Search found 1355 matches

by bdpb
Fri Feb 05, 2016 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: 10 years to Retirement, Roth IRA?
Replies: 5
Views: 520

Re: 10 years to Retirement, Roth IRA?

Both my husband and I have recently received modest inheritances, and we are using this to get our finances in order, 10 years from retirement. I currently contribute 10% to 401K invested in Vanguard Target Retirement 2025, we receive $1K monthly in rental income, and both my husband and I will rec...
by bdpb
Fri Feb 05, 2016 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help Cleaning up our Edward Jones Mess
Replies: 23
Views: 3569

Re: Need Help Cleaning up our Edward Jones Mess

Debt : Mortgage $150k @ 4.75% mortgage (Three years left on 15 year mortgage) Contributions Taxable: $800 monthly to Vanguard ($9,600 annually) $1,800 monthly to EJ ($21,600 annually) Instead of future investing in taxable, you should pay down your mortgage. You could use any taxable cash to pay do...
by bdpb
Sun Jan 31, 2016 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Check - Considering using Personal Capital or Vanguard Personal Advisor
Replies: 18
Views: 1661

Re: Portfolio Check - Considering using Personal Capital or Vanguard Personal Advisor

Since you live in IL, instead of contributing to a Roth IRA directly, you should contribute to a tax deductible IRA and immediately convert it to a Roth IRA. I was under the impression that I should do this only if my income was too high for a Roth IRA. You are referring to a backdoor Roth IRA. If ...
by bdpb
Fri Jan 29, 2016 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Check - Considering using Personal Capital or Vanguard Personal Advisor
Replies: 18
Views: 1661

Re: Portfolio Check - Considering using Personal Capital or Vanguard Personal Advisor

Are you both funding Roth IRAs? With your expected pensions, I would think you would want as much in Roths as possible. We are not but that's one of the things I'm taking care of in the next few days. I bought mine for the first time last year and will purchase some in my wife's name soon. Since yo...
by bdpb
Fri Jan 15, 2016 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: New Job: Health Insurance PPO vs HSA?
Replies: 4
Views: 373

Re: New Job: Health Insurance PPO vs HSA?

I probably go to the doctor outside of a physical 3-4 times a year, with one of those usually being a specialist. So those visits likely would cost me about $1000 a year on the HSA (opposed to $100 on the PPO). The $1k number seems high for 4 visits. You should only be charged a negotiated rate. Ma...
by bdpb
Mon Jan 11, 2016 12:21 am
Forum: Personal Finance (Not Investing)
Topic: Should I keep my term life insurance in force?
Replies: 22
Views: 1746

Re: Should I keep my term life insurance in force?

cadreamer2015 wrote:I'm sure my premature death would be a financial hardship for my wife,

Sounds like you may need more insurance.
by bdpb
Fri Jan 08, 2016 11:57 pm
Forum: Personal Consumer Issues
Topic: Best wireless providers for managing shared data plans?
Replies: 15
Views: 876

Re: Best wireless providers for managing shared data plans?

It is our 17 year old that is the problem. She is just irresponsible about data management and seems to always be on Pandora or Spotify when she is driving around and she spend a lot of time in the car because her afternoon job as a nanny has her picking up kids from 3 different elementary schools ...
by bdpb
Thu Dec 31, 2015 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Checking In After Four Years
Replies: 20
Views: 5009

Re: Checking In After Four Years

Congrats! You're a very good listener and learner. Only remaining question is what to do with the cash left . I will leave $10,000 in checking as an emergency fund, but the remaining $10,000 I'm thinking should go into a taxable brokerage account and into a short/intermediate-term bond fun or some t...
by bdpb
Thu Dec 31, 2015 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Request Help with Our Plan to Simplify Our Retirement Accounts
Replies: 9
Views: 984

Re: Request Help with Our Plan to Simplify Our Retirement Accounts

Pay off your mortgage today. I looked into paying off the mortgage, but since it is at the end of the mortgage life, there is not much interest left, about $2000. So I don't think we will pay off our mortgage. You're looking at this the wrong way. It has nothing to do with being at the end of the m...
by bdpb
Mon Dec 28, 2015 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down mortgage or stuff retirement accounts?
Replies: 24
Views: 2434

Re: Pay down mortgage or stuff retirement accounts?

Noticed your username. Are you saving for or have savings set aside for kids' college funding? If so, use the IL 529 Bright Start Direct plan. It's low cost and gives an IL state tax break up to 20k per year on a joint return. Where did you ever come up with the 6.5% IL state tax number? It's curren...
by bdpb
Mon Dec 28, 2015 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Request Help with Our Plan to Simplify Our Retirement Accounts
Replies: 9
Views: 984

Re: Request Help with Our Plan to Simplify Our Retirement Accounts

mizchief wrote:Interesting idea, and opens up a strategy I had not considered. Is this important to do in 2015?

Not necessary to do in 2015.

You are charged interest for every day you still have the mortgage. The sooner you pay it off, the sooner you will realize the savings.
by bdpb
Mon Dec 28, 2015 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Checking In After Four Years
Replies: 20
Views: 5009

Re: Checking In After Four Years

Max out your 401k immediately. The max is 18k. Max out your Roth IRA. The max is 5.5k. Do 2015 before April 2016. The Roth IRA can act as a backup EF. Contributions can be withdrawn tax and penalty free at any time. That's around 25% gross savings rate. Target at least 25% or greater of income growt...
by bdpb
Mon Dec 28, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Request Help with Our Plan to Simplify Our Retirement Accounts
Replies: 9
Views: 984

Re: Request Help with Our Plan to Simplify Our Retirement Accounts

Debt : Mortgage of 42K, will be paid off in 2018 Taxable : 11 % cash (for investing – does not include emergency funds) Pay off your mortgage today. In the short term it may not actually simplify because you may be paying property taxes/homeowner's insurance via escrow, but you'll have to do it a c...
by bdpb
Sun Dec 27, 2015 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Next steps for a young investor: Advice on a Taxable Account
Replies: 4
Views: 740

Re: Next steps for a young investor: Advice on a Taxable Account

You might consider additional asset classes and a size or value tilt. That is, I would add REITs and Small Cap Value. This could help solve some of your TLH concerns. If you add other asset classes, redirect your tax deferred acccount dividends/CG distributions to these other funds. I would split ta...
by bdpb
Sun Dec 27, 2015 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Covering my risk while reallocating inherited assets
Replies: 10
Views: 560

Re: Covering my risk while reallocating inherited assets

If you have a 50% gain and the CG is 350k, it's worth about 1Million. If it's 25% of your portfolio, you have about 4M. If you sell 300k on Monday, you have a CG of about 100k this year. And sell another 300K in January for another 100k CG next year. You'll be left with about 400k which will only be...
by bdpb
Thu Dec 24, 2015 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: REIT index fund vs high yield corporate fund: which has priority to go in tax deferred accounts?
Replies: 6
Views: 594

Re: REIT index fund vs high yield corporate fund: which has priority to go in tax deferred accounts?

I have limited space in tax-deferred account. Between REIT index fund (VGSLX) and high yield corporate fund (VWEAX), which one gets priority to go into tax-deferred space? It seems to me high yield corporate fund should get the priority. The current SEC yield of high yield corporate fund is 6.30%. ...
by bdpb
Thu Dec 24, 2015 12:43 am
Forum: Investing - Help with Personal Investments
Topic: New to investing, looking for advice
Replies: 2
Views: 308

Re: New to investing, looking for advice

Tax filing: married filing jointly (1 kid and planing another) Tax rate: 25% federal and 3.75% state State: Illinois Gross income: 85k Emergency fund is 90k in Amex savings account (.9 interest), reason for this is I'm planing to buy a house next year (about 60k down payment and rest will be used a...
by bdpb
Thu Dec 24, 2015 12:19 am
Forum: Investing - Help with Personal Investments
Topic: DCA vs Extra Mortgage Payments
Replies: 38
Views: 2764

Re: DCA vs Extra Mortgage Payments

Option 2, pay down the mortgage. Paying down debt is as close as you can get to a risk free investment. In this case yielding 4%. You should really compare paying down debt to investing in bonds (unless you're 100% stocks). They have similar risk profiles. Risk free bonds are yielding maybe 2.5%. ....
by bdpb
Tue Dec 22, 2015 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: DCA vs Extra Mortgage Payments
Replies: 38
Views: 2764

Re: DCA vs Extra Mortgage Payments

Option 2, pay down the mortgage. Paying down debt is as close as you can get to a risk free investment. In this case yielding 4%. You should really compare paying down debt to investing in bonds (unless you're 100% stocks). They have similar risk profiles. Risk free bonds are yielding maybe 2.5%. Op...
by bdpb
Tue Nov 03, 2015 2:11 am
Forum: Investing - Help with Personal Investments
Topic: Please check my health insurance math
Replies: 9
Views: 862

Re: Please check my health insurance math

This is my first year trying to make this calculation for myself, so take my thoughts with a grain of salt. Option A (HSA) and pay for health care expenses with normal after tax dollars while saving HSA dollars to grow: $2556 (annual premium) $6750 (max employee contribution) $10,500 (OOP max, I wil...
by bdpb
Fri Oct 16, 2015 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help Expanding Portfolio
Replies: 11
Views: 889

Re: Help Expanding Portfolio

Dependent on if I get a raise and how tax brackets play out I may switch my contributions to a Roth 401k. You must have missed some of my earlier post. In IL, you should not contribute to a Roth, you will pay state income taxes. Instead, you should contribute to a tax deductible IRA and convert to ...
by bdpb
Fri Oct 16, 2015 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Help Expanding Portfolio
Replies: 11
Views: 889

Re: Help Expanding Portfolio

State: IL Tax Rate: 15%-25% Federal (will explain below), 6.25% State Regarding my Tax Rate: My income is in the 70-80k range not including bonuses. My wife does not currently work. In the past I've had no trouble keeping my taxable income at 15% through deductions and 401k contributions. This year...
by bdpb
Sat Sep 12, 2015 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Update: Pay Mortgage or Pay Student Loans
Replies: 45
Views: 4478

Re: Update: Prepping to sell home: Pay Mortgage or Pay Student Loans

With that being said, we think this would be the best scenario either way. We plan on renting on the short term for 6 months then taking our time to find the right house. Since we are paying elevated property tax, higher mortgage, more utilities, we feel we 6 months of renting (save at least $750 o...
by bdpb
Tue Sep 01, 2015 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying Mortgage Question
Replies: 24
Views: 2649

Re: Prepaying Mortgage Question

Don't think that paying extra mortgage payments is the same as investing in the stock market. They are two significantly different risk levels. You should compare paying extra mortgage payments to investing in high quality bonds (US treasuries). They have similar risk levels. You mentioned that you...
by bdpb
Sun Aug 30, 2015 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Prepaying Mortgage Question
Replies: 24
Views: 2649

Re: Prepaying Mortgage Question

Don't think that paying extra mortgage payments is the same as investing in the stock market. They are two significantly different risk levels. You should compare paying extra mortgage payments to investing in high quality bonds (US treasuries). They have similar risk levels. You mentioned that you ...
by bdpb
Thu Aug 27, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: 3 Questions for a New Investor (Look at my Portfolio)
Replies: 5
Views: 874

Re: 3 Questions for a New Investor (Look at my Portfolio)

Debt: 2) Student Loans: $190,000 @ 5.00% for 9 More Years Current Portfolio: Cash on Hand: $60,000 CD: $40,000 (Emergency Funds; 5-Year @ 2.3%) Taxable: $13,500 Contributions: New Annual Contributions: $30,000 Taxable Account (max 10% of total investments in individual funds) Use cash on hand, CDs,...
by bdpb
Tue Aug 25, 2015 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Take a chunk out of student loans, or start saving?
Replies: 1
Views: 162

Re: Take a chunk out of student loans, or start saving?

Need more info. Like, marginal tax rates (fed and state) and investment options (IRA, 401k, etc).

Start here:
http://www.bogleheads.org/forum/viewtopic.php?t=6212
by bdpb
Sun Aug 23, 2015 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Not a market timer but......investing vs student loan payoff
Replies: 14
Views: 1182

Re: Not a market timer but......investing vs student loan payoff

The only market timing you should be doing is comparing your debt to bonds because they are similar investments. Right now, bonds are yielding much lower than your debt. When stocks are on sale, why aren't you borrowing more money at low rates and investing in stocks? Because that would be increasin...
by bdpb
Fri Aug 21, 2015 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Update: Pay Mortgage or Pay Student Loans
Replies: 45
Views: 4478

Re: Prepping to sell home: Pay Mortgage or Pay Student Loans

Don't you have another thread on this topic already?

http://www.bogleheads.org/forum/viewtopic.php?f=2&t=171643

Have you factored in the additional cost of anywhere between 5k and 10k per year for a kid?
by bdpb
Thu Aug 20, 2015 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Any advice on portfolio?
Replies: 2
Views: 330

Re: Any advice on portfolio?

Debt: mortgage @ 5% Tax rate: 10.60% federal 3.4% state Size of portfolio: upper five figures Split of Assets: 401k: 50% putnam stable value fund 20% Templeton Global Bond Adv 20% columbia large cap Index Z 10% principal mid cap S&P 400 His Roth: vanguard life strategy 76% stock 24% bond Her Ro...
by bdpb
Thu Aug 20, 2015 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Mom's retirement account
Replies: 31
Views: 1868

Re: Mom's retirement account

The RMD and SS gives her about a $1,000 monthly surplus above her budget. She doesn't have extravagant tastes and likely couldn't do much more cutting back than she already has. From what little I know about AA, it seems to me that her portfolio is too heavy in stocks for her age and lack of other ...
by bdpb
Sat Aug 15, 2015 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Please Critique my Portfolio
Replies: 7
Views: 716

Re: Please Critique my Portfolio

Duckie has given you excellent advice. For most folks, I agree that 20% bonds is a minimum, but for someone who is very young, saving a lot and appears comfortable with the risk, I would have no problem suggesting 100% stocks. Is your IRA contribution, traditional or Roth? While in the 15% bracket, ...
by bdpb
Fri Aug 14, 2015 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage experts: Need some advice
Replies: 21
Views: 1769

Re: Mortgage experts: Need some advice

Why don't you wait 5 years before having kids? Time is more valuable than money to me. It sounded like you wanted your wife to stay home with the kid. There is a simple solution to your problem. Have your wife work full time while you're having kids. I don't understand why folks think this is in so...
by bdpb
Fri Aug 14, 2015 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage experts: Need some advice
Replies: 21
Views: 1769

Re: Mortgage experts: Need some advice

Why don't you wait 5 years before having kids? That is literally the most presumptuous advice I've ever read on this forum and that's saying something. Now, maybe my comment is the second most presumptuous advice. The OP wants to know how to live within his means. I don't see anything presumptuous ...
by bdpb
Fri Aug 14, 2015 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage experts: Need some advice
Replies: 21
Views: 1769

Re: Mortgage experts: Need some advice

Why don't you wait 5 years before having kids?
by bdpb
Fri Aug 14, 2015 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Help me with my retirement plan!
Replies: 5
Views: 987

Re: Help me with my retirement plan!

1) Do I just roll my company plan balance over every 5 years but not count any of my current money in there when doing my own Asset Allocation calculations? The frustrating thing to me (being a newly Bogleheads forum reader) is that everyone is constantly talking about getting the correct asset all...
by bdpb
Wed Aug 12, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Location - Help needed
Replies: 7
Views: 774

Re: Asset Location - Help needed

On the flip side, you are taking on more risk.

Since you don't pay taxes on the Roth, dollar per dollar it's worth more, therefore more loss if stocks go down.

https://www.bogleheads.org/wiki/Tax-adj ... allocation
by bdpb
Tue Aug 11, 2015 7:01 pm
Forum: Investing - Theory, News & General
Topic: Beware the snake oil as the market gets tougher
Replies: 34
Views: 3674

Re: Beware the snake oil as the market gets tougher

His analogy is that buying the indexes is like buying a McDonalds Big Mac- you get the bun, lettuce, cheese & special sauce whether you want them or not. Active investors, on the other hand, can skip the cheese and the bun. Skip the cheese and bun and get a hamburger with a big bite taken out a...
by bdpb
Mon Aug 10, 2015 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: 25 y/o - need advice on retirement savings and goals
Replies: 3
Views: 351

Re: 25 y/o - need advice on retirement savings and goals

I am 25, somewhat recent college grad working full time (for past 4 years). CA, single. 2) Roth IRA - $43k, consists of Vanguard Total Stock Market Index and Small-Cap Growth. 75/25 mix, respectively. Expense ratios are 0.05% and 0.09%, respectively. 1) Would like to increase my cash savings to imp...
by bdpb
Mon Aug 10, 2015 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 953

Re: Portfolio Advice Needed

12.4% of my portfolio is already in Vanguards Total International Stock Index Fund via the TR2045 fund (Roth). Are you recommending that I take the 15.5% that I have in the I fund and redistribute it into the other TSP funds and then purchase a separate Total International Stock Index Fund for my R...
by bdpb
Mon Aug 10, 2015 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 953

Re: Portfolio Tune Up Needed?

You may have missed my point about the I fund in your TSP. It contains only International Developed Large Cap Markets. The best Total International funds also include Emerging Markets and Small Caps. I would consider using Total Intl in your Roth IRAs and removing the I fund in your TSP. Hmmm, inte...
by bdpb
Mon Aug 10, 2015 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Hedged vs unhedged international bonds
Replies: 2
Views: 242

Re: Hedged vs unhedged international bonds

Switch. Most experts around here recommend foreign bonds be hedged.

Your arguments are all good ones. When you have a better plan, make the changes to fit the plan.
by bdpb
Sun Aug 09, 2015 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice with Roth TSP, IRA, and Taxable
Replies: 9
Views: 768

Re: Portfolio advice with Roth TSP, IRA, and Taxable

Not to side track this thread too much but here is how I came to that conclusion. Last year I was deployed for long enough that my effective tax rate dropped to below 10% (it was 8% if I remember correctly). Investing money in taxable would subject it to 15% capital gains tax on the growth of the m...
by bdpb
Sun Aug 09, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Help for a first time investor
Replies: 16
Views: 979

Re: Help for a first time investor

I really want to do the best thing with this refi of my loans. The rates I am considering are as follows: 10-year fixed: 5.50% (5.25% if I open a checking account with DRB and make automatic payments through said account) 5-year fixed: 4.50% (4.25%) 5-year variable: 3.78% (3.53%) The variable loan ...
by bdpb
Sun Aug 09, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 953

Re: Portfolio Tune Up Needed?

[Edited: Oops looks like we all may have been simultaneously posting]. As lafder suggested, it will be easier to see your whole portfolio AA if each fund % is listed like this: TSP – (77%) 7.7% G Fund Government Securities 10% (ER 0.029%) 2.3% F Fund Fixed Income Index 3% (ER 0.029%) 23.9% C Fund Co...
by bdpb
Sat Aug 08, 2015 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Help for a first time investor
Replies: 16
Views: 979

Re: Help for a first time investor

In a few years you will be in very high tax brackets. I would save every penny I could in Roth accounts today. That includes 401k and 403b. I would not pay down debts before maxing all Roth contributions. Once you start making big bucks, switch to deductible contributions and pay off all debts in ve...
by bdpb
Sat Aug 08, 2015 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed
Replies: 15
Views: 953

Re: Portfolio Tune Up Needed?

The I fund is international developed markets only. I would change my IRA to Total International index to meet your Intl AA. The TSP max is 18k. Are you really in the 28% tax bracket? If so, I would try to save more. You're in the top 5% of income earners and barely saving 10% of gross income. You c...
by bdpb
Sat Aug 08, 2015 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review/Advice Needed
Replies: 3
Views: 735

Re: Portfolio Review/Advice Needed

Wow! That's a lot of stuff. I would simplify. If the inheritance is recent and there is little or no tax implication, I would sell all the taxable, move to one brokerage and put it in US Total market index, Intl Total market index and muni bond index funds. There is so much overlap everywhere, it's ...
by bdpb
Sat Aug 08, 2015 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice with Roth TSP, IRA, and Taxable
Replies: 9
Views: 768

Re: Portfolio advice with Roth TSP, IRA, and Taxable

You are paying a lot in taxes by only contributing to Roth accounts. At this tax rate, I would contribute to deductible accounts. Change back to Roth if you happen to drop to 15% bracket. Whoa not so fast! The tax situation for active duty military is quite different from the private sector. I'm al...

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