Search found 44 matches

by amd7239
Tue May 23, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

How about withdrawals? I've read conflicting things about penalty-free withdrawals from Roth IRA's and 401k's Some say none until 59.5/55 others say you can take out principle any time (5 year rule on 401k) one said that there was a formula for whatever you took out as to what portion is principle ...
by amd7239
Tue May 23, 2017 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

The Bogleheads Wiki discusses the issue extensively, and there are many threads on the topic. I strongly urge you to read the former and some of the latter. The short answer is that if your marginal (top) tax bracket will be lower in retirement than it is now, you should be 'all in' with the tradit...
by amd7239
Tue May 23, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

The Bogleheads Wiki discusses the issue extensively, and there are many threads on the topic. I strongly urge you to read the former and some of the latter. The short answer is that if your marginal (top) tax bracket will be lower in retirement than it is now, you should be 'all in' with the tradit...
by amd7239
Tue May 23, 2017 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

At today's rates, even if all your income was taxable earned income, with a standard deduction and your personal exemption, you would need only ~57,500 to generate 50k in spending money. $75k is based on a 35% net difference between pre-tax income and take home pay. What would be a more reasonable ...
by amd7239
Tue May 23, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

I am a bit confused here. You said "If your certain you will be in a lower tax bracket in retirement, a traditional 401k or IRA would be preferable to Roth accounts. ". If so, why did you recommend having a mix (maxing out traditional 401k before a ROTH IRA)? Why not recommend traditional...
by amd7239
Tue May 23, 2017 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

OK so we are talking about investing less in the Roth IRA, and more in the traditional 401k, waiting until I get my tax return comes, then investing my tax return into the Roth IRA? Or not waiting to adjust your W-4 (if needed to decrease your tax free loan to the IRS), but in any case contributing...
by amd7239
Tue May 23, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

That's a unique opinion on the subject that isn't shared by the majority of Bogleheads. I would go back and max out the 401k before I started taxable investing. Is this recommended because my tax bracket will be lower in retirement or is there another reason that I don't know of? I apologize, I was...
by amd7239
Tue May 23, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by amd7239
Tue May 23, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). Has ...
by amd7239
Tue May 23, 2017 11:45 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by amd7239
Tue May 23, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

I actually have access to most mutual funds in my 401k (via Fidelity BrokerageLink), so poor 401k choices is not an issue for me. If the choices are also low cost, then your Traditional vs Roth decision is mainly based on what your tax rate is for contributions vs what if will be in retirement, inc...
by amd7239
Tue May 23, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by amd7239
Tue May 23, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

1. contribute enough to maximize any employer match on a deferred account (401k or 403b) 2. max your annual Roth IRA contribution 3. contribute enough to max out your deferred account. 4. only then would I contribute to taxable investments. This is the suggested order if you have poor choices in yo...
by amd7239
Tue May 23, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). Has ...
by amd7239
Mon May 22, 2017 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

Re: % Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). Has ...
by amd7239
Mon May 22, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3179

% Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). I con...
by amd7239
Mon May 22, 2017 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 550

Re: Dividends Reinvested?

With a 401(k), it is difficult to turn them off or maybe even impossible. Use the chat features with your netbenefits.fidelity.com and get help. In case anyone is wondering, it is possible with fidelity: 1. Click on the "Accounts & Trade" tab 2. Select "Account Features" 3. ...
by amd7239
Mon May 22, 2017 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 550

Re: Dividends Reinvested?

are you using vanguard or fidelity or both? do you want to know where to go on the website to turn them on/off? Using both - my Roth is with Vanguard and my 401k is with fidelity brokerageLink Yep that's what I'm trying to figure out - how to turn them on/off. Since I have only been in these funds ...
by amd7239
Mon May 22, 2017 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 550

Re: Dividends Reinvested?

livesoft wrote:With a 401(k), it is difficult to turn them off or maybe even impossible. Use the chat features with your netbenefits.fidelity.com and get help.


I'll do that, thanks!
by amd7239
Mon May 22, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 550

Re: Dividends Reinvested?

are you using vanguard or fidelity or both? do you want to know where to go on the website to turn them on/off? Using both - my Roth is with Vanguard and my 401k is with fidelity brokerageLink Yep that's what I'm trying to figure out - how to turn them on/off. Since I have only been in these funds ...
by amd7239
Mon May 22, 2017 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 550

Dividends Reinvested?

How do I know dividends are being automatically reinvested in my mutual fund? I own the vanguard and fidelity total US and total international index funds: VTSAX, VGTSX,FTIPX,FSTVX
by amd7239
Fri May 19, 2017 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

So 100% stocks would be easier for me to stick with. OK, at your age there are worse decision than being 100% stock but that's not really an allocation you can "stick with" forever. At some point in 10 - 15 years and certainly in the 10 year before retirement, you'll want to add some bond...
by amd7239
Fri May 19, 2017 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

How about setting your contributions to the ratio and never rebalance? Well, not for a few years or the next crash. If you set it and never look, maybe it will gradually build up stock %, but that is ok for quite a while. Not quite the Boglehead way, but if it works, fine. It's better than 100% sto...
by amd7239
Fri May 19, 2017 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

The issue for me would be sitting down on my laptop and saying ok time to rebalance. Oops looks like the market has been down. Time to rebalance to 33% stocks. Wait, can't I make more with 40% stocks? 50%? 90%? etc. I just know that temptation will be there when that option is there. If its not, it...
by amd7239
Fri May 19, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

Personally I don't see the issue with rebalancing. Just write down a policy in your IPS (quarterly, etc) and do it. But if that is too much, there is absolutely nothing wrong with a set and forget target date fund. The issue for me is greed. I would say why reallocate to only 33% stocks in a down m...
by amd7239
Fri May 19, 2017 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

delamer wrote:Each target date fund is managed differently; your question is too broad.

If you believe that you could not avoid intervening with a two-fund or three-fund portfolio, what makes you think a target date fund would stop you?


Let's assume it is the Vanguard 2060 Target Retirement
by amd7239
Fri May 19, 2017 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

So psychologically, I think my only options are A) target date fund B) A 3-fund portfolio without bonds [67% US Total US (VTSAX), 33% Total International (VTIAX)]. <---- that's a 2 fund portfolio :P [b]Has anybody done the math on whether A or B has a higher historical post-fee return? As delamer s...
by amd7239
Fri May 19, 2017 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

You really can't compare A and B because A is not going to be 100% stock. As a result, over a long period of time, B will usually win but.... the ride is going to be very bumpy (higher volatility) without some bonds for stability. Not sure why you feel that 67/33/0 will be easier to stick with than...
by amd7239
Fri May 19, 2017 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

Personally I don't see the issue with rebalancing. Just write down a policy in your IPS (quarterly, etc) and do it. But if that is too much, there is absolutely nothing wrong with a set and forget target date fund. The issue for me is greed. I would say why reallocate to only 33% stocks in a down m...
by amd7239
Fri May 19, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

Re: If You Can't

Each target date fund is managed differently; your question is too broad. If you believe that you could not avoid intervening with a two-fund or three-fund portfolio, what makes you think a target date fund would stop you? Because I never have to rebalance and I can't tweak the allocations, I would...
by amd7239
Fri May 19, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1546

If You Can't

In “If You Can” Dr. Bernstein says (I’m paraphrasing): “A 33/33/33 (Total US/ Total International/Total Bond) allocation is an easy and effective form of market timing, since it means you will be buying more stocks after market falls and selling some stocks after price rises” The 33/33/33 is good in...
by amd7239
Fri May 19, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

I actually want to convince you that you absolutely should not in market right now. I am in, but I don't think you should in. I have a good reason for that, take a look at this video. search for latest interview with Kessler with wealth track in youtube. That is very convincing. Not convince enough...
by amd7239
Fri May 19, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

Bogle_Feet wrote:
amd7239 wrote:I don’t see the sense in going back into the stock market now.

Ever heard of bonds???
Image


Handy chart! Bonds would make sense if I was retiring soon but I don't see why I would put anything in bonds at age 27
by amd7239
Fri May 19, 2017 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

bogleblitz wrote:I recommend doing it slowly. Like convert 10% into stocks every month. or convert 10% into stocks every 3 months.

until you get to your desire allocation 75% stock/ 25% cash or bonds would be pretty safe for a 27 year old.


Why not 100% stocks for someone my age?
by amd7239
Fri May 19, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

But is such a YUGE surge even possible? Ot seems the market is overvalued already. People have been saying that for years. Suppose you bought this argument three years ago, and pulled out in May of 2014. Since then, the SP500 with reinvestment is up about 34%. I believe the only two times U.S. stoc...
by amd7239
Fri May 19, 2017 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

the pursuit of a perfect plan ruins a good plan. You're thinking too much - get in! Agree 100%. And I think the pursuit of a perfect plan can lead to a worse plan too. Using a simple plan like the 3-fund portfolio, knowing that it is likely not the optimal solution (but close enough) has a great ef...
by amd7239
Fri May 19, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

I hope it does not take you as long as it took me to grasp the implications of Bogle's and Buffet's investment advice. 27 years of age? $50,000.00 to invest in tax-deferred 401k? Use a Target Date Fund with the stock/bond allocation you prefer. If Vanguard Target Date funds are available, you've hi...
by amd7239
Fri May 19, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

What if the market goes up 25% before it experiences a 15% drop? That would be fine. All I want is for it to drop by 15 percent so i cam buy. lol.. you made my day In case you missed the poind here that entertained aqan so much: You've said that as long as the market drops by 15%, you'd buy--even i...
by amd7239
Fri May 19, 2017 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

If you want to get in and are still nervous, try one of the following strategies: 1) Dollar cost average in. The math doesn't work, but it's more comforting psychologically if the market plummets right after you invest. Just divide your stash into 3 equal parts, and invest each part once a month. I...
by amd7239
Fri May 19, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

Thanks guys for all the helpful comments. I appreciate it. You are all right! I think I was essentially trying to justify being out of the market and trying to avoid the regret of making that decision in 2014. I should just stay in the market and forget about the price. Deleting the CNBC and Yahoo F...
by amd7239
Wed May 17, 2017 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

What if the market goes up 25% before it experiences a 15% drop? That would be fine. All I want is for it to drop by 15 percent so i cam buy. lol... Sure... Might want to do some math on that :D Assuming it's not a troll... Stay OUT of the market - read - build a plan - invest as per that plan - go...
by amd7239
Wed May 17, 2017 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

What if the market goes up 25% before it experiences a 15% drop? That would be fine. All I want is for it to drop by 15 percent so i cam buy. Do not invest in stocks today. You clearly don't understand how they work. Do some research until you understand, then come back. :beer What specifically sho...
by amd7239
Wed May 17, 2017 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Re: Convince me to get back into stocks!

delamer wrote:What if the market goes up 25% before it experiences a 15% drop?


That would be fine. All I want is for it to drop by 15 percent so i cam buy.
by amd7239
Wed May 17, 2017 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5552

Convince me to get back into stocks!

Somebody please convince me to get back into the market! I don’t see the sense in going back into the stock market now. See calculations below. I am in all cash right now. I would love your opinion on my logic. Assumption #1: After the next recession (whenever that is), I think it’s fair to say stoc...

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