Search found 3166 matches

by Peter Foley
Thu May 26, 2016 2:56 pm
Forum: Personal Consumer Issues
Topic: Bikes
Replies: 70
Views: 3158

Re: Bikes

There is a wide range in terms of hourly rate across the Twin cities.

Mr. Michaels is on the low end at $20/hour. Erics is on the high end at about $60/hour.
by Peter Foley
Wed May 25, 2016 7:50 pm
Forum: Personal Consumer Issues
Topic: Bikes
Replies: 70
Views: 3158

Re: Bikes

itstoomuch wrote: What ever you buy, USED: Make sure the wheels are true, straight & without warping. Tires are good, not cracked or too worn and holding air. Cranks are not bent. Brake cables and shift cables are not frayed at the ends and free of severe rust. Crank is smooth Brake and shift ac...
by Peter Foley
Wed May 25, 2016 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Did you retire before normal retirement age?
Replies: 62
Views: 6627

Re: Did you retire before normal retirement age?

Normal retirement age in the public sector? In talking to a number of people in human resources before I retired from state government, they indicated that most individuals waited until age 62. Best guess is they wanted pension + early SS to be able to cover living expenses which would then include ...
by Peter Foley
Wed May 25, 2016 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Stable Value Fund as a retirement bucket?
Replies: 9
Views: 652

Re: Stable Value Fund as a retirement bucket?

I'm not saying I have the right approach, but the AA of my "bond" investment assets is 30% stable value, 12% I-bonds and TIPs, and 4% total bond. I have favored Stable value over total bond for a number of years based on the premise that stable value will do better when interest rates rise...
by Peter Foley
Mon May 23, 2016 11:11 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing in Retirement.
Replies: 35
Views: 3082

Re: Rebalancing in Retirement.

I suggest you read the studies done by Darrow Fitzpatrick.

http://www.caniretireyet.com/the-best-retirement-withdrawal-strategies-digging-deeper/

He has done a pretty convincing analysis of various rebalancing strategies. Some work considerably better than others.
by Peter Foley
Mon May 23, 2016 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: 62 later this year... social security?
Replies: 28
Views: 2093

Re: 62 later this year... social security?

If you have worked this year, at a minimum delay taking SS until next year. The marginal tax rate on SS is fairly high if you have other earnings. I have a September birthday. When I start taking SS benefits, I will begin in January. I have a defined pension which would make all of my SS taxable. ov...
by Peter Foley
Mon May 23, 2016 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA choice of beneficiary - always first to one's spouse?
Replies: 16
Views: 1419

Re: Roth IRA choice of beneficiary - always first to one's spouse?

OP wrote: In this case, the tail is the largest part of the dog, so to speak. My purpose is to leave the rIRA, intact and with as large a tax-free balance as possible, to our offspring. So, if it can stay intact for the remainder of the surviving spouse's life, then it would accomplish that purpose....
by Peter Foley
Mon May 23, 2016 10:35 pm
Forum: Personal Consumer Issues
Topic: Bikes
Replies: 70
Views: 3158

Re: Bikes

First of all, I've been volunteering at a local bike shop since I retired 4 years ago. The shop takes used bikes. fixes them and gives them away. I rebuilt over 200 bikes last year for the shop and another 75-100 for another organization. Based on that experience . . . It has already been said here ...
by Peter Foley
Mon May 23, 2016 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Need Moral Support for FA Breakup!
Replies: 68
Views: 4679

Re: Need Moral Support for FA Breakup!

I would be honest, but blunt. You want to go with a much simplified low cost index fund approach. If you are married you could also add that you want something simple enough so that a partner who is not interested in personal finance could mange it without professional help and the fees that that wo...
by Peter Foley
Sat May 21, 2016 9:08 am
Forum: Investing - Help with Personal Investments
Topic: is it worth it to add REITs to my simple 3 fund portfolio?
Replies: 24
Views: 1164

Re: is it worth it to add REITs to my simple 3 fund portfolio?

My tendency is favor simplification over tilting. That being said, for a young investor a small tilt can have an impact. If I were 30 I would hold REITs and a small cap value fund.
by Peter Foley
Fri May 20, 2016 2:16 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meeting May 7th
Replies: 10
Views: 1522

Re: MN Bogleheads Meeting May 7th

Most meetings have a plenary session with either a presentation on a topic or a moderated panel discussion. Following that there are two smaller group sessions - we'd like to limit the small groups to about 10-12 to facilitate more discussion and interaction, but sometimes "small" groups g...
by Peter Foley
Wed May 18, 2016 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 223
Views: 14627

Re: Pride in no inheritance to kids?

klangfool wrote: Let me ask you a reverse question. Why should you leave an inheritance to your children? If you did a good job as a parent, they would be able to survive and thrive on their own. If you did not do a good job as a parent, how does leaving an inheritance help in anything? They would w...
by Peter Foley
Tue May 17, 2016 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocation? - 401K & Roth IRA
Replies: 4
Views: 338

Re: Reallocation? - 401K & Roth IRA

You don't list a desired AA so I will propose one, 80/20. I like your choices of funds. Yes, you could do this differently, but what you have is fine - it is low cost and well diversified. I would just add to my 401k bond allocation with new contributions for the next 6 months to a year.
by Peter Foley
Mon May 16, 2016 8:38 pm
Forum: Personal Consumer Issues
Topic: I'd like to create a wiki for interesting items from the Bogleheads
Replies: 10
Views: 823

Re: I'd like to createa wiki for interesting items from the Bogleheads

Interesting financial links would be a great wiki. Links categorized in some way would be helpful.

Perhaps there is a way to delete dead links automatically now. If not, maintenance could be a nightmare.
by Peter Foley
Mon May 16, 2016 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring at end of year, our portfolio needs help.
Replies: 22
Views: 3075

Re: Retiring at end of year, our portfolio needs help.

DM2016 wrote: What do you mean "try to gain a good understanding of how the 15% tax bracket works"? You mean keep our conversion & withdrawal under the 15% effective tax rate? Usually when one refers to the 15% tax bracket one is referring to "Taxable Income" on the IRS 1040 ...
by Peter Foley
Sun May 15, 2016 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring at end of year, our portfolio needs help.
Replies: 22
Views: 3075

Re: Retiring at end of year, our portfolio needs help.

dratkinson wrote: General advice. 5% rule of thumb. Don't own anything that is less than 5% of your total portfolio. Why? It neither helps nor hurts that much, yet requires as much time to manage as your more valuable contributors. Recommended long-term retirement investing choices. See: https://www...
by Peter Foley
Sun May 15, 2016 10:56 pm
Forum: Personal Consumer Issues
Topic: I'd like to create a wiki for interesting items from the Bogleheads
Replies: 10
Views: 823

Re: I'd like to createa wiki for interesting items from the Bogleheads

"Money and politics" come to mind. The two don't mix well here. Thank goodness. And, thanks to the moderators.
by Peter Foley
Sun May 15, 2016 10:48 pm
Forum: Personal Consumer Issues
Topic: Comfortable Vehicle Front Seats
Replies: 62
Views: 9484

Re: Comfortable Vehicle Front Seats

My neighbors have a Nissan Altima and rave about the comfort of the seats. We went from a Subaru Forester to a Nissan Rogue for driving comfort. We like the Rogue a lot. I would definitely give a couple Nissan models a try.
by Peter Foley
Fri May 13, 2016 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9238

Re: Take my SS at 62 or wait?

#cruncher wrote and I asked for clarification in red text: Peter Foley in this post wrote: For a single person Modified Adjusted Gross Income causing SSI benefits to be taxable @ 50% is $25,000. You appear to be right at that threshold. This is correct. The original post indicates a taxable income o...
by Peter Foley
Fri May 13, 2016 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9238

Re: Take my SS at 62 or wait?

Rob Bertram wrote: Let's be careful. I think many posters are overly focused on getting the most out of SS and forgetting about the portfolio in general. theac wrote: In 2015 my taxable income after standard deduction and exemption was $35,800. But that included a Roth conversion of $22,000. That wa...
by Peter Foley
Fri May 13, 2016 10:29 am
Forum: Investing - Theory, News & General
Topic: Jonathan Clements Money Guide 2015 -- A Gem
Replies: 19
Views: 4086

Re: Jonathan Clements Money Guide 2015 -- A Gem

Thanks for posting Taylor. I've enjoyed Jonathan Clements's writing for years. I did react to one of the gems. Never use a custodial account to save for college costs. Instead, open a 529 college savings plan or a Coverdell education account. Both will give you tax-free growth and shouldn’t badly hu...
by Peter Foley
Thu May 12, 2016 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: What was your hardest retirement transition?
Replies: 61
Views: 8854

Re: What was your hardest retirement transition?

Spending money although I have no trouble giving it away to my children and grandchildren.

Heck, I'm still using a 2008 Window Vista PC. I think I"m going to be forced to upgrade next year. Maybe I can find a refurbished Windows 7 machine. :wink:
by Peter Foley
Thu May 12, 2016 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: What's your EM tilt and why?
Replies: 43
Views: 2340

Re: What's your EM tilt and why?

Zero. I don't trust the accounting or the currency.
by Peter Foley
Thu May 12, 2016 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Advise on Retirement Accounts
Replies: 9
Views: 1542

Re: Seeking Advise on Retirement Accounts

A second opinion on some of the advice you have received. FiveK wrote: 1) Why is hers a Roth 401k? In the 33% federal bracket, one would expect you to seek every possible opportunity to use tax-deferred accounts? 2) Her 401k looks as if it was suggested by an advisor. No need for so many different f...
by Peter Foley
Thu May 12, 2016 10:34 pm
Forum: Personal Consumer Issues
Topic: Radon Mitigation System
Replies: 24
Views: 1691

Re: Radon Mitigation System

We were asked to do radon mitigation when we sold our last house. The reading was 4.1, just above the EPA level. I did a fair amount of research at the time. One of the issues is how much time you spend in the basement where the radon is usually highest. I wouldn't worry at all about an unfinished b...
by Peter Foley
Wed May 11, 2016 10:28 pm
Forum: Personal Consumer Issues
Topic: When do you use cash, when a credit card?
Replies: 49
Views: 4013

Re: When do you use cash, when a credit card?

We have had a credit card number compromised 3 times. I use cash for smaller transactions (under $20) and only use the card for larger purchases at known local merchants and at franchises/chains when traveling. Small local merchants pay a fee every time a card is used so I'd rather given them cash t...
by Peter Foley
Wed May 11, 2016 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Trusts and IRAs
Replies: 8
Views: 1427

Re: Estate Planning Trusts and IRAs

Alan S. and bsteiner Thank you for your replies. I was hoping that one of you would reply and feel very fortunate that you both did. Alan wrote: Leaving your IRA outright or to a trust does not affect your federal estate tax as your IRA is in your estate at the time of your death. It does not affect...
by Peter Foley
Wed May 11, 2016 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Trusts and IRAs
Replies: 8
Views: 1427

Estate Planning Trusts and IRAs

I recent took an estate planning class with the hope I could get practical guidance regarding the effect of putting an IRA in a Trust. While I got an answer from the estate planning attorney, I’d like some confirmation. Here is the scenario: Minnesota has an estate tax of about 10% on estates greate...
by Peter Foley
Mon May 09, 2016 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Retire now or OMY, [One More Year]
Replies: 65
Views: 9020

Re: Retire now or OMY,

From a financial perspective, you have a little more flexibility in terms of withdrawals from many employer plans when you reach age 55. That would be my threshold if I were financially secure. Another consideration might be 35 years worth of SS earnings. Of course, how well you like/can tolerate yo...
by Peter Foley
Sun May 08, 2016 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401(k)/IRA
Replies: 20
Views: 1429

Re: Roth vs. Traditional 401(k)/IRA

I would suggest a middle ground for the first year. Will you have only 7 months of income in 2016? If yes, I would suggest starting the Roth 401K or a regular Roth if you qualify so that you have something in a Roth. Try to estimate your tax bracket for 2016. It could be that a combination of the tw...
by Peter Foley
Fri May 06, 2016 9:35 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meeting May 7th
Replies: 10
Views: 1522

Re: MN Bogleheads Meeting May 7th

There was a fairly long thread about the red zone a few months ago. I started the thread and summarized the feedback I received.

Here is a link to that thread: viewtopic.php?f=2&t=183420
by Peter Foley
Fri May 06, 2016 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Investing With a Trust
Replies: 10
Views: 993

Re: Investing With a Trust

I would agree that a mutual fund or two is a good approach.

Before deciding on which mutual funds I would suggest reading up on the taxation of income in trusts. Retained trust income is taxed at highest rate (39.6%) after $12,000. This fact might influence the mutual fund(s) you might select.
by Peter Foley
Thu May 05, 2016 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with AA in our accounts--please.
Replies: 10
Views: 557

Re: Need help with AA in our accounts--please.

I would deviate very little from Duckie's advice. His portfolio redo's are very mainstream and close to what I would propose. My only recommendation is to lighten up a bit on stocks in terms of your AA. I would go 70/30 and stay with that for at least 10 years. With a defined pension as part of your...
by Peter Foley
Thu May 05, 2016 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: 57, widowed, looking for best path to invest windfall
Replies: 20
Views: 2834

Re: 57, widowed, looking for best path to invest windfall

Is the IRA an inherited IRA? What was the age of her husband? Was he already drawing from the IRA? The answers to these questions might shed a little more light on which path is best. I am guessing that you are withdrawing from brokerage until 59.5 to avoid any penalties for early IRA withdrawals. I...
by Peter Foley
Thu May 05, 2016 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rates
Replies: 51
Views: 7519

Re: Safe withdrawal rates

Sheepdog - just curious - how did you handle 2008-2010? Did you cut back substantially in terms of spending?
by Peter Foley
Thu May 05, 2016 2:43 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meeting May 7th
Replies: 10
Views: 1522

Re: MN Bogleheads Meeting May 7th

Spending from your portfolio breakout session: This session will explore the options which face many retirees. Withdraw first from taxable or from tax deferred? When to withdraw from a Roth? Which assets to you spend from first: Stocks, bonds, or a combination? Also to be explored - Darrow Kirkpatri...
by Peter Foley
Thu May 05, 2016 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rates
Replies: 51
Views: 7519

Re: Safe withdrawal rates

cadreamer2015 wrote: The biggest takeaway I've gotten for actually making retirement withdrawals is the importance of flexibility. If you will need to follow the 4% rule exactly to fund the day to day necessities in retirement you probably don't have enough saved for retirement. If your budget has s...
by Peter Foley
Wed May 04, 2016 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rates
Replies: 51
Views: 7519

Re: Safe withdrawal rates

For planning purposes I look to the Trinity Study and the 4% rule. For an application of swr for a retiree, it is a lot more complicated. I think Jonathan Guyton has written a number of good articles on the subject. I particularly like the following: Withdrawal Rules: Squeezing More From Your Retire...
by Peter Foley
Wed May 04, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Good book(s) for the soon to be retired?
Replies: 25
Views: 3166

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

As one of the chapter authors, I too would recommend the Bogleheads' Guide to Retirement Planning. While researching information for the Planning Process Chapter, I tried to emphasize the need to plan your life in retirement at the same time you plan for your savings in retirement. A disconnect coul...
by Peter Foley
Wed May 04, 2016 8:53 am
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meeting May 7th
Replies: 10
Views: 1522

MN Bogleheads Meeting May 7th

Hello, MN Bogleheads! Our Spring meeting agenda has been finalized. Here are the logistics: Who: All MN Bogleheads & guests What: Quarterly MN Boglehead meeting Where: Minnetonka, Ridgedale Library, Rohlf Meeting Room link: https://goo.gl/maps/2B8HWcefHgp When: Saturday, May 7th, 10:00 - noon Wh...
by Peter Foley
Tue May 03, 2016 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki article for new investors - Risk tolerance
Replies: 42
Views: 3203

Re: Wiki article for new investors - Risk tolerance

Thanks to all for filling in the gap. I'm aware of Fallible's interest and research with regards to behavioral finance. This is a nice addition to support that aspect of investing. When talking to new investors I like to emphasize that there are really two risks, one is market risk which can be meas...
by Peter Foley
Tue May 03, 2016 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest or Roth conversion
Replies: 8
Views: 588

Re: Tax gain harvest or Roth conversion

Interesting question - looking at the math is certainly a very valid approach. Celia, however, hints at other considerations. I would expand on that. If you do not take the tax gain harvesting route 1. You may be able to donate some shares to a donor advised fund and substitute that for some of your...
by Peter Foley
Mon May 02, 2016 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Revisiting “Could I retire…. next week?” two years later
Replies: 12
Views: 3630

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

I think your AA is a little aggressive for a retiree of your age. However, with your guaranteed income stream, I would not worry. Some people consider a guaranteed income stream to be a bond equivalent. With budget needs of $61k, why are you looking at $80k of withdrawal? If you stick with the 61k f...
by Peter Foley
Sun May 01, 2016 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: Re-balancing request
Replies: 6
Views: 447

Re: Re-balancing request

I too think the Lifestyle growth approach is fine. At a minimum, if your are going to continue to hold hold segregated funds, you should hold your bond allocation in your tax deferred accounts and your stocks in your Roth accounts. One usually withdraws from Roth accounts last so having stocks there...
by Peter Foley
Sun May 01, 2016 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: IRA or Taxable ?
Replies: 11
Views: 985

Re: IRA or Taxable ?

Just so you are aware . . . there are a number of proprietary Schwab index funds that are very low cost. I'be been investing in the Schwab 1000 fund since inception (1991).
by Peter Foley
Sun May 01, 2016 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Conflicted about retirement withdrawal strategy
Replies: 11
Views: 2213

Re: Conflicted about retirement withdrawal strategy

dbr wrote: Retirees sometimes find themselves with a window between retirement and RMD's where conversion to Roth or an outright withdrawal makes sense. You pretty much have to lay out a plan for that period of time and see what the tax results might be year on year. and randomguy wrote: The convent...
by Peter Foley
Sat Apr 30, 2016 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio help
Replies: 3
Views: 422

Re: Portfolio help

I will echo iceport's advice. Leave taxable alone if you can fully fund the other accounts. As the other accounts grow with your contributions, you may want to make an effort to reduce your bond holdings in your taxable account. That is the traditional approach - it is not a mandatory approach, just...
by Peter Foley
Sat Apr 30, 2016 8:01 pm
Forum: Investing - Theory, News & General
Topic: Classic Bernstein 1 — Asset Allocation and Time Horizon
Replies: 46
Views: 5747

Re: Classic Bernstein — Asset Allocation and Time Horizon

Thanks for posting. You provided a very good explanation of what the graph shows.
by Peter Foley
Fri Apr 29, 2016 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: What's next? [investment choices]
Replies: 5
Views: 509

Re: What's next? [investment choices]

While you don't provide details on your employer plan investment options and expenses, I would be inclined to fund a low cost index fund in a regular 401k. If your commissions are relatively stable, you are solidly in the 25% tax bracket where it makes sense to go the tax deferred route.
by Peter Foley
Fri Apr 29, 2016 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed AA for life
Replies: 10
Views: 1183

Re: Fixed AA for life

mhc wrote I'm not a REIT or international bond fan. I would be closer to the following if I had to choose an AA for life: 40% TSM 20% TISM 40% TBM I concur for much the same reason. I also agree with Pharmacist that 50% bonds is too conservative to hold for a lifetime. I just can't see 50% bonds in ...

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