Search found 13 matches

by Sluggo
Wed Jul 19, 2017 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Withdraw taxable contribution from traditional IRA
Replies: 4
Views: 345

Re: Withdraw taxable contribution from traditional IRA

Our AGI MFJ is over 350k so I don't qualify either for a traditional IRA deduction or a Roth. I've been looking at a backdoor Roth, however that would require my wife and I to roll over our traditional IRAs to our company 401ks to avoid pro rata complications. Which is doable; the 401k fees are low,...
by Sluggo
Wed Jul 19, 2017 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Withdraw taxable contribution from traditional IRA
Replies: 4
Views: 345

Withdraw taxable contribution from traditional IRA

In March of this year I contributed $5500 to my traditional IRA. MFJ and we are well over the income limit for pre-tax contributions, so the money was after-tax. I realize I can file a form 8606 so I am not taxed again on the principle, but looking back I'm not sure this was the best approach and al...
by Sluggo
Tue Jun 20, 2017 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Ally no penalty 11 month CD rate increased to 1.50% this morning
Replies: 68
Views: 10456

Re: Ally no penalty 11 month CD rate increased to 1.50% this morning

For 25k@11 months the difference in interest between 1.35 and 1.50 is maybe 40-50 bucks in the end.

Not saying this isn't a good deal but if you are already in the 1.35 it doesn't seem like much of an incentive to move.
by Sluggo
Mon Jun 19, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Saving for investment property...muni bonds vs. ETF's?
Replies: 22
Views: 1243

Re: Saving for investment property...muni bonds vs. ETF's?

From what I could tell in the married filing jointly chart we'd be in the 25% range. -Emt1581 As we've pointed out your effective rate doesn't matter as much for this particular investment however knowing what it is overall is important. If your MFJ MAGI income puts you in the 25% marginal rate, th...
by Sluggo
Mon Jun 19, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Saving for investment property...muni bonds vs. ETF's?
Replies: 22
Views: 1243

Re: Saving for investment property...muni bonds vs. ETF's?

I'm guessing he's in the 33% bracket based on what he posted re: his effective rate. For the amount of time he has to invest (2-3 years max) and amount (at $2.5k/month he's looking at $90k max at the end of 36 months) taxes are more or less irrelevant anyway. Find a safe place to get 1%-1.2% - there...
by Sluggo
Mon Jun 19, 2017 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Saving for investment property...muni bonds vs. ETF's?
Replies: 22
Views: 1243

Re: Saving for investment property...muni bonds vs. ETF's?

By the way, you should list your marginal fed and state tax rate. Munis only make sense for high brackets, and long term capital gains can often be lower than you realize. Don't let taxes be the main decider. We pay 30% in taxes. Between the both of us, 3 employers take out taxes automatically and ...
by Sluggo
Sat Jun 17, 2017 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Re: Advice for late 40's couple with high savings rate

BTW thanks for the Finance Buff article, that was a great read.
by Sluggo
Sat Jun 17, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Re: Advice for late 40's couple with high savings rate

Thanks for all the replies. Certainly a lot to think about. So: We make too much to contribute to a Roth the regular way. Or for that matter to make a pre-tax contribution to a traditional IRA. Extra savings beyond existing tax-deferred options thus goes into a taxable MF. Which I am paying post-tax...
by Sluggo
Sat Jun 17, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Re: Advice for late 40's couple with high savings rate

Ah, but we do have other IRAs, my wife and I both, from prior 401k rollovers (I rolled into a Vanguard IRA when my company was bought because it was better than the company 401k plan - though I contribute to it too because of the match - and my wife rolled her 401k when she went into business for he...
by Sluggo
Fri Jun 16, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Re: Advice for late 40's couple with high savings rate

Question: Does a Muni fund (like VWLTX) make sense as a place to hold savings/rainy-day funds? Vs. a regular savings account which pays next to nothing. Pros: When my effective tax rate is factored in, returns of 3-5% Fairly low risk (not no risk, I know) Liquid: Easy to move money in and out with n...
by Sluggo
Fri Jun 16, 2017 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Re: Advice for late 40's couple with high savings rate

Slightly off topic but re: Vacations - We like travelling around the world (who wouldn't, right). We're willing to budget to do some of that now vs. hoarding until retirement and doing it all then. Who knows what the future holds, etc. They are always something we plan well ahead for so I've found s...
by Sluggo
Fri Jun 16, 2017 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Re: Advice for late 40's couple with high savings rate

Thanks! I confess I didn't quite get how backdoor IRAs work but what you just stated makes sense. For the 2015 and 2016 tax years, I put 11k in my (traditional IRA) even though I am over the income limit and so it came out of post tax money. It suddenly dawned on me that this is what the backdoor is...
by Sluggo
Fri Jun 16, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Advice for late 40's couple with high savings rate
Replies: 12
Views: 2126

Advice for late 40's couple with high savings rate

Hello Bogleheads! Summary: After a period between ages 20-40 where our income was lower, savings terrible, adventures in small business, and other fun and dumb life events/choices, things started improving greatly for my wife and I over the last several years. We're now in our late 40's and after a ...