Search found 18 matches

by diverdoc
Sun Oct 15, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Two 401k Plans - which to contribute to?
Replies: 12
Views: 768

Re: Two 401k Plans - which to contribute to?

I think most of the replies are missing the salient point that the per diem 401k would shelter a higher percentage than the TSP. Since you are in the military, it is likely that you may not have this job for more than three years. Is there a vesting requirement to keep the match? I think the optima...
by diverdoc
Sun Oct 15, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Two 401k Plans - which to contribute to?
Replies: 12
Views: 768

Re: Two 401k Plans - which to contribute to?

Not an accountant or tax attorney, but I'm pretty sure the TSP is the same as a 401k/403b in terms of tax treatment. TSP fund choices would be nearly impossible to beat. Get the match in your ML account, then max the TSP. Correct --- TSP + 401k personal contributions cannot exceed $18K per tax year...
by diverdoc
Sun Oct 15, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Two 401k Plans - which to contribute to?
Replies: 12
Views: 768

Re: Two 401k Plans - which to contribute to?

If you are a resident of CA, then TSP deferrals also would not be subject to CA taxes. I can pretty much guarantee that the expense ratios of the funds in the ML 401k will be much higher. There should be no reason not to max the TSP deferrals. I'm not a resident of CA (state of legal residence is F...
by diverdoc
Sat Oct 14, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Two 401k Plans - which to contribute to?
Replies: 12
Views: 768

Two 401k Plans - which to contribute to?

Hey Bogleheads, Couldn't find this scenario in the forums. I apologize as I won't be able to provide full details on breakdown, but I'm asking more of a theoretical question for where I should make my 401k contributions for 2018 (already maxed out this year into traditional TSP). I currently have a ...
by diverdoc
Mon Sep 25, 2017 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 919

Re: Mortgage Recast Before Renting Out

Do the financing docs say anything about how long you are expected to live there? And not to nit pick... but you already seem to know you are planning to violate the terms of the new mortgage. That's quite different from someone who has a new mortgage (or refi/recast), and *then* finds out there is...
by diverdoc
Mon Sep 25, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 919

Re: Mortgage Recast Before Renting Out

I may be a little slow on the uptake, but I wouldn't calculate a return that way. To me your total return consists of the return on your side fund during the three years before you pay down/recast the mortgage plus the 3.75% interest you avoid on the principal you've repaid from the time of repayme...
by diverdoc
Sun Sep 24, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 919

Re: Mortgage Recast Before Renting Out

runner540 wrote: ↑
Sun Sep 24, 2017 7:49 am
What do the mortgage terms say? Would the lender be willig to recast the mortgage for a rental property vs owner-occupied?
Would recast prior to moving out and renting it.
by diverdoc
Sun Sep 24, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 919

Re: Mortgage Recast Before Renting Out

With a dual physician income, there is very little reason to leverage yourself to attempt at making a 6% return. You have a very simple path to financial independence without taking on the burden of a long distance rental. Keep it simple and sock every dollar you can into index funds at your chosen...
by diverdoc
Sun Sep 24, 2017 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 919

Re: Mortgage Recast Before Renting Out

Congratulations on your first home! For an estimate, I calculated the lump sum/recast to give an annual cash-on-cash return of ~6% and $50k+ saved on interest which isn't too bad. I realize that just continuing the current terms/monthly payments with paying it down would pay it off earlier but this...
by diverdoc
Sun Sep 24, 2017 4:35 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Recast Before Renting Out
Replies: 10
Views: 919

Mortgage Recast Before Renting Out

Very big fan of this forum and still a little bit of a novice with posting. So please forgive me if this is the wrong place to post. I am in a novel situation and would be very interested in some advice about a potential restructure/recast on our mortgage vs investing. We just closed escrow on our f...
by diverdoc
Thu Jun 01, 2017 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account for emergency fund/house downpayment
Replies: 4
Views: 624

Re: Taxable Account for emergency fund/house downpayment

We saved for our home down payment in a taxable account by investing in Vanguard equity funds. We did not save in a savings account. Sure, this was riskier, but ... 1. We had no specific time frame to buy a house. We could wait many years and indeed we did ... after we moved from a high cost-of-liv...
by diverdoc
Thu Jun 01, 2017 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account for emergency fund/house downpayment
Replies: 4
Views: 624

Re: Taxable Account for emergency fund/house downpayment

I kind of think I understand what you are proposing, but the entire premise assumes you will have capital gains over a period of 3-4 years. That is far from guaranteed. It's easy to imagine the gains when we've been seeing year over year high returns for 7 years, but imagine if you spend the next 3...
by diverdoc
Thu Jun 01, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Account for emergency fund/house downpayment
Replies: 4
Views: 624

Taxable Account for emergency fund/house downpayment

Hello, I'm still new to the Bogleheads forum but I've already gained a ton of valuable information/advice. I'm currently in the military and my wife is beginning a physician residency program this year. We have already saved up our emergency fund of 3 months worth of expenses and will be saving anyw...
by diverdoc
Fri May 19, 2017 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 1201

Re: Roth vs pre-tax with higher income in the future

It's hard to predict future taxation, even if the bracket structure remains essentially the same. I'm in the low part of 28% Federal bracket in retirement after being in upper part of 25% bracket much of my working years. Had I retired five years earlier with less in tax deferred, I could have stay...
by diverdoc
Fri May 19, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 1201

Re: Roth vs pre-tax with higher income in the future

You are correct in that it is better to contribute to Roth when your tax rate is lower. For you, that is now--lower pay while in the military and in training. You are correct in that early retirees can take advantage of Roth conversions since their income is lower. But at that time, the amount to b...
by diverdoc
Fri May 19, 2017 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 1201

Re: Roth vs pre-tax with higher income in the future

Your current tax situation is unfamiliar territory. Tax deferred TSP is better if you plan to actually retire when eligible. Roth is probably better if you plan a second career after military retirement because wages + retirement pay will move you into 33% tax bracket. Target low taxable income yea...
by diverdoc
Thu May 18, 2017 2:03 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 1201

Re: Roth vs pre-tax with higher income in the future

Thanks for your reply! I was referring primarily for Roth vs "traditional" 401k (TSP) for myself. We file separately (at least for now) due to optimizing income-based loan payments w/ public service loan forgiveness in 10 years. We actually have multiple retirement account options which makes it dif...
by diverdoc
Wed May 17, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 1201

Roth vs pre-tax with higher income in the future

Greetings, I'm new to the Bogleheads forum but wanted to see if anyone might have some advice to help my wife and I as we start planning for retirement. After reviewing the articles and forum posts I hadn't seen something quite similar to our situation. I'm currently active duty in the Navy as a doc...