Search found 3322 matches

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: 959

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: 13
Views: 684

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: 35
Views: 1782

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: 257

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: 459

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: 549

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: 2913

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: 4797

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: Investing - Theory, News & General
Topic: Withdrawal method proposal -- Part 1: guiding principles and intent
Replies: 23
Views: 1938

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: 2244

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: 4797

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: 2010

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: Investing - Help with Personal Investments
Topic: Retiree Portfolio Model
Replies: 223
Views: 83667

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: Investing - Help with Personal Investments
Topic: Retiree Portfolio Model
Replies: 223
Views: 83667

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...
by Peter Foley
Fri Aug 19, 2016 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding I-orp Logic
Replies: 22
Views: 2010

Re: Understanding I-orp Logic

I've been modeling some Roth conversion options using BigFoot48s' software. His Retiree Model Portfolio is a downloadable spreadsheet. What I like about Bigfoots' version is that it has a base model (a do nothing approach) and offers a comparison of the base approach to the "Full" approach...
by Peter Foley
Wed Aug 17, 2016 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Best option to reinvest SS and RMD?
Replies: 25
Views: 1631

Re: Best option to reinvest SS and RMD?

I missed the "mid" in the six figure paragraph.

I agree that Roth conversions don't make much sense. Estate planning is more the issue than investing.
by Peter Foley
Wed Aug 17, 2016 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Best option to reinvest SS and RMD?
Replies: 25
Views: 1631

Re: Best option to reinvest SS and RMD?

Some good suggestions already, a couple additional items. Turning your RMD into a charitable contribution. This can be done for the RMD from an IRA but not from a 401k, 403b, or 457 account. Some funds could be transferred to an IRA from a 401k so as to take advantage of this provision. A plan that ...
by Peter Foley
Tue Aug 16, 2016 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Can my wife stop working? Allocation ???
Replies: 25
Views: 2287

Re: Can my wife stop working? Allocation ???

You have a couple of big financial decisions. My advice would be to do them one at a time.

Decide which is more important and do that first. Then if everything is working out, implement the second change.
by Peter Foley
Sun Aug 14, 2016 7:27 pm
Forum: Forum Issues and Administration
Topic: Improving the Bogleheads forum
Replies: 86
Views: 5904

Re: Improving the Bogleheads forum

I do not know enough about the ins and outs of running a web site and blog so my suggestions may not be feasible for security reasons. I wish it were easier to post a jpeg or a chart or graph. I do this rarely and have to go back and read up on it every time I do. I would also like to be able to pos...
by Peter Foley
Sun Aug 14, 2016 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Cash in Retirement
Replies: 14
Views: 2397

Re: Cash in Retirement

So far in retirement(4 years) I haven't had an "average year." I started out retirement with about 2 years of cash. It lasted about 2.5 years. I replenished some of the cash with an IRA withdrawal, paring back a little of my Roth conversion that year and cashed in a long held EE bond that ...
by Peter Foley
Sun Aug 14, 2016 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: What to buy now? as of Aug 2016
Replies: 3
Views: 564

Re: What to buy now? as of Aug 2016

Welcome to the forum.

If you already have a solid investment in the US markets, branching out to include foreign markets would diversify your portfolio.

It is hard to say much else unless you provide a little more detail as to what you already have.
by Peter Foley
Sun Aug 14, 2016 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Investment Qs - Starting Out
Replies: 5
Views: 636

Re: Retirement Investment Qs - Starting Out

First, welcome to the forum. I'll offer a few opinions - I would hope that some would consider them "informed opinions." At a minimum they might generate some discussion. Expenses are important. They are especially important over long periods of time because expenses compound, just like in...
by Peter Foley
Sun Aug 14, 2016 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement - Planning Questions
Replies: 22
Views: 3204

Re: Early Retirement - Planning Questions

Steelart99 wrote: My comments in red. Question 1: I'm looking for where to take our 'income' for the next several years. I figure a mix of cash and my 401K (withdraw under rule of 55) in order to keep our MAGI down to a point to take advantage of ACA subsidies. Suggestions? I would use a mix of your...
by Peter Foley
Sat Aug 13, 2016 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: Help my parents
Replies: 14
Views: 1704

Re: Help my parents

I also agree that simplification is needed. Anything in taxable that could be sold for a loss would be a good starting point.

They next step would be to sell the relatively small positions that don't have any significant tax consequences.
by Peter Foley
Sat Aug 13, 2016 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: how get money at retirement
Replies: 11
Views: 2609

Re: how get money at retirement

If you need about $70,000 to live on you are well within the 15% tax bracket. While there are varying approaches to withdraw funds in retirement, your MAY be relatively simple. If you are holding off taking pension and SS, withdrawing funds from an IRA for a couple years is LIKELY to be the best app...
by Peter Foley
Sat Aug 13, 2016 8:30 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads: Asset-Allocation and Rebalancing
Replies: 74
Views: 5592

Re: Bogleheads: Asset-Allocation and Rebalancing

I had just drifted to 56% equities where my IPS states 50/50 with 5% bands. I rebalanced about 2% 10 minutes before the market closed on Thursday in a regular IRA account.
by Peter Foley
Sat Aug 13, 2016 5:27 pm
Forum: Personal Consumer Issues
Topic: Do you wash your car yourself, or have it done?
Replies: 96
Views: 5297

Re: Do you wash your car yourself, or have it done?

I live in Minnesota. I wash the car by hand a few times over the spring summer fall and use a car wash in the winter.
by Peter Foley
Sat Aug 13, 2016 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts over $14000
Replies: 15
Views: 2543

Re: Gifts over $14000

northtexan wrote: And to make it even more confusing it is through a joint account. Would it be required to report each year that the gift is over 14k or would it be required to report once the joint accounts are made individual. For example if the accounts were linked between parents and their chil...
by Peter Foley
Fri Aug 12, 2016 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding I-orp Logic
Replies: 22
Views: 2010

Re: Understanding I-orp Logic

Thanks to later contributors for jumping in. The results without the cap were what I was seeing.

I like the idea of being able to choose a cap although I'm still puzzled the logic that would generate massive Roth conversions and the taxes that would result.
by Peter Foley
Fri Aug 12, 2016 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Parents over 80: End of life tax stragegies?
Replies: 14
Views: 2355

Re: Parents over 80: End of life tax stragegies?

The first thing I would do is make sure there is a will and that there are beneficiaries and contingent beneficiaries named on all accounts. Depending on the tax bracket of the surviving spouse, there may be some advantage in disclaiming all or part of some accounts. Read up about disclaiming so you...
by Peter Foley
Thu Aug 11, 2016 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement on the horizon - cash sitting - what to do?
Replies: 9
Views: 1592

Re: Retirement on the horizon - cash sitting - what to do?

mickroark wrote: Hire a certified financial planner. And hire an estate planning attorney. Sooner rather than later. I respectfully disagree. Managing this level of assets should not be difficult. If you are looking at needing $70,000 in income per year you have no real tax issues. Even if you make ...
by Peter Foley
Thu Aug 11, 2016 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement on the horizon - cash sitting - what to do?
Replies: 9
Views: 1592

Re: Retirement on the horizon - cash sitting - what to do?

If one of you is a teacher to you have access to a 403b plan? Even if such a plan does not have the best low cost funds it would be worth using to be able to defer more money. Expenses are important because they compound over time. A few years of a broad based stock fund with expenses around 1% woul...
by Peter Foley
Thu Aug 11, 2016 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market Index
Replies: 21
Views: 2587

Re: Total Stock Market Index

I am of the opinion that you can delay diversifying into bonds and international (the most common additional choices) until you have a few years worth of Roth savings. At this point your savings will far exceed your return on investment. So invest periodically in total stock market to get the advant...
by Peter Foley
Wed Aug 10, 2016 11:31 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for retirement 101 Help
Replies: 5
Views: 618

Re: Investing for retirement 101 Help

Some money should be in a bank savings account. This essentially serves as an emergency fund. Six months of income is often recommended. Once you have that in hand you could invest in the overall stock market. Vanguard is one of the lowest cost companies to use, but Fidelity and Schwab also have a n...
by Peter Foley
Wed Aug 10, 2016 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Selling shares in taxable account
Replies: 3
Views: 584

Re: Selling shares in taxable account

If you have not sold any shares in the past you can always use the average cost basis. Most brokerage firms provide this information.
by Peter Foley
Wed Aug 10, 2016 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing help and portfolio review
Replies: 6
Views: 481

Re: Rebalancing help and portfolio review

Given the expense ratios in your 401k, your plan is the approach I would take if I were you.
by Peter Foley
Wed Aug 10, 2016 10:03 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement on the horizon - cash sitting - what to do?
Replies: 9
Views: 1592

Re: Retirement on the horizon - cash sitting - what to do?

Are you sure your combined SS and pension will be about $28,000/year when you retire at age 66? For as much as you have saved that seems low for a couple.

Most individuals who post here would advise holding stocks, not bonds, in a Roth.

Looking for more details before commenting further.
by Peter Foley
Wed Aug 10, 2016 10:00 pm
Forum: Personal Consumer Issues
Topic: Solo Travel
Replies: 40
Views: 3570

Re: Solo Travel

Do the Tulum ruins in the morning before the tour buses arrive. If you can, do a day trip to Chichen Itza as part of a tour. It would be a long day, but you would be part of a group for a portion of your time there. Snorkeling is an enjoyable solo activity. I'm not a fan of traveling alone. By natur...
by Peter Foley
Tue Aug 09, 2016 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts over $14000
Replies: 15
Views: 2543

Re: Gifts over $14000

There would be no immediate taxes due. You might have to keep track of the gifts if you are subject to state or federal estate taxes or state inheritance taxes.
by Peter Foley
Tue Aug 09, 2016 11:15 pm
Forum: Investing - Help with Personal Investments
Topic: Close to retirement - please review
Replies: 17
Views: 2017

Re: Close to retirement - please review

Welcome to the forum. You seem to have thought things through quite well in terms of current and future tax considerations. Does it make any sense to do a backdoor Roth conversion now just to start the 5 year clock? If your IRAs are after taxes there should not be any big tax implication for a relat...
by Peter Foley
Tue Aug 09, 2016 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Questions on withdrawing retirement $'s
Replies: 15
Views: 1907

Re: Questions on withdrawing retirement $'s

I suggest you read the following about retirement withdrawal strategies: http://www.caniretireyet.com/the-best-retirement-withdrawal-strategies-digging-deeper/ The article, and its earlier version, are really about how to withdraw and rebalance. According to Mr. Kirkpatrick's models, how you withdra...
by Peter Foley
Tue Aug 09, 2016 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Just sold my business. Invenstment advice with proceeds of sale.
Replies: 3
Views: 557

Re: Just sold my business. Invenstment advice with proceeds of sale.

Welcome to the forum. Congratulations on the sale. Depending on your spending habits, you are likely in a position where you have little need to take risk. Some of us here, dare I say many, believe that one of the most important investment decisions is one's asset allocation between stocks and bonds...
by Peter Foley
Tue Aug 09, 2016 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities vs the market
Replies: 18
Views: 1644

Re: Annuities vs the market

Stvbis I would suggest you read this article: http://www.advisorperspectives.com/articles/2013/09/24/why-retirees-should-choose-dias-over-spias Most here recommend single premium immediate annuities. In the article Wade Pfau recommends a delayed annuity (not a variable annuity tied to market returns...
by Peter Foley
Mon Aug 08, 2016 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: IRA to Roth IRA conversion
Replies: 31
Views: 2043

Re: IRA to Roth IRA conversion

Almost there wrote: I originally received 10 bonds as a gift after my mother-in-law died. I cashed in 2 bonds to pay for my college expenses quite some time ago. I never realized that she paid $500 for each bond. FYI: The Bond Redemption receipt I received from the bank states a face value of $1000 ...
by Peter Foley
Mon Aug 08, 2016 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRA to Roth IRA conversion
Replies: 31
Views: 2043

Re: IRA to Roth IRA conversion

The EE bonds with which I am familiar are purchased at half face value. You buy a $1000 bond for $500. It doubles to face value in X number of years depending on when the bond was issued. So four $1000 savings bonds would have cost $2,000. The rest is interest. When you cashed in the bond you should...
by Peter Foley
Mon Aug 08, 2016 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Is my hypothetical retirement withdrawal plan sound?
Replies: 35
Views: 2789

Re: Is my hypothetical retirement withdrawal plan sound?

number cruncher wrote in his first table above:

58,459 85% 25% 46.25% 10,312 25% tax bracket
61,941 0% 25% 25.00% 11,923 max 85% of SS taxable


Please note that this is a very narrow window where the marginal tax rate is 46.25%.
by Peter Foley
Mon Aug 08, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: Articles that have provoked thought and reflection
Replies: 21
Views: 2526

Re: Articles that have provoked thought and reflection

Here is a link to a thread about Liability Matching Portfolios. https://www.bogleheads.org/forum/viewtopic.php?t=120702 Also an interview with Morningstar where he talks about portfolios. http://www.morningstar.com/cover/videocenter.aspx?id=670230 I agree this is thought provoking - a potential game...
by Peter Foley
Sun Aug 07, 2016 11:13 pm
Forum: Investing - Theory, News & General
Topic: Articles that have provoked thought and reflection
Replies: 21
Views: 2526

Re: Articles that have provoked thought and reflection

Svensk I retired in May of 2012 having gone through the recession. I had done some rebalancing to equities as the market fell (not enough) and some rebalancing as the market recovered (too much). While I came out all right I was well aware that at my portfolio's lowest point I would have had to dela...
by Peter Foley
Sun Aug 07, 2016 8:20 pm
Forum: Investing - Theory, News & General
Topic: "How to Make Your Money Last" -- A Gem
Replies: 43
Views: 9260

Re: "How to Make Your Money Last" -- A Gem

chx wrote: As with most advice tomes of this sort, it comes across as trite and overly full of generalizations. While I think this is a little harsh, I can understand where chx is coming from. I read the book and participated in a review/conversation about the book at the recent MN Bogleheads meetin...

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