Search found 2929 matches

by Peter Foley
Fri Feb 05, 2016 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Best IRA account for Self Employed?
Replies: 7
Views: 247

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: 3
Views: 156

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: 12
Views: 519

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: 52
Views: 4932

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: 335

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?
Replies: 5
Views: 314

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: 3
Views: 297

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: 222

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: 3
Views: 301

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: 61
Views: 9380

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: 12
Views: 982

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: 494

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: 1051

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: 582

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: 31
Views: 1371

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: 61
Views: 9380

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: 39
Views: 1677

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: 344

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: 6274

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: 39
Views: 2948

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: 468

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: 3474

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: 3474

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: 735

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: 372

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: 4
Views: 321

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: 1926

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: 4050

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...
by Peter Foley
Mon Feb 01, 2016 4:43 pm
Forum: Investing - Theory, News & General
Topic: Charles Ellis' suggested portfolios by age
Replies: 53
Views: 3996

Re: Charles Ellis' suggested portfolios by age

I think that except for the first few years of investing, one should always have at least 10% in bonds. My approach was not far off from Charlie's - early on it was a back of the envelope approach, not one I arrived at after careful study. Pre Bogleheads I had never thought about risk tolerance or r...
by Peter Foley
Mon Feb 01, 2016 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

Post Retirement: Prepare a detailed income and withdrawal strategy that covers at least 5 years. Said strategy would estimate income sources, note SS strategy, and marginal tax rates. Create a template and detail each year’s income and its source. Plan the timing of any taxable asset sales. If possi...
by Peter Foley
Sun Jan 31, 2016 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

Loninvest I think we agree - I view a safe withdrawal rate as a planning tool during one's accumulation phase, not as strict plan to be implemented in retirement. Taylor has often posted about variable withdrawals - a practice I would suspect most people would use, and a practice I have spoken about...
by Peter Foley
Sun Jan 31, 2016 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

PoeticalDeportment wrote Peter Foley wrote: 2. Begin to create a cash reserve (or if you wish a “safe” bucket). As a participant in this community, I consider myself honor bound to point out market timing, in any form, whenever I see it. Why is a cash reserve needed starting 5 years prior to retirem...
by Peter Foley
Sun Jan 31, 2016 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

nedsaid wrote: As I see it, this discussion boils down to three big problems. First, the sequence of returns problem. Second, how does a retiree or near retiree deal with very low interest rates? Third, how do I keep from running out of money in retirement? I think there is another key issue, tax ef...
by Peter Foley
Sun Jan 31, 2016 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Coffeehouse-Inspired Portfolio
Replies: 11
Views: 1725

Re: Coffeehouse-Inspired Portfolio

David Jay wrote: I have been convinced by the argument that funds with the highest expected yields be put in Roth accounts (because you never pay tax on these gains) and to put tax- inefficient but relatively low yield funds in tax-deferred, as eventually you have to pay taxes on those gains. In tha...
by Peter Foley
Sun Jan 31, 2016 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: How do I pay off debt?
Replies: 22
Views: 2969

Re: How do I pay off debt?

If you paid your bills by check, there should be a bank record of those checks. Even if you have changed banks you might be able to get access to those records and to pdf files with images of the checks you wrote.
by Peter Foley
Sun Jan 31, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

Lots of good comments and suggestions. A personal follow up to the post by carolinaman: I think that pre-retirement should include some third party review of your retirement plans My wife and I did this. While I was confident we had sufficient savings to retire, she did not. The third party process ...
by Peter Foley
Sat Jan 30, 2016 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newly retired and need help
Replies: 17
Views: 1653

Re: Newly retired and need help

With the vast majority of your assets in a deferred account I would withdraw from the qualified retirement accounts and keep my income in the 10-15% brackets A key consideration might be to use a mix so as not to greatly reduce your ACA subsidy. However, you really don't have a lot in taxable so you...
by Peter Foley
Sat Jan 30, 2016 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning advice?
Replies: 28
Views: 2915

Re: Estate planning advice?

The additional information is helpful. I think an attorney that specializes in estates and trusts would be they way to go. (There just aren't enough family member to whom to gift to make a meaningful difference, and the gifting would favor you over your sister if your wife and future child also got ...
by Peter Foley
Sat Jan 30, 2016 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

Perhaps I am obsessing about this, but I think gaining an understanding of income taxes and how different streams of income and different types of accounts are affected by the tax laws is high on my pre retirement list of activities: To quote a few others who posted in this thread . . . rrppve wrote...
by Peter Foley
Sat Jan 30, 2016 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

crit Some ongoing income in retirement is an issue because one's savings for retirement are most often used to pay for ongoing expenses. If you have a steady income stream (pension, part time work, rental income, inherited IRA, etc), you will need to draw less from savings in retirement. These incom...
by Peter Foley
Sat Jan 30, 2016 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about tax-efficiency
Replies: 7
Views: 405

Re: Questions about tax-efficiency

Again, welcome. You would put a tax exempt bond fund in taxable. So you could decide to hold two different bond funds, one in taxable and one in your 401k. If you have only held total bond fund in a taxable account for a short period of time there are unlikely to be much of a tax consequence should ...
by Peter Foley
Sat Jan 30, 2016 5:39 pm
Forum: Forum Issues and Administration
Topic: New Board Index Topic - Retirement Planning
Replies: 31
Views: 1378

Re: New Board Index Topic - Retirement Planning

I too would favor this as a separate index topic. It currently overlaps a couple of other topics and it is not clear from the descriptors where some retirement planning issues fall. They could be in investing or personal finance. Yes I am aware that one can search and/or scroll. Not everyone is inte...
by Peter Foley
Sat Jan 30, 2016 3:30 pm
Forum: Investing - Theory, News & General
Topic: bond funds
Replies: 9
Views: 1033

Re: bond funds

dbr wrote: My view is that one has a portfolio in an entirety consisting of stocks and bonds and that as one withdraws one also looks to return the portfolio as much as possible to target. While I think most would agree, Darrow Kirkpatrick recently evaluated six withdrawal strategies. Per his analys...
by Peter Foley
Sat Jan 30, 2016 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

Big John wrote:

first pass at SS claiming strategy


livesoft wrote:

Post-retirement: Roth conversions


I agree with both. Both, however, require an understanding the impact of income taxes and marginal tax rates on pre and post retirement income. Retirement planners such as ORP help.
by Peter Foley
Sat Jan 30, 2016 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Re: Retirement - Ten key years

Thanks for the reply. I personally could not agree more regarding simplification. However, might not the years prior to retirement entail some (at least temporary) complications? I'm thinking along the lines of setting up Roth accounts if they don't already exist, or deferred accounts (401k) if one ...
by Peter Foley
Sat Jan 30, 2016 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Retirement - Ten key years + Summary
Replies: 61
Views: 9380

Retirement - Ten key years + Summary

OP edit: I added a summary at the end. Thanks for your input. I would like to develop some talking points for a discussion at a local Bogleheads’ meeting. My thought is to address what actions individuals should/might take during the five years prior to retirement through five years after retiremen...
by Peter Foley
Sat Jan 30, 2016 12:10 am
Forum: Investing - Help with Personal Investments
Topic: High Expense Ratios - Advice?
Replies: 23
Views: 1790

Re: High Expense Ratios - Advice?

Angell wrote: Does this seem like a sound plan? I think it is fine. If the market were go up during the next few years there would be no reason not to sell some stocks to buy bonds and accelerate the AA transition - this is based on your reluctance to do so with the market at current levels. Althoug...
by Peter Foley
Thu Jan 28, 2016 11:45 pm
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Stock Exposure Peaks at 60
Replies: 12
Views: 1791

Re: Age in Bonds - Stock Exposure Peaks at 60

I'm still puzzled. I too find the chart intriguing. But how do you get there? What if a person retires at 60 and begins to drawn down assets. Is it assumed that he/she will withdraw 60 percent from bonds at that point and 40% from equities, 50/50? Or does he/she withdraw so that post withdrawal he/s...
by Peter Foley
Thu Jan 28, 2016 10:25 pm
Forum: Personal Consumer Issues
Topic: Printer suggestions?
Replies: 24
Views: 1598

Re: Printer suggestions?

sk.dolcevita

I'd be interested in hearing the workaround for the dry color cartridge.
by Peter Foley
Thu Jan 28, 2016 10:15 pm
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Stock Exposure Peaks at 60
Replies: 12
Views: 1791

Re: Age in Bonds - Stock Exposure Peaks at 60

When do the contributions stop?

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