Search found 3358 matches

by Peter Foley
Fri Sep 16, 2016 5:19 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Guide
Replies: 18
Views: 1757

Re: Asset Allocation Guide

Some thoughts/opinions: 22 year old investor . . . start by buying broad based US equity mutual funds. After a couple of years begin diversification by adding bonds. Certainly no need for REITS. 30 year old investor . . . 40% broad based US equity mutual funds, 20% international, 0% Gold etc. 55 yea...
by Peter Foley
Fri Sep 16, 2016 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio
Replies: 3
Views: 495

Re: Retirement Portfolio

Again welcome. Two principles central to the BH philosophy are simplicity and keeping costs low.

For some ideas as to how to approach this, the BH wiki has some sample portfolios you might want to take a look at.

https://www.bogleheads.org/wiki/Lazy_portfolios
by Peter Foley
Fri Sep 16, 2016 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: What withdrawl strategies should I use? Ret. Military
Replies: 9
Views: 654

Re: What withdrawl strategies should I use? Ret. Military

Overall I think the Guyton approach makes sense. It allows one to gradually increase their withdrawal while at the same time providing some parameters based on annual market returns.

There are a number of withdrawal strategies described on the wiki if you need further detail.
by Peter Foley
Thu Sep 15, 2016 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Will Medicare take away my Social Security?
Replies: 18
Views: 1922

Re: Will Medicare take away my Social Security?

pshonore wrote: And OP should know there is a law that says Part B premiums cannot increase by more that your annual SS benefit increase for those in the "hold harmless" group This is key to understanding the increase in Part B premiums. If you are receiving SS benefits and are enrolled in...
by Peter Foley
Wed Sep 14, 2016 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: What details about personal finance do you share with your kids?
Replies: 20
Views: 1532

Re: What details about personal finance do you share with your kids?

I don't think this level of detail is enough to be concerned about. How much one earns and one's net worth are details that might not be appropriate for another 30 years.
by Peter Foley
Tue Sep 13, 2016 9:42 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3647

Re: Presidential Election Insurance, Use T-Bills?

Doc wrote: Was 70 points enough to cross your rebalancing band? If so did you have any "dry powder" to rebalance? Would you have sold stock when the S&P recovered when it hit the upper band a month later? Since I am very close to 50/50 I need a drop of more than 10% to trigger my 5% re...
by Peter Foley
Tue Sep 13, 2016 4:37 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3647

Re: Presidential Election Insurance, Use T-Bills?

I'm not sure I would call any move related to an election outcome insurance. It would seem to me to be more like a bet. There were some individuals who did not expect Obama to win the last election. The S&P dropped by about 70 points over a few days in early November. It took about a month to re...
by Peter Foley
Tue Sep 13, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: First Portfolio Review
Replies: 7
Views: 817

Re: First Portfolio Review

Hindsight is 20/20 of course. We were fairly well balanced between the total bond fund and the stable value fund until the last recession. When the Fed cut interest rates to zero I felt that interest rates had nowhere to go but up. A rise in interest rates would cause a drop in share price in a bond...
by Peter Foley
Tue Sep 13, 2016 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: First Portfolio Review
Replies: 7
Views: 817

Re: First Portfolio Review

In the Faculty 401a option, Optional 403b Retirement Plan and the 457 Deferred Compensation Plan there is the following: Minnesota Life General Account Limited. According to the June 30, 2016 statement those accounts are still paying 3.5% for deposits made after 8/1/2010. These are offered thru Secu...
by Peter Foley
Mon Sep 12, 2016 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: First Portfolio Review
Replies: 7
Views: 817

Re: First Portfolio Review

While aggressive, the 10% bonds and 10% REITs provides some diversification. Your wife has a 401k, 403B, and a 457 account. Mine did too. She was a U of M employee. If this is the case for your wife it would be worth checking out the stable value fund that is offered. In today's market it is potenti...
by Peter Foley
Sun Sep 11, 2016 8:56 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads' Rule of Thumb - Stocks vs Bonds
Replies: 103
Views: 11760

Re: Bogleheads' Rule of Thumb - Stocks vs Bonds

I would be okay with a rule of thumb that had an additional condition, phase of investing. 110 minus age in bonds during one's accumulation phase. (IMHO longer life spans favor the 110 version of the rule.) I do not think there should be an age based rule of thumb in retirement. Perhaps at that poin...
by Peter Foley
Sun Sep 11, 2016 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: no Bonds 63
Replies: 12
Views: 1680

Re: no Bonds 63

Even if you did not react to a market downturn in the past, that is no guarantee that you would not react to a severe downturn with as much at stake as you currently have. I would go to 10% bonds immediately and dollar cost average another 10% into bonds over the next year.
by Peter Foley
Sun Sep 11, 2016 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: How do I do tax loss harvesting?
Replies: 5
Views: 529

Re: How do I do tax loss harvesting?

With the summary you have given so far, the only way a tax loss harvest would be possible would be if you had done multiple purchases of VTI shares and one of the lots you purchased had a loss. In that case you could specify exactly which shares to sell to book the loss.
by Peter Foley
Sat Sep 10, 2016 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: First Portfolio Review
Replies: 7
Views: 817

Re: First Portfolio Review

I'm giving this a bump with a couple simple suggestions. You really should have some bonds. 10% is the absolute minimum, but many would say that 20% bonds is on the low end. You currently have too many small positions. You should consolidate so that your minimum holding is 5%. This will help you sim...
by Peter Foley
Sat Sep 10, 2016 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment help
Replies: 7
Views: 899

Re: Taxable investment help

grabiner wrote: Compound interest works just as well against debts. If you pay $10,000 against a 5% loan, you will owe $10,500 less next year, and $11,025 less in two years, just as if you had invested in something with a 5% return. Therefore, it makes sense to put money against two highest-rate stu...
by Peter Foley
Sat Sep 10, 2016 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab vs Vanguard....I know, it's been discussed!
Replies: 23
Views: 2301

Re: Schwab vs Vanguard....I know, it's been discussed!

Another satisfied Schwab customer here. They have a local office and I occasionally use it to gift shares to children's accounts. As mentioned, easy link to bank and no foreign exchange charges. If you want to set up a donor advised account, Schwab has a relatively low $5K minimum. While I have Vang...
by Peter Foley
Fri Sep 09, 2016 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Retirement advice
Replies: 5
Views: 689

Re: Retirement advice

Based on the numbers you provided it appears you could do so easily. The 2.2M at a 3.5% withdrawal rate would be about $77,000. Add your SS benefits and you are over $100,000. In 10 years your wife's SS benefits could provide for a nice bump to cancel out the effects of inflation, and then some. Eve...
by Peter Foley
Fri Sep 09, 2016 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Early retirement - #'s too close for comfort?
Replies: 26
Views: 3495

Re: Early retirement - #'s too close for comfort?

On a personal level, albeit with financial implications, I found that setting a firm retirement date made my last couple of work years much easier. As a mid level manager in government, I found less need to argue for my point of view when in the minority. While sometimes my arguments were able to ca...
by Peter Foley
Thu Sep 08, 2016 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Inheriting lake property with 2 other siblings
Replies: 60
Views: 4685

Re: Inheriting lake property with 2 other siblings

OP - Based on your description of the property I would not encourage the parents to go the trust route. It would force an ownership relationship that ultimately might not work out. My brother and I inherited a lake cabin. There has never been a fair division of labor or usage. I use the cabin very l...
by Peter Foley
Thu Sep 08, 2016 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: cost of cashing out a simple ira
Replies: 3
Views: 209

Re: cost of cashing out a simple ira

If you are under the age of 59.5 there is a 10% penalty in addition to the tax bite. There are ways to avoid it but they don't seem to apply to the case as you describe it.
by Peter Foley
Tue Sep 06, 2016 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: How to Think About Money?
Replies: 39
Views: 4070

Re: How to Think About Money?

From an early draft of the Boglehead's Guide to Retirement Planning: Recent surveys and studies on money and happiness confirm that money cannot buy happiness. Jean Chatzky reports in her book “You Don’t Have to be Rich to be Happy” that “only 74% of those earning less than $25,000 said they were so...
by Peter Foley
Mon Sep 05, 2016 2:25 pm
Forum: Personal Consumer Issues
Topic: genealogy - starting
Replies: 19
Views: 1366

Re: genealogy - starting

I've been doing genealogy for about 20 years. For PC software I use Family Tree Maker. For on line at home I use familysearch.org and will occasionally use the library for free use of Ancestry. You really need a good genealogy database program to keep track of all of your records. You will find dupl...
by Peter Foley
Sun Sep 04, 2016 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Evaluate my mother's portfolio
Replies: 9
Views: 1262

Re: Evaluate my mother's portfolio

She should start thinking about estate planning and will. One of the very first things she should do is make sure all the beneficiaries and contingent beneficiaries are updated on her accounts. At her level of assets she is unlikely to need a trust but a will, a power of attorney, and a health care ...
by Peter Foley
Sun Sep 04, 2016 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth worth it if early retirement is a possibility?
Replies: 10
Views: 1264

Re: Backdoor Roth worth it if early retirement is a possibility?

Perhaps a little early for you . . . I am of the opinion that one should do at least one Roth conversion a few years before it might ever be needed just to start the 5 year clock running. It is more of a "can't hurt" approach than a guaranteed to win approach.
by Peter Foley
Sun Sep 04, 2016 4:58 pm
Forum: Investing - Theory, News & General
Topic: Social Security Consulting?
Replies: 26
Views: 2290

Re: Social Security Consulting?

I would suggest the Retiree Model Portfolio calculator. (See the Wiki.) While complex it really is a more complete analysis of Roth conversions if you are interested in controlling taxes AND in your net worth at the end of the time period you select for retirement. I've looked closely at I-orp and t...
by Peter Foley
Fri Sep 02, 2016 11:00 pm
Forum: Investing - Theory, News & General
Topic: Social Security Consulting?
Replies: 26
Views: 2290

Re: Social Security Consulting?

If one has a substantial IRA, a fairly simplistic approach to this is to try to stay with the 15% tax bracket by using taxable funds and IRA funds before taking SS benefits. That works if one can live on about $95K per year as $75,300 is the top of the 15% tax bracket. The reason for doing so would ...
by Peter Foley
Thu Sep 01, 2016 10:30 pm
Forum: Investing - Theory, News & General
Topic: Social Security Consulting?
Replies: 26
Views: 2290

Re: Social Security Consulting?

There are a lot of pieces to this puzzle. You need someone who is knowledgeable regarding Social Security, and someone who is knowledgeable about taxes. Survivor benefits could be part of the SS question and the size of one's IRAs and potential future RMDs and tax rates, or Roth conversions and tax ...
by Peter Foley
Thu Sep 01, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation
Replies: 1
Views: 197

Re: Asset Allocation

Welcome to the forum. I'll start with some generalities. 1. Wellington is weighted toward stocks and Wellesley is weighted toward bonds. Both are actively managed, widely respected, relatively low cost funds. Your proposal with just those two would have you at about a 50/50 asset allocation. Adding ...
by Peter Foley
Thu Sep 01, 2016 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ Retirement Withdrawal Simplification/Strategy
Replies: 13
Views: 2112

Re: Help w/ Retirement Withdrawal Simplification/Strategy

doug2017 wrote: On a tax efficiency note: Any tax advantage in mixing in $10K Roth withdrawals during the gap years before her SS to keep marginal tax at the 15% to save approximately $2500/yr (.25 X $10k) in taxes or just let the Roths grow unhindered? My gut says it's best to pay the marginal tax ...
by Peter Foley
Wed Aug 31, 2016 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ Retirement Withdrawal Simplification/Strategy
Replies: 13
Views: 2112

Re: Help w/ Retirement Withdrawal Simplification/Strategy

So you need about $106k per year in gross income. Depending on your itemized deductions, if all that income is taxable it puts you just a little ways into the 25% tax bracket. In other words, you are mostly going to be taxed at the 15% rate. At that rate it usually makes sense to withdraw from tax d...
by Peter Foley
Tue Aug 30, 2016 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 47
Views: 5988

Re: best software for financial planning

In the Retiree Model Portfolio, would converting one of the IRAs (the smallest) to an annuity for modeling purposes be a reasonable work around to the single IRA conversion limitation? I tried that as an experiment, setting the annuity payments to equal the RMDs of the smallest IRA and it seemed to ...
by Peter Foley
Mon Aug 29, 2016 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio Help, please.
Replies: 6
Views: 764

Re: Retirement Portfolio Help, please.

Just a couple comments . . . I agree with Duckie that having balanced funds like Wellington and Wellesley make it a little harder to fine tune one's AA. If you were to keep them relatively equal you would have about a 50/50 split. I would put stock funds in the Roth and put bond funds in traditional...
by Peter Foley
Mon Aug 29, 2016 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 47
Views: 5988

Re: best software for financial planning

sixtyforty wrote: What did you think of ORP ? I started a thread about understanding i-orp logic. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=195644 In short, the program is designed to maximize spending not to fine tune spending with an eye on net worth at the end. It converts one's ta...
by Peter Foley
Mon Aug 29, 2016 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 47
Views: 5988

Re: best software for financial planning

Time Runner wrote:
E$Planner Basic - I did see a Roth conversion section, under My Assets, Retirement Accounts, that asked for: Enable converting my IRA to Roth IRA ?


The sections exist in the free version but even when the check box is checked the cells to not accept inputs.
by Peter Foley
Mon Aug 29, 2016 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 47
Views: 5988

Re: best software for financial planning

After 24 hours and no replies, here are a couple examples that one might react to: E$Planner Basic – (Web –basic does not allow for Roth conversions). For the free version data is only saved for 24 hours with access from the same PC. There are details tabs for the results pages that can be downloade...
by Peter Foley
Sun Aug 28, 2016 11:02 am
Forum: Personal Finance (Not Investing)
Topic: best software for financial planning
Replies: 47
Views: 5988

Re: best software for financial planning

Reviving an old thread . . . There are a number of retirement calculators on the BH Wiki, many of which are free. It would be good to know more about these calculators, their uses and their pluses and minuses. Perhaps with a goal of fleshing out the descriptions and ultimately improving the Wiki. I ...
by Peter Foley
Sat Aug 27, 2016 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 1199

Re: Roth IRA conversion at 28% tax rate.

Do note that if your income is high enough when you retire at age 65 it will also affect your Medicare costs. In my opinion the advice offered so far to hold off on conversion is the right approach. You might want to take a look at one of the retirement calculators that handles Roth conversions. I'v...
by Peter Foley
Sat Aug 27, 2016 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Optimal timing after death to liquidate estate?
Replies: 21
Views: 1625

Re: Optimal timing after death to liquidate estate?

I was the executor for my mother's estate. I also had POA which expired when she died. There was little I could do other than gather information until I had original death certificates issued by the state. As executor I requested a dozen originals because I knew her assets were wide spread. It took ...
by Peter Foley
Sat Aug 27, 2016 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Do you count your emergency fund?
Replies: 45
Views: 3157

Re: Do you count your emergency fund?

The first tier of our emergency fund is checking accounts and small savings accounts. I do not count those funds either as part of net worth nor asset allocation. Potential second tier, US Savings bonds, are counted.
by Peter Foley
Sun Aug 21, 2016 11:22 pm
Forum: Investing - Theory, News & General
Topic: Distribution resouces
Replies: 2
Views: 294

Re: Distribution resouces

If you are looking at "withdrawal strategies", there is a lot of information on the BH Wiki. Here is a link to the index page for that topic: https://www.bogleheads.org/wiki/Outline_of_retirement_planning#Withdrawal_methods If by distribution you mean distribution to heirs and gifting, I w...
by Peter Foley
Sun Aug 21, 2016 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Help on asset allocation
Replies: 7
Views: 489

Re: Help on asset allocation

Asset allocation should reflect willingness to take risk, ability to take risk, and need to take risk. You have the first two in spades. Given where you are currently you have much less need to take risk than what you are proposing. You should propose an AA that gets you to your goal with some cushi...
by Peter Foley
Sat Aug 20, 2016 7:52 pm
Forum: Investing - Theory, News & General
Topic: Flexible Retirement Planner---Opinions?
Replies: 3
Views: 584

Re: Flexible Retirement Planner---Opinions?

Does it focus on saving for retirement or spending in retirement?

Also does it model the impact of Roth conversions?
by Peter Foley
Sat Aug 20, 2016 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion or Not?
Replies: 45
Views: 3163

Re: Roth Conversion or Not?

I don't see a strong reason to convert. While I don't think it would make a great deal of difference, you could see if by doubling up on your itemized deductions (pay property tax in advance + extra charitable contributions + extra estimated state taxes) it might make sense to do a one time partial ...
by Peter Foley
Sat Aug 20, 2016 3:37 pm
Forum: Investing - Theory, News & General
Topic: High RMD’s, would you do anything different?
Replies: 54
Views: 5220

Re: High RMD’s, would you do anything different?

A follow up. With your mix of taxable and tax deferred you are well positioned to retire around the age of 60. You would have a number of relatively low income years (6 or 7) during which time you could draw down some of your tax deferred and sell appreciated assets in your taxable account and pay n...
by Peter Foley
Fri Aug 19, 2016 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal method proposal -- Part 1: guiding principles and intent
Replies: 24
Views: 2234

Re: Withdrawal method proposal -- Part 1: guiding principles and intent

I don't understand where you are headed with number 12. I would think that withdrawals would be integrated with cash management. Or maybe you are not thinking of cash management as a cash "bucket" from which to take withdrawals during an extended down market. I'm also not sure why a withdr...
by Peter Foley
Fri Aug 19, 2016 10:07 pm
Forum: Personal Consumer Issues
Topic: Western vacation questions
Replies: 40
Views: 2358

Re: Western vacation questions

If you fly I think Yellowstone, the Tetons and Glacier are doable in 14 days. We went west when our kids were that age. I think there is more of interest in Yellowstone for a 4th grader. We did horseback rides for our kids both in the Tetons and in Glacier. We drove from Minnesota and camped. Yellow...
by Peter Foley
Fri Aug 19, 2016 9:53 pm
Forum: Investing - Theory, News & General
Topic: High RMD’s, would you do anything different?
Replies: 54
Views: 5220

Re: High RMD’s, would you do anything different?

It would be helpful to know a little more about the OP. 1. Are you married? This has an impact on your marginal tax rate now and in retirement. RMD's push single persons into higher tax brackets more quickly than married couples. 2. Do you plan on retiring early and having a few low income years bef...
by Peter Foley
Fri Aug 19, 2016 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding I-orp Logic
Replies: 22
Views: 2119

Re: Understanding I-orp Logic

A couple very astute observations. afan wrote: Welch says the program is intended to help people maximize lifetime spending, not maximize estates. . . . It seems ORP, although an impressive achievement, does not work if the goal is estate maximization, let alone maximization of the after tax value o...
by Peter Foley
Fri Aug 19, 2016 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 235
Views: 86349

Re: Retiree Portfolio Model

Thanks. I changed the setting from 30 to 25 and the results changed accordingly. This, of course, prompted me to model a few different options.
by Peter Foley
Fri Aug 19, 2016 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 235
Views: 86349

Re: Retiree Portfolio Model

After a couple year's hiatus and a stab a I-ORP I went back to your speadsheet. There is a lot to like. One thing I would like is for the option to run the program to age 90 rather than 95. Running to age 95 tends to favor tax free conversions because of the additional time for compounding. Also RMD...

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