Search found 9023 matches

by The Wizard
Sun Oct 16, 2016 7:12 pm
Forum: Forum Issues and Administration
Topic: Bogleheads is back!!!
Replies: 83
Views: 8044

Re: Bogleheads is back!!!

sport wrote:Is there a more reliable ISP available?

Yes, there's FiOS...
by The Wizard
Fri Oct 14, 2016 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

Somebody with free time needs to run those numbers through taxcaster with $5000 increments of Roth conversions added on... What do you not like about the first chart in this post from yesterday? ;) It's good. One should be able figure approx tax to 2.5 decimal places from that blue line, I would th...
by The Wizard
Fri Oct 14, 2016 10:42 am
Forum: Personal Finance (Not Investing)
Topic: How to Handle Saving for (Large) Future Purchases?
Replies: 7
Views: 471

Re: How to Handle Saving for (Large) Future Purchases?

I originally used a high yield savings account for my New Car Replacement Fund. But it didn't pay much and was taxed at combined 33%. :( Being retired now, I made a change to a portion of my monthly withdrawal from my tax sheltered 403(b). Instead of having it all go to my checking or savings accoun...
by The Wizard
Fri Oct 14, 2016 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

spaddlewit wrote:Yep... looks like it's best to just keep things as they are. Thanks, JW!

Perhaps.
But you might want to do a similar exercise with RMDs six years down the road and see how that result compares.
I suspect the incremental tax she'll pay on RMDs will be similarly impacted by that SS hump thing...
by The Wizard
Fri Oct 14, 2016 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

Somebody with free time needs to run those numbers through taxcaster with $5000 increments of Roth conversions added on...
by The Wizard
Fri Oct 14, 2016 9:16 am
Forum: Investing - Theory, News & General
Topic: Is information a bad thing for returns??
Replies: 42
Views: 2007

Re: Is information a bad thing for returns??

erik265 wrote:...and incomes in relation to cost of living are worse today

I'm not sure this is right either.
I think the housing market is reasonably "efficient", meaning prices get bid up or down based on ability and willingness to pay...
by The Wizard
Fri Oct 14, 2016 9:00 am
Forum: Investing - Theory, News & General
Topic: How does the market work?
Replies: 4
Views: 440

Re: How does the market work?

OP needs to add D) 10 shares of REIT fund sold, to balance out C).
For every buyer, there's a seller.
Main question is: how desperate am I to buy or sell a particular security, that's all...
by The Wizard
Fri Oct 14, 2016 8:08 am
Forum: Investing - Theory, News & General
Topic: Is information a bad thing for returns??
Replies: 42
Views: 2007

Re: Is information a bad thing for returns??

Yep. Markets are certainly more efficient and it's a less exclusive club. Good thing for the world, bad thing for investor returns! I disagree. It's a lot easier to find good no load funds nowadays, especially if you do it yourself and stay away from sharks. The fact that interest rates are at hist...
by The Wizard
Fri Oct 14, 2016 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

The OP mentions the start of the 28% bracket as a possible target for Roth conversions. That bracket starts at $90,750 of TAXABLE income in 2015 and will be a bit higher for 2016. So the OP's mom could have an AGI of at least $101,000, depending on itemized vs standard deductions, and still be in th...
by The Wizard
Fri Oct 14, 2016 7:24 am
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

There's nothing wrong with being in a higher Medicare payment tier. Of course there is nothing wrong with being there. But why put yourself there for no reason and questionable benefit? She'll pay an extra $588 or thereabouts each year. So far, I don't see a good reason to do that. For the OP's mom...
by The Wizard
Thu Oct 13, 2016 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

Here is an older thread that looks at this question. It is where I learned about the increased cost of Medicare Part B. And probably a few other things. :happy https://www.bogleheads.org/forum/viewtopic.php?t=170477 There's nothing wrong with being in a higher Medicare payment tier. I have been sin...
by The Wizard
Thu Oct 13, 2016 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Back Door Roth Questions
Replies: 15
Views: 990

Re: Back Door Roth Questions

...Selling my funds from my traiditonal IRA and having them send a check to contribute to my business 401k. That wouldn't be a taxable event right? I didn't mess things up. I guess I will attempt to do a back door roth IRA in 2017 once i contribute to my traditional and convert it over to a roth IR...
by The Wizard
Thu Oct 13, 2016 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Retired and rolling over IRA into Roth
Replies: 42
Views: 2779

Re: Retired and rolling over IRA into Roth

I'm 66 and in a somewhat similar situation, except I'm not taking full SS until age 70. You need to look at her marginal tax rate along with Medicare IRMAA tiers, and possibly SS taxation also. When she starts RMDs in six years, that $460k could be $500k or more, so an initial RMD of $15,000 to $16,...
by The Wizard
Thu Oct 13, 2016 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Life short-Buy the Boat
Replies: 17
Views: 2458

Re: Life short-Buy the Boat

Why on earth would anybody choose to live on a boat when they have the assets to live a normal life? Why on earth would anybody choose to live a normal life when they have the assets to live on a boat? This! Retiring on a boat is something my partner and I talk about not infrequently. Our current 3...
by The Wizard
Thu Oct 13, 2016 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Life short-Buy the Boat
Replies: 17
Views: 2458

Re: Life short-Buy the Boat

Why on earth would anybody choose to live on a boat when they have the assets to live a normal life? Why on earth would anybody choose to live a normal life when they have the assets to live on a boat? This! Retiring on a boat is something my partner and I talk about not infrequently. Our current 3...
by The Wizard
Wed Oct 12, 2016 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account help: switching from DFA
Replies: 8
Views: 679

Re: Taxable account help: switching from DFA

As I said in my first reply, I see no need to try to replicate each of the existing DFA funds in your future contribs to Vanguard funds. I personally don't feel that a heavy value tilt will beat balanced value+growth year after year. If the OP personally prefers value-tilted funds, then they are eas...
by The Wizard
Wed Oct 12, 2016 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Large IRA withdrawal and SS
Replies: 27
Views: 2621

Re: Large IRA withdrawal and SS

This SS pub may help: https://www.ssa.gov/pubs/EN-05-10069.pdf Note that when benefits are withheld, SS doesn't pay right away. For example, lets say your benefit is 1K per month but SS has determined you are 6K over the limit and they are withholding 3K. You get no benefit for Jan-March and then y...
by The Wizard
Wed Oct 12, 2016 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account help: switching from DFA
Replies: 8
Views: 679

Re: Taxable account help: switching from DFA

I don't see any bond funds in that list, so perhaps you have some in tax sheltered accounts? You need to define your overall AA going forward, over your entire portfolio. It appears you have a significant value tilt in those DFA funds. So leaving those alone, I would strive for SIMPLICITY in investi...
by The Wizard
Tue Oct 11, 2016 11:22 am
Forum: Investing - Theory, News & General
Topic: "Yield and Return"
Replies: 29
Views: 2953

Re: "Yield and Return"

This article adds nothing to help a novice understand the use of the terms yield or return. ...The problem is just lazy and sloppy writing. “You can please some of the people all of the time, you can please all of the people some of the time, but you can’t please all of the people all of the time”....
by The Wizard
Tue Oct 11, 2016 7:01 am
Forum: Personal Finance (Not Investing)
Topic: 4% Retirement Guideline Question
Replies: 8
Views: 1375

Re: 4% Retirement Guideline Question

I look at the issue differently. For forty years of employment, all of my net income was taxable, where net means after pre-tax retirement contributions. Now in retirement, all of my income is taxable, nothing much has changed, aside from modest Roth conversions that I do. So I just target the same ...
by The Wizard
Sun Oct 09, 2016 4:11 am
Forum: Investing - Theory, News & General
Topic: Modelling inflation impact on retirement
Replies: 2
Views: 340

Re: Modelling inflation impact on retirement

You may be over thinking this.
It's fairly simple to pick an annual inflation number, 3%, 5%, 7% or whatever and propagate it over a decade or two to see what happens.
So then what?

I think it's more productive to devise ways of dealing with inflation in your retirement income streams...
by The Wizard
Fri Oct 07, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Start an Account at TIAA-CREF?
Replies: 9
Views: 893

Re: Should I Start an Account at TIAA-CREF?

Yes.
Do exactly as you stated.
Find also if you have access to any of their Institutional Class mutual funds, which have decently low ERs...
by The Wizard
Fri Oct 07, 2016 12:56 pm
Forum: Forum Issues and Administration
Topic: Why no OT forum?
Replies: 33
Views: 3122

Re: Why no OT forum?

So, I can donate to support this forum and get a tax deduction for doing so? Do you have a link? Support this site https://s12.postimg.org/h7vl7xrhp/Captura_de_pantalla_2016_10_07_a_las_1_21_46_PM.png I don't think you can donate directly to the forum and receive a tax deduction. You must donate to...
by The Wizard
Fri Oct 07, 2016 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Two backdoor Roth IRA questions
Replies: 37
Views: 2674

Re: Two backdoor Roth IRA questions

You do not have to convert ALL of your tIRA to Roth IRA in the same year. If you have $50,000 of pre-tax contrib in a tIRA then yes you can add $5500 of after-tax contributions for this year and then convert $12,000 say to your Roth IRA. You will have to pay pro rata tax on that conversion. People s...
by The Wizard
Fri Oct 07, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: The Art Is Not in Making Money, But in Keeping It
Replies: 7
Views: 2091

Re: The Art Is Not in Making Money, But in Keeping It

I'm not sure if that link is a teachable history lesson or a story about the stupidity of other people, but I'm leaning toward the latter...
by The Wizard
Thu Oct 06, 2016 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Math problem
Replies: 17
Views: 1168

Re: Math problem

The principal amount of. $119,000 will basically shrink at -2% per year.
Using the rule of 72 in reverse for a rough approximation, we get a 36 year half-life on that sum...
by The Wizard
Thu Oct 06, 2016 3:18 pm
Forum: Local Chapters and Bogleheads Community
Topic: Hurricane Matthew
Replies: 61
Views: 5684

Re: Hurricane Matthew

aerolulu wrote:It looks like Miami will be off the path of highest intensity... but who knows with a hurricane... stay safe all.

Yes, looks like there may be a grazing landfall up around Cape Canaveral.
Careful, it could blow a rocket over...
by The Wizard
Thu Oct 06, 2016 11:55 am
Forum: Investing - Theory, News & General
Topic: TIAA - "Annuities: Now, Later, Never?"
Replies: 10
Views: 707

Re: TIAA - "Annuities: Now, Later, Never?"

Also, we generally recommend waiting till age 70 with SS for best long term results. Why does this same logic not apply to a lifetime TIAA annuity? Two reasons: 1) the 8% per year DRC formula from FRA to age 70 is carved in stone at SS without regard to prevailing interest rates, which are low at pr...
by The Wizard
Thu Oct 06, 2016 11:35 am
Forum: Investing - Theory, News & General
Topic: TIAA - "Annuities: Now, Later, Never?"
Replies: 10
Views: 707

Re: TIAA - "Annuities: Now, Later, Never?"

That's strange. Are they saying their annuities are not actuarily neutral? No. They are saying that pulling $50,000 a year, for instance, from your 403(b) for five years of delay, from age 63 to 68 say, leaves you somewhat worse off when you annuitize funds at 68 rather than at 63, getting the same...
by The Wizard
Thu Oct 06, 2016 11:24 am
Forum: Investing - Theory, News & General
Topic: TIAA - "Annuities: Now, Later, Never?"
Replies: 10
Views: 707

Re: TIAA - "Annuities: Now, Later, Never?"

I would say No, delaying a TIAA annuity isn't the really wise thing to do once you "need" the money. Someone with a good-sized taxable account, for instance, benefits from living off that in their 60s while doing sizable Roth conversions. So don't annuitize then. Once the time comes to pul...
by The Wizard
Thu Oct 06, 2016 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Two backdoor Roth IRA questions
Replies: 37
Views: 2674

Re: Two backdoor Roth IRA questions

The CONTRIBUTION limit of $5500, or $6500 for old people such as myself, is all you have to worry about. There is no limit for Roth conversions. I completed my backdoor Roth for 2016 two months ago. I invested my part-time job income into a stock fund in my tIRA over a period of months and converted...
by The Wizard
Thu Oct 06, 2016 8:18 am
Forum: Investing - Theory, News & General
Topic: Can You Rely on Dividends for Income?
Replies: 43
Views: 5492

Re: Can You Rely on Dividends for Income?

Not a good article, way too simplistic. Companies like Proctor&Gamble, CocaCola, and Exxon-Mobil are cash generating, profit making companies. If Exxon-Mobil's stock price kept dropping each time it paid a dividend, then it would be down close to zero before long. But it's not. Why? (I know the ...
by The Wizard
Thu Oct 06, 2016 6:11 am
Forum: Personal Finance (Not Investing)
Topic: Recommended books/articles about delaying social security to 70 and paying for cars with cash vs debt
Replies: 4
Views: 520

Re: Recommended books/articles about delaying social security to 70 and paying for cars with cash vs debt

The car issue is totally separate from SS.
The "Car Payment" mentality is as bad as it's ever been.
A car payment is part of life, same as rent or mortgage payment, right?
Expect uphill battle with 90% of people on this...
by The Wizard
Thu Oct 06, 2016 5:39 am
Forum: Personal Consumer Issues
Topic: Should I upgrade my beat up car?
Replies: 69
Views: 4594

Re: Should I upgrade my beat up car?

Another question is: how big is your New Car Replacement Fund? (Not your Emergency Fund.) My preference is to buy new and keep for ten years. Most recent acquisition was bought last December, replacing vehicle bought Feb, 2004, so almost 12 years there. Other car bought new March 2009, so another th...
by The Wizard
Wed Oct 05, 2016 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's 403b/TIAA
Replies: 10
Views: 825

Re: Wife's 403b/TIAA

And I'm not sure how long you've been in the 39.6% tax bracket, but would be good to see a lot more in your portfolio next year and the year after...
by The Wizard
Wed Oct 05, 2016 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's 403b/TIAA
Replies: 10
Views: 825

Re: Wife's 403b/TIAA

Put it all in the TIAA Real Estate Account at this late date.
TREA = QREARX...
by The Wizard
Wed Oct 05, 2016 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: ss ? [Social Security]
Replies: 16
Views: 2273

Re: ss ?

The OP has it made either way with his numbers.
Take SS whenever you like; you won't regret it...
by The Wizard
Wed Oct 05, 2016 9:39 am
Forum: Forum Issues and Administration
Topic: weather watch [Hurricane Matthew, potential site impact]
Replies: 27
Views: 2840

Re: weather watch

Mel Lindauer wrote:Taylor and I are also in the direct path of Matthew. Prayers appreciated.

Those larger multistory apartment/condo buildings down there are pretty much hurricane-proof, right?
by The Wizard
Wed Oct 05, 2016 9:26 am
Forum: Personal Finance (Not Investing)
Topic: advice needed- restricted application for spousal benefits gone awry!
Replies: 1
Views: 228

Re: advice needed- restricted application for spousal benefits gone awry!

Looks like they screwed it up.
I did a similar application for divorced spouse benefits starting at my FRA last March, but I did this in person at a local SS office and it went smoothly, no screwup.
Just go in person and this should be fixable...
by The Wizard
Wed Oct 05, 2016 9:00 am
Forum: Investing - Help with Personal Investments
Topic: temporarily cashing out ?
Replies: 55
Views: 4896

Re: temporarily cashing out ?

Know that you are likely to fail in your endeavor to time the market. Know that you will also have great difficultly getting back into the market, regardless of what happens. It always feels a bad time to get back in... Why would the OP necessarily need to get back in? Let's say they have $5M or so...
by The Wizard
Wed Oct 05, 2016 8:48 am
Forum: Investing - Help with Personal Investments
Topic: temporarily cashing out ?
Replies: 55
Views: 4896

Re: temporarily cashing out ?

I don't see any dollar amounts in the OP's second post.
Point being, if you have more than enough money to live on for the rest of your lives, then going 100% to cash should work fine.
You never have to worry, in that case, about when to get back into the market.
Good luck with it...
by The Wizard
Wed Oct 05, 2016 7:36 am
Forum: Personal Consumer Issues
Topic: Aging and Spending
Replies: 54
Views: 9088

Re: Aging and Spending

10YearPlan wrote:...If retirement is not to be a part of the equation in retirement, we could probably afford to retire much earlier but then there doesn't seem to be as much of a point for us...

You might want to edit this part to make it more clear...
by The Wizard
Tue Oct 04, 2016 2:19 pm
Forum: Investing - Theory, News & General
Topic: Here we go again
Replies: 36
Views: 3796

Re: Remember This

Right.
You need to play both sides of the volatility coin if you expect it to be your friend...
by The Wizard
Tue Oct 04, 2016 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Hedging against divorce
Replies: 13
Views: 2845

Re: Hedging against divorce

With respect, none of the other responses so far are particularly relevant. Asset division in case of divorce and applicability of various factors including premarital relationship, pre- or post-nuptial agreements, etc. is a totally state-by-state matter in the United States. Even the 9 community p...
by The Wizard
Tue Oct 04, 2016 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: credit during retirement
Replies: 5
Views: 680

Re: credit during retirement

Credit card companies don't see your IRS forms.
Just put down your effective income if you need to, withdrawals from taxable plus Roth conversions.
You don't need $100k income to get a credit card anyways...
by The Wizard
Tue Oct 04, 2016 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Moving money from STAR Fund
Replies: 10
Views: 1058

Re: Moving money from STAR Fund

The Star fund is best considered as a transitionary fund, until you get over the $3k minimums for other funds.
I would soon transition that to Total Stock Market and eventually to Total Bond Market as well, for the simplest 2 fund approach.
You'll eventually have lower ERs doing it this way...
by The Wizard
Tue Oct 04, 2016 8:28 am
Forum: Investing - Theory, News & General
Topic: SS as a Bond
Replies: 46
Views: 3684

Re: SS as a Bond

One reason this topic will never be resolved here is that regardless of how one treats SS (and other pensions), you STILL need to define a target AA that you are comfortable with, as you approach and enter retirement mainly. And really, nobody will seriously question your decision to target 20% stoc...
by The Wizard
Tue Oct 04, 2016 8:08 am
Forum: Investing - Theory, News & General
Topic: SS as a Bond
Replies: 46
Views: 3684

Re: SS as a Bond

Kitces - Valuing Social Security Benefits As An Asset On The Household Balance Sheet https://www.kitces.com/blog/valuing-social-security-benefits-as-an-asset-on-the-household-balance-sheet/ Mr. Kitces is a bright fellow, with a knack for analyzing and explaining things. I'd like to see him at a fut...
by The Wizard
Mon Oct 03, 2016 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: Hedging against divorce
Replies: 13
Views: 2845

Re: Hedging against divorce

Is this true of taxable (non-retirement) accounts? Everything I see about QDROs online is referring to pensions and 401(k) accounts. I'm pretty sure The Court isn't going to take No for an answer, so yes, any accounts can be partitioned without tax consequences if so ordered. In my case, we each ke...

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