Search found 39 matches

by jr6857
Sat Jan 20, 2018 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 931

Re: Mortgage Payoff Advice with Appreciated Securities

Thanks JBTX. That is very good advice and the reason I decided to post, which was to challenge my logic. In my own mind I debated if I was conflating the two issues - portfolio structure (risk tolerance) versus market "timing" to complete mortgage payoff. I really am comfortable with 60/40 so I don'...
by jr6857
Sat Jan 20, 2018 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 931

Re: Mortgage Payoff Advice with Appreciated Securities

KlangFool - thanks for the continued follow-up. My view is that a recession is an ordinary part of the business cycle. It is why I stay at 60/40 - to allow me to sleep at night. I consider a dramatic change as a once in every 30-50 year event (depression/major market crash; large scale war; other bl...
by jr6857
Sat Jan 20, 2018 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 931

Re: Mortgage Payoff Advice with Appreciated Securities

Wagnerjb - thanks, you are right in that the Medicare surcharge does kick in and the capital gains rate will be 18.8%. I missed the fine print on that one:). Thus I've understated taxes by $5k. I am reluctant to refinance at this stage so the alternative is to aggressively pay it down with monthly c...
by jr6857
Sat Jan 20, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 931

Re: Mortgage Payoff Advice with Appreciated Securities

KlangFool - house value is $500K. I indicated "almost" worst case scenario which assumes no dramatic change in the overall economic environment. There are all kinds of really bad things (black swans, etc) that could happen and I understand that but at the end of the day we can't plan for them. itsto...
by jr6857
Sat Jan 20, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 931

Re: Mortgage Payoff Advice with Appreciated Securities

Thank you for the replies. The gain on sale is approximately $150K (cost basis is ~$175K) so the capital gains rate will be 15%. [The 15% rate for capital gains applies for total taxable income below $480K for married filing jointly.] I do have approximately $35K in taxable bonds with limited gain w...
by jr6857
Sat Jan 20, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Advice with Appreciated Securities
Replies: 17
Views: 931

Mortgage Payoff Advice with Appreciated Securities

I am considering the payoff of my mortgage with outstanding principle of $300K, using highly appreciated (~90% gain) equity index funds. The key elements of my thinking are based on the new tax law, highly valued equity markets, and the desire to enter retirement in five years mortgage free. A few k...
by jr6857
Fri Jan 19, 2018 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing for a lay off - what steps to take now
Replies: 37
Views: 3598

Re: Preparing for a lay off - what steps to take now

One item that I see missing from the thread is how you manage the Flexible Spending Account (FSA), assuming you have one. Contributions will cease to the FSA upon layoff. So you will not contribute the full amount that you originally requested during benefits enrollment. However, you can actually sp...
by jr6857
Mon Mar 20, 2017 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Any downside in buying a brand new house ?
Replies: 71
Views: 6368

Re: Any downside in buying a brand new house ?

Purchased two new construction homes in past seven years - most recent one a year ago. Typically one year warranty covers most problems. However, total price will be significantly above the home itself. In my area, the additional items out of pocket include deck and or patio, window treatments, inte...
by jr6857
Sun Mar 05, 2017 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Job Offer
Replies: 12
Views: 1863

Re: Job Offer

I'd be very wary with the new company being acquired by a very large company. There is some risk to you that they will try to leverage their existing sales force as part of the justification to buy the business. Under such a scenario, you could quickly be out of a job. It is unlikely that management...
by jr6857
Mon Feb 27, 2017 7:10 am
Forum: Investing - Help with Personal Investments
Topic: tax efficiency advice for retirement withdrawals
Replies: 4
Views: 770

Re: tax efficiency advice for retirement withdrawals

I struggle with the same question. I am at about 50/50 taxable vs tax deferred with significant gains built into the taxable accounts. I am aiming for a higher spending level ($150k) and have read the same advice. The problem, from my perspective, is that the after-tax withdrawals look very differen...
by jr6857
Mon Feb 13, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Home Stretch – Withdrawal Strategy & Taxes
Replies: 5
Views: 805

Re: Home Stretch – Withdrawal Strategy & Taxes

Thanks Jbmke. I guess I will give it more thought. To some extent, I am trying to replicate a paycheck in retirement where I have a consistent level of spendable "income" in the form of cash streams. This income will be above my routine expenses and provides the cushion for play money. I understand ...
by jr6857
Sun Feb 12, 2017 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Home Stretch – Withdrawal Strategy & Taxes
Replies: 5
Views: 805

Re: Home Stretch – Withdrawal Strategy & Taxes

Thanks for the feedback. I guess my concern is the variability in taxable income will be significant year-to-year under a constant withdrawal rate. For example, if I assume [$27K pension plus $38K of SS (taxable portion at 85%)] or $65K as a base level of income with the addition of a 4% rule portfo...
by jr6857
Sun Feb 12, 2017 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Home Stretch – Withdrawal Strategy & Taxes
Replies: 5
Views: 805

Home Stretch – Withdrawal Strategy & Taxes

Background . Retiring in five years. Clear path but trying to conceptualize withdrawal strategy with goal to level annual income after taxes. General info – 58 years old, married; non-COLA pensions of ~$27K and SS (incl spousal) @ $45K at FRA. Retirement portfolio will be $2M ($1.5M today; all inde...
by jr6857
Thu Nov 24, 2016 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Cashing in 401k
Replies: 13
Views: 1951

Re: Cashing in 401k

One option to explore, which allows the 401-K funds to be accessed tax-free as a source for financing a business start-up, is a ROBS (roll over business start-up). You can Google this approach. When I was considering funding for a start-up, I seriously explored this approach using my IRA as the prim...
by jr6857
Wed Aug 03, 2016 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: House Hunting
Replies: 16
Views: 2355

Re: House Hunting

I live in a brand new sub-division. 43 new houses were built and sold within the past year. Of the 43, roughly half are the most popular model. The purchase price spread for this one model is $150k (all data is publicly available via county tax records) with a max price of $522k. The variation in pr...
by jr6857
Wed Jul 06, 2016 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Question for 88 Yr Old Mother
Replies: 14
Views: 1310

Re: Lump Sum Question for 88 Yr Old Mother

Thanks again for all of the heartfelt input as well as wise advice. As far as dementia, fortunately my Mom has a type that seems to progress very slowly when compared against most typical cases. It has been ten years since first identified. There has certainly been some cognitive decline over the pe...
by jr6857
Wed Jul 06, 2016 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Question for 88 Yr Old Mother
Replies: 14
Views: 1310

Re: Lump Sum Question for 88 Yr Old Mother

Thanks again for all of the heartfelt input as well as wise advice. As far as dementia, fortunately my Mom has a type that seems to progress very slowly when compared against most typical cases. It has been ten years since first identified. There has certainly been some cognitive decline over the pe...
by jr6857
Wed Jul 06, 2016 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Question for 88 Yr Old Mother
Replies: 14
Views: 1310

Re: Lump Sum Question for 88 Yr Old Mother

Thanks for the additional input. I am leaving it at Edward Jones for two reasons: (1) given the transfer hassles including the paperwork piece between my Mom, sister (technically POA but no interest in investing or this process except as a conduit for my actions) and Vanguard and (2) other than comm...
by jr6857
Wed Jul 06, 2016 6:08 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Question for 88 Yr Old Mother
Replies: 14
Views: 1310

Re: Lump Sum Question for 88 Yr Old Mother

Thanks guys for your input. Interestingly, my siblings could care less and are just highly appreciative that I've stepped up to manage the finances after my Dad's passing. They will not second guess any decision. I am the one who is concerned with doing the right thing for all involved. I don't see ...
by jr6857
Tue Jul 05, 2016 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Question for 88 Yr Old Mother
Replies: 14
Views: 1310

Lump Sum Question for 88 Yr Old Mother

My Dad passed away a little over a year ago. My mother is still alive at 88 years old but suffers from some dementia and lives in an assisted living facility. They have had a modest investment with Edward Jones of ~$230K invested haphazardly but with an overall stock/bond mix of 50/50. Her monthly e...
by jr6857
Tue Feb 23, 2016 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Buying Home to Downsize
Replies: 10
Views: 1594

Re: Buying Home to Downsize

Considering your sizable investments and net worth, I see your proposed path as appropriate. Using the line of credit plus available cash will eliminate the need for transitional asset sales or bridge financing. You can then transition to the new house in a flexible manner. You can also then determi...
by jr6857
Sun Feb 14, 2016 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Should my son stay on my benefit plan?
Replies: 40
Views: 3119

Re: Should my son stay on my benefit plan?

No, you are not missing anything. I still have two kids on my plan that are working and 22 or older. A third got off when he turned 26. In our case, we even handle the co-pays and other out of pockets for them. In return, they fund their 401-k as you suggest. It is just a small way to help them out.
by jr6857
Mon Dec 07, 2015 8:37 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Partnering with Yodlee
Replies: 153
Views: 27872

Anyone having problems with Yodlee?

I enrolled with Yodlee with Vanguard as mandated to aggregate my accounts. It worked fine the first couple of days in November following enrollment. However, starting Nov 28 it went a little crazy. The Vangaurd accounts work fine and after a couple of days the Fidelity account started showing the co...
by jr6857
Tue Oct 20, 2015 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Should I pay off a big chunk of my mortgage? Just getting started here.
Replies: 10
Views: 1639

Re: Should I pay off a big chunk of my mortgage? Just getting started here.

I will take a stab at this and I am sure that others will jump in. Since you receive no tax benefit from the mortgage deduction, you would need to generate a 4.5% annual return (net of taxes) on the investment to break even. In this low interest environment, that simply is not possible without takin...
by jr6857
Mon May 11, 2015 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Father Passed Away - Helping Mother Manage Accounts
Replies: 9
Views: 1322

Re: Father Passed Away - Helping Mother Manage Accounts

In response to your follow-up question -- as long as your father's name still appears on the joint bank account, you will have no problem depositing checks made out to him. Eventually you will want to remove his name from the account but wait until you are certain that no more checks will be receive...
by jr6857
Mon May 11, 2015 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Father Passed Away - Helping Mother Manage Accounts
Replies: 9
Views: 1322

Re: Father Passed Away - Helping Mother Manage Accounts

I am sorry for your loss. My father passed away in late January in Pennsylvania so unfortunately we have covered similar ground. As far as the investment accounts, others have chimed in and you will have no shortage of advice so I won't be redundant. There are other areas you may consider. If he was...
by jr6857
Tue May 27, 2014 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Your Company Ever Been "Spun-Off"? Any Stories/Suggestions?
Replies: 23
Views: 2594

Re: Your Company Ever Been "Spun-Off"? Any Stories/Suggestio

I have been involved in spin-offs both at the planning level and an actual participant. The idea is that additional value can be created as each business can now pursue its destiny and make decision sun encumbered by the previous corporate center. Typically the corporate staff can undergo major chan...
by jr6857
Wed Feb 26, 2014 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Transfer Accounts from E*TRADE to Vanguard
Replies: 10
Views: 1812

Re: Transfer Accounts from E*TRADE to Vanguard

Although OP is satisfied, I am curious if anyone has transferred a taxable account from E-Trade to Vanguard's brokerage? Did E-Trade charge an account closure fee for an in-kind transfer? Did Vanguard handle the administrative piece for you? Any experience specific to a std brokerage account transfe...
by jr6857
Wed Sep 11, 2013 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Relocation - New Home Financing Structure
Replies: 5
Views: 832

Re: Relocation - New Home Financing Structure

We are checking out the local area over the next few days. I do think that we will be able to find something that works at our targeted price point despite the price recovery.
by jr6857
Wed Sep 11, 2013 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Relocation - New Home Financing Structure
Replies: 5
Views: 832

Re: Relocation - New Home Financing Structure

Thanks for the feedback and different perspectives. To answer one of the questions, the relo policy has no guaranteed piece protection or buyout on the new house. I assume all pricing risk. There is merit to paying cash and accepting the "guaranteed" return on the incremental cash portion. Although ...
by jr6857
Wed Sep 11, 2013 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Relocation - New Home Financing Structure
Replies: 5
Views: 832

Relocation - New Home Financing Structure

Hi everyone, Rare poster but continuous follower of the site. Portfolio managed according to Boglehead principles for seven years with great success thanks to the contributions of those on this site. I have read the many postings associated with the tradeoff of paying off amortgage vs. investing, I ...
by jr6857
Tue Mar 01, 2011 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Company Stock in Asset Allocation
Replies: 10
Views: 1835

Thank you for the feedback. When my RSU's vest, it is in sufficient quantities that the transaction costs are immaterial. The Plan is structured through Schwab and typical cost of a stock sale is only $10. Depending on the particular lot, it is only 0.07% or less of the value. I do appreciate everyo...
by jr6857
Tue Mar 01, 2011 12:10 am
Forum: Investing - Help with Personal Investments
Topic: Company Stock in Asset Allocation
Replies: 10
Views: 1835

Thanks! I agree with your view on RSU's and have also sold upon vesting. I understand why you do not include them in your asset allocation similar to future salary. That is the conservative view that I've taken as well. I've decided to let my options ride and try to take maximum advantage of the tim...
by jr6857
Mon Feb 28, 2011 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: Company Stock in Asset Allocation
Replies: 10
Views: 1835

Thanks. In this case, the vast majority of my current company stock holdings are not vested. In the case of stock options, my plan is to exercise them opportunistically in the sixth year (e.g. year of expiration) in a cashless exercise and reinvest in suitable ETF's. Restricted stock thus far has be...
by jr6857
Mon Feb 28, 2011 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Company Stock in Asset Allocation
Replies: 10
Views: 1835

Company Stock in Asset Allocation

I've been a quiet (non-posting) Boglehead for the past several years but have instituted many of the concepts suggested through the forum. One area that I've wrestled with is how to handle company stock and options as part of my asset allocation strategy. A meaningful portion of my portfolio is tied...
by jr6857
Wed Feb 25, 2009 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Relocation - New Spec Home Purchase Price Advice
Replies: 3
Views: 867

Thanks for your input. No, the development is well built out. There are still open lots and maybe six-ten spec homes at different price points but they are already in Phase III and have many homes completed over the past 15 years (perhaps 700?). It includes two golf courses (one much newer than the ...
by jr6857
Tue Feb 24, 2009 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation - New Spec Home Purchase Price Advice
Replies: 3
Views: 867

Relocation - New Spec Home Purchase Price Advice

I am relocating to southwest South Carolina (from Michigan) with a new company in a high level management position. My wife and I spent the weekend house hunting and found a home that we liked. In this crazy real estate market, I am interested in your thoughts on an appropriate bidding and pricing s...
by jr6857
Fri Jan 18, 2008 10:59 am
Forum: Investing - Help with Personal Investments
Topic: SERP (Supplemental Executive Retirement Plan)
Replies: 4
Views: 1436

Thanks

Thanks for the tip on the previous threads. I found them most helpful.
by jr6857
Fri Jan 18, 2008 12:32 am
Forum: Investing - Help with Personal Investments
Topic: SERP (Supplemental Executive Retirement Plan)
Replies: 4
Views: 1436

SERP (Supplemental Executive Retirement Plan)

I did a quick check of the site and found no references to this topic. As I've lately become a Boglehead convert, I thought I'd get an opinion on continued investing in a SERP plan that is offered to me at my Fortune 500 place of employment. The Plan is similar to a 401-K with additional and differe...