Search found 3821 matches

by Peter Foley
Tue May 23, 2017 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Investing FOR Retirement vs Investing IN Retirement
Replies: 25
Views: 2273

Re: Investing FOR Retirement vs Investing IN Retirement

Chip wrote: Peter, Do you plan on discussing investing for (and spending from) total return vs. income? We've seen quite a few discussions here where retirees want high current income from their investments because they don't want to sell anything. I'm not sure where the discussion will go. I person...
by Peter Foley
Mon May 22, 2017 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 106
Views: 12043

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

# Cruncher I agree that the way the marginal tax rates is that an additional dollar of non SS can be highly taxed. However, am I wrong to suggest that a person with a pension at some level would not significantly increase the tax rate on their pension by taking SS benefits. (Perhaps Roth conversion ...
by Peter Foley
Mon May 22, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Investing FOR Retirement vs Investing IN Retirement
Replies: 25
Views: 2273

Re: Investing FOR Retirement vs Investing IN Retirement

I appreciate all the replies and leads in terms of discussion possibilities. Based on replies here I'm fairly certain the related topics of reduced risk, liquidity, and income stream will all come up in the investing in retirement session. If not, I will certainly mention them to keep the discussion...
by Peter Foley
Sun May 21, 2017 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 106
Views: 12043

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

# Cruncher The context of my earlier post was "why would anyone not," not the OP's father's situation. The following is from the BH Wiki pages which describe the taxation of SS benefits: The examples below are based on tax numbers for 2017.[note 2] They illustrate how tax brackets and Soci...
by Peter Foley
Sun May 21, 2017 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Investing FOR Retirement vs Investing IN Retirement
Replies: 25
Views: 2273

Re: Investing FOR Retirement vs Investing IN Retirement

Dottie 57 and dbr I certainly agree with your opinion that there is a pre-retirement category as well. At a quarterly meeting about a year ago we had a panel discussion about the topic - we called it Retirement Red Zone. It was a discussion and Q&A about the time period immediately preceding ret...
by Peter Foley
Sun May 21, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: Investing FOR Retirement vs Investing IN Retirement
Replies: 25
Views: 2273

Investing FOR Retirement vs Investing IN Retirement

At the next MN Bogleheads meeting (August) we are planning to have two small group Q&A sessions. One session will be titled Investing FOR Retirement and the other Investing IN Retirement . It would be helpful to the moderators of these discussions to have broad BH community insight in advance. D...
by Peter Foley
Sat May 20, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 106
Views: 12043

Re: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)

One thing often missing in these discussions is the fact that one can start at any time after the age of 62. The phrase "why would anyone not" ignores a broad array of issues already detailed in this thread. Perhaps 66 is not the right age, nor is 70. 64 could even be the right answer give...
by Peter Foley
Fri May 19, 2017 11:01 pm
Forum: Investing - Theory, News & General
Topic: "Stocks, Bonds and Future Returns" by Prof. Jeremy Siegel
Replies: 65
Views: 5155

Re: "Stocks, Bonds and Future Returns" by Prof. Jeremy Siegel

This is a very interesting set of slides with a lot a graphs. I agree with Taylor that it supports staying the course. I do not have enough knowledge of economic history to know if data from early time periods is relevant in a global marketplace, or from the evolution of an agricultural economy to a...
by Peter Foley
Thu May 18, 2017 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: i-ORP and SS Survivor Benefits ?
Replies: 6
Views: 506

Re: i-ORP and SS Survivor Benefits ?

I believe there is a way to contact the designer of i-orp. I think I have seen someone respond to inquiries. (Note this is my recollection, not necessarily fact. However, worth checking.)

You might also try the Retiree Portfolio Model calculator.
by Peter Foley
Thu May 18, 2017 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Question on process for trust beneficiaries
Replies: 7
Views: 461

Re: Question on process for trust beneficiaries

You also should take a look at pensions, retirement accounts, and life insurance policies and make sure you have the beneficiary designations and successor/contingent beneficiaries set up as desired. Co-executors is probably the way to go if your children get along with each other and neither has a ...
by Peter Foley
Thu May 18, 2017 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Help with asset allocation across multiple accounts
Replies: 17
Views: 1098

Re: Help with asset allocation across multiple accounts

I would concur with some of the earlier advice to fund the 401ks more so than the Roths. With your difference in ages it is possible that you will retire before your wife and create a few lower income years where 401k funds could be withdrawn while in the 15% bracket. (This is just a guess as you do...
by Peter Foley
Wed May 17, 2017 11:51 am
Forum: Investing - Help with Personal Investments
Topic: What if I have enough money?
Replies: 22
Views: 4198

Re: What if I have enough money?

A point not raised regarding delaying SS benefits is the ratio of your retirement savings in tax deferred accounts to taxable and Roth accounts. If a high percentage of your savings is in a 401k, delaying SS benefits will create at least a few years where withdrawals from your 401k could be at a fai...
by Peter Foley
Sun May 14, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: how do you invest your HSA
Replies: 39
Views: 3099

Re: how do you invest your HSA

Wouldn't your investment approach track with your spending plan (goals) for this account? Mine was invested in a stable value fund because I was withdrawing from it on a regular basis. If I were creating a nest egg to pay for future expenses I would have invested it differently.
by Peter Foley
Sat May 13, 2017 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: How Old Habits Can Sabotage Retirement
Replies: 51
Views: 7045

Re: How Old Habits Can Sabotage Retirement

I certainly agree with the short selection that was quoted. In addition I have trouble with the tail wagging the dog (aka tax efficiency). It costs me 33% in taxes today to spend a dollar from a tax deferred account. I find it hard emotionally (guilt?) to accept that I got years of tax free compound...
by Peter Foley
Fri May 12, 2017 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Interested in lake property
Replies: 36
Views: 3774

Re: Interested in lake property

Okay I confess, I own one and a half lake cabins (Minnesota). Some thoughts. Our closest cabin is 2 hours away, that would be about the limit that you might want for regular weekend and holiday use. The half interest is in a family cabin I inherited on the edge of Voyagers National Park. It is 5 hou...
by Peter Foley
Thu May 11, 2017 11:10 am
Forum: Personal Consumer Issues
Topic: Travel tips for first time visitors to England and France?
Replies: 54
Views: 3475

Re: Travel tips for first time visitors to England and France?

A couple recommendations regarding safety. Each of you should carry a unique set of credit, debit, and bank cards. If one of you is robbed (tourists in the subways are targets) you will have a second set of cards to use until the first set is replaced. For additional protection wear a fabric money &...
by Peter Foley
Sun May 07, 2017 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: Book recommendation?
Replies: 8
Views: 983

Re: Book recommendation?

I think Ms. Quinn's book is a good choice for many. It is fairly true to its title, however, strategies to support yourself during your retirement years. I read it about a year ago. I do not remember it specifically addressing the topics you mentioned. The Bogleheads' Guide to Retirement Planning ad...
by Peter Foley
Thu May 04, 2017 8:06 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet May 6, 2017
Replies: 14
Views: 1711

Re: Minnesota Bogleheads Meet May 6, 2017

The session on giving back will explore TIME (where you might commit your time based on your interests), TALENT (explore one’s strengths and experiences), and TREASURE (how to share wealth in a tax efficient manner). We may even touch on Maslow’s hierarchy of needs (basic security, psycho-social nee...
by Peter Foley
Wed May 03, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: 403b vs 457
Replies: 42
Views: 2190

Re: 403b vs 457

A couple observations . . . A 403b can be accessed w/o penalty if you separate from your employer after age 55. A 457b account can be accessed w/o penalty if you separate from the employer regardless of age. Loans were not available in the 457b account I had access to. Loans were available in my wif...
by Peter Foley
Wed May 03, 2017 11:02 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet May 6, 2017
Replies: 14
Views: 1711

Re: Minnesota Bogleheads Meet May 6, 2017

rocketrex The moderator of the "newer investors" breakout shared her notes with me. It is primarily about investing for retirement - a very appropriate topic for the Genx group. The person moderating is one of the most knowledgeable of the group and has given in depth presentations on a va...
by Peter Foley
Tue May 02, 2017 9:00 pm
Forum: Investing - Theory, News & General
Topic: June 2017 Kiplinger's article [writing calls for income]
Replies: 8
Views: 1201

Re: June 2017 Kiplinger's article [writing calls for income]

I too used to write covered calls. While this was 10 - 15 + years ago, my recollection is that I made money akin to dividends on a few stocks. Those earning were wiped out when I held the stocks through a long recession. I think I gave up on covered calls and other options sometime after the 2000 re...
by Peter Foley
Mon May 01, 2017 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Interesting Tax Guide - 2017
Replies: 18
Views: 2434

Re: Interesting Tax Guide - 2017

Thanks for the reassurance that this particular link was virus free. I downloaded the file, which was a pdf. (Not all links are what they appear to be - this one looks fine.) As to the book - I've read only about 15 pages and it looks promising. There does seem (so far) to be a bias toward stocks ra...
by Peter Foley
Sun Apr 30, 2017 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: Interesting Tax Guide - 2017
Replies: 18
Views: 2434

Re: Interesting Tax Guide - 2017

And how do you know you are not downloading some virus or other software?
by Peter Foley
Sat Apr 29, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestion
Replies: 14
Views: 825

Re: Portfolio Suggestion

I will offer a slightly contrarian point of view. Until you have 3-4 years worth of contributions in your retirement accounts I would not be concerned about a very low allocation to bonds. After that I think 10% to 15% is the absolute minimum - my own preference is 20% to 25% in bonds for younger in...
by Peter Foley
Sat Apr 29, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: newbie asking for advice getting financial house in order...
Replies: 10
Views: 1336

Re: newbie asking for advice getting financial house in order...

Based on the information provided you are on the right track. With your income level and a 401k you are not eligible for a pre tax IRA contribution. With your previous contributions a back door Roth is not an ideal approach either. I would concentrate on paying down debt and maximizing the 401k. As ...
by Peter Foley
Fri Apr 28, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Need Advice
Replies: 12
Views: 1025

Re: Need Advice

This comment concerns me: It has made very little funds for sitting for 5 years. So how little is very little? The overall market has done reasonably well over the past 5 years. Would you be ahead if you had been invested in a couple broad based index funds with low fees? The the answer is yes, then...
by Peter Foley
Thu Apr 27, 2017 11:21 pm
Forum: Investing - Theory, News & General
Topic: "I don't want to wait till I'm 59.5
Replies: 28
Views: 4352

Re: "I don't want to wait till I'm 59.5

Wannabe The reason I asked about the type of account is that different tax deferred accounts types have different rules. With a 403b, for example if you separate from your employer after age 55 you can make withdrawals without penalty. With a 457 account you can withdraw after separation at any age ...
by Peter Foley
Thu Apr 27, 2017 3:18 pm
Forum: Investing - Theory, News & General
Topic: "I don't want to wait till I'm 59.5
Replies: 28
Views: 4352

Re: "I don't want to wait till I'm 59.5

Wannabe . .

It would be nice to know what kind of account it is. 401k, 403b, IRA, SEP IRA etc.
by Peter Foley
Thu Apr 27, 2017 9:19 am
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet May 6, 2017
Replies: 14
Views: 1711

Re: Minnesota Bogleheads Meet May 6, 2017

Lest one think that the session on investing basics is something they have worked through and beyond, many of the basics are excellent jumping off points for more detailed discussion and analysis. The moderator shared some of her work with me and this is but an example: Principle 1 - Develop a worka...
by Peter Foley
Tue Apr 25, 2017 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Retirement Plan
Replies: 14
Views: 1323

Re: Help with Retirement Plan

Taylor wrote: A good choice in a taxable account (when tax-advantaged accounts are full of bonds) is Vanguard Tax-Exempt Intermediate-Term bond fund. I agree this is a good choice for taxable accounts. Keep in mind that cash is also part of your AA allocation. Also note that you will have to do some...
by Peter Foley
Mon Apr 24, 2017 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Retirement Plan
Replies: 14
Views: 1323

Re: Help with Retirement Plan

You are starting out in an excellent position with more of your retirement savings in after tax than in 401k's. Your mix of funds is not horribly complex and your proposed asset allocation is appropriate. Taxable: I would hold at least $200,000 if not $300,000 in one year CD's - Ally Bank pays about...
by Peter Foley
Sun Apr 23, 2017 9:32 pm
Forum: Local Chapters and Bogleheads Community
Topic: Minnesota Bogleheads Meet May 6, 2017
Replies: 14
Views: 1711

Re: Minnesota Bogleheads Meet May 6, 2017

While I am not knowledgeable about David Corbett's work, I have read about the work Charles Morris did regarding "Ways to Live." There is a chapter devoted to this topic in What Color is Your Parachute in Retirement . It will be interesting to compare the two philosophies as they relate to...
by Peter Foley
Wed Apr 19, 2017 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 310
Views: 114222

Re: Retiree Portfolio Model

jacksprat I had to run at least a half dozen scenarios to gain comfort with the output. I ran similar scenarios in the RPM and i-orp. While the two calculators are different and have different purposes, RPM is definitely superior when it comes to larger scale Roth conversions. By larger scale I mean...
by Peter Foley
Wed Apr 19, 2017 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: 457B Funds Selection Assistance
Replies: 3
Views: 385

Re: 457B Funds Selection Assistance

I'm about 90% in agreement with retiredjg. I would take a look at the stable value fund's return over the past couple years. If it is greater than the rate of inflation (over 2%) put 10% there and 10% in the Total Bond Market fund. This approach would offer a little bond fund inflation protection. I...
by Peter Foley
Tue Apr 18, 2017 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: help with portfolio and asset location
Replies: 6
Views: 713

Re: help with portfolio and asset location

I don't have a suggestion for a TIPS fund. I have used the only one available in the 403b my wife has. "Stable value" is a term used to cover a variety of income funds often found in 401k and 403b plans. They provide a fixed rate of interest with (supposedly) little chance of losing value....
by Peter Foley
Sat Apr 15, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: help with portfolio and asset location
Replies: 6
Views: 713

Re: help with portfolio and asset location

For the 401k and the 457 plan I would use a combination of the Vanguard S&P 500 and the Extended Market index. The two together in the right proportion are the equivalent of total stock market. I would suggest a short term TIPS fund, or possible a stable value fund if one is available and pays a...
by Peter Foley
Sat Apr 15, 2017 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Savings & Investments in order of priority
Replies: 7
Views: 775

Re: Savings & Investments in order of priority

If you are talking about basic financial management priority, I would put the emergency fund first. Your list is pretty all-inclusive and I can't offhand think of anything you are missing.

One can forward fund 529 Plans, but I would put saving for a house at a higher priority.
by Peter Foley
Sat Apr 15, 2017 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for a young couple starting investing and financial plan?
Replies: 14
Views: 1906

Re: Advice for a young couple starting investing and financial plan?

Here is another alternative: Definitely the S&P 500 fund in your 403b. That is the only good option you have. While not great, you could put your bond allocation in your wife's 401k. Expense ratios are a drag over long period of time, kinda the reverse of compound interest. A few years with an e...
by Peter Foley
Thu Apr 13, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: 401k advice for new investor
Replies: 6
Views: 453

Re: 401k advice for new investor

Nate79 wrote: I find it very strange and highly unlikely your plan doesn't offer a bond option. Are you sure you don't need to look in a separate section for bond options? Perhaps a fund called stable value? I would be calling the plan administrator just to check because that is truly awful if no bo...
by Peter Foley
Thu Apr 13, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Will - what is complicated?
Replies: 72
Views: 4061

Re: Will - what is complicated?

I am a committed do-it-yourselfer. However, when we had minor children the stakes were just too high to get it wrong and we went to a lawyer to draw up our wills. Naming an executor and naming a guardian for minors are two important decisions. I've personally redone our wills a few times over the pa...
by Peter Foley
Wed Apr 12, 2017 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: 401k advice for new investor
Replies: 6
Views: 453

Re: 401k advice for new investor

I think you have made good choices. The decision to pay down debt is almost like a bond allocation, so I wouldn't worry about being primarily (or exclusively) in stocks for now. I personally would be tempted to use the extended market index to compliment in the index 500 fund. Your current choice is...
by Peter Foley
Wed Apr 12, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate portfolio withdrawal for retirement?
Replies: 12
Views: 1387

Re: How to calculate portfolio withdrawal for retirement?

You have been fortunate to have a very good sequence of returns.

A middle ground you might consider would be to use a 3% withdrawal based on your 2017 portfolio balance. That is fairly conservative.
by Peter Foley
Tue Apr 11, 2017 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for single aging parent
Replies: 13
Views: 1193

Re: Investing for single aging parent

This is just a guess, but if her AGI is a little under $100K, I would bet that her marginal tax rate is 25% and her SS benefits are 85% taxable. Investing in a low cost index mutual fund like Vanguard's Total Stock Market would be a reasonable, relatively tax efficient addition to her current CD hol...
by Peter Foley
Mon Apr 10, 2017 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for single aging parent
Replies: 13
Views: 1193

Re: Investing for single aging parent

Like Paul, I think a little more detail would be good.

A 50/50 portfolio is not out of line based on the information you have provided so far.
by Peter Foley
Mon Apr 10, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation [for 4% withdrawal rate]
Replies: 6
Views: 526

Re: Asset allocation [for 4% withdrawal rate]

I understood the question differently. The OP does not want to "draw down" more than 10% of his retirement portfolio. This would require a fairly high allocation to equities - certainly not a conservative approach. I don't think a withdrawal rate of 4% is sustainable through good times and...
by Peter Foley
Sun Apr 09, 2017 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Handling the Details of a Large Inheritance
Replies: 54
Views: 4641

Re: Handling the Details of a Large Inheritance

Just a note on tax brackets: $37,950 in taxable income is the top of the 15% tax bracket. That is an adjusted gross income of about $48,000+. $91,900 in taxable income is the top of the 25% tax bracket. That is an adjusted gross income of about $102,000+. In this tax bracket you pay 15% on long term...
by Peter Foley
Sun Apr 09, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: The Stages of Retirement Saving
Replies: 55
Views: 10476

Re: The Stages of Retirement Saving

Pre-Boglehead (2008) I always had an age and a number. The more I read here, which coincided with the great recession, I came to have two numbers. The first was a total dollar amount, the second number I developed was a portfolio of bonds that would provide a basic mid class lifestyle. That required...
by Peter Foley
Sun Apr 09, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Should I make changes to my portfolio ?
Replies: 47
Views: 5611

Re: Should I make changes to my portfolio ?

Based on the additional information you provided I think a stretch IRA would be a good approach. If you took the RMD's from the IRA and in turn were able to increase your own tax deferred savings for retirement, you could make this an income tax neutral transaction until you retire. In my "deat...
by Peter Foley
Sat Apr 08, 2017 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: Should I make changes to my portfolio ?
Replies: 47
Views: 5611

Re: Should I make changes to my portfolio ?

If you are relatively new to this I would start by simplifying the taxable inheritance . You really only need 3 funds, total stock market, total international and total bond. I personally like to mix in a short term TIPS fund just for a little interest rate/inflation protection. An alternative is to...
by Peter Foley
Fri Apr 07, 2017 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Will vs Living Trust
Replies: 52
Views: 3985

Re: Will vs Living Trust

I too live in MN and struggle a bit with the will versus trust issue. In Minnesota the estate you describe will pass to the wife without any estate tax nor probate if you have everything titled corrected and have beneficiaries payable on death or transfer on death on all accounts. I have been told b...

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