Search found 2951 matches

by Peter Foley
Thu Feb 11, 2016 3:32 pm
Forum: Investing - Theory, News & General
Topic: Deflation ahead? Nobel Prize Economics winner's thought
Replies: 5
Views: 1127

Re: Deflation ahead? Nobel Prize Economics winner's thought

Krugman comment: markets are expecting very weak economies and possibly deflation for years to come If this were the case, and one were nearing retirement and wanted to be a bit more conservative . . . where would one invest. [Lots of "ifs" here.] I'm trying to make this thread a little mo...
by Peter Foley
Thu Feb 11, 2016 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds
Replies: 3
Views: 399

Re: Bonds

At this point in the interest rate cycle I would be inclined to use the G fund. I'm not a bond expert, but I think you are proposing going with slightly longer duration bonds funds if you go to Total Bond. You should be able to compare the duration of the two or three funds you are considering.
by Peter Foley
Thu Feb 11, 2016 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH IRA recommendations.
Replies: 1
Views: 153

Re: ROTH IRA recommendations.

Welcome to the forum. If you are looking ay index fund equivalents, there is little difference between an ETF and a mutual fund. With a firm like Vanguard or Schwab, they both have low fees. ETF's trade like stocks so you can buy or sell mid day and get the market price at that time instead of the m...
by Peter Foley
Thu Feb 11, 2016 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Help
Replies: 1
Views: 106

Re: Asset Allocation Help

I would use the large cap, mid cap and small cap Vanguard funds to approximate total stock market. For simplification, if fees are similar in the two 401ks, you might hold large cap and small in in one and mid cap and bonds in another. This is just an option - there is no need to duplicate the holdi...
by Peter Foley
Thu Feb 11, 2016 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Help - Retirement Savings Strategy
Replies: 2
Views: 281

Re: Help - Retirement Savings Strategy

Perhaps not the answer you want to hear, but the solution may be with your daughter-in-law's employer. Many public employers have optional 403b or 457 plans. Sometime you have to ask, as was the case with one of my daughters, as they are not highly promoted. What state does she work for? With the ch...
by Peter Foley
Thu Feb 11, 2016 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: New to investing -- Would appreciate advice regarding our financial plan
Replies: 4
Views: 216

Re: New to investing -- Would appreciate advice regarding our financial plan

The one thing I would add is some clarification. It is fine to roll your old 401ks over into IRAs, especially if the old 401ks have higher fees. A better approach would be to roll them into your current 401k if you have good low cost options and such a roller is allowed. Reasoning: Should you decide...
by Peter Foley
Thu Feb 11, 2016 12:10 am
Forum: Investing - Theory, News & General
Topic: Vacation Homes
Replies: 41
Views: 4142

Re: Vacation Homes

I'm a bit surprised that no one has brought this up, but "vacation homes" are not especially expensive in parts of the US. A lot of middle class families own seasonal lake cabins in Minnesota and Wisconsin and use them often. When our daughters were living with us (into early college) we w...
by Peter Foley
Wed Feb 10, 2016 9:16 pm
Forum: Personal Consumer Issues
Topic: The Retirement Problem: What Will You Do With All That Time?
Replies: 61
Views: 4489

Re: The Retirement Problem: What Will You Do With All That Time?

I recommend reading What Color is Your Parachute in Retirement . There are a couple of chapters devoted to identifying what is important to you and helping you to translate that into post retirement activities. As a partial summary, here are a couple of paragraphs from an early draft of the first ch...
by Peter Foley
Wed Feb 10, 2016 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - general questions
Replies: 29
Views: 4242

Re: Early retirement - general questions

random guy wrote: Peter Foley wrote: clearsky longinvest is correct in saying that this is not the place to debate withdrawal rates. Other than the likelihood that most retirees vary their withdrawals from year to year based on a number of factors, SWRs are guidelines, nothing more. Asset allocation...
by Peter Foley
Wed Feb 10, 2016 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: delicate conversation with grandparents
Replies: 42
Views: 3512

Re: delicate conversation with grandparents

psytal wrote: I would not address this directly with your in-laws. However, I do believe it is important for children to encourage/assist their parents in organizing their affairs/estates as they get older, especially if one of you will be the executor of the estate. Far too often families avoid the...
by Peter Foley
Wed Feb 10, 2016 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - general questions
Replies: 29
Views: 4242

Re: Early retirement - general questions

clearsky longinvest is correct in saying that this is not the place to debate withdrawal rates. Other than the likelihood that most retirees vary their withdrawals from year to year based on a number of factors, SWRs are guidelines, nothing more. Asset allocation is only one factor to consider. You ...
by Peter Foley
Wed Feb 10, 2016 12:17 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement - general questions
Replies: 29
Views: 4242

Re: Early retirement - general questions

clearsky Unless your tax deferred account is a 457, you will want to withdraw from taxable until you reach age 55. After that you should withdraw at least some from tax deferred- being careful to keep yourself in a low tax bracket. If you are single you can withdraw about $10,000 from a tax deferred...
by Peter Foley
Tue Feb 09, 2016 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: 403b / 457b / Roth IRA - What order?
Replies: 7
Views: 695

Re: 403b / 457b / Roth IRA - What order?

Ericular
There is a very active local Bogleheads group. We meet 4 times a year if you are interested. The next meeting is the first Saturday in May.
by Peter Foley
Mon Feb 08, 2016 4:19 pm
Forum: Personal Consumer Issues
Topic: Traveling in Retirement
Replies: 57
Views: 4258

Re: Traveling in Retirement

My wife and I have traveled less in retirement than when we were working. One issue is aging parents in frail health - it is hard for us to plan a trip to be gone for an extended period when care obligations are being shared between siblings. Our interests are Europe and Central/South America. We ha...
by Peter Foley
Mon Feb 08, 2016 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: 403b / 457b / Roth IRA - What order?
Replies: 7
Views: 695

Re: 403b / 457b / Roth IRA - What order?

With the tax rates you mention, my guess is you are MN residents. With relatively high taxes in MN, the 457 (if it is a governmental 457) is the best option. The state employee 457 plan is a good one, as is the one from the U of M. At $150k in gross income, two maximum 457's reduce income by $36k. A...
by Peter Foley
Mon Feb 08, 2016 2:18 pm
Forum: Personal Consumer Issues
Topic: Planning European-Southern Germany Road Trip Travel-Hacks Wanted
Replies: 17
Views: 1081

Re: Planning European-Southern Germany Road Trip Travel-Hacks Wanted

You don't seem to be headed there, but I would never again drive in a large city in Italy.
by Peter Foley
Mon Feb 08, 2016 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Where to turn for investment advice...
Replies: 11
Views: 682

Re: Where to turn for investment advice...

Unfortunately, you have to have enough knowledge to be able to seek out advice or you may not be able to distinguish between good and bad advice. We see a lot of evidence of novice investors being taken advantage of in posting on this web site. Bad advice usually involves a more complicated portfoli...
by Peter Foley
Sun Feb 07, 2016 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Long time lurker, first time poster
Replies: 8
Views: 1168

Re: Long time lurker, first time poster

I am a former state of MN employee, now retired about 4 years. I'm very familiar with your plan and your options. I still have my MN 457 account. While you are in the 25% tax bracket you should use the regular 457 account rather than the Roth. With your proposed early retirement age you will have a ...
by Peter Foley
Sun Feb 07, 2016 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Live off Inheritance for 3 Years, or Withdraw from 401k
Replies: 12
Views: 1276

Re: Live off Inheritance for 3 Years, or Withdraw from 401k

Random guy wrote: Ignoring FA issues, the best is probably a mixture. Right now with the kids and HOH tax rate (assuming not married. that wouldn't really change anything), you are likely in the best tax situation you will be in for taking money out of the 401(k). And give in there is a lot of money...
by Peter Foley
Sun Feb 07, 2016 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Simplifying Portfolio: Next Steps
Replies: 5
Views: 867

Re: Simplifying Portfolio: Next Steps

I would not replicate the same holding in multiple accounts. Stock mutual funds should go in your Roths - they have the best potential for long term growth. The bonds (or equivalents) should be in her 403b and His 401k. Is the 401k the TSP? If yes, I believe there is a good guaranteed interest fund ...
by Peter Foley
Sat Feb 06, 2016 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 403-B or Individual Vanguard Account
Replies: 1
Views: 114

Re: Roth 403-B or Individual Vanguard Account

Welcome to the forum. Is there a cap on any of the fees or are they constant no matter how many dollars are in 403b? If there is no cap, this is really a poor plan in terms of fees. By chance does she have a regular 403b with lower cost options? I would be inclined to use a regular 403b if you are c...
by Peter Foley
Fri Feb 05, 2016 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10343

Re: Retirement - Ten key years + Summary

Sandman62 From what I have read, it is the draw down of assets from the portfolio during bad market years that creates portfolio survivability issues. If there is a bad sequence of returns and you are not drawing down during this time period, your portfolio has a better chance of recovery. (The exam...
by Peter Foley
Fri Feb 05, 2016 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Best IRA account for Self Employed?
Replies: 8
Views: 374

Re: Best IRA account for Self Employed?

The best IRA would be different for high income individuals wishing to defer a lot of income than someone who does a bit of independent contracting on the side. The Solo 401k and the SEP have the highest limits at $53,000 in 2016. The SEP's limitation is that it is 25% of income - so you would need ...
by Peter Foley
Fri Feb 05, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part-B premium
Replies: 5
Views: 600

Re: Medicare Part-B premium

There is a provision the SS law that says the the part B premium cannot go up if there in no inflationary increase in SS benefits. So the premium did not go up for those receiving benefits. For those eligible for medicare who have delayed SS benfits, the premium went up. The increase was mitigated b...
by Peter Foley
Fri Feb 05, 2016 5:31 pm
Forum: Investing - Theory, News & General
Topic: Boglehead mentality re todays oil price
Replies: 22
Views: 1934

Re: Boglehead mentality re todays oil price

I admit I'm tempted. While dividends can be cut, I see oil funds and ETFs as potential income streams.
by Peter Foley
Fri Feb 05, 2016 5:26 pm
Forum: Investing - Theory, News & General
Topic: Does net worth and age determine % bond allocation?
Replies: 53
Views: 5346

Re: Does net worth and age determine % bond allocation?

SQRT wrote: This is a question that has been discussed a fair bit. Many people feel that "once you have won the game, stop playing". Ie if your assets meet your needs reduce risk by increasing FI component. Some others(myself included) think they can assume more risk if their assets are la...
by Peter Foley
Fri Feb 05, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning
Replies: 3
Views: 426

Re: Retirement Planning

You seem to have plenty of money. Unless you have am extravagant lifestyle, it will certainly last. You can safely withdraw almost $200,000 per year. What do you want to do over the next 10 years? Withdraw what you need to enjoy it. With larger sums, the question that always occurs to me is "Wh...
by Peter Foley
Fri Feb 05, 2016 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: How do you invest your DAF? [Donor Advised Fund]
Replies: 16
Views: 1001

Re: How do you invest your DAF?

100% in total stock market. We give to the account about what we donate from the account every year. In my mind that makes it a longer term investment.
by Peter Foley
Fri Feb 05, 2016 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts
Replies: 44
Views: 2207

Re: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts

It would be helpful to know a few options you have available in your tax deferred accounts and their expense ratios. (A couple index funds and a couple bond funds would give us a picture.) Usually one would put their bond allocation in tax deferred - but with low interest rates there has been some d...
by Peter Foley
Thu Feb 04, 2016 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation (AA) help with 401k
Replies: 2
Views: 235

Re: Asset Allocation (AA) help with 401k

I agree that trying for the perfect portfolio is not worth it. You will only know in hindsight.

If your inclination is to simplify, I would do so modestly by dropping the mid cap and small cap funds.
by Peter Foley
Thu Feb 04, 2016 2:47 pm
Forum: Local Chapters and Bogleheads Community
Topic: MN Bogleheads Meet Sat., Feb. 6, 2016 - UPDATE
Replies: 4
Views: 463

Re: MN Bogleheads Meet Sat., Feb. 6, 2016

Retirement Account Options is a session with general and actionable information. Contribution limits for 2016 is one item of information. There will also be summary information regarding SEPs and SIMPLE IRAs.
by Peter Foley
Thu Feb 04, 2016 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10343

Re: Retirement - Ten key years + Summary

Thanks Cryn I wrote the first chapter of the Bogleheads' Guide to Retirement book, The Retirement Planning Process. What Color is Your Parachute in Retirement was the book that most influenced my thinking for that chapter. b4real - I'll check out Otar's zones. Thanks for the suggestion. protagonist ...
by Peter Foley
Thu Feb 04, 2016 12:03 am
Forum: Personal Consumer Issues
Topic: Best Tips for Packing & Moving?
Replies: 14
Views: 1275

Re: Best Tips for Packing & Moving?

We just helped move my daughter and her family to a new house. The U Haul medium sized boxes worked well. They were not very expensive and can probably be resold afterwards. If you get 20 they are $1.16 each according to their on line ad.
by Peter Foley
Wed Feb 03, 2016 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited Stocks - Advice on Selling (Determinations and Taxes)
Replies: 11
Views: 504

Re: Inherited Stocks - Advice on Selling (Determinations and Taxes)

I agree with Gill. If you do decide to keep a couple specific stocks, be very clear as to your reasoning. For example, you might keep a couple utility stocks for dividend potential, you might keep a couple oil company stocks because they are out of favor. Keep in mind that investments of less than 5...
by Peter Foley
Wed Feb 03, 2016 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement number calculation
Replies: 6
Views: 1084

Re: Retirement number calculation

Goru - You are laying it out the way I would. The additional item that I would consider would be the location of the retirement savings. Example: $500,000 in a Roth = $500,000 in spending money. $500,000 in a tax deferred account @ the 25% federal tax rate = $375,000 in spending money $500,000 in a ...
by Peter Foley
Wed Feb 03, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on Inherited EE Bond
Replies: 7
Views: 598

Re: Tax on Inherited EE Bond

There is no stepped up basis on EE bonds. The answer lies the tax return that was filed the year your FIL died. At that point in time the option existed for the executor to list the interest accrued to the date of death on the EE bond and pay taxes on that amount. If no taxes were paid at that time,...
by Peter Foley
Wed Feb 03, 2016 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Would love input on retirement investing strategy for a novice trying to make deep strides.
Replies: 52
Views: 2425

Re: Would love input on retirement investing strategy for a novice trying to make deep strides.

I copied the following from SC's retirement website: Employees Who Participate in the State Optional Retirement Program There is no minimum age or years of service requirement for State Optional Retirement Program (State ORP) participants. They become eligible to receive distributions when they leav...
by Peter Foley
Wed Feb 03, 2016 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 64
Views: 10343

Re: Retirement - Ten key years + Summary

Retirement Red Zone Summary First I wish to thank all those who contributed to this thread. Contributors presented a broad range of topics and gave me, and I hope others, new strategies to study in depth. My unabridged notes run six pages – much too long to present here. Anyone wanting a copy of tho...
by Peter Foley
Wed Feb 03, 2016 10:29 am
Forum: Personal Finance (Not Investing)
Topic: What growth rate would you use?
Replies: 75
Views: 3569

Re: What growth rate would you use?

I would use 2% to 3%. That is after inflation is taken into account. I used to use 4% but I think that is high given current interest rates. I agree with Snowjob regarding a 0% rate for cash and bonds. I-Bonds are an indicator of that low return.
by Peter Foley
Wed Feb 03, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Feedback on Asset Allocation
Replies: 4
Views: 363

Re: Feedback on Asset Allocation

You are proposing a modest slice and dice approach. My preference is for simplicity, but yours is certainly valid. I think a slice and dice approach works best over very long periods of time. A percentage point or two in return really starts to make a difference after 25 to 30 years. If that is your...
by Peter Foley
Tue Feb 02, 2016 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: What age did you retire
Replies: 84
Views: 6417

Re: What age did you retire

61.75. I could have retired a little after my 60th birthday. However, we were busy at work, I liked my work, I felt I was contributing, and I had a new boss whose philosophy regarding the treatment of employees was very similar to mine. So I stayed another year and a half with no regrets.
by Peter Foley
Tue Feb 02, 2016 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Nearing retirement but annual contribution still very significant
Replies: 41
Views: 3466

Re: Nearing retirement but annual contribution still very significant

You don't mention age - but this can be a factor. If you are 50, for example, you can't withdraw funds from a deferred account until age 55. So for a very early retiree, where you save - taxable versus tax deferred - can be important.
by Peter Foley
Tue Feb 02, 2016 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: First time doing taxes, need advice
Replies: 8
Views: 475

Re: First time doing taxes, need advice

My understanding is that you have to report interest income. With small amounts there is not need to file schedule B.

Your taxes look really simple. I would be inclined to file on paper, not for the cost savings, rather for the experience and understanding you will gain.
by Peter Foley
Tue Feb 02, 2016 10:26 am
Forum: Investing - Help with Personal Investments
Topic: 60 Years Old - Forced to Stop Working - Need Investment Advice
Replies: 30
Views: 3648

Re: 60 Years Old - Forced to Stop Working - Need Investment Advice

mouses wrote: See if you qualify for unemployment payments Good suggestion. I used to work for the Unemployment Insurance Program. While there are some differences from state to state, one of the basics is that if you are unemployed through no fault of your own you must be able, available and active...
by Peter Foley
Tue Feb 02, 2016 12:20 am
Forum: Investing - Help with Personal Investments
Topic: 60 Years Old - Forced to Stop Working - Need Investment Advice
Replies: 30
Views: 3648

Re: 60 Years Old - Forced to Stop Working - Need Investment Advice

Welcome to the forum. I too am sorry to hear about your health issues - they are putting you in a tight spot financially. While you would give up some flexibility, it makes little sense to hold money in cash and receive very little in return while making regular payments on loans with higher interes...
by Peter Foley
Tue Feb 02, 2016 12:06 am
Forum: Investing - Help with Personal Investments
Topic: Handful of questions...
Replies: 8
Views: 745

Re: Handful of questions...

In your 401k the extended market index is a better complement to the S&P 500 if it is available. Yes you are over weighted in terms of holding the whole US market. Is there a stable value fund in your 401k? Sometimes these are better than bonds funds with higher expenses. The expense ratio for P...
by Peter Foley
Mon Feb 01, 2016 11:57 pm
Forum: Investing - Help with Personal Investments
Topic: Contribution to 401(k) / 457 Plan
Replies: 5
Views: 384

Re: Contribution to 401(k) / 457 Plan

Yes she can. This is not unusual. Many colleges and universities offer multiple plans to employees. Other types of government entities may do so as well.
by Peter Foley
Mon Feb 01, 2016 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Specific Glide Paths
Replies: 5
Views: 410

Re: Asset Specific Glide Paths

Your approach is along the same line as mine, but a little more drastic. I went to 45/52/3 (the last 3 being real estate, not REITs) by my retirement date. I retired almost 4 years ago and I'm in the process of selling the real estate and have left the balance of my assets drift to 50/50. The market...
by Peter Foley
Mon Feb 01, 2016 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Giving to vs. saving for charity
Replies: 39
Views: 1938

Re: Giving to vs. saving for charity

We give appreciated stock to a donor advised fund ever year. We give about the same amount each year but could increase the donation if there were a reason to increase tax deductions in a particular year.
by Peter Foley
Mon Feb 01, 2016 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Next Week... Tips?
Replies: 30
Views: 4069

Re: Early Retirement Next Week... Tips?

A second take at your early retirement. This is based on the premise that you intend to stay in ND which is not a very high cost of living state. If you draw down about $50,000/ year you should have enough to easily cover 30 years of retirement. Your cash is earning you very little right now. I woul...

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