Search found 1769 matches

by SGM
Fri Jul 29, 2016 5:19 am
Forum: Investing - Theory, News & General
Topic: Anti-Boglehead Claims There is a Better Way to Invest
Replies: 82
Views: 9510

Re: Anti-Boglehead Claims There is a Better Way to Invest

I have read Merriman's articles in the past and will not reread them today. I have some tilts and still have long held individual stocks that I am selling yearly. Several years ago the Vanguard total stock market MF and ETF became my largest stock holding and I add more to it every year as I pare do...
by SGM
Thu Jul 28, 2016 4:41 am
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb
Replies: 27
Views: 3183

Re: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb

... A Roth conversion is a wash if the tax bracket remains the same. At a constant tax bracket, a Roth conversion is always beneficial, assuming you have other money (in cash or high basis assets) with which to pay the tax on the conversion. For example, suppose you'll always be in a 30% tax bracke...
by SGM
Thu Jul 28, 2016 3:48 am
Forum: Investing - Theory, News & General
Topic: Interesting Interaction with Edward Jones
Replies: 43
Views: 3209

Re: Interesting Interaction with Edward Jones

I don't open the door to strangers :annoyed . It could be a process server.
by SGM
Wed Jul 27, 2016 8:45 am
Forum: Investing - Theory, News & General
Topic: Traits of a successful investor
Replies: 29
Views: 2057

Re: Traits of a successful investor

Patience has helped me in that I paid myself first from early on and continued to invest regularly. Fearlessness helped me in that I continued to invest despite the many bear markets I have lived through. There was no panic selling. Intelligence is important in terms of keeping your costs low, knowi...
by SGM
Wed Jul 27, 2016 4:16 am
Forum: Personal Finance (Not Investing)
Topic: Can I undo part of a Roth Conversion?
Replies: 8
Views: 517

Re: Can I undo part of a Roth Conversion?

OP is probably aware you have up to October 15 of 2017 to make the re-characterization. In reality you have up to a month earlier than that to make certain everything gets done by October 15. Alan has explained the effect of gains and losses when considering taxes on recharacterizations very clearly...
by SGM
Wed Jul 27, 2016 3:51 am
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 78
Views: 5027

Re: Rules of Thumb: Max House Value as % of Net Worth?

Early on I considered purchasing a home based on income and sufficient funds for a down payment. Other considerations included living in a state where homesteads are protected from lawsuits when one's profession puts you in danger of malpractice suits. This may work for protecting assets in an accid...
by SGM
Mon Jul 25, 2016 9:38 am
Forum: Investing - Theory, News & General
Topic: REITs being given sub-sector in S&P
Replies: 5
Views: 1100

Re: REITs being given sub-sector in S&P

Having their own sector may require certain funds to buy more REIT fund names. I am not sure anyone can benefit from this information since the fund buying has already begun. I am slightly overweight in REITs (VNQ) in tax advantaged accounts only of course. This may be a mistake to drift away from t...
by SGM
Sun Jul 24, 2016 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Financing retirement before SS - when to retire
Replies: 20
Views: 2509

Re: Financing retirement before SS - when to retire

I would work until 65 at least in order to receive Medicare and save additional money over the next 5 years. You are currently saving close to $600 a month for retirement. So your retirement expenses may be lower than $3600 a month current expenses. I haven't gone back through the thread, but have y...
by SGM
Sat Jul 23, 2016 3:56 am
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb
Replies: 27
Views: 3183

Re: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb

One of the things we did was convert to a Roth while maximizing a traditional solo 401k and profit sharing plan. So the amount in a Roth increased while the amount in traditional deferred accounts stayed about the same. Taxes were paid out of a taxable account. Later when stopping work or decreasing...
by SGM
Fri Jul 22, 2016 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb
Replies: 27
Views: 3183

Re: Daring to figure it out for myself -- To Roth or Not to Roth and defusing the RMD tax bomb

We always filled traditional accounts to the maximum. Roth accounts were not available to us.

A couple of rules for our conversions:
1. Pay taxes out of taxable
2. A Roth conversion is a wash if the tax bracket remains the same.
by SGM
Thu Jul 21, 2016 2:47 pm
Forum: Investing - Theory, News & General
Topic: BOGLEHEAD CONTEST -- 2016 Mid-Year Report
Replies: 26
Views: 2670

Re: BOGLEHEAD CONTEST -- 2016 Mid-Year Report

New York Buy!
Chicago Sell!
by SGM
Thu Jul 21, 2016 5:02 am
Forum: Personal Finance (Not Investing)
Topic: Scary thought. Running out of time to save for retirement
Replies: 60
Views: 6300

Re: Scary thought. Running out of time to save for retirement

If you live like a graduate student for a while you can pay off loans quicker. Also as you get older you have some potential increases in IRA and 401k via catch up rules. People tend not to take advantage of catch up rules unless they are already fairly well off per social security sponsored researc...
by SGM
Tue Jul 19, 2016 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Retirement for Women(?)
Replies: 34
Views: 3240

Re: Retirement for Women(?)

I have heard some elderly widows complain that SS is not enough to live on. Sometimes the high earner does not delay SS and the survivor has a much lower income than would have been possible if the higher earner delayed. Sometimes a pensioner does not take a 100% joint survivor pension. The same may...
by SGM
Tue Jul 19, 2016 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Berkshire Hathaway Class B
Replies: 42
Views: 3141

Re: Berkshire Hathaway Class B

I am paying a lot more in taxes since I decided to diversify out of Berkshire into index funds. This is a downside of indexing for me, but I chose to live with additional yearly taxes to diversify in a low cost manner. With Berkshire there were no dividends and taxes were not paid until I sold the s...
by SGM
Mon Jul 18, 2016 4:39 am
Forum: Personal Finance (Not Investing)
Topic: Optimizing IRS taxes and IRMAA
Replies: 1
Views: 224

Re: Optimizing IRS taxes and IRMAA

Before taking SS is a good time to do Roth conversions and pay the taxes out of a taxable account. The IRMAA will be higher 2 years after you do a large enough Roth conversion. IRMAA costs will return to a lower level when you are no longer converting and taxable account dividends and capital gains ...
by SGM
Mon Jul 18, 2016 3:51 am
Forum: Investing - Help with Personal Investments
Topic: convert mutual fund to index fund
Replies: 29
Views: 1988

Re: convert mutual fund to index fund

The 1% management fee is for all assets under management (AUM). So that includes cash. I would get out of your current brokerage and put all of your MFs into Vanguard directly. You don't need to pay anyone to manage your money.
by SGM
Sat Jul 16, 2016 3:37 am
Forum: Investing - Theory, News & General
Topic: Do You Practice Ethical Investing?
Replies: 47
Views: 1984

Re: Do You Practice Ethical Investing?

I invest in the whole market. If it is a legal business I feel free to invest in it. How ironic that some "ethically and morally superior" professor who chastised poorly paid overworked medical residents for taking a free pen or free sandwich from a pharmaceutical representative had later ...
by SGM
Sat Jul 16, 2016 3:10 am
Forum: Investing - Theory, News & General
Topic: "Pokemon Go" -- should buying Nintendo have been obvious?
Replies: 88
Views: 4551

Re: "Pokemon Go" -- should buying Nintendo have been obvious?

A relative bought Nintendo stock after it had risen quite a bit. It has gone up another 20% since his purchase at the beginning of the week. Playing Pokémon Go on cell phones seems to be quite the rage and a different way of marketing of games. He expects the stock value to go up further as the game...
by SGM
Fri Jul 15, 2016 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Immediate annuities and my retirement plan
Replies: 48
Views: 4089

Re: Immediate annuities and my retirement plan

The higher earner should definitely delay SS as long as possible. Delaying SS is way better than purchasing an annuity and taking SS early. I considered purchasing an SPIA if I needed it to bridge the time while I was delaying SS. Fortunately I did not need it. I agree with Taylor's list concerning ...
by SGM
Thu Jul 14, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: A Tale of Two Strategies
Replies: 23
Views: 2309

Re: A Tale of Two Strategies

OPs higher fixed income will mean less is required from his nest egg. The advantage of 2% lower fees will be very hard to overcome. Low cost index investing beats active investing most of the time. Higher SS also has a cola component. Way to go. Have you looked at I-orp.com ?
by SGM
Wed Jul 13, 2016 10:58 am
Forum: Investing - Theory, News & General
Topic: Bayesian market predictions?
Replies: 75
Views: 4012

Re: Bayesian market predictions?

People even so called experts often tend to overestimate the base case probability leading to incorrect market predictions.
by SGM
Tue Jul 12, 2016 7:47 am
Forum: Investing - Help with Personal Investments
Topic: How much did you earn in capital gains?
Replies: 7
Views: 760

Re: How much did you earn in capital gains?

Here is an example of one retirement account with accurate records for 30 years. A total of $8k was contributed half of that was employer contribution in a 403b and it was done over a 4 year period. Now 30 years later the value of the account was $240k at retirement. The payout will be taxed as ordi...
by SGM
Tue Jul 12, 2016 7:28 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for conversion of $1.8 million IRA
Replies: 63
Views: 5905

Re: Strategy for conversion of $1.8 million IRA

I would consider biting the bullet and doing Roth conversions well into the 25% tax bracket until you reach age 65. Then reassess to consider impact of Medicare surtax. The additional Medicare cost is important especially if both in a couple are on Medicare. The additional monthly Medicare premium ...
by SGM
Mon Jul 11, 2016 4:45 am
Forum: Investing - Help with Personal Investments
Topic: "Maximize My Social Security" Calculator (Household Version) Validity?
Replies: 4
Views: 1135

Re: "Maximize My Social Security" Calculator (Household Version) Validity?

I have used several of the free calculators and they all came up with wait until age 70 for the high earner. All but one recommended the lower earning spouse take a spousal at FRA of 66 then own SS at age 70. This was before the April 30th changes regarding the law signed in November of 2015. One ca...
by SGM
Sun Jul 10, 2016 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

This thread has motivated me look more closely at my completed conversions. The real advantage will happen at age 70 1/2 when I will not have to take RMDs and the Roth will grow tax free until I choose to spend from the Roth or if it is inherited. But there is a current and future advantage prior to...
by SGM
Thu Jul 07, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Safe Stolen
Replies: 56
Views: 6790

Re: Safe Stolen

We use a safety deposit box at a local bank. It is not very expensive and a lot less worry. Just keep track of the keys.

I read once about a very little lady leaving a pair of large men's shoes on her porch to discourage interlopers.
by SGM
Wed Jul 06, 2016 7:46 pm
Forum: Investing - Theory, News & General
Topic: "The Thirteen Word Retirement Plan"
Replies: 21
Views: 3497

Re: "The Thirteen Word Retirement Plan"

The thirteen words include maximizing IRAs and 401ks and using inexpensive index funds. It is the same advice I have given my kids. It is part of paying yourself first.

It looks like a helpful book to the uninitiated.
by SGM
Tue Jul 05, 2016 3:18 pm
Forum: Investing - Theory, News & General
Topic: A favorite Peter Lynch quote.
Replies: 26
Views: 3444

Re: A favorite Peter Lynch quote.

"The key to making money in stocks is not to get scared out of them". I internalized that message many years ago. It sounds like "stay the course" doesn't it? His quote, "Gentlemen who prefer bonds are missing out on a lot", was funny and in agreement with my high stock...
by SGM
Mon Jul 04, 2016 11:49 am
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

To keep the terminology straight... you convert a tIRA to a Roth. You recharacterize a Roth to a tIRA up until October 15 of the following year you made the conversion after taking an extension for filing with the IRS. A recharacterized tIRA can be converted at a later date if you choose. If you rec...
by SGM
Mon Jul 04, 2016 8:25 am
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

In a recharacterization strategy you want to keep the winners and get your money back on the losing bets. If you do not put a conversion into a new empty Roth account you cannot segregate the winners from the losers. If you put it all in one account you will have to allocate the losses or gains to e...
by SGM
Mon Jul 04, 2016 5:17 am
Forum: Investing - Help with Personal Investments
Topic: Am I a little crazy to be thinking this way?
Replies: 92
Views: 7934

Re: Am I a little crazy to be thinking this way?

I was 100% stock for many years and didn't add bonds until close to retirement. When the market was down I felt that I was buying at bargain rates. I tax loss harvested in 2008 and continued to invest in the stock market. I wasn't selling any winners so I carried over the losses to future years afte...
by SGM
Sun Jul 03, 2016 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

I converted all my traditional accounts to Roth's over 5 years. At least one of those years I was in the ATM sweet spot where the taxes were 28%. I may have just lucked into it. I was convinced that the advantages of not having RMDs and still being in a high tax bracket after age 70 even without RMD...
by SGM
Sun Jul 03, 2016 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Living off dividends/interest in retiremeht
Replies: 60
Views: 6524

Re: Living off dividends/interest in retiremeht

I am pretty much a total return investor. Since I retired I have been taking all taxable dividends and capital gains and am spending them or reallocating. My only sales of stock are to diversify my investments, by decreasing long held individual stocks that have grown to be too large a holding for c...
by SGM
Sun Jul 03, 2016 7:57 am
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

It looks like you will pay taxes on 85% of SS payments regardless of what you do. In the case where taxes will not go down in retirement a full conversion is probably best. In your case there is some optimum less than complete conversion since your income will be relatively low after 70. Vanguard do...
by SGM
Sun Jul 03, 2016 5:08 am
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

You might want to check out Medicare premiums for different incomes when considering how much conversions you want to make in a particular year. See https://www.ssa.gov/pubs/EN-05-10536.pdf
by SGM
Sat Jul 02, 2016 10:28 am
Forum: Investing - Help with Personal Investments
Topic: $400,000 Roth Conversions Between Ages 66-69?
Replies: 109
Views: 10554

Re: $400,000 Roth Conversions Between Ages 66-69?

I used James Lange's The Roth Revolution as a reference. I don't have the time to go into detail, but I converted all traditional accounts to Roth accounts prior to taking SS and after quitting full time work. It was a great move.
by SGM
Sat Jul 02, 2016 5:20 am
Forum: Investing - Help with Personal Investments
Topic: Pay off the house leaving only $15k
Replies: 32
Views: 2066

Re: Pay off the house leaving only $15k

Don't beat yourself up for not maximizing your 401k. At age 50 you have time to make up for any earlier decisions. You also have some tax diversity by having Roth and traditional accounts. Congratulate yourself for having a paid off mortgage at 50. That is an accomplishment. I would pay off the mort...
by SGM
Fri Jul 01, 2016 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Where were you financially when you were at 30?
Replies: 225
Views: 23011

Re: Where were you financially when you were at 30?

At 30 I was single and about to start a graduate program. I had no debt and a few thousand dollars. As a graduate student I made about as much money as when I was working. Two years later I had greatly increased my income and was receiving company stock. I invested outside of my company plan with MF...
by SGM
Fri Jul 01, 2016 4:03 am
Forum: Personal Finance (Not Investing)
Topic: Do we have enough to retire?
Replies: 87
Views: 6511

Re: Do we have enough to retire?

You pay income taxes on your passive rental income, but you do not pay fica taxes on passive income therefore it does not help fill those zero years in the SS calculation. If you are self employed and pay yourself a salary then you will pay 15.3% of your salary for Medicare and SS.
by SGM
Thu Jun 30, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion 5 year rule
Replies: 9
Views: 1057

Re: Roth Conversion 5 year rule

If you are 60 the 5 year rule only applies to earnings. Why not do smaller conversions and pay the taxes out of taxable if you have insufficient money in taxable available to pay all of the taxes? Even if you pay the taxes out of the tIRA the Roth will grow tax free, but you are taking away part of ...
by SGM
Wed Jun 29, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: Sin as investment strategy
Replies: 15
Views: 1956

Re: Sin as investment strategy

Thankfully VTI the total stock market includes "sin" stocks. I happily invest in legal corporations that make legal products to meet the needs of consumers. I have always considered "sin free" investing to be a lot of noise. I may have sins but investing in the total market is no...
by SGM
Tue Jun 28, 2016 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Loans to Friends
Replies: 73
Views: 3599

Re: Loans to Friends

I gave money to a young couple who were related to me when I learned from a cousin that a fire destroyed their home and that they had young children. Everything was lost in the fire. I didn't know them personally, but I knew their parents and grandparents quite well. The couple had asked for the hom...
by SGM
Tue Jun 28, 2016 7:14 am
Forum: Investing - Help with Personal Investments
Topic: Adding Vanguard High Yield Tax Exempt Fund?
Replies: 13
Views: 1336

Re: Adding Vanguard High Yield Tax Exempt Fund?

Vanguard high yield tax exempt has done well compared to intermediate tax exempt and to its benchmark over the last ten years. Of course if interest rates rise it may underperform intermediate tax exempt. Most want to take their risk in stocks not in bonds.
by SGM
Fri Jun 24, 2016 7:29 am
Forum: Investing - Help with Personal Investments
Topic: BREXIT - Invest tomorrow?
Replies: 68
Views: 9938

Re: BREXIT - Invest tomorrow?

Today is a better day to invest in international or Europe than yesterday. That's easy since you have a rear view mirror. Whether to invest today or next week is something no one can answer with assurance. This stinks of market timing, but I am not so doctrinaire to say never ever market time. It is...
by SGM
Thu Jun 23, 2016 3:18 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Coaches?
Replies: 52
Views: 3835

Re: Retirement Coaches?

Retirement coaches are about the social aspects of retirement not the financial aspects. A local business owner and widower admits to being very much afraid of retirement and he is already 70. He has been talking about retiring for a few years. There are plenty of how to retire books out there but t...
by SGM
Wed Jun 22, 2016 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Lowering taxes at RMD time
Replies: 26
Views: 3053

Re: Lowering taxes at RMD time

Before you take SS at 70 and before your RMDs you will be in a lower tax rate. I think I-orp.com will recommend you convert some of your 401k and traditional IRAs to a Roth account. The program will probably suggest you do not take out anything from your Roth account until much later in retirement. ...
by SGM
Wed Jun 22, 2016 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: VCIT (Intermediate Corp Bond fund ETF) up 6% YTD Why?
Replies: 24
Views: 1489

Re: VCIT (Intermediate Corp Bond fund ETF) up 6% YTD Why?

The Morningstar piece on Jack is not available just now. However, I recall him advising intermediate corporate bond funds as an alternative to total bond. I have had VCIT in my tax advantaged funds since he recommended it. I have also had some in the Vanguard corporate bond mutual fund before Jack's...
by SGM
Mon Jun 20, 2016 6:11 pm
Forum: Investing - Theory, News & General
Topic: Malkeil on Preferred Stocks - what's the Bogleheads take?
Replies: 33
Views: 2396

Re: Malkeil on Preferred Stocks - what's the Bogleheads take?

I wouldn't consider this a core long term investment, but it may be safe enough to use for a few years. If it's only safe enough for a few years, it's probably not safe at all. No way is not safe at all. I pointed out a few things in my prior posts that tend toward safety. You cannot pay a common d...
by SGM
Mon Jun 20, 2016 3:55 pm
Forum: Investing - Theory, News & General
Topic: Malkeil on Preferred Stocks - what's the Bogleheads take?
Replies: 33
Views: 2396

Re: Malkeil on Preferred Stocks - what's the Bogleheads take?

I don't think it is terribly risky to have a small part of your portfolio in preferred stock of solid companies. The risk of default is minimal if the companies are solid. The expected return of stocks going forward is rather low so the fact that preferred stocks do not go up in value when the under...
by SGM
Mon Jun 20, 2016 8:15 am
Forum: Investing - Theory, News & General
Topic: Malkeil on Preferred Stocks - what's the Bogleheads take?
Replies: 33
Views: 2396

Re: Malkeil on Preferred Stocks - what's the Bogleheads take?

Preferred stock have a safer dividend than common stocks. However,you also will not participate in any increases in the underlying value of the common stock. The dividends are fully taxable to individuals and not taxable to corporations. Common stock dividends cannot be paid if the preferred dividen...

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