Search found 3587 matches

by Peter Foley
Mon Jan 16, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: How best to proceed with IRA with estate as beneficiary
Replies: 6
Views: 346

Re: How best to proceed with IRA with estate as beneficiary

I suggest you read Michael Kitces article on IRA's in Trusts: Published in June of 2016, the title is: Getting Stretch IRA Treatment When Using An A-B Trust As An IRA Beneficiary http://www.kitces.com/blog/category/4-estate-planning/ It looks like you also consulted Ed Slott's website. He has inform...
by Peter Foley
Mon Jan 16, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited annuity & Ira
Replies: 17
Views: 595

Re: Inherited annuity & Ira

Regarding the annuity - do you know if it a pretax IRA annuity or an after tax (non qualified) annuity? The IRS has rules that apply to annuity withdrawals and they are different for pre tax and after tax. I believe that regular withdrawals from an after tax annuity are a mix of ordinary income and ...
by Peter Foley
Mon Jan 16, 2017 2:00 pm
Forum: Investing - Theory, News & General
Topic: Target Date Fund - Retirement Years
Replies: 16
Views: 656

Re: Target Date Fund - Retirement Years

I am not using target date funds in retirement. There are a couple considerations to keep in mind. Not all target date funds with a specific date are equal. From one mutual fund company to another the mix of stocks and bonds may be quite different. You may want to compare Fidelity and Vanguard targe...
by Peter Foley
Sun Jan 15, 2017 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: ROTH conversion calculator to minimize RMDs?
Replies: 18
Views: 1512

Re: ROTH conversion calculator to minimize RMDs?

frankyo wrote: Thank you all for your replies. I tried the i-orp, but it had me getting very high distributions (compare to what my budget really is), and nothing about converting to Roth. This was my first experience with ORP as well. It was providing me with a much larger income than I needed. I f...
by Peter Foley
Sat Jan 14, 2017 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS and/or "stable value" fund in bond allocation
Replies: 2
Views: 414

Re: TIPS and/or "stable value" fund in bond allocation

Both TIPS and stable value are reasonable options. I use Total Bond, TIPS and stable value as parts of my non equity AA. I tend to favor stable value, but that is because there is little risk (less than total bond or a TIPS fund) and the interest rate available is 3.5% for new money. Even at 2% net,...
by Peter Foley
Sat Jan 14, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Help with taxes
Replies: 27
Views: 1770

Re: Help with taxes

Perhaps this is not an option, but there is still time this year to make one last estimated tax payment.
by Peter Foley
Fri Jan 13, 2017 3:03 pm
Forum: Investing - Theory, News & General
Topic: 100% equities in Roth part of portfolio?
Replies: 19
Views: 1969

Re: 100% equities in Roth part of portfolio?

I am a proponent of having Roth accounts 100% equities and holding bonds, to the extent possible for your desired AA, in tax deferred. This makes sense if you are not going to touch your Roth for many years, if you have concerns about tax brackets and RMDs', and/or if you feel you are investing in y...
by Peter Foley
Fri Jan 13, 2017 2:58 pm
Forum: Personal Consumer Issues
Topic: Trip to Kona, Hawaii - Suggestions
Replies: 44
Views: 2469

Re: Trip to Kona, Hawaii - Suggestions

Already recommended: Snorkling in "Kealakekua Bay" - by the Captain Cook Monument was great. Some of the best snorkeling we had - the water was extremely clear and lots of fish. We did this as well but we rented a Kayak from a small operator and paddled across the bay to snorkel. It was on...
by Peter Foley
Fri Jan 13, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: ROTH conversion calculator to minimize RMDs?
Replies: 18
Views: 1512

Re: ROTH conversion calculator to minimize RMDs?

In terms of free calculators, I have found two: ORP and BigFoot's Retiree Portfolio Model. Both are complex and you need to run a few scenarios to get an appreciation for what they do. There is a ongoing thread about financial calculators and I have posted some information there: https://www.boglehe...
by Peter Foley
Thu Jan 12, 2017 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Retired Parent's IRA--Emotions vs Logic?
Replies: 13
Views: 956

Re: Investing Retired Parent's IRA--Emotions vs Logic?

Just an aside. If her out of pocket health care costs exceed her income you should probably be taking more out of her traditional IRA than her RMD's while she is in a zero tax bracket.
by Peter Foley
Thu Jan 12, 2017 5:19 pm
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 95
Views: 5795

Re: Investing only after a market correction

Rodc: Not wanting to hijack the thread I will be brief. CAPE — Robert Shiller’s Cyclically Adjusted Price-to-Earnings ratio or CAPE. It’s defined as the price of the S&P 500 divided by the average of the last ten years earnings, adjusted for inflation. It tends to average around 16. It is curren...
by Peter Foley
Thu Jan 12, 2017 12:33 pm
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 95
Views: 5795

Re: Investing only after a market correction

Gilgamesh wrote: My question is, what if I decide to pay down debt. However, at the beginning of the month, if S&P 500 is down more than 10% from its high then invest in a S&P500 index fund. Do this until it either fully recovers or recovers to 5% of its all time high and then start paying d...
by Peter Foley
Wed Jan 11, 2017 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 60
Views: 8276

Re: best software for financial planning

orplanner . . .

Language clarification:

I said that "it too" (ORP also) was a complex retirement spending calculator, not that it was too complex.
by Peter Foley
Wed Jan 11, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Another try at getting Portfolio Advice
Replies: 17
Views: 1107

Re: Another try at getting Portfolio Advice

BL wrote: Sell anything at a loss, maybe those funds under 5%, if not too much gains; sell gains up to loss. I wouldn't sell everything at your tax rate. Be sure to not re-invest distributions; rather have them available to buy into 3-fund portfolio. I second this recommendation. To add a little mor...
by Peter Foley
Wed Jan 11, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 60
Views: 8276

Re: best software for financial planning

I am not aware of any that take into account capital gains in taxable accounts. There are a lot of calculators that provide insight into the amount one needs to retire at a designated spending level. There are a few that provide insight on how to invest (essentially AA) and a few that provide insigh...
by Peter Foley
Tue Jan 10, 2017 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 60
Views: 8276

Re: best software for financial planning

Theseus I reviewed a number of the more complex financial calculators for an upcoming MN Bogleheads meeting. ESPlanner - basic was one that I reviewed and liked in terms of a retirement spending planner. My preference, however, is BigFoot's Retiree Portfolio Model. My preference is based on its capa...
by Peter Foley
Tue Jan 10, 2017 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax 2016 purchase source
Replies: 80
Views: 9624

Re: Turbo Tax 2016 purchase source

Thanks for the tip. Sounds like Staples this year.
by Peter Foley
Tue Jan 10, 2017 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Account Allocation for Tax-Efficiency
Replies: 2
Views: 249

Re: Retirement Account Allocation for Tax-Efficiency

In your tax bracket I would continue with a regular 401k. The expense ratio is not horrible. The drag on returns becomes noticeable after long period of time (20 + years). You may have other options before then. I would stick with it for now. You have more Schwab funds than you need. Schwab Total St...
by Peter Foley
Tue Jan 10, 2017 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Widow Benefits
Replies: 11
Views: 1025

Re: Social Security Widow Benefits

My understanding is that she cannot apply for benefits based on her work history until age 62.
by Peter Foley
Tue Jan 10, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Sell in taxable and pay taxes in order to simplify
Replies: 2
Views: 255

Re: Sell in taxable and pay taxes in order to simplify

These sound like all taxable accounts. If you have the ability to rebalance in tax deferred to get to your desires AA, I would keep the low cost mid cap fund. There are a number of BH posters who like to have a small cap or mid cap tilt. (I think they usually prefer value to growth however.) If you ...
by Peter Foley
Mon Jan 09, 2017 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: To those with a pension...
Replies: 52
Views: 5733

Re: To those with a pension...

We are both retired. I have a pension and my wife does not. My answer to both is no. I did have a very aggressive AA but having a pension was only one factor for doing so. I think I overestimated my risk tolerance. When done in the abstract it is one thing, when you go through a deep recession and d...
by Peter Foley
Sat Jan 07, 2017 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Suggestions for 70-year-old retiree's portfolio
Replies: 18
Views: 2092

Re: Suggestions for 70-year-old retiree's portfolio

Just to give you a feel for RMDs, they average about 4%/year in ones early 70's. So expect roughly $10,000/year in RMD's (obviously a little less initially, and little more later on). I would put the Roth IRA in total stock market. The Rollover IRA could be in a combination of Total Bond Fund and In...
by Peter Foley
Fri Jan 06, 2017 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Just retired-requesting portfolio reallocation advice
Replies: 53
Views: 4033

Re: Just retired-requesting portfolio reallocation advice

Welcome. Good first post. I too would be inclined to switch IRA's to Vanguard. I think the advice you got from the Fidelity Rep was self serving. I will start with your question number 2 as it would be for me the starting point to build a simplified portfolio. Yes. To the extent possible use the fix...
by Peter Foley
Fri Jan 06, 2017 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Strategies for cash distribution in retirement
Replies: 13
Views: 747

Re: Strategies for cash distribution in retirement

Going into retirement I was of the same mind as blueblock. I had essentially 2 years worth of cash in savings and checking earning next to nothing. 4.5 years into retirement I have replenished my cash through assets sales and cashing EE bonds that reached final maturity. Last year I did my first act...
by Peter Foley
Fri Jan 06, 2017 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees' Roth Conversion Conundrum
Replies: 24
Views: 2038

Re: Retirees' Roth Conversion Conundrum

Afull Our TIRAs are almost 10 times greater than our Roths. Minnesota has about a 8% income tax rate and an estate tax - can't win for losing! For all the scenarios I ran, the most advantageous was to do 2 years of Roth conversions into the middle of the 25% bracket and then make sure I fill the 15%...
by Peter Foley
Fri Jan 06, 2017 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: How many $ to self fund long term care?
Replies: 73
Views: 4935

Re: How many $ to self fund long term care?

Meriam2 I was referring to the medical deduction. Quoting from IRS Publication 17, " Nursing Home. You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution . . . This includes the cost of meals and lodging in the home if a princip...
by Peter Foley
Fri Jan 06, 2017 6:03 pm
Forum: Personal Consumer Issues
Topic: Tell me all about snowblowers
Replies: 42
Views: 2423

Re: Tell me all about snowblowers

I live in Minnesota and we typically get only one or two 12" snow falls in a year. I've owned both a two stage and a one stage. For ease of use and maneuverability I would go with a one stage electric start. Our one stage Sears lasted 22 years and might still be going strong if I hadn't hit a h...
by Peter Foley
Fri Jan 06, 2017 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Need a will and possibly trust - where do I start?
Replies: 27
Views: 1751

Re: Need a will and possibly trust - where do I start?

red_uu wrote: The children are minors, both elementary-school age. Right now all of my IRAs and 401Ks list the kids as beneficiaries - I changed that right after the divorce. Well done. This is actually where you start for financial issues. Start with beneficiary designations and continue on to add ...
by Peter Foley
Fri Jan 06, 2017 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Which stock index fund for gift to grandchildren
Replies: 25
Views: 1577

Re: Which stock index fund for gift to grandchildren

While the amount is relatively small now, you may want to choose a fund that does not have capital gains every year. At certain investment income levels a child's tax return become taxable at the parents' rate. You are a long way from that, but still, if there are other gifts and earning from other ...
by Peter Foley
Thu Jan 05, 2017 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: How many $ to self fund long term care?
Replies: 73
Views: 4935

Re: How many $ to self fund long term care?

Nisiprius - he was a financial planner at Ameriprise. We hired him for a one time plan. I remember asking the question and getting a swift response as if it were a standard answer. We are not able to get back to him.
by Peter Foley
Thu Jan 05, 2017 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: How many $ to self fund long term care?
Replies: 73
Views: 4935

Re: How many $ to self fund long term care?

We had an independent financial planner do a review before we retired. At that time (2010) he said a couple could self insure if they had about $1.5M in liquid assets. An interesting twist - if you do in up in long term care it probably won't make a difference whether the assets are in taxable or ta...
by Peter Foley
Thu Jan 05, 2017 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: How many of you did a Roth conversion the first day of 2017
Replies: 43
Views: 2696

Re: How many of you did a Roth conversion the first day of 2017

Using a Roth with a zero balance makes the recharcterization much more transparent. You know you converted X, now it is worth Y. You know what you tax liability is for the year. You can decide if recharcterization is worth it or not.
by Peter Foley
Thu Jan 05, 2017 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities
Replies: 9
Views: 773

Re: Annuities

nedsaid said: They are fee traps. These are sold to retirees like hotcakes usually with principal and/or income guarantees. These are complex instruments that are difficult to analyze, hard to tell if you are getting a good deal or not. In most cases, not. Well stated. I agree 100%. If she needs an ...
by Peter Foley
Thu Jan 05, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: How to approach getting new wills, trusts, with a blended family
Replies: 51
Views: 2460

Re: How to approach getting new wills, trusts, with a blended family

Trusts are usually (if not always) recommended for high net worth blended families and situations where some exercise of control "beyond the grave" is advisable. I agree with early out that the starting point is an agreement with your wife. I also recommend Beyond the Grave . It is as much...
by Peter Foley
Wed Jan 04, 2017 5:01 pm
Forum: Investing - Theory, News & General
Topic: How to Search for Author/Scholars' Forum Posts?
Replies: 12
Views: 869

Re: How to Search for Author/Scholars' Forum Posts?

You might check Taylor's Gem lists. I know Mike Piper posts here as does Rick Ferri. There are also a number of scholars whose books and articles are referenced - Wade Pfau and Michael Kitces come to mind. If you are interested in a specific topic the BH Wiki often has links to articles - again, lik...
by Peter Foley
Wed Jan 04, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Establishing an irrevocable trust
Replies: 2
Views: 424

Re: Establishing an irrevocable trust

There are many options available when establishing a trust. bsteiner has written about estates and trusts and is a regular contributor here. I would look for his advice.
by Peter Foley
Wed Jan 04, 2017 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Investing help
Replies: 9
Views: 627

Re: Investing help

Filter, welcome to the forum. If you are going to be investing monthly into a taxable account, check with the brokerage to see if there are any charges for purchasing an ETF equivalent of a broad based mutual fund. Charges differ from broker to broker, with some being free for mutual funds and charg...
by Peter Foley
Wed Jan 04, 2017 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in tIRA to reduce tax bracket?
Replies: 7
Views: 519

Re: Investing in tIRA to reduce tax bracket?

Following up on DSInvestor's post and that of House Blend, I too would be inclined to invest in the Roth. This is especially true if your wife expects to return to the workforce. Adding a second salary may put you over the limit for a Roth IRA, and with a second salary you would most likely be in th...
by Peter Foley
Wed Jan 04, 2017 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: You have 5-10 minutes to teach someone about personal finance
Replies: 54
Views: 3926

Re: You have 5-10 minutes to teach someone about personal finance

Live below your means and save the rest. Come back and talk to me when you have 6 months worth of your expenses saved.

I like many of the other suggestions. I think the points Lauren makes regarding the emotional side of investing are spot on and might make a brief conversation more memorable.
by Peter Foley
Wed Jan 04, 2017 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Minimize taxes in rebalancing
Replies: 7
Views: 459

Re: Minimize taxes in rebalancing

Based on your update I would likely take the path of not rebalancing. I think you are talking about a relatively small increment anyway. Check out Wade Pfau's "Rising Equity Glide Path" article. Its premise is that one should be their most conservative around the time they retire and then ...
by Peter Foley
Wed Jan 04, 2017 12:02 am
Forum: Investing - Theory, News & General
Topic: "How Pensions and Social Security Affect Asset Allocation"
Replies: 10
Views: 1789

Re: "How Pensions and Social Security Affect Asset Allocation"

Very interesting article. Thanks for sharing. I find that my opinion regarding this issue has evolved over time. While in the accumulation mode I had a very aggressive AA. Perhaps from a subconscious perspective, knowing I had access to a pension let me feel comfortable with more risk (pension as bo...
by Peter Foley
Tue Jan 03, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees' Roth Conversion Conundrum
Replies: 24
Views: 2038

Re: Retirees' Roth Conversion Conundrum

In running scenarios with the Retiree Portfolio model, I can do two Roth conversions into the mid 25% tax bracket range and come out ahead after 13 years IF I assume stocks average 7% and bonds average 3%. This is 1% higher for stocks than I had previously modeled and .5% higher for bonds. These are...
by Peter Foley
Tue Jan 03, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Minimize taxes in rebalancing
Replies: 7
Views: 459

Re: Minimize taxes in rebalancing

Very hard to say without a lot more detail. Can you specifically identify the most expensive shares of VTSAX and sell those? Can you bundle your tax deductions to create more room in the 15% tax bracket? Can you increase tax deferred contributions to lower your taxable income in 2017? Do you have an...
by Peter Foley
Mon Jan 02, 2017 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees' Roth Conversion Conundrum
Replies: 24
Views: 2038

Re: Retirees' Roth Conversion Conundrum

Dottie57 wrote: Wouldn't roth distributions be easier (no tax) as one ages? No complicated tax rules ( if Roth remains untaxed). Your. Roth money is all spendable. Good point. This might be the better approach for some retirees. For others, I suspect the last asset they touch will be their Roths. Th...
by Peter Foley
Mon Jan 02, 2017 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees' Roth Conversion Conundrum
Replies: 24
Views: 2038

Re: Retirees' Roth Conversion Conundrum

Hi Miriam2, it is BigFoot's excel program. I found his calculator to be the best for running scenarios. Bruce - I have the same thoughts about a 25 year payback and it is why I posed the question - maybe others see something I don't. And one can only assume that tax laws do not change. Neither calcu...
by Peter Foley
Mon Jan 02, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees' Roth Conversion Conundrum
Replies: 24
Views: 2038

Retirees' Roth Conversion Conundrum

It is a new year and for many a time to start another round of Roth conversions. I would expect that many retirees in their 60’s find themselves in a situation similar to that which I present below. IMHO conversion to the top of the 15% bracket if one anticipates being in the 25% bracket with RMD’s ...
by Peter Foley
Sun Jan 01, 2017 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: What are your portfolio/investments?
Replies: 38
Views: 2423

Re: What are your portfolio/investments?

Retired 4.5 years, age 66. Wife also retired 4.5 years. AA per my investment policy statement is 50/50. (I'm kind of following Wade Pfau's rising equity glide path - admittedly I started this by accident, but it makes sense to me. I would never go higher than 55% to 60% - that would have a psycholog...
by Peter Foley
Sun Jan 01, 2017 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: New Boglehead - portfolio help please! :)
Replies: 8
Views: 1047

Re: New Boglehead - portfolio help please! :)

At your current tax rate you should switch to the regular 401k. If you have additional funds to invest, the tax deferral may drop your income to where you could do a regular Roth. I understand your reluctance to sell your larger taxable positions. I would be tempted to do so in small amounts and pay...

Go to advanced search