Search found 29 matches

by neophyte1
Mon May 08, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2068

Re: Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like t...
by neophyte1
Mon May 08, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2068

Re: Taxable instead of Maxing 401(k)

401K is not an "industry", it's part of the tax code. It certainly does fall under "investing" and the investment industry is huge and some parts are very bad. To address some of this guy's "cons"... 1) "You can't predict your tax rate 30 years from now." Sur...
by neophyte1
Mon May 08, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2068

Re: Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like t...
by neophyte1
Mon May 08, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2068

Re: Taxable instead of Maxing 401(k)

Have you looked at Roth IRAs/backdoor Roth? It seems that you'd benefit more from investing in there, as you can always pull out principal, but the earnings keep growing tax-deferred. Thank you, and yes. The IRAs we max (11K per year) are both Roth. So perhaps this already provides enough liquidity.
by neophyte1
Mon May 08, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: How to Max 401(k) with Variable Income?
Replies: 7
Views: 375

Re: How to Max 401(k) with Variable Income?

I have a somewhat similar problem, although I pretty much never make bonuses. But my W2 income varies depending on hours worked, which varies depending on projects coming in, other stuff I have going on, etc. And I can only contribute a whole percentage amount. I look at my last few years of income...
by neophyte1
Mon May 08, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2068

Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like th...
by neophyte1
Mon May 08, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: How to Max 401(k) with Variable Income?
Replies: 7
Views: 375

Re: How to Max 401(k) within Variable Income?

Can you contribute a fixed dollar amount each month (i.e. $1.5k) to max the contribution limit and to get your employer match? If you have to use a percentage contribution and assuming this is your only salary you're making 401k contributions from, have you asked your payroll department to stop you...
by neophyte1
Mon May 08, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: How to Max 401(k) with Variable Income?
Replies: 7
Views: 375

How to Max 401(k) with Variable Income?

I make a salary plus some smaller bonuses. The bonuses account for anywhere from 5-10% of my overall income. My employer counts these bonuses as normal income that's eligible for 401(k) match. In order to fully maximize my employer's match and also max the federal contribution limit, I guess I just ...
by neophyte1
Tue May 02, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

Re: 1 Per Year Limit on IRA Rollovers?

Just spoke to another Vanguard rep who seemed to know a bit more than the last guy and he confirmed my transaction was a 'transfer' and NOT a rollover and said I can do this an unlimited number of times. Sorry for the confusion on my part and I sincerely appreciate everyone's help!
by neophyte1
Tue May 02, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

Re: 1 Per Year Limit on IRA Rollovers?

As has been pointed out a direct trustee -> trustee transfer is not a rollover and is not included in the once per 1 year period (no calendar year) restriction. It also does not matter whether it is by electronic transfer or check. As long as the check is made out to the new custodian. Many times t...
by neophyte1
Tue May 02, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: No 401(k) (have IRAs) - how does this affect early retirement?
Replies: 5
Views: 293

Re: No 401(k) (have IRAs) - how does this affect early retirement?

You could have your money saved under your mattress. If you have enough it does not matter what type of account it is in. But do you have enough? Do you have a plan for health insurance? The problem with IRA's is that there is a contribution limit of $5,500 per year. So if all your savings are in I...
by neophyte1
Tue May 02, 2017 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

Re: 1 Per Year Limit on IRA Rollovers?

Is there any reason that the transaction under discussion cannot be done with a DIRECT transfer? Is the "problem" here only about the "rollover" vs. "direct transfer" distinction? Direct transfers of IRA money are not limited This change won’t affect your ability to tr...
by neophyte1
Tue May 02, 2017 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: No 401(k) (have IRAs) - how does this affect early retirement?
Replies: 5
Views: 293

Re: No 401(k) (have IRAs) - how does this affect early retirement?

Thank you! Simple enough. Wasn't sure if there were any stipulations to be aware of being totally in tIRAs and Roths.
by neophyte1
Tue May 02, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

Re: 1 Per Year Limit on IRA Rollovers?

The guy at Vanguard told me people move money between IRAs "all the time" and he had never heard of a once-per-year rule. I don't know what to think. Appreciate continued input. This is a non-taxable event fwiw. Moving from one pre-tax IRA (SIMPLE) to another (tIRA). The Vanguard rep calle...
by neophyte1
Tue May 02, 2017 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: No 401(k) (have IRAs) - how does this affect early retirement?
Replies: 5
Views: 293

No 401(k) (have IRAs) - how does this affect early retirement?

Let's say I want to retire sometime before traditional retirement age (only in early 30s now, so not sure when yet) but don't have a 401(k). All of my retirement savings are in traditional (initially funding a SIMPLE IRA and then switching to tIRA to get Admiral Shares) and Roth IRAs. Does this nega...
by neophyte1
Tue May 02, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

Re: 1 Per Year Limit on IRA Rollovers?

There's a rollover chart on this wiki page that should answer your question: https://www.bogleheads.org/wiki/IRA_rollovers_and_transfers Looking at this chart, a rollover from a Simple IRA to a traditional IRA is limited to once per year. Thanks, I saw this, but it conflicts with what Timon just sa...
by neophyte1
Tue May 02, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

Re: 1 Per Year Limit on IRA Rollovers?

the one every 12 month limit is only if you get a check where you have 60 days to deposit the money. it doesn't count when you do electronic transfers between brokers. Thanks. So when I get paid every other week, and money goes into my SIMPLE, I could theoretically call Vanguard every other week fo...
by neophyte1
Tue May 02, 2017 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 414

1 Per Year Limit on IRA Rollovers?

I have a SIMPLE IRA through my employer through Vanguard. I want to move it (rollover the correct term?) to my tIRA, also with Vanguard, in order to get Admiral Shares which are unavailable in SIMPLE IRAs. My question is after I do the initial rollover, and continue to receive future contributions t...
by neophyte1
Sat Apr 01, 2017 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Feel Behind -- Thoughts on my Strategy?
Replies: 17
Views: 1708

Re: Feel Behind -- Thoughts on my Strategy?

Why are you not maxing out your 401k ank keeping it at $4k? Is it just enough for company match? opting to put $11k in 401k vs roth ira will also reduce your taxable income. $4k is just enough for company match. A majority of the $11k actually goes to a tIRA and not Roth, although we'll likely be i...
by neophyte1
Fri Mar 31, 2017 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Feel Behind -- Thoughts on my Strategy?
Replies: 17
Views: 1708

Re: Feel Behind -- Thoughts on my Strategy?

Though it is fun to project these numbers out and plan, a lot of things change in the mean time. The relevant thing that would change is your income - assuming you are keeping up with your skills to grow your career. What I suggest is to keep investing away for retirement as much as you can, withou...
by neophyte1
Fri Mar 31, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Feel Behind -- Thoughts on my Strategy?
Replies: 17
Views: 1708

Feel Behind -- Thoughts on my Strategy?

Background: I am 32 and my wife is 31. We have our first baby due very soon and also plan to soon buy a house. My concern is I feel we're a bit behind on our retirement savings and my goal is for us to be able to be financially independent sometime before the traditional retirement age of 65. Not s...
by neophyte1
Mon Mar 20, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: How much life insurance?
Replies: 20
Views: 1678

Re: How much life insurance?

Thank you everyone! Very helpful!
by neophyte1
Mon Mar 20, 2017 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: How much life insurance?
Replies: 20
Views: 1678

How much life insurance?

Hi everyone, My wife and I are each early 30s and on the brink of having children. We each plan to obtain term life insurance ASAP. What I can not decide is the optimal amount, as I know there's no perfect formula and it's all so unique to each situation. What I DO KNOW is to find the best rates thr...
by neophyte1
Thu Mar 16, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: How should I handle this? [Where to invest]
Replies: 8
Views: 924

How should I handle this? [Where to invest]

Hi everyone, My wife and I each max out our IRAs at $5,500 per person each year, and I contribute another 3% of my income to get my employer's match through a SIMPLE IRA. My question is this ... I would like to save even more than this, and the next logical thing to do would be increase my 3% SIMPLE...
by neophyte1
Mon Jan 12, 2015 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Home downpayment/Roth IRA
Replies: 2
Views: 507

Home downpayment/Roth IRA

Hi all, This seems simple enough to me, but want to make sure I'm not making a mistake. I'm in my late twenties, and I'm saving for a downpayment to buy a house, but aren't sure yet what it will cost or when it will exactly be (likely within 2-4 years). I also want to get my retirement savings going...
by neophyte1
Sun Mar 16, 2014 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Bogleheads Stance on Home Buying
Replies: 61
Views: 7435

Bogleheads Stance on Home Buying

20% down I know. What about how expensive a house though? I've heard no more than 2x salary for the portion left after the down payment. So to buy a 300k house, I would need to put 60k down, and then be bringing in 120k per year in salary (120k x 2 = 240k difference left after 60k down payment)? App...
by neophyte1
Sat Mar 15, 2014 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Inflation Protection vs. Money Market
Replies: 9
Views: 865

Re: Inflation Protection vs. Money Market

Thank you all. What about long term though? After I buy the house, if I would like to keep 50-100k 'safe' for the next 20-30 years (with every last penny of my other money going toward equities), does the Vanguard TIPS fund then make more sense than the bank money market account?
by neophyte1
Sat Mar 15, 2014 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Inflation Protection vs. Money Market
Replies: 9
Views: 865

Inflation Protection vs. Money Market

I have a money market account through Sallie Mae that provides me a 0.90% return. I've read (if I'm interpreting correctly) that money market accounts and/or funds lose over time to inflation. Can someone please explain how Vanguard's Short-Term Inflation Protected Securities Index is better? I see ...
by neophyte1
Wed Mar 12, 2014 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: W. Buffett - Short-Term Gov. Bonds...
Replies: 15
Views: 2953

W. Buffett - Short-Term Gov. Bonds...

Hi everyone, Warren Buffett recently recommended the average investor (and his wife) invest 90% of their cash in the Vanguard 500 Fund, and 10% in short-term government bonds. I'm rather young, and very new to investing, so pardon my ignorance... but when he says 'short-term government bonds' - does...

Go to advanced search