Search found 1924 matches

by SGM
Sun Dec 04, 2016 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Do You Consider Dividends As Income?
Replies: 59
Views: 2814

Re: Do You Consider Dividends As Income?

I realize that dividends are part of my total return and also declared as income on my tax forms. I no longer automatically reinvest dividends in taxable accounts. In terms of utility, especially before taking SS at 70, dividends are used to supplement other income streams. I sell positions for reba...
by SGM
Sat Dec 03, 2016 5:22 am
Forum: Investing - Theory, News & General
Topic: Three fund portfolio for retirement
Replies: 61
Views: 5522

Re: Three fund portfolio for retirement

Hi Bob, Does Paula Hogan currently recommend annuitizing a percentage of holdings starting at age 70 as she referenced in her 2007 article? Quoting from Paula's article: "Actuary Anna Rappaport, for example, writes: "Today lump sums [from 401(k) plans] are the common default, and life inco...
by SGM
Fri Dec 02, 2016 9:07 am
Forum: Personal Finance (Not Investing)
Topic: How do others handle their withdrawals or distributions
Replies: 17
Views: 1774

Re: How do others handle their withdrawals or distributions

It is pretty simple. I no longer automatically reinvest dividends and capital gains distributions. We spend what we need from the dividends, capital gains distributions and other income streams. If there is money left over it is reinvested and reallocated mostly to bond funds. If there are any large...
by SGM
Thu Dec 01, 2016 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage?
Replies: 107
Views: 6747

Re: Pay off mortgage?

I paid off my mortgage early. Being 100% in stock at the time it struck me as a bond like diversification. Then there was the opportunity to invest what had been monthly payments in the past. I dollar cost averaged every month with the additional cash that was available in not having a mortgage. Int...
by SGM
Tue Nov 29, 2016 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified div. stocks are 95% of taxable acct. Any ways to reallocate?
Replies: 36
Views: 1819

Re: Qualified div. stocks are 95% of taxable acct. Any ways to reallocate?

I feel that the advantage of converting to Roth accounts will really come into play after age 70 1/2 when we will not take RMDs. We will be in a lower bracket than if we had to take out large RMDs at age 70 1/2. This will be even more important to a surviving spouse who will have a higher bracket th...
by SGM
Tue Nov 29, 2016 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified div. stocks are 95% of taxable acct. Any ways to reallocate?
Replies: 36
Views: 1819

Re: Qualified div. stocks are 95% of taxable acct. Any ways to reallocate?

I have been investing dividends from individual stocks into index mutual funds and muni bond funds for at least the last 8 years. Also when I sell any long held stocks I reinvest them in the same types of accounts. Since 2010 I have been converting tIRAs and 401ks to Roth IRA accounts. This has decr...
by SGM
Tue Nov 29, 2016 8:53 am
Forum: Investing - Theory, News & General
Topic: What was your Asset Allocation before and after retirement?
Replies: 76
Views: 6383

Re: What was your Asset Allocation before and after retirement?

I was 100% stock during the accumulation period. I pulled nothing out of the market during the 2008-9 debacle. I have been through several bear markets before and have always kept fully invested and continued to pour money into stocks. However, it is prudent to decrease your stock allocation prior t...
by SGM
Mon Nov 28, 2016 5:29 am
Forum: Investing - Help with Personal Investments
Topic: IRA for adult children?
Replies: 50
Views: 3566

Re: IRA for adult children?

If you are worried about a QDRO then a trust may be a better vehicle than an IRA. Once you set up a ROTH account then yearly additions do not require much paper work. Last year I sent in a letter of instruction with a check before the children received an deposit slip for 2016 to add to an existing ...
by SGM
Sun Nov 27, 2016 4:33 am
Forum: Investing - Help with Personal Investments
Topic: IRA for adult children?
Replies: 50
Views: 3566

Re: IRA for adult children?

I fund a Roth for each grown child and have been doing this since they had summer jobs. I considered offering matching instead, but decided I was expecting too much to think they will be worried about retirement that might be 40+ years in the future. I expect they will likely be more concerned about...
by SGM
Sat Nov 26, 2016 4:18 pm
Forum: Investing - Theory, News & General
Topic: What was your Asset Allocation before and after retirement?
Replies: 76
Views: 6383

Re: What was your Asset Aloocation before and after retirement?

I was pretty much 100% in stocks for 30 years and up to 5 years prior to retirement. Then I slowly dialed down to 70:30 over the last 5 years. I will continue to decrease my stock allocation to about 60%. I did this change in 5% increments each year. I could have done it more quickly, but I was conv...
by SGM
Sat Nov 26, 2016 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Should I convert to ROTH or not?
Replies: 14
Views: 1429

Re: Should I convert to ROTH or not?

If the tax rates are the same the year of the conversion and later when RMDs are required, eventually the conversion comes out slightly ahead as long as you are paying taxes out of a taxable account. Part of my rationale for converting is to lower my taxable income in the future which comes both fro...
by SGM
Sat Nov 26, 2016 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Should I convert to ROTH or not?
Replies: 14
Views: 1429

Re: Should I convert to ROTH or not?

If you will have to eventually pay 25% on RMDs in the future then it is still advantageous to convert your $48k now. You will be able to convert $100k at the 15% bracket in the next 4 years and that is to the good. So you would have converted $148k by the time you have to make RMDs and then you will...
by SGM
Sat Nov 26, 2016 4:06 am
Forum: Investing - Help with Personal Investments
Topic: More terror for newbies planning to TLH muni funds
Replies: 11
Views: 1939

Re: More terror for newbies planning to TLH muni funds

I am planning on doing some TLH of Vanguard intermediate munis. I was considering temporarily putting the proceeds in both a long term and short term Vanguard muni bond fund. The other option was to buy MUB and I will attempt to find out if MUB has a projected capital gain before the end of the year...
by SGM
Fri Nov 25, 2016 9:07 am
Forum: Investing - Help with Personal Investments
Topic: I've been leaving money on the table (401k)
Replies: 19
Views: 3340

Re: I've been leaving money on the table (401k)

I have always maxed out 401k pre tax. My only retrospective judgement is that even while retired and delaying SS I am in a higher tax bracket than I was very early in my career. 20:20 hindsight is great, ain't it? Unfortunately Roth accounts were not available back then. Still it was forced savings ...
by SGM
Thu Nov 24, 2016 5:03 am
Forum: Investing - Help with Personal Investments
Topic: Keep it simple at high income level?
Replies: 34
Views: 5726

Re: Keep it simple at high income level?

I have always maximized tax advantaged space for me and DW and had additional investments in a taxable account. I have used multiple Vanguard muni bond funds for years. The White Coat Investor is an excellent resource. Buy a copy of his book. A financial advisor is not needed. I had an independent p...
by SGM
Mon Nov 21, 2016 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Take SS at 62 or wait ?
Replies: 74
Views: 7579

Re: Take SS at 62 or wait ?

I just returned from sitting in a duck blind with among others a fellow who will take SS at 62. He has not been highly paid, but his work is hard, physical and has long hours. He states he has a substantial amount in a 401k. He has some health issues that may shorten his life expectancy. His wife wi...
by SGM
Mon Nov 21, 2016 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do you track your net worth? How long have you done so?
Replies: 110
Views: 7652

Re: Do you track your net worth? How long have you done so?

I don't keep track of net worth. I do know the value of all our investment accounts and estimates of current and future income streams and expenses.
by SGM
Sat Nov 19, 2016 3:55 pm
Forum: Investing - Theory, News & General
Topic: Viewing BRK.B as a Means to Hold "Tax-Deferred" Equity in Taxable Account
Replies: 23
Views: 2045

Re: Viewing BRK.B as a Means to Hold "Tax-Deferred" Equity in Taxable Account

We were fortunate enough to own BRK.B some time ago and it grew to be too large a portion of our portfolio for comfort. In retrospect, It was nice to have no tax drag due to dividends. However, it seemed prudent to move those funds into index funds. We took the hit for capital gains. So now we have ...
by SGM
Fri Nov 18, 2016 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Cannot get myself to spend my savings
Replies: 75
Views: 8009

Re: Cannot get myself to spend my savings

I am more generous with tipping. I really like the idea of helping out working people. We hired a maid. I give money to the kids. I bought a utility vehicle for tooling around the property and woods. I take out friends to lunch on occasion. I found some new hobbies and spend a little on supplies for...
by SGM
Fri Nov 18, 2016 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9098

Re: Tax bomb at 70 1/2

I am going to have to get some sensitivity training. I had no idea the term Tax Bomb was offensive. :shock:
by SGM
Wed Nov 16, 2016 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tax bomb at 70 1/2
Replies: 71
Views: 9098

Re: Tax bomb at 70 1/2

It is foolish to take early RMDs and not convert them to Roth accounts if the funds are not currently needed. I delayed taking SS until and converted all my tIRAs and 401ks to Roth accounts from 2010 through 2015. The actual conversion is a wash and there is not much advantage for the conversion unt...
by SGM
Tue Nov 15, 2016 5:36 pm
Forum: Investing - Theory, News & General
Topic: Muni bonds are getting killed. Are you bailing out?
Replies: 75
Views: 9802

Re: Muni bonds are getting killed. Are you bailing out?

The two muni bond funds that I have with Vanguard still have capital gains, so I couldn't tax loss harvest if I wanted to. I don't think short term that interest rates will go up much or necessarily stay up. If they do I will be happy as I won't be selling the bond funds anyway. I will probably buy ...
by SGM
Tue Nov 15, 2016 3:59 am
Forum: Investing - Help with Personal Investments
Topic: Take SS at 62 or wait ?
Replies: 74
Views: 7579

Re: Take SS at 62 or wait ?

Since you were born after 1960 you will lose 30% of your full retirement benefit if you take SS at 62. I spent time looking at the break even point, but I no longer think that is important. I delayed SS because I consider it longevity insurance for me and DW. I am waiting until age 70. If the return...
by SGM
Mon Nov 14, 2016 4:27 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 445
Views: 53675

Re: TIPS - Did you give up?

I haven't been following this thread except early on. I am pretty much out of TIPs except for a few individual TIPs that I bought at auction prices. It makes a very small part of my portfolio. Uncertainty about what the Fed is going to do about interest rates appears to have an adverse effect on new...
by SGM
Sun Nov 13, 2016 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Software recommendations for form 1120S (S Corp)
Replies: 5
Views: 415

Re: Software recommendations for form 1120S (S Corp)

I used the deluxe or maybe it was called the premium version of HR Block tax software. It included the 1120S, W-2, W-3 forms, and state business forms as well as forms for personal income tax. I always bought the software at a local store and it was less than buying two TurboTax programs one for bus...
by SGM
Fri Nov 11, 2016 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: To ROTH or Not To ROTH...That Is The Question.
Replies: 15
Views: 1558

Re: To ROTH or Not To ROTH...That Is The Question.

If you are going to be in the 25% tax bracket in retirement you could convert to Roth accounts after retiring but before age 70 1/2 when you will take RMDs. I converted after retiring and prior to taking SS which I am delaying until age 70. There are a lot of different issues to think about and seve...
by SGM
Fri Nov 11, 2016 3:49 pm
Forum: Personal Consumer Issues
Topic: Best way to visit NYC from DC
Replies: 33
Views: 2330

Re: Best way to visit NYC from DC

One of my favorite art museums is The Frick Collection on E70th and Central Park. I often got last minute tickets for Broadway plays at a location in Times Square. I don't know if that is still available or convenient anymore. I knew NYC quite well having lived there for years. When visiting NYC aft...
by SGM
Tue Nov 08, 2016 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Bought my first individual stock!
Replies: 29
Views: 2908

Re: Bought my first individual stock!

If you are planning to donate the stock if it has a LT gain or selling the stock and taking a capital loss if it goes the other way and donating the proceeds, it is essentially a wash. What you don't want to do is sell the stock if it has a gain and then donate the proceeds to the charity as you wil...
by SGM
Tue Nov 08, 2016 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Help with parent portfolio - financial advisor suggesting annuity
Replies: 25
Views: 1522

Re: Help with parent portfolio - financial advisor suggesting annuity

You are getting correct advice from the above posters. This advisor will make a lot of money from your mother by selling her a variable annuity. Larry Swedroe's book advising that this is one of the ugly choices is right on. It is very likely this advisor will convince your mother that she should go...
by SGM
Tue Nov 08, 2016 3:49 am
Forum: Personal Finance (Not Investing)
Topic: spousal social security application experiences
Replies: 10
Views: 1268

Re: spousal social security application experiences

I recall this only took a few weeks. We applied online and were not required to go to the SS office. However, we went to the local SS office with marriage license and to confirm that everything was done as we expected. The visit was not necessary, but reassuring. As we had an appointment we went to ...
by SGM
Mon Nov 07, 2016 3:46 am
Forum: Investing - Help with Personal Investments
Topic: 25yr old, would appreciate some advice/wisdom.
Replies: 28
Views: 3081

Re: 25yr old, would appreciate some advice/wisdom.

I advise purchasing your IRA every year as close to January 1 as possible and keep it invested according to your plan. If you wait until your taxes are due you lose the potential for 15 months of tax deferred or tax free growth. For me it was 100% stock early in my investing career. I recently spoke...
by SGM
Sun Nov 06, 2016 3:17 am
Forum: Investing - Help with Personal Investments
Topic: Wanting to Simplify - Making good choices (later years) reality check.
Replies: 6
Views: 1125

Re: Wanting to Simplify - Making good choices (later years) reality check.

Total stock market and the intermediate tax exempt bond fund make a large part of my taxable account. A big issue is how much of your individual stocks should you sell each year. One weighs the benefits of better diversification vs. the additional tax payments in selling. For me the selling of indiv...
by SGM
Sat Nov 05, 2016 5:06 pm
Forum: Investing - Theory, News & General
Topic: Iterative Roth conversions in a single year - How to determine threshold?
Replies: 38
Views: 1796

Re: Iterative Roth conversions in a single year - How to determine threshold?

I did 3 Roth conversions each year in different asset classes, but had no 3 year restriction as laid out by the OP. I wanted the option of recharacterization if there was a huge crash. I could live with the taxes on the total conversion or recharacterize. In the end I never recharacterized because ...
by SGM
Sat Nov 05, 2016 6:50 am
Forum: Investing - Theory, News & General
Topic: Iterative Roth conversions in a single year - How to determine threshold?
Replies: 38
Views: 1796

Re: Iterative Roth conversions in a single year - How to determine threshold?

This is one way to do it. For year 1 convert all $900k in 3 different accounts each with a different type of asset in January. Of course if you keep the accounts in the same type of assets then there will not be much of a difference in value at years end. Then recharacterize two of them which were ...
by SGM
Sat Nov 05, 2016 6:40 am
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 93
Views: 4139

Re: Help me understand dividends

Dividends and buy backs are two ways of returning profits to investors. Dividends can cause a tax drag on returns.

Understanding dividends is sort of like knowing the meaning of diddy-wah-diddy. If you don't know by now don't mess with it. :wink:
by SGM
Thu Nov 03, 2016 8:10 pm
Forum: Investing - Theory, News & General
Topic: Iterative Roth conversions in a single year - How to determine threshold?
Replies: 38
Views: 1796

Re: Iterative Roth conversions in a single year - How to determine threshold?

This is one way to do it. For year 1 convert all $900k in 3 different accounts each with a different type of asset in January. Of course if you keep the accounts in the same type of assets then there will not be much of a difference in value at years end. Then recharacterize two of them which were ...
by SGM
Thu Nov 03, 2016 8:00 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 2006
Views: 516022

Re: What Book Are You Currently Reading? Part VI

The Vinegar Girl by Ann Tyler latest book is a modern take off on the Taming of the Shrew. Tyler's stories generally take place in Baltimore. The book was a fun and easy read.
by SGM
Thu Nov 03, 2016 9:26 am
Forum: Investing - Help with Personal Investments
Topic: retired and want to change investments
Replies: 28
Views: 2651

Re: retired and want to leave fee only advisor

Going back to Vanguard and delaying SS are good ideas. I assume you are healthy. You don't need the money now and safe investments pay very low interest so delay is a good idea and from 66 to 70 your payout will increase by 32%. I don't think results long term are a whole lot different for 50/50 or ...
by SGM
Thu Nov 03, 2016 6:08 am
Forum: Investing - Theory, News & General
Topic: Iterative Roth conversions in a single year - How to determine threshold?
Replies: 38
Views: 1796

Re: Iterative Roth conversions in a single year - How to determine threshold?

This is one way to do it. For year 1 convert all $900k in 3 different accounts each with a different type of asset in January. Of course if you keep the accounts in the same type of assets then there will not be much of a difference in value at years end. Then recharacterize two of them which were l...
by SGM
Wed Nov 02, 2016 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Putnam Lifetime Income Tool recommends… wha?
Replies: 5
Views: 552

Re: Putnam Lifetime Income Tool recommends… wha?

I have been helping out a relative who has only Putnam funds in his 401k. Expenses are pretty high compared to what is available through Vanguard and others in a Roth, but comparable to many 401k plans. A list of 50 funds and their long term performance at the BH national meeting this year and Putna...
by SGM
Wed Nov 02, 2016 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Finance Question for the Retired
Replies: 27
Views: 3228

Re: Personal Finance Question for the Retired

There are numerous discounts for seniors at restaurants and other stores if you ask for them. I have taken community college courses that are discounted over 50% for seniors. I do not pursue bonuses for changing accounts from one brokerage to another, although I did receive some bonuses for rolling ...
by SGM
Tue Nov 01, 2016 4:04 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions - Best Practices and Lessons Learned
Replies: 16
Views: 2112

Re: Roth Conversions - Best Practices and Lessons Learned

I never filed 8606 before 2010. When I was determined to convert, I looked through my records and filled out a separate 8606 for all my tIRAs. I sent in the 8606 forms for prior years separate from and before filling out my 1040 and doing the conversion. I was then able to fill out accurately my 860...
by SGM
Tue Nov 01, 2016 3:59 am
Forum: Personal Finance (Not Investing)
Topic: Would it be worth going into college if I'm not sure of what I want to do?
Replies: 47
Views: 3532

Re: Would it be worth going into college if I'm not sure of what I want to do?

Go to a community college while you try to figure out what you want to do. Talk to those who are teaching in the field of hospitality management at the outset. Recently there has been a difficult job market, but one community college in my vicinity seems to have an in with the hospitality industry a...
by SGM
Mon Oct 31, 2016 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversions - Best Practices and Lessons Learned
Replies: 16
Views: 2112

Re: Roth Conversions - Best Practices and Lessons Learned

I studied the Roth Revolution by James Lange. I also used I-Orp and ran a tax program to determine what my actual taxes would be. I paid all taxes out of a taxable account in the 5 or so years that I converted. Conversions generally were done early in the year and I have taken an extension on my tax...
by SGM
Sun Oct 30, 2016 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Count pension as a form of retirement savings.
Replies: 56
Views: 5287

Re: Count pension as a form of retirement savings.

I don't calculate the present value of any of my income streams. Having income streams that cover your normal expenses in retirement or some percentage thereof is a blessing. Your portfolio withdrawal rate can be lower to meet your needs or you could save less. There are various ways to structure a ...
by SGM
Sat Oct 29, 2016 11:28 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Attorney Question
Replies: 32
Views: 3464

Re: Estate Attorney Question

So Roth IRAs in a trust are a good idea in estate planning? I haven't talked to anyone about this yet and I have already done the conversions over several years. BSteiner do you discuss putting the Roth IRAS in a trust in your recent appearance on the James Lange radio show? I usually wait to read t...
by SGM
Sat Oct 29, 2016 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities
Replies: 15
Views: 1506

Re: Annuities

We took a TIAA-CREF partially fixed and variable annuity. An SPIA after age 70 using part of a nest egg seems like a good idea. Having a steady income in retirement is comforting. We chose to delay SS until 70, although DW was able to get a spousal benefit under the old rules at full retirement age ...
by SGM
Sat Oct 29, 2016 3:55 am
Forum: Personal Finance (Not Investing)
Topic: Can I keep my Solo / Individual 401k?
Replies: 19
Views: 1481

Re: Can I keep my Solo / Individual 401k?

The difference though, is you can have contributions if your net income is negative when you are taxed as an s corp because eligible comp is based on w-2. this isn't the case if you are taxed as a sole proprietor. You must have net income in order to make an employer contribution. That's an interes...
by SGM
Fri Oct 28, 2016 9:12 pm
Forum: Investing - Theory, News & General
Topic: Dont invest in 401K
Replies: 42
Views: 4404

Re: Dont invest in 401K

We are retired and project that our 401ks and smaller IRAs would be enough to cover our all our expenses. In addition we were still able to buy real estate from which we receive some income and other benefits. Filling tax deferred space turned out to be a winner for us. In 2010 we started converting...
by SGM
Fri Oct 28, 2016 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can I keep my Solo / Individual 401k?
Replies: 19
Views: 1481

Re: Can I keep my Solo / Individual 401k?

I seem to recall that there were advantages in terms of deducting health care insurance paid by the s-corp as well. An online calculator I used to determine the exact amount I was allowed to defer in the solo 401k always allowed a higher profit sharing contribution than doing business as a sole pro...

Go to advanced search