Search found 1986 matches

by SGM
Thu Jan 19, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone using i-orp as a guide for withdrawals?
Replies: 12
Views: 997

Re: Anyone using i-orp as a guide for withdrawals?

I have used I-orp as one of several retirement calculators. I was a little more aggressive in converting to Roth IRAs than recommended by the program. I began converting while semi- retired at 9 hours a week of work, rather than waiting until I was completely retired. I like that the program has me ...
by SGM
Thu Jan 19, 2017 5:25 am
Forum: Investing - Help with Personal Investments
Topic: Nearing Retirement's Horizon - Advise Please
Replies: 17
Views: 1812

Re: Nearing Retirement's Horizon - Advise Please

Actually Jack Bogle does not think international stock funds are necessary. There are multiple threads on this topic but most BHs think 20% is okay. Can you depend on the rental income always being there? I prefer the total stock market fund to the S&P 500 fund, but the returns are not that much...
by SGM
Wed Jan 18, 2017 4:10 am
Forum: Personal Finance (Not Investing)
Topic: S Corp payroll co for single owner/employee?
Replies: 30
Views: 1765

Re: S Corp payroll co for single owner/employee?

When I had an S corp with 1 family employee, I did the payroll myself. My health insurance deductible was larger than the limits for contributing to HSA so that was not an issue, but it would have been put on the 1120s. I made monthly payments on line for fica taxes and that took no time at all. I d...
by SGM
Tue Jan 17, 2017 3:32 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 276
Views: 41952

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

I view stealth wealth as a way of protecting one's privacy not so much as amount or style of spending or enjoying the fruits of one's labor.
by SGM
Tue Jan 17, 2017 2:52 am
Forum: Investing - Theory, News & General
Topic: "Are Roth or Traditional Contributions Better?"
Replies: 7
Views: 989

Re: "Are Roth or Traditional Contributions Better?"

Her example makes the case for paying taxes for Roth conversions out of taxable accounts. If I couldn't make the conversion without paying the taxes out of a taxable account, I would not have converted. As it was I was able to pay the taxes out of a taxable account. While I like reading Ms. Benz's a...
by SGM
Mon Jan 16, 2017 11:24 am
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 276
Views: 41952

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

Interesting thread. I like the couple who walked around the edge of their farm every evening with rifles on their shoulders to advertise that this might be a dangerous place to visit uninvited. I guess flying under the radar was not possible for them. Why would I want to impress anyone? Why not be s...
by SGM
Mon Jan 16, 2017 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Basic Boglehead conversion help!
Replies: 8
Views: 728

Re: Basic Boglehead conversion help!

I cannot say how risky your particular corporate bonds are. For a long time I held individual stocks before diversifying into index funds. I still keep some individual stocks with large long term capital gains, but the highest amount is 2.6% of our total portfolio. I have lightened up over time but ...
by SGM
Sun Jan 15, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Boglehead conversion help!
Replies: 8
Views: 728

Re: Basic Boglehead conversion help!

The equity funds are very expensive and have done poorly compared to the S&P 500 over the last several years. If you have any capital gains on the sale of these funds you will have to pay long term and maybe short term capital gains tax. There is no "rollover" for taxable funds. If you...
by SGM
Sun Jan 15, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Cardinal Sin - went to cash the day before 2016 election
Replies: 56
Views: 6114

Re: Cardinal Sin - went to cash the day before 2016 election

You can't time this crap and you don't need to. If the market is down it is good for accumulators. You get more shares for your dime. :confused What is bad about that? Is the OP worried about job security? or has a family and underinsured or saving for an upcoming purpose other than retirement? Bear...
by SGM
Sat Jan 14, 2017 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: Value of House in Planning for Retirement
Replies: 46
Views: 3021

Re: Value of House in Planning for Retirement

For many a home is the largest asset they own. For several individuals I know the homes will be sold if there is a need to pay for nursing home care in their mid 90s. Many seniors who tried to sell there homes around 2008 had a great deal of difficulty in certain areas around here. There are numerou...
by SGM
Sat Jan 14, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Several Roth questions
Replies: 4
Views: 479

Re: Several Roth questions

If you are filing jointly it does not matter which one of you converts to a Roth, the taxes will be the same. Pay the taxes out of a taxable account. Inheriting any type of IRA is determined by the beneficiary forms. Make your spouse the beneficiary.
by SGM
Fri Jan 13, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: t-IRA to Roth conversions..the rest of the story
Replies: 24
Views: 1769

Re: t-IRA to Roth conversions..the rest of the story

Our Roth accounts have increased by more than what we have paid in taxes during the conversion years from 2010-2015. We paid taxes on the conversions out of a taxable account. Having a lower amount in taxable and a higher amount in a Roth will continue to be advantageous in the future. We won't have...
by SGM
Thu Jan 12, 2017 4:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's new security key option
Replies: 48
Views: 5616

Re: Vanguard's new security key option

I just talked to a low level Vanguard employee who had never heard of a key option and when he asked someone else there about the option he said it was not available.
by SGM
Thu Jan 12, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: How to politely fire my financial advisor
Replies: 66
Views: 6285

Re: How to politely fire my financial advisor

Leaving our long time financial advisor and "friend" (every good salesperson becomes a "friend") at Merrill Lynch in 1986 was one of the most difficult things we ever did. He used to invite us sailing on his lovely sailboat every year. P.S. Our "friend" never took us s...
by SGM
Tue Jan 10, 2017 10:12 am
Forum: Investing - Theory, News & General
Topic: Backdoor Roth IRAs: What You Need to Know
Replies: 3
Views: 478

Re: Backdoor Roth IRAs: What You Need to Know

Consider taking advantage of a backdoor Roth IRA while it is still available. I didn't mind paying pro rata taxes as my now completed plan was to convert all traditional IRAs to Roth IRAs over a 5 year period.
by SGM
Tue Jan 10, 2017 5:30 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12016

Re: How Bad was 2008, really?

We had some very short term state muni bond funds that were frozen for at least 6 months. They were supposed to be like having cash. I had not heeded warnings from a bank examiner friend that a disaster was inevitable. :oops: Financial stocks that had been doing so well over the years went down to n...
by SGM
Sun Jan 08, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice moving from EJ
Replies: 36
Views: 2041

Re: Need advice moving from EJ

I transferred a rollover from another brokerage to Vanguard. I initiated it through Vanguard and we had a 3 way telephone conversation. It went pretty smoothly. It is much better to do a trustee to trustee transfer. When I look at the number of funds EJ put you in I am flabbergasted. Going forward y...
by SGM
Sun Jan 08, 2017 6:31 am
Forum: Investing - Theory, News & General
Topic: Bernstein-"To Make Money They Didn't Need".....and Pascal's Wager
Replies: 187
Views: 18472

Re: Bernstein-"To Make Money They Didn't Need".....and Pascal's Wager

You don't have to believe that the religious Pascal's wager is legitimate in order to apply it to determining an AA in retirement. Needing to withdraw from a stock portfolio when stock prices are way down can be devastating to the portfolio. Bill does a good job of laying out the costs to a portfoli...
by SGM
Sun Jan 08, 2017 2:31 am
Forum: Personal Finance (Not Investing)
Topic: Considering the services of a CFP
Replies: 36
Views: 2167

Re: Considering the services of a CFP

1% AUM puts a huge drag on a portfolio. I would use a 3 fund portfolio or something similar. "If God didn't want them to be sheared he wouldn't have made them sheep." Jason Zweig discusses how advisor fees are still too high in yesterday's WSJ. Google: It’s Time for Investor Fees to Go Eve...
by SGM
Sat Jan 07, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: What monetary value has your education provided you?
Replies: 104
Views: 4942

Re: What monetary value has your education provided you?

I have a Bachelor's and 3 advanced degrees. Each degree was a door opener for me. I made some sacrifices to further my education, but have no regrets. I don't care to put a numeric value on the education, but consider it substantial on several fronts.
by SGM
Fri Jan 06, 2017 10:59 am
Forum: Investing - Theory, News & General
Topic: Liquidate retirement account with significant loss
Replies: 8
Views: 1071

Re: Liquidate retirement account with significant loss

This may be a time to convert some or all of it to a Roth account assuming you are not going to be in a very low tax bracket in retirement compared to currently. Also the conversion is favored if you would be leaving it a Roth for a long time. Taxes should be paid out of a taxable account. I never g...
by SGM
Thu Jan 05, 2017 2:06 pm
Forum: Investing - Theory, News & General
Topic: Retreat to cash
Replies: 219
Views: 21918

Re: Retreat to cash

My advice to those in the accumulation mode is to stay invested at all times. Accumulators benefit when the market is down.
by SGM
Thu Jan 05, 2017 11:33 am
Forum: Investing - Theory, News & General
Topic: McDonald's Stock
Replies: 103
Views: 8847

Re: McDonald's Stock

The food is healthy enough in moderation. I owned MCD originally in a drip account. I put all drip plans into a low cost brokerage account some time ago. Drip accounts are no longer cheap with a few exceptions like RPM's and Aflac's when I last looked. I have sold MCD and others and reinvested the m...
by SGM
Wed Jan 04, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: "5 Financial Predictions for 2017"
Replies: 6
Views: 1080

Re: "5 Financial Predictions for 2017"

Another graduate from the school of hard knocks has done well for himself. :wink: I enjoy his articles.
by SGM
Wed Jan 04, 2017 8:54 am
Forum: Personal Finance (Not Investing)
Topic: How many of you did a Roth conversion the first day of 2017
Replies: 43
Views: 2706

Re: How many of you did a Roth conversion the first day of 2017

Nothing left to convert since 2015. It is best to convert in January of 2017 so you have until October 15 of 2018 to recharacterize should you want to. To make sure there were no screw ups I would up the date to recharacterize to Sept 15 of 2018. I usually add to kid's Roth IRAs in January usually w...
by SGM
Mon Jan 02, 2017 8:12 pm
Forum: Investing - Theory, News & General
Topic: This is a good weekend to start tracking your net worth.
Replies: 69
Views: 5377

Re: This is a good weekend to start tracking your net worth.

I have only a notional idea of net worth as I do not track real estate or other possessions. I do check portfolio value on a regular basis. As a retiree I am more interested in income than net worth.
by SGM
Sun Jan 01, 2017 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Plans and Tax Deferred investing - references
Replies: 25
Views: 1468

Re: Retirement Plans and Tax Deferred investing - references

I have found the Roth Revolution and Retire Secure by James Lange to be helpful.

You might want to read the interview of BH poster BSteiner interviewed by Lange Planning for Your IRA with Bruce Steiner. https://www.paytaxeslater.com/radioshow ... ur-ira.php
by SGM
Sat Dec 31, 2016 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Please help finalize my transition from fee based portfolio to 3 fund portfolio.
Replies: 27
Views: 1470

Re: Please help finalize my transition from fee based portfolio to 3 fund portfolio.

I contributed every year to a non-deductible traditional IRA in order to lower taxable dividends and earnings while these accounts grew as I was working. There may be a time when conversion at a lower or not significantly higher income tax rate is possible. As I and others have posted the time betwe...
by SGM
Sat Dec 31, 2016 8:36 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1275
Views: 205319

Re: What are you up YTD? [Year To Date]

Yearly investment return for Roth accounts is 10.1%. Taxable portfolio is up 10%, but is not an investment return as there are additions and subtractions from various income streams and expenses. Current AA is 75/25 but will probably be lower in 2017 by reinvesting unspent dividends into bond funds....
by SGM
Thu Dec 29, 2016 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: "How An S Corporation Can Reduce FICA Self-Employment Taxes" by Michael Kitces
Replies: 14
Views: 1360

Re: "How An S Corporation Can Reduce FICA Self-Employment Taxes" by Michael Kitces

Another advantage was that my spouse could also perform some work duties and receive a wage which would increase her SS earnings and her tax deferred account (401k). This employment lasted until I began to work only part time. This is not restricted an S-Corp. The owner of any business entity type ...
by SGM
Thu Dec 29, 2016 3:02 pm
Forum: Investing - Theory, News & General
Topic: How many of you invest 100% at Vanguard?
Replies: 118
Views: 7255

Re: How many of you invest 100% at Vanguard?

All new income is put into Vanguard and most sales from an outside account. I have considered transferring another taxable account to Vanguard. It is an account that still has multiple individual stocks that I have winnowed down to low percentages of my portfolio. It also has Vanguard ETFs. One reas...
by SGM
Thu Dec 29, 2016 11:27 am
Forum: Investing - Theory, News & General
Topic: TIAA Traditional: "Fair Value" or "Free Lunch"?
Replies: 31
Views: 2323

Re: TIAA Traditional: "Fair Value" or "Free Lunch"?

DW annuitized her TIAA-CREF accounts. At some point she decided to move whatever was allowed yearly to CREF. So the annuity is mostly variable with a small amount of TIAA traditional. Her account grew about 10% a year for close to 30 years after she stopped working at the university. TIAA traditiona...
by SGM
Thu Dec 29, 2016 10:39 am
Forum: Investing - Theory, News & General
Topic: Bernstein-"To Make Money They Didn't Need".....and Pascal's Wager
Replies: 187
Views: 18472

Re: Bernstein-"To Make Money They Didn't Need".....and Pascal's Wager

This is a well written article that I read in 2015 when it first came out. Bill makes well thought out arguments and I enjoy listening to his fireside chats with Jack at the Phillie meetings. It seems prudent to cut back somewhat on stock allocation early in retirement. I find the run up in the stoc...
by SGM
Thu Dec 29, 2016 10:10 am
Forum: Personal Finance (Not Investing)
Topic: "How An S Corporation Can Reduce FICA Self-Employment Taxes" by Michael Kitces
Replies: 14
Views: 1360

Re: "How An S Corporation Can Reduce FICA Self-Employment Taxes" by Michael Kitces

My business was set up as an S-corp. I always paid myself as an employee at least as much as the maximum compensation for which they took out SS taxes. The solo 401k allowed me to put away more money tax deferred including 401k employee contributions and profit sharing employer contributions. The 40...
by SGM
Thu Dec 29, 2016 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Are there any benefits to achieving "great wealth"?
Replies: 106
Views: 7994

Re: Are there any benefits to achieving "great wealth"?

By his oil portrait outside the cardiac care unit and his name on his alma mater's student union and on the local ER you knew he was a wealthy man. I often saw this wealthy individual driving an old pickup or drinking free coffee at the local tire store. Day to day he dressed like he was one of the ...
by SGM
Wed Dec 28, 2016 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Savings
Replies: 29
Views: 2962

Re: Retirement Savings

Since your wife has longevity in her family and your SS will be higher consider delaying your SS until age 70. Between your retirement and taking SS you might consider some Roth conversions. Estimate your tax rate after 70 compared to age 63-70. You might also consider annuitizing part of your nest ...
by SGM
Tue Dec 27, 2016 4:58 am
Forum: Personal Finance (Not Investing)
Topic: Is it possible to graduate from college in 3 years?
Replies: 101
Views: 4549

Re: Is it possible to graduate from college in 3 years?

I had a friend whose sister completed her undergraduate and medical school in a special combined 6 year program in the 1980s.
by SGM
Sun Dec 25, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: How much??? [did you save when you retired?]
Replies: 16
Views: 2270

Re: How much???

Never had a number. We looked at income streams and expenses and plan for longevity. In terms of income we looked at SS, pensions, annuities, rental income, dividends and withdrawals for intermittent larger expenses. It is nice to watch a portfolio grow and pass milestones, but generating income is ...
by SGM
Sun Dec 25, 2016 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: When to start pension
Replies: 26
Views: 2099

Re: When to start pension

If you are at a low income tax level now and expect to be in a higher bracket when RMDs occur then I would start converting some IRA and 401k funds to a Roth immediately. I would consider the change in taxes while converting in the decision as to when to take the pension. 11 per cent increase per ye...
by SGM
Sun Dec 25, 2016 3:39 am
Forum: Local Chapters and Bogleheads Community
Topic: My Christmas Gift to You.
Replies: 98
Views: 6990

Re: My Christmas Gift to You.

Merry Christmas Taylor and thank you for your service in keeping America free. May the sacrifices of Americans in WWII never be forgotten.
by SGM
Sat Dec 24, 2016 9:33 am
Forum: Investing - Theory, News & General
Topic: Financial Independence is not the Holy Grail
Replies: 85
Views: 8987

Re: Financial Independence is not the Holy Grail

I pursued a certain degree of financial independence so that I could change careers multiple times. This pushed back my retirement date a little bit, but mostly because I found work very interesting. I could have retired earlier than I eventually did, but I don't regret it.
by SGM
Sun Dec 18, 2016 9:41 am
Forum: Personal Consumer Issues
Topic: Can I get a little house or townhouse for under $400K in Maryland or Virginia?
Replies: 112
Views: 9783

Re: Can I get a little house or townhouse for under $400K in Maryland or Virginia?

Montgomery County residents can take courses at Montgomery College and pay a course fee but not the tuition.

I would check crime statistics before renting or buying.
by SGM
Sun Dec 18, 2016 4:03 am
Forum: Investing - Help with Personal Investments
Topic: Single stock conundrum
Replies: 20
Views: 1716

Re: Single stock conundrum

As a long ago drip investor, now for a more diversified portfolio, I have had to winnow down my individual stock holdings over the years. In a few weeks we will be into 2017 and you might consider selling some in 2016 and 2017 for potentially a lower tax hit.
by SGM
Sat Dec 17, 2016 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Grandparent wants to max gift 529, but Im confused.
Replies: 20
Views: 1803

Re: Grandparent wants to max gift 529, but Im confused.

The grandparent can give you $14k and ask you to put it away for a child's education. There is no control once you have the check. However, if you don't agree that it is a good use of the money you might not want to accept the check. You have the money and can do with it as you wish. We give smaller...
by SGM
Fri Dec 16, 2016 11:04 pm
Forum: Investing - Theory, News & General
Topic: "Twenty Ways To Tell If You're A Lousy Investor"
Replies: 57
Views: 6204

Re: "Twenty Ways To Tell If You're A Lousy Investor"

I have been very positive in bad times when I was accumulating assets. I got more shares every paycheck when the market was down. I have to drive on a lot of dirt roads. My vehicle gets washed when it rains. I necessarily look at my portfolio more often than I wash my vehicle but usually only if the...
by SGM
Thu Dec 15, 2016 12:59 pm
Forum: Investing - Theory, News & General
Topic: Bogle says (US) has the best investor protections and legal institutions
Replies: 88
Views: 6470

Re: Bogle says (US) has the best investor protections and legal institutions

Any attempt at precision as to which nations are more corrupt is ridiculous. We do have a number of protections in the U.S. I am not sorry to see fewer shareholder actions against corporations in the U.S. A lot of shareholder motions seem pretty ridiculous to me and do not reflect what is best for a...
by SGM
Thu Dec 15, 2016 9:10 am
Forum: Investing - Theory, News & General
Topic: discount brokerage vs full service brokerage
Replies: 3
Views: 498

Re: discount brokerage vs full service brokerage

I have been using discount brokerages for over 30 years and have found all of them to do a reasonably good job in executing trades. When I started out the cost for a full service brokerage was quite high. I haven't checked recently, but I have no interest in using a full service brokerage. I don't s...
by SGM
Wed Dec 14, 2016 3:41 pm
Forum: Investing - Theory, News & General
Topic: winning game, sell stocks despite high bond prices?
Replies: 47
Views: 3992

Re: winning game, sell stocks despite high bond prices?

In your mid 40's you have a lot of human capital left. Will you be able and willing to increase your hours if something happens to greatly decrease your portfolio or increase your expenses? If not then I would go with the 50:50 portfolio. Yellen is calling for two or three increases in rates in 2017...
by SGM
Tue Dec 13, 2016 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Any reason for retirees NOT to Roth convert?
Replies: 24
Views: 3229

Re: Any reason for retirees NOT to Roth convert?

IRMAA costs projections are difficult to evaluate , because a widow or widower will have to pay IRMAA adjustments at lower incomes than a couple. If one of the individuals in a marriage is long lived and the other is not then there are many years that a widow will be taxed at a higher rate. This is ...

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