Search found 3898 matches

by Peter Foley
Thu Jul 20, 2017 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: Separate charitable donations in taxable
Replies: 12
Views: 388

Re: Separate charitable donations in taxable

Perhaps this is heresy but I really don't pay much attention to the fees of the DAF. The assets in the DAF are not mine. When I donate the appreciated mutual fund shares to the DAF, that is my "taxable event" as the DAF is the charity. I then redirect the assets to those organizations I fa...
by Peter Foley
Wed Jul 19, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Isn’t 39.6% tax better than 10% tax? (state estate tax vs. trust income tax)
Replies: 5
Views: 965

Re: Isn’t 39.6% tax better than 10% tax? (state estate tax vs. trust income tax)

I'm from Minnesota and have struggled with the same conundrum ever since taking a class in estate planning. My understanding, which could be wrong, is that "income" over a certain amount, if retained in the trust, in taxable at a very high rate. It has been "fuzzy" for me as well...
by Peter Foley
Wed Jul 19, 2017 4:21 pm
Forum: Personal Consumer Issues
Topic: Ideas for a week in Spain
Replies: 42
Views: 2422

Re: Ideas for a week in Spain

If one of your plans for a day trip does not work out, you might try a day trip to Tarragona as a substitute.
by Peter Foley
Wed Jul 19, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: avoiding capitol gains tax
Replies: 7
Views: 687

Re: avoiding capitol gains tax

My experience has been that it is better to talk to someone at the institution to which you are transferring an asset. They are motivated to meet your needs in order to facilitate the transfer.
by Peter Foley
Wed Jul 12, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Recent inheritance + mix of retirement funds + 5 years from retirement = confusion
Replies: 16
Views: 1663

Re: Recent inheritance + mix of retirement funds + 5 years from retirement = confusion

A basic approach might be as follows: All TIAA-CREF 403b goes into the bond fund. Roth goes into Large Cap Value. All taxable get transferred to Vanguard. You could continue to hold the 3 Core S&P funds and an international fund, or go with Vanguard's version of total stock market. Add one or tw...
by Peter Foley
Wed Jul 12, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity or Schwab mutual funds: Capital gains distribution chances?
Replies: 9
Views: 586

Re: Fidelity or Schwab mutual funds: Capital gains distribution chances?

I've held the Schwab Total Stock Market fund for years. My recollection is that there are some capital gain distributions most years when there is a rising market.
by Peter Foley
Wed Jul 12, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Rollover 401k - Retirement Planning
Replies: 3
Views: 208

Re: Rollover 401k - Retirement Planning

I like Duckie's first suggestion the best. To keep everything clear from an accounting standpoint, I would open a second IRA for this purpose and would not co-mingle the funds.
by Peter Foley
Wed Jul 12, 2017 9:11 am
Forum: Personal Consumer Issues
Topic: Ideas for a week in Spain
Replies: 42
Views: 2422

Re: Ideas for a week in Spain

My undergraduate and graduate degrees are in Spanish and I've traveled in Spain numerous times, a few times in July and August. The only area I have not traveled to is Almeria - Murcia - Alicante. Except for the weather, much too hot, Andalucia would be my first choice. Granada, Sevilla, Cordoba, Ro...
by Peter Foley
Wed Jul 12, 2017 8:32 am
Forum: Personal Consumer Issues
Topic: Advice on buying a musical instrument
Replies: 17
Views: 981

Re: Advice on buying a musical instrument

I admit I know nothing about violins. I am simply reacting to the comment that you like the feel of the rental. I own 3 guitars, one classical and two acoustics. All three have different fret widths. When I switch from one to another it takes a day or two of practice to readjust and become comfortab...
by Peter Foley
Mon Jul 10, 2017 8:35 pm
Forum: Investing - Theory, News & General
Topic: "Top 5 posts of all times"
Replies: 17
Views: 4172

Re: "Top 5 posts of all times"

My goodness Taylor, what a book list!

Okay, this is off topic. Do you have a favorite work of fiction?
by Peter Foley
Mon Jul 10, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - 4 years from retirement
Replies: 3
Views: 849

Re: Portfolio Review Request - 4 years from retirement

This is more of a psychological consideration than a financial one based on my experience. I do not believe this is necessarily the norm. Like my wife and I, your assets are primarily in tax deferred accounts. Our basic living expenses are covered by pension and (when we take it) SS benefits. So our...
by Peter Foley
Mon Jul 10, 2017 8:08 pm
Forum: Personal Consumer Issues
Topic: Shopping for first bike since I was a kid
Replies: 120
Views: 6117

Re: Shopping for first bike since I was a kid

fishboat wrote: There are lots of ways you could approach what you're doing. One that floats to the top for a beginner, and will be very inexpensive, to the point where you can get into a bike, ride it until you want to make a change, and sell it for about what you bought it for, is older, steel, ha...
by Peter Foley
Mon Jul 10, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Beware of retroactive payments when claiming SS
Replies: 13
Views: 1511

Re: Beware of retroactive payments when claiming SS

A related question - My birthday is in September. Some January in the future I will start SS benefits. If I ask for retroactive payments will they be taxed retroactively, or in the year received? I ask because of the statement that SS benefits are actuarially the same. True, but tax planning vis-a-v...
by Peter Foley
Sat Jul 08, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: Roth what fund
Replies: 4
Views: 366

Re: Roth what fund

Assuming you can balance your AA elsewhere, I would go with Total Stock Market.
by Peter Foley
Sat Jul 08, 2017 7:35 pm
Forum: Personal Consumer Issues
Topic: Shopping for first bike since I was a kid
Replies: 120
Views: 6117

Re: Shopping for first bike since I was a kid

My two cents based on 5 years of experience working in a bike shop repairing and rebuilding bikes. We get most of our bikes from city and county recycling events and see a lot of cheap, abused bikes and a few better quality bikes. There is no problem getting a used bike in your price range, but I wo...
by Peter Foley
Sat Jul 08, 2017 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: How are you a leader in personal finance?
Replies: 29
Views: 3140

Re: How are you a leader in personal finance?

Like triceratop I wouldn't presume to be a leader in personal finance. One can lead by example, however, and I echo the comments of those who have influenced and encouraged the financial prowess of their children. Jeff M. formed the MN Bogleheads group and kept it going unassisted for a number of ye...
by Peter Foley
Fri Jul 07, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: For retirement at 55 what is a good multiplier?
Replies: 43
Views: 4911

Re: For retirement at 55 what is a good multiplier?

Here are a couple responses from long ago threads. •Age based savings goals* •Age 30: Savings = 0.6 x Income Age 40: Savings = 2.4 x Income Age 50: Savings = 5.2 x Income Age 60: Savings = 9.4 x Income *Based on a T. Rowe Price Survey - 66% of final salary is average (half of respondents were in the...
by Peter Foley
Thu Jul 06, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting Allocation
Replies: 5
Views: 499

Re: Shifting Allocation

There is a shifting allocation strategy of which I am aware. This strategy is employed during the withdrawal phase of investing, however, not the accumulation phase. Basic McClung Prime Harvesting Rules • This rule was proposed by Michael McClung in his book Living Off Your Money . • Pick an initial...
by Peter Foley
Wed Jul 05, 2017 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Seeking advice on Early Retirement
Replies: 30
Views: 3625

Re: Seeking advice on Early Retirement

Is your basic plan to spend from taxable until you can access tax deferred tax w/o penalty and delay SS benefits until age 67? If yes, have you done a basic calculation to figure out your tax rate during these three different stages? The Retiree Portfolio Model and/or i-orp can help with this planni...
by Peter Foley
Wed Jul 05, 2017 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Stable Value Questions
Replies: 12
Views: 1407

Re: Stable Value Questions

A reason to keep part of one's non equity in a stable value fund is to protect against loses to a bond fund when interest rates rise. We seem to be in a slowly rising interest rate environment, ergo bond funds may have (and I emphasize may) lower or even negative returns in the near future. Most of ...
by Peter Foley
Mon Jul 03, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking advice on Early Retirement
Replies: 30
Views: 3625

Re: Seeking advice on Early Retirement

As to bonds, I would go the route that Duckie suggests and buy some I-bonds every year. You will not earn any money with current yields but you will maintain buying power. IMHO that is okay for a portion of your bond allocation. $2500/month for combined SS benefits for the two of you at full retirem...
by Peter Foley
Sun Jun 25, 2017 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Old 401k
Replies: 4
Views: 489

Re: Old 401k

There are some who suggest that one should mirror one's holdings in all account. There is another school of thought that since the Roth is tax free one should place those assets with the highest potential for growth in the Roth. I agree with this latter approach. In addition, my personal opinion is ...
by Peter Foley
Sun Jun 25, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 142
Views: 9856

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

While I agree that the CAPE is high, I have no interest in the Larry portfolio. If I were going to change because of CAPE I would simply replace 10% of my current equities with bonds. I see no reason to adopt an entirely different strategy.
by Peter Foley
Sun Jun 25, 2017 10:12 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 32
Views: 4008

Re: The "angle" at Schwab

I've been with Schwab for well over 20 years. I have found them to be helpful. I've had two advisers over the time I have been with Schwab. I would characterize both as having a "light touch." I have been contacted by my adviser once or twice a year with a simple inquiry along the lines of...
by Peter Foley
Sat Jun 24, 2017 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: Old 401k
Replies: 4
Views: 489

Re: Old 401k

ziegler 2010 wrote If I were to do that, are there any advantages/disadvantages for certain funds in each type of account? IE bonds are better in traditional/roth etc? My idea is maybe I could put all eggs in one basket in each account if it's ideal. Maybe allocate my entire Roth to the VTSAX, and m...
by Peter Foley
Sat Jun 24, 2017 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Hello and how are we doing?
Replies: 6
Views: 1433

Re: Hello and how are we doing?

I think you are doing well. My only suggestion would be to use some of the cash to pay off some of the mortgage if the rate merits such an action. Even if you are a year or two out from buying a new house you will probably come out ahead. In addition I would use some of the cash to more fully fund t...
by Peter Foley
Sat Jun 24, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for relative with mostly cash and 7-10 years to retirement?
Replies: 25
Views: 1932

Re: Advice for relative with mostly cash and 7-10 years to retirement?

Do note that different Target Retirement funds with the same date differ in terms of asset allocation. Example: Vanguard 2025 63% stocks, 34% bonds Fidelity Freedom 2025 65% stocks, 23% bonds, 10% cash. With their current holding being very conservative I would worry about the risk of their selling ...
by Peter Foley
Fri Jun 23, 2017 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Can you share some of your financial goals?
Replies: 69
Views: 7542

Re: Can you share some of your financial goals?

We live in Minnesota and do not enjoy winter. One of our financial goals was to have enough money to be able to spend a couple winter months in warmer climates (traveling and renting, not buying).
by Peter Foley
Fri Jun 23, 2017 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying pension benefits - what would you do?
Replies: 18
Views: 2072

Re: Delaying pension benefits - what would you do?

There are many different factors to consider with regards to delaying for a year. Here are but two. Others can add more. 1. Does pension + SS benefits cover most of your living expenses? 2. Do you have substantial tax deferred savings that you could draw on for the year? The thought here is that you...
by Peter Foley
Fri Jun 23, 2017 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Fund Parent's Trusts
Replies: 18
Views: 2104

Re: Fund Parent's Trusts

Based on the numbers you provided, to which I added 100K for personal property. I come up with a total of 5.9M. Of that $940K represents your father's share of real estate and is already in a family trust. So you have about $5M to deal with. Is this correct? A credit shelter trust is indeed a good w...
by Peter Foley
Thu Jun 22, 2017 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Fund Parent's Trusts
Replies: 18
Views: 2104

Re: Fund Parent's Trusts

bsteiner wote: Since the Illinois estate tax exempt amount is $4 million, and there's no portability for Illinois purposes, they should divide their assets so that each of them holds some assets in his/her name. That way, they'll each be under $4 million, and they won't pay either Federal or Illinoi...
by Peter Foley
Thu Jun 22, 2017 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Services
Replies: 62
Views: 5212

Re: Trust Services

When I took a class on estate planning, trusts were of course discussed in some detail. The prof, an attorney who specialized in estate planning, gave a very clear warning about selecting a trustee, especially a trustee associated with a banking or brokerage firm. That warning was that the trustee m...
by Peter Foley
Thu Jun 22, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Not
Replies: 14
Views: 960

Re: Roth 401k or Not

welderwannabe wrote:
I will switch to non-roth 401k contributions. I will then invest the tax savings (33% of the contributions) in a taxable account and try to do a backdoor roth conversion from that every year. That should get me the best of both worlds.


This is a good solid plan.
by Peter Foley
Wed Jun 21, 2017 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Tax on Mutual Index Fund
Replies: 19
Views: 940

Re: Tax on Mutual Index Fund

You need to have a basic understanding of how taxes work. Regular interest and short term capital gains are taxed at the same rate as your regular earnings from employment. Dividends and long term capital gains are taxed at a lower rate, or if you are in the 15% tax bracket or lower, not taxed at al...
by Peter Foley
Wed Jun 21, 2017 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Windfall inheritance and new home
Replies: 20
Views: 1730

Re: Windfall inheritance and new home

Years ago I read a book about downsizing and simplifying. One of the ideas that stuck with me was to do a mental inventory of what rooms in your current house you use. This would help provide a basis for what kind of future house you might own. A major factor in selecting out current house was our a...
by Peter Foley
Wed Jun 21, 2017 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Not
Replies: 14
Views: 960

Re: Roth 401k or Not

Are you allowed to do a combination of the two? I would maximize the amount in tax deferred and then switch to Roth if that were possible. This assumes you will be in a lower tax bracket for at least a few years when you retire.
by Peter Foley
Sun Jun 18, 2017 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for my mother's annuities
Replies: 5
Views: 688

Re: Suggestions for my mother's annuities

Based on the fact that some but not all of your mother's SS benefits are being taxed, any withdrawal will be at a relatively high tax rate until all her SS benefits are taxed. One way to simplify this a bit IF your mother regularly gives to charity. 1. Have your mother donate a portion of her RMDs t...
by Peter Foley
Sun Jun 18, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: When should wife take SS?
Replies: 9
Views: 1276

Re: When should wife take SS?

If the Op's spouse does not file and claim SS at age 62, can the OP still file a restricted application at FRA 66 and collect spousal benefits?
by Peter Foley
Sat Jun 17, 2017 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Fund Recommendations for 403(b) Accounts
Replies: 12
Views: 699

Re: Asset Allocation and Fund Recommendations for 403(b) Accounts

I think I'm quoting Taylor when I say that the enemy of a good plan is the perfect plan. You have laid out a good plan. Congrats.
by Peter Foley
Sat Jun 17, 2017 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: 3-4 fund portfolio vs Lifestrategy in taxable acct
Replies: 12
Views: 1628

Re: 3-4 fund portfolio vs Lifestrategy in taxable acct

I would be inclined to use mutual funds at Schwab, but only because I am more familiar with them. You have three lost cost Schwab mutual funds that can be used to tax loss harvest if need be. Schwab Total Stock market, Schwab 1000 and the Schwab S&P 500 equivalent. While it is not quite as tax e...
by Peter Foley
Fri Jun 16, 2017 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and Fund Recommendations for 403(b) Accounts
Replies: 12
Views: 699

Re: Asset Allocation and Fund Recommendations for 403(b) Accounts

I think 70/30 is fine until you are 5 to 10 years from retirement. While others might nitpick, I think you have done of good job of fund selection and the placement of funds in the correct type of account. As to your questions, it appears to me that you have some international. That is good. I perso...
by Peter Foley
Fri Jun 16, 2017 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: 3-4 fund portfolio vs Lifestrategy in taxable acct
Replies: 12
Views: 1628

Re: 3-4 fund portfolio vs Lifestrategy in taxable acct

Rebalancing aside, you can probably do a 3-4 fund portfolio at about the same expense ratio of Lifestrategy fund. I would not be inclined to take a Lifestrategy approach in a taxable account. I would be inclined to hold mostly, if not all, stock mutual funds in a taxable account. This approach would...
by Peter Foley
Thu Jun 15, 2017 10:37 pm
Forum: Investing - Theory, News & General
Topic: [Wiki] - Percentage Gain and Loss (for new investors)
Replies: 115
Views: 6392

Re: [Wiki] - Percentage Gain and Loss (for new investors)

As the Wizard stated (paraphrasing) how do you make this understandable to the general public. I would only add, understandable without injecting too much emotion into the topic. I would keep it very simple and just provide a table. Use $1000 as your initial investment so many of us can do some of t...
by Peter Foley
Thu Jun 15, 2017 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio help
Replies: 15
Views: 1338

Re: Retirement portfolio help

You want to hold your bonds primarily in a tax deferred account and your stock mutual funds primarily in your Roth. The thinking behind this is that historically over long periods of time stock total returns have exceeded bond returns. You want to have those assets with the potential for more growth...
by Peter Foley
Thu Jun 15, 2017 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Please throw darts at my estate plan (probate avoidance)
Replies: 11
Views: 1204

Re: Please throw darts at my estate plan (probate avoidance)

Gensuki wrote: What I didn’t explain properly was that I want DH’s siblings to inherit his assets after my own death. So if DH dies first and his assets equal mine at that time, then I want to bequeath his siblings 50% of my remaining assets after I go. That is why I wanted to draw up a new will aft...
by Peter Foley
Thu Jun 15, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio help
Replies: 15
Views: 1338

Re: Retirement portfolio help

I like the conservative Life Strategy fund suggestions a lot. If you decide not to go that route the following is the minimum that I would do: FUSVX Fidelity 500 Index OK VIMAX Vanguard Midcap Index OK VBR Vanguard REIT index OK OAKIX Oakmark International Sell - expense ratio is too high and you on...
by Peter Foley
Wed Jun 14, 2017 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio help
Replies: 15
Views: 1338

Re: Retirement portfolio help

Hi Park, welcome. Almost no one knows the symbols for all the mutual funds. If you edit your post and add the names of the funds you will get more responses. A couple observations: Some experts believe that you should never have less than 25% equities while others set the low threshold for equities ...
by Peter Foley
Wed Jun 14, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Stocks, Bonds, & Risk
Replies: 61
Views: 5227

Re: Larry Swedroe: Stocks, Bonds, & Risk

Garland

If you made it through the last recession without selling while stocks were down, I think your AA is just fine!
by Peter Foley
Wed Jun 14, 2017 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Drawdown during retirement
Replies: 15
Views: 2094

Re: Drawdown during retirement

While we do not have enough information to respond more conclusively, David Jay captures the advice of many who post here very succinctly. Part of the answer is your spending needs and the tax bracket you would be in to cover those needs. Another part of the answer is the extent of your holdings in ...
by Peter Foley
Wed Jun 14, 2017 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a calculator that solves for optimal Roth conversion
Replies: 54
Views: 4347

Re: Is there a calculator that solves for optimal Roth conversion

Woodspinner and Patrick13 Getting back to the OP's question. My situation is not unlike the one you describe. Using the Retiree Portfolio Model calculator I found it was much more efficient in terms of ending net worth to convert more sooner. I ran scenarios converting up to the 25% bracket, convert...

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