Search found 41 matches

by matt87109
Fri Jul 21, 2017 12:46 am
Forum: Investing - Help with Personal Investments
Topic: After-tax contributions to Vanguard managed 401k
Replies: 8
Views: 517

Re: After-tax contributions to Vanguard managed 401k

Even if my company gave 100% match to 18k, doesn't the 53k limit suggest after-tax dollars are an option? Just because after-tax contributions are allowed by the IRS does not mean they are required. It's up to your employer to decide what 401k options its plan will have. Roth 401k contributions are...
by matt87109
Thu Jul 20, 2017 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax contributions to Vanguard managed 401k
Replies: 8
Views: 517

Re: After-tax contributions to Vanguard managed 401k

Even if my company gave 100% match to 18k, doesn't the 53k limit suggest after-tax dollars are an option? Just because after-tax contributions are allowed by the IRS does not mean they are required. It's up to your employer to decide what 401k options its plan will have. Roth 401k contributions are...
by matt87109
Wed Jul 19, 2017 11:55 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax contributions to Vanguard managed 401k
Replies: 8
Views: 517

Re: After-tax contributions to Vanguard managed 401k

my SPD indicates the limit I can contribute is 53k, yet vanguard is telling me my plan does not allow after-tax contributions. These facts would seem to be in conflict right? Does anybody have experience with this scenario? Thanks! What conflict are you referring? The ability to contribute 53k per ...
by matt87109
Wed Jul 19, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax contributions to Vanguard managed 401k
Replies: 8
Views: 517

Re: After-tax contributions to Vanguard managed 401k

my SPD indicates the limit I can contribute is 53k, yet vanguard is telling me my plan does not allow after-tax contributions. These facts would seem to be in conflict right? Does anybody have experience with this scenario? Thanks! What conflict are you referring? The ability to contribute 53k per ...
by matt87109
Wed Jul 19, 2017 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax contributions to Vanguard managed 401k
Replies: 8
Views: 517

After-tax contributions to Vanguard managed 401k

my SPD indicates the limit I can contribute is 53k, yet vanguard is telling me my plan does not allow after-tax contributions. These facts would seem to be in conflict right? Does anybody have experience with this scenario? Thanks!
by matt87109
Mon Jul 17, 2017 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

matt87109, Not sure why no one has curbed your enthusiasm yet, but the main reason that you've never heard of the MegaBackdoor Roth until recently is that so few people have the opportunity to make use of it. First, as noted, your plan has to offer after-tax employee contributions. This is rare. Al...
by matt87109
Mon Jul 17, 2017 12:06 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Is this typical of vanguard? It's not Vanguard's rules as much as it is your employer's rules. Do I need to ask for a certain thing to get this info? The "Summary Plan Description" is the document to request. Your employer is obligated to provide it. It's not light reading, but it is what...
by matt87109
Sun Jul 16, 2017 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Thank you. In fact my motivation is trying to understand my traditional vs roth 401k contributions. Are you aware of a published method to analyze this? Not sure it rises to the level of a "published method" but the tool used to generate those marginal rate charts (see Personal finance to...
by matt87109
Sun Jul 16, 2017 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Why would one year would it be 15% and others 27.5%? If you retire in the 15% tax bracket, your marginal tax rate is 15% before you start taking Social Security. It will probably be 27.75% after you start taking Social Security because of the phase-in. (It might be 15% even when you are taking Soci...
by matt87109
Sun Jul 16, 2017 12:59 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Thank you. In fact my motivation is trying to understand my traditional vs roth 401k contributions. Are you aware of a published method to analyze this? Not sure it rises to the level of a "published method" but the tool used to generate those marginal rate charts (see Personal finance to...
by matt87109
Sat Jul 15, 2017 2:09 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Thank you very much. For the married couple, it seems obvious you would withdrawal roth dollars as soon as you hit the second marginal rate spike, rather than paying the higher rate on additional traditional withdrawals. That's what I'm supposed to gleam correct? Yes, that is one use. For the singl...
by matt87109
Fri Jul 14, 2017 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

This is why a Roth account is usually recommended over a traditional account in a 15% tax bracket, as long as you have enough traditional money that you will still be in the 15% tax bracket. You will have 15% marginal tax rate in some years in retirement, and 27.75% in other years. I think I unders...
by matt87109
Fri Jul 14, 2017 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

The phase-in of SS is important in this type of computation because it affects your marginal tax rate. If you retire in the 15% tax bracket, your marginal tax rate is likely to be 27.75% once you start taking Social Security. This is why a Roth account is usually recommended over a traditional acco...
by matt87109
Fri Jul 14, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Thank you. I understood the marginal tax issue on contributions, I just was not understanding the wording on the withdrawal side, further complicated by SS getting phased in on being taxed. The phase-in of SS is important in this type of computation because it affects your marginal tax rate. If you...
by matt87109
Fri Jul 14, 2017 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

One way to see why to use marginal rates is to make the decision one dollar at a time. If your employer offers both traditional and Roth options, and you are in the 25% bracket, you could put everything in a Roth 401(k) which will grow tax-free. You could instead contribute $1 less to the Roth 401(...
by matt87109
Fri Jul 14, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Other with a Vanguard managed 401k w/ Roth option
Replies: 4
Views: 347

Re: Other with a Vanguard managed 401k w/ Roth option

Yes; in "Balances and Holdings" I have two retirement accounts; each has a link to "Go to my retirement plans area". There I click on the name of the "Plan" the contains the Roth funds. There I have options to view by Fund, Asset class or Source of contribution. It see...
by matt87109
Fri Jul 14, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Other with a Vanguard managed 401k w/ Roth option
Replies: 4
Views: 347

Re: Other with a Vanguard managed 401k w/ Roth option

Similar situation. I was really surprised that a separate account was not created when the Roth option was added. The best way to differentiate on line that I have discovered is the "Source of Contributions" option in the Retirement Center view. I do not imagine this will be a problem; ho...
by matt87109
Fri Jul 14, 2017 12:39 am
Forum: Investing - Help with Personal Investments
Topic: Other with a Vanguard managed 401k w/ Roth option
Replies: 4
Views: 347

Other with a Vanguard managed 401k w/ Roth option

Thanks for reading this. My company recently added a roth option to our 401k plan managed by Vanguard. About six months ago I started making a portion of my contributions roth and portion pre-tax. I was reviewing my account recently and I noticed Vanguard does not appear to do much in the way of kee...
by matt87109
Tue Jul 11, 2017 11:42 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account, how does it work?
Replies: 13
Views: 1400

Re: Taxable account, how does it work?

VTSAX and the VTI ETF are both share classes of the same fund. Since this mutual fund has a "partner" ETF, you are unlikely to receive capital gains in this fund. The mechanics of why this occurs is somewhat complicated, but there are many threads here that dive into it. Thank you. I'll s...
by matt87109
Tue Jul 11, 2017 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account, how does it work?
Replies: 13
Views: 1400

Re: Taxable account, how does it work?

..................................... Capital gains are not reported on 1099-DIV, they are reported on a 1099-B form, which you also get at tax time from the fund company. just to clarify...........CG on shares sold by you are reported on 1099-B. CG distributions distributed by the fund to you are ...
by matt87109
Tue Jul 11, 2017 11:36 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account, how does it work?
Replies: 13
Views: 1400

Re: Taxable account, how does it work?

In my experience, there's no way to predict in advance what a $250k will do to your taxes. It depends whether the stocks go up or down, what distributions the fund makes, what funds or sectors you buy, etc. Worst case (or best, since I was making money), in my $500k taxable holdings I've had a $8-1...
by matt87109
Tue Jul 11, 2017 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account, how does it work?
Replies: 13
Views: 1400

Re: Taxable account, how does it work?

..................................... Capital gains are not reported on 1099-DIV, they are reported on a 1099-B form, which you also get at tax time from the fund company. just to clarify...........CG on shares sold by you are reported on 1099-B. CG distributions distributed by the fund to you are ...
by matt87109
Tue Jul 11, 2017 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

Basically people don't realize the progressive tax structure and how some of a traditional portfolio's withdrawals would be taxed at a lower rate (compared to the marginal contributions in the past), but not all. Correct. A traditional account operates, in effect, on a First In First Out (FIFO) bas...
by matt87109
Tue Jul 11, 2017 2:16 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

"Combining the above two items can produce even higher rates. For a single person age 65, with $12,000 in qualified dividends, $27,000 from social security, and $24,000 in traditional IRA distributions, the marginal rate for more[3] traditional IRA distributions is 55.5% qualified dividends is...
by matt87109
Mon Jul 10, 2017 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable account, how does it work?
Replies: 13
Views: 1400

Taxable account, how does it work?

Is this understanding correct? I buy 10k of VTSAX on January 1. Reviewing the "distributions" tab for VTSAX on vanguard.com I noticed they pay about .25 dividend distributions 4 times per year. If the cost is 60 dollars/share, then I own 167 shares (10k/60). This calculates to 4 distributi...
by matt87109
Mon Jul 10, 2017 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

dbr wrote:It might be better to work up a dummy tax calculation and actually compute total tax cost across different scenarios than try to guess or misunderstand what tax rate applies to what.


Yes thank you. I have done/doing this. Just trying to understand the domain so I can theorize.
by matt87109
Mon Jul 10, 2017 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Re: Help with explanation in wiki on taxes

I was able to find the first part in the wiki: https://www.bogleheads.org/wiki/Traditional_versus_Roth and the second part: https://www.bogleheads.org/wiki/Marginal_tax_rate . To explain the first part: when people try to determine whether to go Traditional or Roth, one common misstep is to calcula...
by matt87109
Sun Jul 09, 2017 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help with explanation in wiki on taxes
Replies: 29
Views: 2008

Help with explanation in wiki on taxes

I think I understand the following from the wiki, but will somebody state this in simpler terms please? Also I have question below the quote. Thank you! "A common misunderstanding about traditional accounts is "contributions are taken from the top while withdrawals come from the bottom&quo...
by matt87109
Fri Jun 30, 2017 1:40 am
Forum: Investing - Help with Personal Investments
Topic: Am I on track, or just crazy...
Replies: 38
Views: 5705

Re: Am I on track, or just crazy...

I was reading about window(er) status tonight. I thought it only applied for two years after the death of a spouse. I'm a little confused by the discussion of him/her. Sorry if I'm misunderstanding. Asking because of my personal situation. Thanks.
by matt87109
Thu Jun 29, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

The other factor is turnover. At a turnover of 4% this exposure amounts to nothing. There is a big difference between a large asset class index fund and a high turnover active fund passing on capital gains distributions. Thank you. So low turnover indicates they won't likely realize those gains. Ob...
by matt87109
Thu Jun 29, 2017 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

Vanguard's target date 2020 is slightly over 40% bonds. If you want less, try the next further date, etc. The bond % will change each year once you are getting close to retirement and get to 70% bonds about 7 years past the date (based on 2010 now reaching that, which is also the target retirement ...
by matt87109
Thu Jun 29, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

...Don't know where you got the information on total stock market, but it is tax efficient. Paul Not tax inefficient per say (that's what I said, sorry), rather currently holding a significant amount of appreciated stocks. The Bogleheads Guide To Investing talks about watching out for funds that ar...
by matt87109
Thu Jun 29, 2017 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

The target funds, Vanguard's as well as others, tend to be very aggressive. There is some history to indicate that some of this occurred because each company wanted their 20XX fund to make more than the other company's 20XX fund. Vanguard stands behind their allocations, however, and if all investo...
by matt87109
Thu Jun 29, 2017 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

Just from what you've said, it doesn't sound like 90/10 is right for you. The suggestions you read are basically starting points because asset allocation (risk management) is really an individual decision. In my opinion, Vanguard's TR funds are too aggressive, while others won't agree. Anyway, we r...
by matt87109
Thu Jun 29, 2017 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

As to Mr. Bogle, Vanguard obviously disagrees with his advice as do many people. Many other people might like that advice. In any case Vanguard isn't run by Mr. Bogle with every detail according to his suggestions. The TR funds don't follow his thoughts on international investing either. That said,...
by matt87109
Thu Jun 29, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Re: Stepping up my game. Need some pointers please.

3 fund portfolio really doesn't have anything to do with your AA, it is just a method of balancing between 3 asset types to achieve your desired AA. I would start your reading on AA here: https://www.bogleheads.org/wiki/Asset_allocation And, yes, the 3-fund portfolio is a good way to accomplish wha...
by matt87109
Thu Jun 29, 2017 1:37 am
Forum: Investing - Help with Personal Investments
Topic: Stepping up my game. Need some pointers please.
Replies: 13
Views: 1243

Stepping up my game. Need some pointers please.

I'm in my mid-40's and am saving 18k/year in my 401k, buying 9k/year in my ESPP (6k matched 20%), and saving 6750/year in my HSA. Unfortunately an ongoing major medical illness has been keeping the ESPP and HSA drained, but I have manged to muster up 30k in the ESPP. My job is pretty secure at the m...
by matt87109
Thu Jun 15, 2017 11:47 pm
Forum: Personal Consumer Issues
Topic: Solar attic fans vs. regular turbines?
Replies: 26
Views: 1990

Re: Solar attic fans vs. regular turbines?

I just removed a powered attic vent. When I installed it 10 years ago I foolishly did not look at the power consumption. That sucker was consuming 250watts! Suspect it was running 8 hours a day 50% of the year (estimate). That's 2kwh a day for half of 10 years, or about 50 bucks a year. I too have r...
by matt87109
Thu Jun 15, 2017 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard account question by noob
Replies: 4
Views: 536

Re: Vanguard account question by noob

It's easy, just call Vanguard or open the account online, there are no longer any decisions to be made, it's all in "Vanguard Brokerage Services" now. Some history and background that you might find helpful, or might prefer to ignore. It's just an explanation. ........ Thank you! Very int...
by matt87109
Thu Jun 15, 2017 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard account question by noob
Replies: 4
Views: 536

Re: Vanguard account question by noob

Ok, thank you! When you are new to something, conflict facts are the pits!
by matt87109
Wed Jun 14, 2017 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard account question by noob
Replies: 4
Views: 536

Vanguard account question by noob

Thank you in advance for your help. I'm just to the point that I have maxed out my retirement savings options and need to save in a taxable account. I opened a Vanguard brokerage account recently and transfered some employee stock purchase plan stocks in and sold them. I plan on using these funds to...

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