Search found 1465 matches

by bdpb
Sat Feb 18, 2017 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation (Young Fed Early Retiree)
Replies: 6
Views: 632

Re: Asset Allocation (Young Fed Early Retiree)

I'm a Fed at the start of a career looking to retire very early. I save >50% of my income and with an avg market return of 6%, I expect to retire in 10 years with a 4% SWR. I have significant assets invested for someone my age. The 4% SWR is based on a 30 year withdrawal. If you retire early you wi...
by bdpb
Sat Feb 18, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice regarding placement of bonds
Replies: 11
Views: 659

Re: Portfolio advice regarding placement of bonds

401k (1.5% asset based fee) 31% Large Cap (MXVIX) (ER 0.6) 7% Mid Cap (MXMDX) (ER 0.6) 7% Small Cap (MXISX) (ER 0.6) 13% International (MXINX) (ER 0.7) You are getting egregiously ripped off in your 401k. Must be a small company and the 401k provider is in cahoots with company owners. You should sp...
by bdpb
Thu Feb 16, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling Over IRA to Crappy 401k in order to backdoor roth
Replies: 22
Views: 1307

Re: Rolling Over IRA to Crappy 401k in order to backdoor roth

Does either 401k provide for mega-backdoor Roth? That is, after-tax contributions and in-service distributions/in plan Roth conversion? Do that instead of taxable investing. You could also just convert the IRA to a Roth. What do you expect your retirement marginal tax bracket to be? Since you are ma...
by bdpb
Fri Feb 10, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Yearly Check-In
Replies: 8
Views: 870

Re: New Investor Yearly Check-In

2. In order to re-balance I would make the following moves: - TSP Fund transfer 10% to G Fund (Government Bonds) - Exchange all 20% in Roth IRA from VFFVX to Admiral Shares of VTSAX - Hold remaining funds in TSP of a C to S ratio of 4:1 resulting in 53% C Fund and 17% S Fund. No International? Put ...
by bdpb
Wed Feb 08, 2017 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation percentages
Replies: 9
Views: 778

Re: Asset Allocation percentages

When I hooked up with Vanguard they suggested a 70/30 stock/bond split with: 34% large 15% small/mid 21% international 24% Intermediate term bond 6% International bond My portfolio is spread between taxable, IRAs and a 401k. Now, one could say just make adjustments to percentages but i'm looking fo...
by bdpb
Sun Feb 05, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice.. where do I go from here?
Replies: 12
Views: 1164

Re: Portfolio Advice.. where do I go from here?

I've got an Inherited IRA of what I would consider to be in the low 6 digits and a small Roth. For the purposes of this the Roth can be ignored. It's small and really needs no attention right now, can't do much with it anyways. Our personal 401k's don't need any guidance right now. You should inclu...
by bdpb
Wed Feb 01, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice.. where do I go from here?
Replies: 12
Views: 1164

Re: Portfolio Advice.. where do I go from here?

Welcome to the forum. Today I learned that I had 24% in fund expenses!! OK. I'll guess. Did you add up all the individual fund expenses to get to 24%? If that was the approach, you may want to rethink that approach. Yes, of course, just did a "=sum(A1:A-whatever)" in excel and got the tot...
by bdpb
Wed Feb 01, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous new investor for retirement savings
Replies: 10
Views: 1171

Re: Nervous new investor for retirement savings

Set your 401k and Roth contributions to match each of your AA percentages, too. That is, 42% Fid 500, 14% Fid Ext, 14% Intl, 30% bond, (Roth: 56% US, 14% Intl, 30% bond). If you have additional taxable investing, invest in these two funds and sell a corresponding amount in 401k or Roth to buy bonds...
by bdpb
Tue Jan 31, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance Help!
Replies: 9
Views: 657

Re: Health Insurance Help!

We are currently on my husband's health insurance plan but he is about to switch jobs to a job that does not offer health insurance (this is a temporary position that is a long term investment in his career). My health insurance is a PPO plan that has great coverage but if I receive a promotion tha...
by bdpb
Tue Jan 31, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous new investor for retirement savings
Replies: 10
Views: 1171

Re: Nervous new investor for retirement savings

I am looking for some solid, simple, strategic advice. Tax Rate: 25% Federal, 9.3% State State of Residence: California Age:30 yrs Desired Asset allocation: 70% stocks / 30% bonds - I would love some advice here. Desired International allocation: 20% of stocks - I would love some advice here. Curre...
by bdpb
Tue Jan 31, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 11
Views: 838

Re: Portfolio Advice

kelway wrote:and within each of those, 66% value and 34% blend. For me, that means more diversified... ymmv.

What's your definition of diversified?
How did you come up with the 66/34 split as more diversified? Why can't 67/33 or 65/35 be more diversified?
by bdpb
Tue Jan 31, 2017 12:46 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 11
Views: 838

Re: Portfolio Advice

Tax Rate: 25% Federal, 3.75% State State of Residence: Illinois Overall Portfolio Balance : ~$95,215.00 Vanguard Brokerage 100% ($6,213.18) Vanguard LifeStrategy Moderate Growth Fund Investor Shares (VSMGX) (ER .14%) Vanguard Brokerage (Her father set this up 16 years ago in my wife's name) 100% ($...
by bdpb
Tue Jan 31, 2017 12:15 am
Forum: Investing - Help with Personal Investments
Topic: Approaching 30 - Best use of excess cash for goals
Replies: 11
Views: 1442

Re: Approaching 30 - Best use of excess cash for goals

How much is your PMI and how close are you to eliminating it? PMI usually increases your effective mortgage rate by 2% to 4% or more on the PMI equity. If you really think you need a bigger house, then I would determine what my budget would look like 3 years down the road with a 20% down payment. In...
by bdpb
Mon Jan 30, 2017 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: Move EF to Roth?
Replies: 8
Views: 757

Re: Move EF to Roth?

Need more details. Are you maxing out all tax preferred accounts? Without knowing more, you should probably be making tax deductible contributions with these tax rates. If you are not maxing out tax preferred accounts it's usually best to withdraw from HSA to pay medical bills and contribute to a ta...
by bdpb
Mon Jan 30, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: Order of investing priority
Replies: 25
Views: 2318

Re: Order of investing priority

Let's say that my wife and I want to contribute $30k on an income of $170k and our 401k/403b's offer full matches if we contribute 4%. 1. 401k/403b: $6,800 2. Roth IRA: $11,000 3. 401k/403b: $12,200 Total $30,000 Sounds great in theory. However, what if, like most people, we expect to be in a lower...
by bdpb
Mon Jan 30, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: 529 plan for unborn child
Replies: 22
Views: 1696

Re: 529 plan for unborn child

I would prefer a 70/30 allocation to start, but it looks like my choices in this plan are age based, which would be 90/10 until my child is 7 years old, and choice based, which is either 100/0 for the equity portfolio or 50/40/10 for the balanced portfolio. You don't have to choose the age based fu...
by bdpb
Sun Jan 29, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: 529 plan for unborn child
Replies: 22
Views: 1696

Re: 529 plan for unborn child

I read somewhere that the expense ratios outweigh the tax benefits when investing for the long term (can't find the source right now), so choose something with low expense ratios and invest early. May be true if the ER is high enough. In this case, the ER difference is around 10 bp at worst. Roughl...
by bdpb
Sat Jan 28, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Actively Managed Account tax question
Replies: 11
Views: 931

Re: Actively Managed Account tax question

So, all the money we are paying in Capital gains tax each year is completely lost since we could have had that money in index funds and likely had no capital gain tax? The advisers over performance vs index funds is more than washed away by the cap gain tax and we are left with a negative effect. I...
by bdpb
Sat Jan 28, 2017 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA advice
Replies: 4
Views: 591

Re: Roth IRA advice

I currently have $5,500 in Vanguard Target Retirement Fund 2055....I would like my long term goal to be a two fund portfolio consisting of Vanguard Total stock market and Vanguard total bond market funds (eventually leading to admiral shares of each). I would like to get into both of these funds AS...
by bdpb
Sat Jan 28, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Suggestions for Retirement Portfolio - Dual Career Feds
Replies: 23
Views: 1666

Re: Suggestions for Retirement Portfolio - Dual Career Feds

Will you be receiving pensions? If so, that would affect the Roth vs Traditional decision.

Where do you stand relative to the child tax credit? You will want to contribute to Traditional before Roth to avoid losing this credit. Adds 5% to fed marginal rate.
by bdpb
Sat Jan 28, 2017 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Help with asset allocation - review
Replies: 3
Views: 381

Re: Help with asset allocation - review

Max'ing out contributions to all funds and now we have a savings account excess of >50K that we arent sure what to do with next. We were thinking of contributing this to our taxable account. But do we just continue to invest in VFIAX or are there better options? How can we better allocate assets to...
by bdpb
Sat Jan 28, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Portfolio Advice
Replies: 4
Views: 454

Re: Seeking Portfolio Advice

I have been considering ditching this for a 3 fund portfolio as is suggested on the forums. Should I consider more foreign exposure, more short term bonds?? I have a long term investment outlook, and can tolerate a moderate amount of risk. Desired International allocation: ?% of stocks size of your...
by bdpb
Sat Jan 28, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Vanguard Fund Help
Replies: 5
Views: 391

Re: Roth IRA Vanguard Fund Help

Use a Target Retirement fund until you have a few years contributions accumulated.

The TR funds are diversified and very simple to invest in.
by bdpb
Sat Jan 28, 2017 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: 529 plan for unborn child
Replies: 22
Views: 1696

Re: 529 plan for unborn child

We live in IL, but I have heard some bad things about the Illinois Bright Start college savings plan. We plan on contributing around $4,500 per year to the plan, so the $225 tax break we'll lose each year is worth the peace of mind of getting in a plan that I trust. What have you heard? The tax bre...
by bdpb
Sat Jan 28, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads-Seeking Suggestions for our Investments
Replies: 12
Views: 1090

Re: New to Bogleheads-Seeking Suggestions for our Investments

Debt: $148K owed on mortgage @ 3.75%- On yr. 27 of 30 but have been making various extra payments Tax Rate: 25% Federal, 0% State Desired Asset allocation: We are comfortable with 100% stocks for the next decade, but up for discussion. Desired International allocation: Up for discussion. Current re...
by bdpb
Sat Jan 28, 2017 12:57 am
Forum: Investing - Help with Personal Investments
Topic: Please Help with Portfolio Review
Replies: 5
Views: 568

Re: Please Help with Portfolio Review

Taxable Account 0.6% Brown Capital Management Small Company Fund BCSIX 1.27% 1.5% Fidelity® Disciplined Equity Fund FDEQX 0.68% Her Company Stock Plan 0.9% Gilead RSUs GILD 1.2% Gilead ESPP GILD 11.4% Gilead Stock Options GILD New annual Contributions $55K ESPP (15% discount, hold long enough to ge...
by bdpb
Fri Jan 27, 2017 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETFs vs. Mutual Funds
Replies: 10
Views: 710

Re: Vanguard ETFs vs. Mutual Funds

livesoft wrote:But you could use $10,000 to buy VTSAX and remaining $1,000 could buy shares of BND and/or VXUS.

This doesn't come anywhere close to his stated goal of a three fund portfolio.
by bdpb
Fri Jan 27, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Warning: Max out 401k early - lose some of the match
Replies: 32
Views: 2045

Re: Warning: Max out 401k early - lose some of the match

my company won't "true up" AND won't match the over 50 "catch up" contributions. So when you hit $18,000 in September the company matching stops even though your contributions continue through the end of the year? That sounds like a bug in their payroll software or something. Ar...
by bdpb
Fri Jan 27, 2017 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETFs vs. Mutual Funds
Replies: 10
Views: 710

Re: Vanguard ETFs vs. Mutual Funds

ETFs are harder to invest in than mutual funds, especially for beginners. You will need to understand bid/ask spreads, premium/discount prices and must be available during trading hours to actually purchase or sell the ETFs. Invest in one fund, a Target Retirement fund. It will cost you $8 extra per...
by bdpb
Thu Jan 26, 2017 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Moving away from Target funds, and opening a taxable account
Replies: 15
Views: 1824

Re: Moving away from Target funds, and opening a taxable account

I think you've done a good job evaluating all your options. I think any of the three options are acceptable, but I would not do option 3 because it's generally less tax efficient to hold bonds in taxable accounts. If you end up choosing option 3, you might be better off with a tax exempt muni bond f...
by bdpb
Thu Jan 26, 2017 1:13 am
Forum: Investing - Help with Personal Investments
Topic: Moving away from Target funds, and opening a taxable account
Replies: 15
Views: 1824

Re: Moving away from Target funds, and opening a taxable account

One other thought. Do you really want/need to put stocks in taxable? For another simplification, you could just pay down your mortgage with the extra cash (kind of overlooked the obvious). It wouldn't exceed the return of a long bond, but might be fairly close. Then: His and her Roth: TR 2035 fund H...
by bdpb
Thu Jan 26, 2017 12:59 am
Forum: Investing - Help with Personal Investments
Topic: Moving away from Target funds, and opening a taxable account
Replies: 15
Views: 1824

Re: Moving away from Target funds, and opening a taxable account

Great info here. What about the option of rolling over my former 403b to my current 403b, putting those funds into the aforementioned three (SP500/SC/Bond)? Just wondering if it'd make more sense to do that for the lower ERs alone, leaving my wife's accounts using the TR2035 fund. Unfortunately, yo...
by bdpb
Wed Jan 25, 2017 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Moving away from Target funds, and opening a taxable account
Replies: 15
Views: 1824

Re: Moving away from Target funds, and opening a taxable account

The Roth IRA max is 5500. Sorry, I meant that this was around the max that I could contribute based on my MAGI. The last time that I didn't do the math, I contributed too much and had to do a backdoor Roth and re-characterization. Yes I would roll the old 403b over no matter what option you take. S...
by bdpb
Wed Jan 25, 2017 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Moving away from Target funds, and opening a taxable account
Replies: 15
Views: 1824

Re: Moving away from Target funds, and opening a taxable account

His current 403(b) at TIAA-CREF - $60,616 - 27% 23% Vanguard Institutional Index Fund Institutional (VINIX) (0.04%) 4% Vanguard Total Bond Market Index Fund Admiral (VBTLX) (0.06%) His former employer's 403(b) at Vanguard - $69,323 - 31% 31% Vanguard Target Retirement 2035 Fund (VTTHX) (0.15%) His ...
by bdpb
Mon Jan 23, 2017 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Opening a Roth IRA or Traditional IRA for my wife who does not work?
Replies: 19
Views: 1172

Re: Opening a Roth IRA or Traditional IRA for my wife who does not work?

My current salary is $86,000. My salary will increase to around $100,000 within the next couple years.Currently we fall into the 25% tax bracket and we will be always be in that bracket. With 86k income you are not in the 25% fed tax bracket. Standard deduction and 3 exemptions reduces your income ...
by bdpb
Fri Jan 20, 2017 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: Fund set up after lowering 529 contributions
Replies: 6
Views: 793

Re: Fund set up after lowering 529 contributions

I have just cut back contributions to $167 per month per child since max write off is $4k per year This is the Illinois Bright Start 529? A tax deduction is available for contributions up to $20,000 per year, so I am confused by your reference to $4,0000? From https://www.brightstartsavings.com/OFI...
by bdpb
Fri Jan 20, 2017 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: How can I improve my current plan?
Replies: 5
Views: 582

Re: How can I improve my current plan?

You are doing very well at saving and living below your means - obviously the two go hand in hand. You are keeping your costs low, which is also good, but are not as well diversified as you should be for someone with your asset level. I second the recommendation to add 20% bonds to your portfolio -...
by bdpb
Fri Jan 20, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Early 30s couple looking for general feedback and advice on tax and retirement investing
Replies: 3
Views: 762

Re: Early 30s couple looking for general feedback and advice on tax and retirement investing

You might contribute more to the 529. You won't get additional state tax deductions, but the earnings are still tax free if used appropriately.

Have you checked for after-tax contribution and in-service withdrawals or conversions in your 401k (to get more in Roths)?
by bdpb
Fri Jan 20, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Fund set up after lowering 529 contributions
Replies: 6
Views: 793

Re: Fund set up after lowering 529 contributions

I would just keep it simple and use the Age Based Portfolios. You don't have to choose exactly based on their age. You can choose whichever fund corresponds to how much risk in equities you are comfortable with. It's simple enough to change to a different fund at any time (e.g., if the stock markets...
by bdpb
Fri Jan 20, 2017 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Which funds should I buy for my HSA?
Replies: 5
Views: 714

Re: Which funds should I buy for my HSA?

. Yes but it taxed as capital gains, which should be much lower than the ordinary income tax rates CG are taxed as ordinary income in CA. OP, It looks like your best options are IEI and VGIT, intermediate government bonds. You will have to double check that both of these funds contain only state ta...
by bdpb
Thu Jan 19, 2017 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Possible reality check needed?
Replies: 13
Views: 914

Re: Possible reality check needed?

This past year, I made a bit over $47,000. I am expecting to make ~$60,000/year over my final years, with a good chunk of that being tax free. When I get to Asia, should I put traveling off and save all of my money, or is it ok for me to continue what I'm doing, minus the credit card debt? Pay your...
by bdpb
Thu Jan 19, 2017 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes owed 2016 as % of AGI?
Replies: 18
Views: 1100

Re: Taxes owed 2016 as % of AGI?

Just preliminarily crunched the numbers for 2016, and our total tax is 155k (125k Federal, 30k State) on 450k income, or 35% of our AGI. This is a massive jump for us, as our salary was significantly lower in 2015 (paid 60k total tax on 260k income, or 23% of AGI). We maximize contributions to 403b...
by bdpb
Wed Jan 18, 2017 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative investments to prepaying Mortgage
Replies: 20
Views: 2263

Re: Alternative investments to prepaying Mortgage

I can't quite wrap my head around these calculations -- still a little confused. If my principal balance is around 150K, and the mortgage is for 3.25%, does that mean I simply need > 3.25% in investment earnings tax equivalent to come out ahead ? Or do I need to use the amortization based method yo...
by bdpb
Wed Jan 18, 2017 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative investments to prepaying Mortgage
Replies: 20
Views: 2263

Re: Alternative investments to prepaying Mortgage

I can't quite wrap my head around these calculations -- still a little confused. If my principal balance is around 150K, and the mortgage is for 3.25%, does that mean I simply need > 3.25% in investment earnings tax equivalent to come out ahead ? Or do I need to use the amortization based method yo...
by bdpb
Tue Jan 17, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Helping family member with taxable account
Replies: 11
Views: 471

Re: Helping family member with taxable account

Do they have a mortgage? If so, pay it off. Save and invest the former mortgage payments (preferably in 403b and IRAs).

Split the rest into US total market index and Intl total market index (maybe 2 to 1 ratio). Lower the date of the TR funds to get more bonds.
by bdpb
Tue Jan 17, 2017 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative investments to prepaying Mortgage
Replies: 20
Views: 2263

Re: Alternative investments to prepaying Mortgage

If you invest in bonds with comparable risk to your mortgage, you will likely not earn much more than your current mortgage rate. At best, it's likely to work out to a couple of hundred bucks a year (peanuts compared to your income). If I were in this situation, I would simplify things and just pay ...
by bdpb
Wed Jan 04, 2017 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio (first-time poster)
Replies: 9
Views: 901

Re: Help with portfolio (first-time poster)

You need to determine your actual marginal tax rates. I doubt that it's possible that you can be 28% fed and 5.89% CA. More likely, 28% fed puts you at over 9% CA. These tax rates will determine whether to contribute to deductible or Roth accounts. For retirement savings, max out tax advantaged acc...
by bdpb
Tue Jan 03, 2017 12:19 am
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio (first-time poster)
Replies: 9
Views: 901

Re: Help with portfolio (first-time poster)

Tax Rate: 28% Federal, 5.89% State (I think?) State of Residence: CA New annual Contributions $12,000 his traditional 401k $4,200 her traditional 401k (matched 100%) $5,500 his Roth IRA $10,000 taxable (for retirement, not short term goals) You need to determine your actual marginal tax rates. I do...
by bdpb
Fri Dec 09, 2016 1:51 am
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth Ira conversion
Replies: 19
Views: 997

Re: 401K to Roth Ira conversion

I will need to draw some money from my 401K to get my income high enough to qualify for the ACA Health plans in Illinois. I am thinking it would make more sense to do the 401K withdrawals and invest it in my taxable account where the dividends would be tax free and I could access the earnings at an...
by bdpb
Fri Dec 09, 2016 1:24 am
Forum: Investing - Help with Personal Investments
Topic: Help balancing stock/bonds in portfolio efficiently
Replies: 8
Views: 1048

Re: Help balancing stock/bonds in portfolio efficiently

Looking for simplest way to decrease stock/bond ratio as currently it's 87%/13% and I'd like to gradually work risk down just a bit (80%/20%) this next year . Main reason is just to regulate risk a bit more. Retirement transactions all on autopilot so would like to just set them up for 2017 and let...

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