-orp.com for some ideas.


You might look at Bigfoot's Retiree Model Portfolio as well. I prefer it to i-orp in terms of planning Roth conversions.
by Peter Foley
Sat Dec 03, 2016 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Transfer Inherited Non-tax Qualified Annuity
Replies: 12
Views: 744

Re: Transfer Inherited Non-tax Qualified Annuity

Keep in mind that withdrawals from a non qualified annuity are taxable dollars first, then return of original investment tax free. If your parents were receiving payments from the annuity they may have withdrawn the taxable portion. If that is the case I would just cash it in.
by Peter Foley
Sat Dec 03, 2016 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Some advice re AA in 403(b)
Replies: 7
Views: 308

Re: Some advice re AA in 403(b)

Holding some AA in stable value is okay but not great. I would slowly move my bond allocation to I-bonds in the scenario you describe.
by Peter Foley
Fri Dec 02, 2016 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: How do others handle their withdrawals or distributions
Replies: 17
Views: 1790

Re: How do others handle their withdrawals or distributions

dbr wrote: Are you saying you were 100% stocks and didn't hold any bonds you could sell to rebalance into stocks? No I was actually fairly conservative at 45/52/3 (3 being real estate). I was attempting to implement a modified "bucket" approach. The entire bond allocation is in deferred an...
by Peter Foley
Fri Dec 02, 2016 12:20 am
Forum: Personal Finance (Not Investing)
Topic: How do others handle their withdrawals or distributions
Replies: 17
Views: 1790

Re: How do others handle their withdrawals or distributions

My wife and I both retired mid year in 2012. I have a pension that covers about half our regular (non discretionary) expenses. I was highly influenced by the market drop during the recession and the effect it had on our retirement savings accounts. So I planned for holding 2 years of cash when we re...
by Peter Foley
Wed Nov 30, 2016 12:17 am
Forum: Investing - Help with Personal Investments
Topic: maybe adding one more fund
Replies: 11
Views: 648

Re: maybe adding one more fund

If you have already made the decision to add the fund, I agree that the Roth is the place to put it. Equity funds are usually recommended for Roths.
by Peter Foley
Wed Nov 30, 2016 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Improve The Three-Fund Portfolio?
Replies: 8
Views: 705

Re: Improve The Three-Fund Portfolio?

In support of the OP, I think adding some inflation protection on the bond side is a good addition without adding much, if any, complexity. Bond side protection could include some I-bonds, or a stable value fund, or a regular TIPS fund or a short term TIPS fund. My favorite, although limited, would ...
by Peter Foley
Tue Nov 29, 2016 12:44 am
Forum: Personal Finance (Not Investing)
Topic: Landlord for first time - tips and things to know?
Replies: 25
Views: 2210

Re: Landlord for first time - tips and things to know?

I agree that screening is critical. It is also very helpful if you have handyman (handyperson?) skills. You will save a lot of money and gain a lot of goodwill from your tenants as they see you are able to fix problems quickly. After 35 years of being a landlord, I can state with some certainty that...
by Peter Foley
Tue Nov 29, 2016 12:38 am
Forum: Investing - Help with Personal Investments
Topic: Help with allocation across several retirement accts
Replies: 7
Views: 715

Re: Help with allocation across several retirement accts

Panam@2016 wrote: Is there any reason why we have to keep equities in Roth, and not bond? Also, is it only domestic or international equities? The reasoning is that you never have to pay taxes on the withdrawal of Roth contributions or earnings. Therefore you should place those assets with the great...
by Peter Foley
Sun Nov 27, 2016 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Donating appreciated shares to charity
Replies: 12
Views: 954

Re: Donating appreciated shares to charity

I've used the Schwab DAV for the past three years. Low minimums to get started and a very user friendly web site where I can designate new charities and re-grant to charities I've granted funds to before. It also helps ward off solicitations. "We gift through a charitable trust" almost alw...
by Peter Foley
Sat Nov 26, 2016 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: Help with allocation across several retirement accts
Replies: 7
Views: 715

Re: Help with allocation across several retirement accts

I would endorse livesoft's recommendation. You want primarily equities in your Roth and your bond allocation in your tax deferred. Livesoft's recommendation follows that principle and suggests a simple means of managing your AA over multiple accounts for at least a few years.
by Peter Foley
Sat Nov 26, 2016 11:57 am
Forum: Investing - Theory, News & General
Topic: What was your Asset Allocation before and after retirement?
Replies: 91
Views: 7915

Re: What was your Asset Aloocation before and after retirement?

About 70/30 during accumulation with a small real estate holding. As the market recovered from the last recession we moved gradually to 45/55 about one year prior to retirement in 2012. We have slowly drifted to about 50-55/50-45 over the past 4.5 years. Our intention is to be in the 50/50 range wit...
by Peter Foley
Thu Nov 24, 2016 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA question
Replies: 10
Views: 617

Re: Roth IRA question

You are not exactly in what I would call the "getting on in age" category (I'm 20 years your senior), but still I think it is a good idea to simplify as one gets older. Wellington is a very good choice for a simple approach. Because it contains bonds I would be more tempted to use it in my...
by Peter Foley
Tue Nov 22, 2016 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Do you track your net worth? How long have you done so?
Replies: 110
Views: 7678

Re: Do you track your net worth? How long have you done so?

I am a little surprised that a couple of very frequent posters, whom I respect, do not track their net worth.

I wonder if there is some correlation between not tracking net worth and not being likely to be subject to a state or federal estate tax.
by Peter Foley
Tue Nov 22, 2016 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my Investment/Retirement Plan
Replies: 2
Views: 290

Re: Help with my Investment/Retirement Plan

While you have some assets from which to draw in retirement, you also live in a high cost of living area. I would be conservative with my asset allocation 50% stocks and 50% bonds. I would hold only 3 funds, total stock (40%), total international (10%), and total bond (50%). I would have no objectio...
by Peter Foley
Tue Nov 22, 2016 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Why would anyone do tax loss harvesting??
Replies: 25
Views: 1519

Re: Why would anyone do tax loss harvesting??

The reason for doing so is already well explained. If I were doing this, for example, I would sell total stock market and replace it with index 500. They are not at all identical but they track very closely. You can then wait 30 days and reverse course if you want.
by Peter Foley
Sun Nov 20, 2016 11:28 pm
Forum: Personal Consumer Issues
Topic: Computer Backup Ideas
Replies: 40
Views: 3323

Re: Computer Backup Ideas

My strategy is to avoid being hacked and held for ransom. I have three back ups, all off line. I have a Seagate storage device that I plug in periodically, a thumb drive with my most critical files, and an old laptop. I really don't care if I lose a spreadsheet, word doc. or pdf that is less than a ...
by Peter Foley
Sun Nov 20, 2016 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do you track your net worth? How long have you done so?
Replies: 110
Views: 7678

Re: Do you track your net worth? How long have you done so?

I started doing so at about age 50 when we paid off our mortgage (16-17 years ago). After that we had only assets on our balance sheet. I do it on a simple spreadsheet that I update once a year.
by Peter Foley
Sun Nov 20, 2016 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Taking SS/Pension at 62 to pay off house mortgage
Replies: 9
Views: 793

Re: Taking SS/Pension at 62 to pay off house mortgage

Your overall tax rate might be 20% federal but there is no 20% federal tax bracket. You are in at least the 25% federal tax bracket, if not 28%. Apply that rate to a reduced SS benefit amount as part of your calculation. Depending on how much you have saved in your 401k, your tax bracket in retireme...
by Peter Foley
Sat Nov 19, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9123

Re: Tax bomb at 70 1/2

randomguy wrote: Obviously real world cases with random returns give slightly different returns. In RMDs don't grow endless. In most cases they grow to about 2.5x of the initial value in about 15 years and then they start shrinking. It can help to think of them in real dollars (i.e. the tax brackets...
by Peter Foley
Fri Nov 18, 2016 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9123

Re: Tax bomb at 70 1/2

A few things to keep in mind relative to taxes and RMD's. 1. A married couple has a lot more room to maneuver than a single person when you look at income tax brackets. It is probably fairly rare that couples die at the same time. Therefore it makes sense to deal with RMD concerns early in retiremen...
by Peter Foley
Fri Nov 18, 2016 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9123

Re: Tax bomb at 70 1/2

David Jay wrote: I don't know this calculator but I have yet to see a calculator that attempts to calculate my tIRA future balance and determine how large my RMD will grow in our later years. Because the RMD is based on life expectancy, the percent of remaining portfolio increases each year (5.3% of...
by Peter Foley
Tue Nov 15, 2016 12:44 am
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet Nov. 12, 2016
Replies: 41
Views: 3761

Re: Minnesota Bogleheads Meet Nov. 12, 2016

Let's consider Minnesota: The estate tax kicks in at $2,000,000 per individual in 2018, i.e., the first $2,000,000 is exempt. There is no portability (the surviving spouse can't use any exemption not used by the deceased spouse.) Gifts in excess of $14,000/individual/per year count against one's lif...
by Peter Foley
Tue Nov 15, 2016 12:27 am
Forum: Investing - Help with Personal Investments
Topic: Are U.S. and International Stocks Correlated?
Replies: 7
Views: 762

Re: Are U.S. and International Stocks Correlated?

If you look at the Callam table of investment returns over a period of years there is a fair amount of divergence.
by Peter Foley
Sun Nov 13, 2016 10:00 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet Nov. 12, 2016
Replies: 41
Views: 3761

Re: Minnesota Bogleheads Meet Nov. 12, 2016

Thanks Miriam. I was actually thinking of a car trip to Florida this winter. :happy We have friends who winter in Florida and some cousins who live there as well. I think the "secret" to our success is Jeff. He did all the work for the first half dozen years to put together and host intere...
by Peter Foley
Sun Nov 13, 2016 9:53 pm
Forum: Investing - Theory, News & General
Topic: Retirement planning in today's dollars
Replies: 16
Views: 2133

Re: Retirement planning in today's dollars

Watty wrote: The problem with that is the 1% reduction will compound so it is not obvious how much of a margin of safety you will have when you look at the values after 20 years of compounding the 1% loss. Good point. Since I am still delaying SS it has obviously not yet presented a problem. Current...
by Peter Foley
Sun Nov 13, 2016 8:24 pm
Forum: Personal Consumer Issues
Topic: How to give a young traveller in France some "walking-around money?"
Replies: 25
Views: 2302

Re: How to give a young traveller in France some "walking-around money?"

The fees charged by currency exchanges are much higher that using a cash card to get Euros from an ATM in France. Obviously not all cash cards are equal, but a low fee cash card is the way to go.
by Peter Foley
Sun Nov 13, 2016 8:16 pm
Forum: Investing - Theory, News & General
Topic: Retirement planning in today's dollars
Replies: 16
Views: 2133

Re: Retirement planning in today's dollars

My estimate that my SS benefits would lag inflation by 1% was just a way to build in a conservative bias in case my lifestyle does not mirror the CPI used by SS. The CPI for various metropolitan area also differs. I live in a medium cost metro area (Minneapolis-St. Paul) where state and local taxes ...
by Peter Foley
Sun Nov 13, 2016 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Investing and Taxes
Replies: 4
Views: 431

Re: Investing and Taxes

Your basic scenario is fine. If you have good low cost options in your 401k, you might want to do 1, 2, 1 to the max, then 3. You would, of course, have to make some adjustments to obtain your desired asset allocation.
by Peter Foley
Sun Nov 13, 2016 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance - looking for guidence
Replies: 7
Views: 1844

Re: Inheritance - looking for guidence

Read up on the topic of stretch IRAs. How to reinvest the inheritance is one factor, how to manage the potential income and taxes is yet another factor. For example - if you withdrew all the money from the IRA in a single year a lot would be lost in taxes. If you withdrew it over 5 years there would...
by Peter Foley
Sun Nov 13, 2016 12:19 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet Nov. 12, 2016
Replies: 41
Views: 3761

Re: Minnesota Bogleheads Meet Nov. 12, 2016

The new group sounds interesting - maybe I can get my daughter to attend. One note to those who attended and who read these posts. When talking about Minnesota tax revenue from the estate tax I failed to notice a footnote that the dollars collected were in thousands. Per the MN Department of revenue...
by Peter Foley
Sun Nov 13, 2016 12:10 pm
Forum: Investing - Theory, News & General
Topic: Retirement planning in today's dollars
Replies: 16
Views: 2133

Re: Retirement planning in today's dollars

fabnavigator wrote: Expense just subject to inflation: Current years value is the same as the previous years value. Expense expected to increase more than general inflation: Current years value is previous years value times (1 + increase%) divided by (1 + inflation%). Investment value: Current years...
by Peter Foley
Fri Nov 11, 2016 12:02 am
Forum: Investing - Help with Personal Investments
Topic: Estate/trust portfolio recommendation
Replies: 9
Views: 1029

Re: Estate/trust portfolio recommendation

You might want to explore some other options.

What would be the impact of disclaiming some of these accounts? Could you pass them to your children? A stretch IRA comes to mind as well.

I'm not say that a trust is a bad option, just that there may be other options.
by Peter Foley
Wed Nov 09, 2016 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Determining the Cost Basis of a house, from 1966 ?
Replies: 22
Views: 2567

Re: Determining the Cost Basis of a house, from 1966 ?

If the house is in a state where there are property taxes you could look at the property tax records in 1966-1967 to closely estimate the market value/purchase price.

Do you have the abstract for the house? That might have some information including mortgage amount.
by Peter Foley
Mon Nov 07, 2016 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Fund suggestion for parents' portfolio
Replies: 6
Views: 748

Re: Fund suggestion for parents' portfolio

If you are just trying to keep up with inflation, I would recommend buying the maximum amount of I-bonds each year as a partial solution. I agree that Wellington and Wellesley are good alternatives to index funds if he does not want to go that route.
by Peter Foley
Mon Nov 07, 2016 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Just getting started - Requesting guidance
Replies: 11
Views: 820

Re: Just getting started - Requesting guidance

I think you are doing fine in terms of paying off your debt. You wrote: Is my 401k too diversified? Since I'm starting late, I want to be almost entirely in stocks for the first couple of years and then go 50% (US):30% (International):20% (Bond). The most important diversification is to have some ba...
by Peter Foley
Mon Nov 07, 2016 4:20 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet Nov. 12, 2016
Replies: 41
Views: 3761

Re: Minnesota Bogleheads Meet Nov. 12, 2016

Are you a member of the sandwich generation - possibly with responsibilities for your parents as well as children? Are you the sibling of the family who is joint on bank accounts with elderly parents? If you don't know the rules - and I didn't - it can lead to adverse consequences. This is especiall...
by Peter Foley
Thu Nov 03, 2016 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Finance Question for the Retired
Replies: 27
Views: 3238

Re: Personal Finance Question for the Retired

Our overall spending is up. BUT, one has to consider all the variables. For us the biggest is the birth of our four grandchildren since we retired four and a half years ago. (None before, four since. :D ) Now as to tracking the spending . . . Travel and entertainment are down, while gifting is up co...
by Peter Foley
Wed Nov 02, 2016 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio/tax plan in retirement - questions
Replies: 1
Views: 233

Re: Portfolio/tax plan in retirement - questions

The mix you have is not one I have seen before so I hesitate to make anything other than general comments. You assets allocation is too conservative in my opinion. You have a good basic pension plus SS. I would recommend 40% stocks minimum - especially if you are investing some of your holdings with...
by Peter Foley
Wed Nov 02, 2016 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Another IRA vs 457(B) Government
Replies: 18
Views: 1101

Re: Another IRA vs 457(B) Government

I think if you can fund your Roth while in the 15% tax bracket it is advantageous to do so. Using a 457b account to lower your taxable income into the 15% bracket is also independently a good idea. Being able to put the two together is a real plus. Thinking longer term . . . at some point in time yo...

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