Search found 1812 matches

by SGM
Sat Aug 27, 2016 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 1064

Re: Roth IRA conversion at 28% tax rate.

I contributed the maximum to a solo 401k including profit sharing while at the same time converting tIRAs to a Roth account. This definitely was better than putting the money in taxable as I never had to pay taxes on the Roth money again. Also I expanded my tax deferred space which eventually expand...
by SGM
Sat Aug 27, 2016 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Should I invest ANYTHING right now?
Replies: 27
Views: 2943

Re: Should I invest ANYTHING right now?

Live like a resident and pay off the loan as quickly as possible.
by SGM
Sat Aug 27, 2016 10:17 am
Forum: Investing - Theory, News & General
Topic: When in doubt, convert to a Roth
Replies: 17
Views: 1531

Re: When in doubt, convert to a Roth

I had a little doubt, but I kept on converting over a period of 6 years until there was none left. If you have a good idea of what your yearly income it is best to convert early because there is more time to recharacterize also up to October 15 of the following year. My only doubt was that I never q...
by SGM
Sat Aug 27, 2016 9:59 am
Forum: Investing - Theory, News & General
Topic: "Are Index Funds Eating the World?"
Replies: 34
Views: 2794

Re: "Are Index Funds Eating the World?"

Sometimes, I think BHs are not reading the same piece I am reading. Jack said market chaos would not occur unless indexing was 90% of the market. We are so far from that it is ridiculous.
by SGM
Sat Aug 27, 2016 3:07 am
Forum: Investing - Theory, News & General
Topic: Do passive investors need active investors to survive?
Replies: 13
Views: 2134

Re: Do passive investors need active investors to survive?

The answer is yes. Index investors take the price. Active investors set the price. There is no danger of the markets becoming inefficient until index funds own 90% of the market is what I read. Jack Bogle has stated that that when everybody indexes there would be chaos. Read Jason Zweig's recent pie...
by SGM
Thu Aug 25, 2016 2:43 am
Forum: Investing - Help with Personal Investments
Topic: To reinvest or not to reinvest
Replies: 4
Views: 667

Re: To reinvest or not to reinvest

If you are considering an annuity you might be better off delaying SS until age 70. If you are getting $26k at 66 then you could be receiving something over $34k by delaying until 70. You would have a higher SS basis for inflation adjustments with the longer delay. Also be careful of variable and eq...
by SGM
Wed Aug 24, 2016 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Contributions
Replies: 5
Views: 598

Re: Roth IRA Contributions

If you are over the MAGI for Roth conversions you could still fund a non-deductible traditional IRA. At some later date if your income tax rate is lower you could convert to a Roth. Wait until sometime in 2017 before April 15 to make the decision to contribute to either type of IRA if close to $184k...
by SGM
Tue Aug 23, 2016 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion options
Replies: 15
Views: 1219

Re: Roth conversion options

Scenario 3 is probably the best way to go. You could possibly continue to convert after reaching 70 1/2 if it does not increase your tax rate. You cannot convert the RMDs but they now become taxable and you can pay the taxes out of the RMDs and take a little more out of the tIRA to convert more for ...
by SGM
Tue Aug 23, 2016 4:42 am
Forum: Investing - Help with Personal Investments
Topic: Should I do Roth conversions?
Replies: 10
Views: 785

Re: Should I do Roth conversions?

Among several factors to consider are how much your SS will be taxed. This can be 0,50 or 85% depending on income. After RMDs start how does that affect SS taxation? Your income between $25k and $34k SS will be taxed up to 50%, above $34k it will be taxed up to 85%. A factor in determining when and ...
by SGM
Mon Aug 22, 2016 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion or Not?
Replies: 45
Views: 2917

Re: Roth Conversion or Not?

I don't have much to add that hasn't already been posted above. However, I am pleased to now have dividends that will never be taxed and have fewer dividends in taxable accounts. Those taxable dividends are a drag on returns even though I am not focusing on dividend producing stock. Paying taxes out...
by SGM
Sat Aug 20, 2016 4:21 am
Forum: Investing - Theory, News & General
Topic: High RMD’s, would you do anything different?
Replies: 54
Views: 4809

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

I maximized 401k and tIRAs during my working career. About the same time the law was changed so that I was allowed to convert to Roth IRAs I realized my RMDs would be enough to increase my tax rate in retirement compared to the last few years when I worked part time for sure. I began and completed c...
by SGM
Wed Aug 17, 2016 8:56 am
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 agree that in terms of inheritance a Roth is better than traditional IRAs. Also long term capital gains in taxable accounts get a stepped up basis which is also better than a traditional IRA. Some wealthy elderly buy second to die life insurance for inheritance purposes. I have read about it in Re...
by SGM
Mon Aug 15, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Where to report IRS impersonation scams
Replies: 26
Views: 1622

Re: Where to report IRS impersonation scams

Do you seriously think that 1) The IRS doesn't know about this problem and 2) reporting it will do any good???? plannerman I am not a big fan of Michelle Singletary, but she reports that $44.5 million have been lost to IRS impersonation scams and that the IRS,TIGTA, and the FTC are serious about pr...
by SGM
Mon Aug 15, 2016 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Where to report IRS impersonation scams
Replies: 26
Views: 1622

Where to report IRS impersonation scams

The following sites can be used to report IRS impersonation calls: The Treasury Inspector General for Tax Administration http://www.treasury.gov/tigta click on the link for IRS impersonation scam reporting. Federal Trade Commission http://www.ftc.gov/imposters This was reported by Michelle Singletar...
by SGM
Sun Aug 14, 2016 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account or non-deductible tIRA? [Discontinue nondeductible contributions?]
Replies: 38
Views: 815

Re: Taxable account or non-deductible tIRA? [Discontinue nondeductible contributions?]

I always maximized non-deductible tIRAs as well as maximized 401ks. For the non-deductible tIRAs I was only taxed on any earnings when I converted. We would own a lot less in Roth IRAs now if I didn't maximize non-deductible tIRAs over many years for the two of us. My strategy was initially to pay t...
by SGM
Sat Aug 13, 2016 5:15 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review ?
Replies: 23
Views: 2011

Re: Portfolio Review ?

The global volatility fund is hedged and is rule oriented with flexibility. Apropos to nothing, I like 2 of the 3 top holdings J&J and BCE which are unsold leftovers from when I was buying mostly individual stocks. The fund looks conservative and has held up well while the foreign markets have d...
by SGM
Fri Aug 12, 2016 9:18 am
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?

Interest rates are low so putting bond funds into taxable would not increase taxable income much. You might also put some Vanguard muni tax funds in taxable. I like to have some stock funds in IRAs for the growth potential. The higher earner of the two of you might consider delaying SS until 70. I s...
by SGM
Thu Aug 11, 2016 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Going short to negate going long [socially responsible investing]
Replies: 59
Views: 2983

Re: Going short to negate going long [socially responsible investing]

I like to keep my investment expenses low and give bigger tips to hard working people and give more to my favorite charities. I have had enough of people telling me to eat my peas. :annoyed
by SGM
Thu Aug 11, 2016 4:09 am
Forum: Investing - Theory, News & General
Topic: New EJ ad touts cost transparency
Replies: 11
Views: 1341

Re: New EJ ad touts cost transparency

I have never seen so many individual fees. Is there a smilie for regurgitation?
by SGM
Wed Aug 10, 2016 9:44 am
Forum: Investing - Theory, News & General
Topic: Talking about the Bogleheads approach with non-Bogleheads
Replies: 64
Views: 4480

Re: Talking about the Bogleheads approach with non-Bogleheads

I just met with an older retired colleague and she is happy to be paying $14,000 a year in AUM fees. She is likely spending more on higher expense ratio funds. No wonder she had to borrow my ground hog trap instead of buying one for $70. :( The two aren't related. I wouldn't spend $70 if I didn't h...
by SGM
Wed Aug 10, 2016 4:16 am
Forum: Investing - Help with Personal Investments
Topic: Friend wants to pay for my kids' college expenses: how best to do this
Replies: 18
Views: 2401

Re: Friend wants to pay for my kids' college expenses: how best to do this

As a couple they could put up to $140,000 for each child in a 529. I don't believe they have to fill out any additional tax forms to make a gift directly to the 529. Outside of a 529 they could only give $28,000 for each child a year without triggering a gift tax, unless they fill out the IRS forms ...
by SGM
Wed Aug 10, 2016 3:58 am
Forum: Investing - Theory, News & General
Topic: Talking about the Bogleheads approach with non-Bogleheads
Replies: 64
Views: 4480

Re: Talking about the Bogleheads approach with non-Bogleheads

I just met with an older retired colleague and she is happy to be paying $14,000 a year in AUM fees. She is likely spending more on higher expense ratio funds. No wonder she had to borrow my ground hog trap instead of buying one for $70. :(
by SGM
Tue Aug 09, 2016 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: IRA to Roth IRA conversion
Replies: 31
Views: 2043

Re: IRA to Roth IRA conversion

Try using the taxcaster program. If you had no other income than social security you could have no taxes on a conversion of 15000 for 2016.
by SGM
Tue Aug 09, 2016 10:50 am
Forum: Investing - Theory, News & General
Topic: Talking about the Bogleheads approach with non-Bogleheads
Replies: 64
Views: 4480

Re: Talking about the Bogleheads approach with non-Bogleheads

Bringing up the idea of the cost of 1-2% AUM fees may be helpful. I have posted before about a couple who had bought $1000 of the Vanguard 500 index fund many years ago on a relatives recommendation. They laughed about how stupid the recommendation was as the account never grew. Unfortunately, the c...
by SGM
Tue Aug 09, 2016 9:33 am
Forum: Personal Finance (Not Investing)
Topic: IRA to Roth IRA conversion
Replies: 31
Views: 2043

Re: IRA to Roth IRA conversion

You might want to consider how much your SS will be taxed when you get RMDs. If you file a federal tax return as an individual and your combined income is between $25,000 and $34,000, you have to pay income tax on up to 50% of your Social Security benefits. If your income is above $34,000, up to 85%...
by SGM
Tue Aug 09, 2016 7:45 am
Forum: Investing - Theory, News & General
Topic: "Yes, You Still Suck at Investing"
Replies: 33
Views: 5486

Re: "Yes, You Still Suck at Investing"

The author states that investor behavior is the number one cause of underperformance and fees are the number two cause. That falls in line with my way of thinking. I have kept my fees low and never paid for advice. I agree with his listing of behavioral errors. No one is completely immune to behavio...
by SGM
Tue Aug 09, 2016 4:47 am
Forum: Investing - Theory, News & General
Topic: Fidelity customers: Have you experienced pressure to buy active funds?
Replies: 76
Views: 4876

Re: Fidelity customers: Have you experienced pressure to buy active funds?

I had a solo 401k with Fidelity for a while. After completing an online retirement planning calculator on the Fidelity site I received several phone calls from a sales representative pushing an inappropriate annuity. This eventually stopped and I no longer received unsolicited phone calls from Fidel...
by SGM
Mon Aug 08, 2016 8:05 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 62
Views: 4189

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Have you seen this by Betterment? I don't recommend them or know much about them, but this site recommends against going to Merrill Edge despite a bonus. I looked at a couple of other brokerages and it was not clear that the bonus would be put in a taxable or IRA account. Merrill Edge specifically p...
by SGM
Mon Aug 08, 2016 7:37 am
Forum: Investing - Help with Personal Investments
Topic: 10 year certain annuity as a bridge to Social Security
Replies: 11
Views: 1100

Re: 10 year certain annuity as a bridge to Social Security

I looked at this several years ago and a CD ladder looked like a better buy. #Cruncher's calculations look similar to my own 5 years ago. The interest rate payout on a term certain annuity is lousy. 5 years ago I bought a 7 year "savings annuity" instead that works like a tax deferred CD w...
by SGM
Sun Aug 07, 2016 11:04 am
Forum: Personal Consumer Issues
Topic: Connections that save you money
Replies: 51
Views: 6858

Re: Connections that save you money

The local newspaper will deliver for as low as $99 per year. If you don't call them to cancel they will renew your newspaper for over $500 per year. I call the paper and say "Your paper is not worth whatever they are asking. I will pay $99 a year or I will do without it". I continue this m...
by SGM
Sun Aug 07, 2016 7:51 am
Forum: Investing - Theory, News & General
Topic: et tu, Vanguard? Stock/Bond zig-zag myth
Replies: 58
Views: 4434

Re: et tu, Vanguard? Stock/Bond zig-zag myth

Tres amusant and poetique. :wink: I am only retired 2 years and my stock and bond funds have done quite well. If it were a situation like 2008 and I needed to sell bonds or stocks to live on I would prefer to sell the bonds that went up 6% rather than the stocks that fell 50%. So what if they don't ...
by SGM
Sun Aug 07, 2016 3:21 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 62
Views: 4189

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I have transferred IRAs in the past and the bonuses were given as cash in a taxable account. The bonus was taxable. Are brokerages able to give the bonus within the Roth or tIRA currently?
by SGM
Sat Aug 06, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: A New Medicare Charge is Coming
Replies: 20
Views: 2904

Re: A New Medicare Charge is Coming

At 64 we had a low cost high deductible plan. Costs were minimal and we were healthy and not big users of the health care system. I always looked forward to paying for Medicare at reasonable rates. We also had a cheap catastrophic plan. So I pay all my taxes and premiums due but no more. Therefore i...
by SGM
Sat Aug 06, 2016 7:21 am
Forum: Investing - Help with Personal Investments
Topic: Is my IRA really an IOU to the IRS??
Replies: 58
Views: 5972

Re: Is my IRA really an IOU to the IRS??

I have always been a pay taxes later type. This changed when I looked at future RMDs. It is to my advantage to have paid taxes earlier in semi-retirement and retirement before 70 instead of paying taxes on RMDs after age 70 1/2. I am still surprised at how many don't look at the advantage of decreas...
by SGM
Sat Aug 06, 2016 4:42 am
Forum: Personal Finance (Not Investing)
Topic: A New Medicare Charge is Coming
Replies: 20
Views: 2904

Re: A New Medicare Charge is Coming

Actually David she mentions IRA charitable deductions up to $100k directly to certified charities for RMDs under the paragraph titled Revamp Charitable Deductions . This is applicable for people over 70 1/2 as you know. She also discusses making gifts of stocks with capital gains. She goes on to men...
by SGM
Fri Aug 05, 2016 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: A New Medicare Charge is Coming
Replies: 20
Views: 2904

A New Medicare Charge is Coming

WSJ article on Medicare Premium increases can be found at http://www.wsj.com/articles/how-rich-americans-can-lessen-the-hit-from-a-jump-in-medicare-premiums-1470394801 Google this title if you don't have a subscription: "A New Medicare Charge Is Coming: Here’s How to Lessen the Blow " The ...
by SGM
Fri Aug 05, 2016 5:35 am
Forum: Investing - Help with Personal Investments
Topic: Market Entry Strategy Thoughts for a New Boglehead?
Replies: 38
Views: 2388

Re: Market Entry Strategy Thoughts for a New Boglehead?

Regarding market entry it is best to get to you target allocation as quickly as possible and forget about market gyrations. If you cannot stomach that then pick a fixed amount to invest monthly over the next year. I always maximized my tax deferred saving and eventually converted all to a ROTH. You ...
by SGM
Wed Aug 03, 2016 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Does an SPIA have an impact on retirement accumulation targets?
Replies: 25
Views: 1197

Re: Does an SPIA have an impact on retirement accumulation targets?

But aren't SPIAs just a terrible investment until you get close to 80 ? OP is talking about an SPIA at age 75 or so. Immediateannuites.com has a current best payout of 8.652% per year for a single life annuity for a male at 75. That doesn't sound too bad. $100k cost receive $721 a month until you d...
by SGM
Tue Aug 02, 2016 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Is my IRA really an IOU to the IRS??
Replies: 58
Views: 5972

Re: Is my IRA really an IOU to the IRS??

If you have to lower the amount in a Roth because you have to be taxes out of the taxable account that might otherwise have gone into a tIRA then the advisability of a Roth is questionable. If you have the money you put for example $4k in a tIRA and pay the taxes out of $1k taxable when you convert....
by SGM
Tue Aug 02, 2016 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is my IRA really an IOU to the IRS??
Replies: 58
Views: 5972

Re: Is my IRA really an IOU to the IRS??

A traditional IRA and 401k will have taxes due at age 70 1/2. However, there are ways to minimize the tax hit. Although I could not convert to Roth IRAs until 2010 I maximized our tIRAs and 401ks for many years. Conversions after 2010 were a wash at the time of conversion looking at pre and post tax...
by SGM
Tue Aug 02, 2016 7:57 am
Forum: Investing - Help with Personal Investments
Topic: Retiring in 6 months ...Why should I pay $13,500/year to a Financial Advisor?
Replies: 43
Views: 4651

Re: Retiring in 6 months ...Why should I pay $13,500/year to a Financial Advisor?

It is a waste of money to pay for assets under management. You will open yourself up to additional costs as well as you will likely be put into more expensive funds. You could put all $1.8MM into Vanguard. Without having Vanguard manage your money I am sure you will get some unbiased advice from the...
by SGM
Tue Aug 02, 2016 4:14 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor roth IRA conversion
Replies: 14
Views: 1147

Re: Backdoor roth IRA conversion

I would convert from a traditional to a Roth early each year for you and your spouse. Also the law may change and disallow backdoor Roth conversions in the future so take advantage of it now.
by SGM
Mon Aug 01, 2016 8:49 am
Forum: Personal Finance (Not Investing)
Topic: How to Make Your Money Last
Replies: 8
Views: 1981

How to Make Your Money Last

At a large extended family social gathering a financial advisor who is related by marriage advised me to buy an index equity annuity that invested in American Funds and other expensive funds. He has "helped" his clients and prefaces his advice with "if you chose to do this you should ...
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: 9756

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: 3380

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: 3373

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: 2157

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: 559

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: 79
Views: 5517

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: 1235

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...

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