Search found 380 matches

by nps
Fri Mar 24, 2017 4:46 am
Forum: Personal Finance (Not Investing)
Topic: Best HSA (2017)
Replies: 114
Views: 10501

Re: Best HSA (2017)

@atxeng I will make a suggestion that might seem un-Boglehead-ish, but applies in your case. I really think it would be better for you to hire a financial planner to help you find a suitable HSA. Your DIY efforts just don't seem to be working. what is incorrect about the data i've pulled from the s...
by nps
Wed Mar 22, 2017 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage APR 4.96% - too high?
Replies: 58
Views: 2916

Re: Mortgage APR 4.96% - too high?

JuztVZ wrote:We want to check with the preferred lender but are unsure about having another hard pull in our credit reports.


Don't sweat it. Multiple pulls count as one for mortgage loans if they occur within a short period of time, believe it is on the order of weeks.
by nps
Sun Mar 19, 2017 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: USAA and Haven Life (Mass Mutual) Life Insurance Quotes
Replies: 3
Views: 239

Re: USAA and Haven Life (Mass Mutual) Life Insurance Quotes

You can't get a Haven policy through a broker AFAIK. Also, their whole premise is instant approval decisions in many cases. Did you submit an application and get informed that a medical exam was required?
by nps
Mon Mar 13, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage/Escrow question
Replies: 21
Views: 1174

Re: Mortgage/Escrow question

PandaBear wrote:
powermega wrote: I would also file complaints with the relevant consumer sites and government agencies.


What would those be? I don't have any experience filing complaints about banks/financial institutions.


CFPB
by nps
Sun Mar 12, 2017 8:18 am
Forum: Investing - Theory, News & General
Topic: 3 fund or 2? No international
Replies: 21
Views: 1654

Re: 3 fund or 2? No international

It's not just international that you have to worry about. The annoying thing about diversification is that it never works ex-post, only ex-ante. Well that is correct, so we are still making educated choices and comparing it ex post.That is what I was trying to use the backtest for. Is that not corr...
by nps
Sun Mar 12, 2017 8:01 am
Forum: Personal Finance (Not Investing)
Topic: National Averages (TaxAct)
Replies: 10
Views: 1124

Re: National Averages (TaxAct)

I am pretty sure that TaxAct only shows your "standing" within a group of income ranges that includes yours, not across all incomes, so there's not much to be gleaned from it in my opinion. Also, looking at the country as a whole, mean income is much higher than median income. Not sure if ...
by nps
Sat Mar 11, 2017 10:06 pm
Forum: Investing - Theory, News & General
Topic: 3 fund or 2? No international
Replies: 21
Views: 1654

Re: 3 fund or 2? No international

It's not just international that you have to worry about. The annoying thing about diversification is that it never works ex-post, only ex-ante.
by nps
Sat Mar 11, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Putting Savings in Perspective
Replies: 54
Views: 4060

Re: Putting Savings in Perspective

OP, not sure why you calculate this percentage. You seem to be comparing it to a benchmark of spending 80 percent of pre-retirement expenses in retirement and concluding that you are good. However, many of your deductions from gross pay will still exist. You will still pay income taxes and medical p...
by nps
Thu Mar 09, 2017 7:55 am
Forum: Personal Finance (Not Investing)
Topic: W2 question
Replies: 18
Views: 986

Re: W2 question

You would change your W-4, not your W-2. It depends on the person. If you're just going to save it anyway, whether it's a little extra in each paycheck or a lot after tax filing, then I would agree it's better to change the W-4. Might as well get that money working sooner.
by nps
Sun Mar 05, 2017 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio & Financial Health Check
Replies: 2
Views: 369

Re: Portfolio & Financial Health Check

Looks like you are using an effective federal tax rate, perhaps the same for state. What is your combined marginal rate? I would use that marginal rate to see how much extra tax you are paying to invest in taxable rather than the max in your wife's 401k, and decide whether it's worth it. An ARM rese...
by nps
Thu Mar 02, 2017 10:20 pm
Forum: Investing - Theory, News & General
Topic: I am calling a market bubble right now.
Replies: 27
Views: 2708

Re: I am calling a market bubble right now.

BogleInvestorLondon wrote:However, this whole rally has been happening on expectation.


What else would it be based on?
by nps
Thu Mar 02, 2017 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard taxable - changes?
Replies: 3
Views: 664

Vanguard taxable - changes?

My Vanguard accounts are currently IRAs and Roth IRAs holding Vanguard mutual funds. They are under the old site, not the upgraded brokerage interface. If I now add a taxable account to hold Vanguard mutual funds, does anyone know if that would force upgrade me to the brokerage interface? Also, I kn...
by nps
Wed Mar 01, 2017 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: American General Life term-life policy
Replies: 7
Views: 459

Re: American General Life term-life policy

Call the agent and ask him if the hold up is medical records. If so, you call the office and ask for them to expedite, get their name and when they can expedite, follow up. One local medical center here takes 12 weeks sometimes. This was my recent experience. I had to get personally involved to get...
by nps
Mon Feb 27, 2017 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall, investing, insurance?
Replies: 41
Views: 3784

Re: Windfall, investing, insurance?

OP, how much life insurance (death benefit) do you require to protect your family who will lose your $150k income if you die? You have $550k, or less than 4 times your income. More than half your death benefit is provided by your job. Many group life policies terminate if you are no longer an employ...
by nps
Sun Feb 26, 2017 4:28 pm
Forum: Personal Consumer Issues
Topic: What is a "Vanguard HSA"?
Replies: 5
Views: 889

Re: What is a "Vanguard HSA"?

Never heard of one. Maybe you have seen people mentioning investing in Vanguard funds in their HSAs.
by nps
Sun Feb 26, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Mileage Deduction/Self Employed Work From Home
Replies: 1
Views: 255

Re: Mileage Deduction/Self Employed Work From Home

If her home office qualifies as the principal place of business (including the exclusive use test and being the only fixed location for performing substantial administrative or management activities of the business), she should be able to deduct those miles.
by nps
Sun Feb 26, 2017 7:45 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion and Backdooring advice
Replies: 8
Views: 493

Re: Roth Conversion and Backdooring advice

Not sure why you're so eager to pay so much tax. If I were you, I would wait until my wife had an opportunity to roll that existing IRA over to a future 403(b) or 401(k), or until my tax rate was lower. Is she a W-2 employee currently, or self-employed contractor? Other tax shelters that could work ...
by nps
Sat Feb 25, 2017 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099-R Roth to Traditional Tax Questions
Replies: 4
Views: 252

Re: Vanguard 1099-R Roth to Traditional Tax Questions

If you are covered by a retirement plan at work then Duckie is correct. You would need to fill out Form 8606. The instructions for that form lay out your situation: You made a contribution to a Roth IRA and later recharacterized part or all of it in a trustee-to-trustee transfer to a traditional IRA...
by nps
Sat Feb 25, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099-R Roth to Traditional Tax Questions
Replies: 4
Views: 252

Re: Vanguard 1099-R Roth to Traditional Tax Questions

It's treated as if it had been earned in the Traditional IRA all along, that's why the taxable amount is $0.
by nps
Sat Feb 25, 2017 6:50 am
Forum: Investing - Help with Personal Investments
Topic: Just beginning: $40k to open taxable and IRA accounts
Replies: 21
Views: 1447

Re: Just beginning: $40k to open taxable and IRA accounts

I am aiming for that 70/30 balance but was interested in a little bit of international stock/bond funds too, still keeping the stock/bond balance just with a greater # of funds... so it got me thinking I couldn't divide them up among accounts without making sure there was the $3k minimum met per ac...
by nps
Fri Feb 24, 2017 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Closed HSA but Reopen within 18 Months... Sufficient?
Replies: 13
Views: 809

Re: Closed HSA but Reopen within 18 Months... Sufficient?

Qualified distributions are based on the individual being eligible at time of service. So you can not make a qualified distribution for your now wife before she was your wife. I'm curious how you come up with that interpretation. Pub 969 really isn't that specific. What it does say is: Qualified me...
by nps
Fri Feb 24, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Just beginning: $40k to open taxable and IRA accounts
Replies: 21
Views: 1447

Re: Just beginning: $40k to open taxable and IRA accounts

Hello, I by no means claim that I know much about backdoor roths. Wait for experts on backdoor roths. My question is this: 1. OP contribute to the Roth up to max 2. Then Couldn't OP contribute to non deductible IRA with the rest of the money, then backdoor Roth it? No. Non-deductible IRAs are still...
by nps
Fri Feb 24, 2017 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: Just beginning: $40k to open taxable and IRA accounts
Replies: 21
Views: 1447

Re: Just beginning: $40k to open taxable and IRA accounts

For example, I know most funds need a $3k minimum, but what if I want a fund split between accounts and less than that $3k minimum ends up in different accounts (is that a possibility)? Not really. Simplest thing is to buy both funds in all three accounts in a 70/30 ratio. In that case your lowest ...
by nps
Fri Feb 24, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Closed HSA but Reopen within 18 Months... Sufficient?
Replies: 13
Views: 809

Re: Closed HSA but Reopen within 18 Months... Sufficient?

You're good on your first concern. A-41 says nothing about putting the funds back into the same account nor does it stipulate anything about zero balance accounts remaining open or closed. As far as covering your wife's expenses before the marriage, I'm not aware of any HSA regulations on this. HSAs...
by nps
Fri Feb 24, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 44
Views: 2709

Re: How much are independent contractors really taxed?

How is the total difference in tax between contract work and employment 7.65%? I don't get where you get this number from. I can tell you where the number comes from. It's the employer share of SS and Medicare, which self employed people must pay themselves. It's a little misleading because it also...
by nps
Fri Feb 24, 2017 6:45 am
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 44
Views: 2709

Re: How much are independent contractors really taxed?

Self-employed pay the same tax rates as everyone else on all sources of income. Total taxes are the same when you are an employee, but the full tax amount is hidden from your view because part is paid on your behalf by your employer. Consequently, your salary accounts for only 70-75% of your total c...
by nps
Thu Feb 23, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: What fund to use in Roth IRA as part of an emergency fund?
Replies: 10
Views: 770

Re: What fund to use in Roth IRA as part of an emergency fund?

No matter what you invest in it's going to be a small part of your portfolio. You could make the Roth 100 percent stocks and swap stocks for bonds elsewhere in your portfolio to maintain your 70/30 if it makes you feel better.
by nps
Thu Feb 23, 2017 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: What fund to use in Roth IRA as part of an emergency fund?
Replies: 10
Views: 770

Re: What fund to use in Roth IRA as part of an emergency fund?

Ok. If your $500/month to taxable (beyond your $1200 in short term savings) is intended for long term investing, you would put that in the Roth IRA up to the limit and you then would have no need to consider a Roth IRA to hold your EF. That's the point that's made in the wiki entry.
by nps
Thu Feb 23, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Just beginning: $40k to open taxable and IRA accounts
Replies: 21
Views: 1447

Re: Just beginning: $40k to open taxable and IRA accounts

Put everything you want to save toward retirement in tax advantaged accounts before turning to taxable. You mention your workplaces do not contribute to 401k accounts. Does this mean that they do not have them at all, or just that you wouldn't get a match? I would not recommend 529s for anyone who h...
by nps
Thu Feb 23, 2017 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Am I making the right decisions? Newbie
Replies: 3
Views: 485

Re: Am I making the right decisions? Newbie

Sounds like you have the right goals. Saving more is key.

What you're doing on the W-4 withholding allowances seems fine and will let you access your money earlier, just don't be surprised when it reduces your tax refund next year.
by nps
Thu Feb 23, 2017 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: What fund to use in Roth IRA as part of an emergency fund?
Replies: 10
Views: 770

Re: What fund to use in Roth IRA as part of an emergency fund?

OP, can you define: 1. What size emergency fund do you want? 2. Do you intend to maintain your emergency fund separate from your invested portfolio 70/30 AA? 3. Are you able to max your 401k with funds intended for the long term? 4. Are you able to max your Roth IRA with funds intended for the long ...
by nps
Thu Feb 23, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: HSA Account or Taxable Account?
Replies: 10
Views: 326

Re: HSA Account or Taxable Account?

I can appreciate your perspective. 65 years old is a long way away for you, and a lot can happen in that time frame. Don't forget that HSA rules were negatively impacted through the ACA implementation (doubling the tax penalty for non-qualified withdrawals and exclusion of OTC drugs as qualified exp...
by nps
Thu Feb 23, 2017 6:44 am
Forum: Investing - Theory, News & General
Topic: How to Rebalance with Rate Hikes Looming
Replies: 49
Views: 9005

Re: How to Rebalance with Rate Hikes Looming

There was a time when they were telegraphing four rate hikes for 2016. What did you do then?
by nps
Wed Feb 22, 2017 10:02 pm
Forum: Investing - Theory, News & General
Topic: Is a 4% plus CPI withdrawal rate actually aggressive?
Replies: 232
Views: 10534

Re: Is a 4% plus CPI withdrawal rate actually aggressive?

Upon reaching FI, I'll probably drop my homeowner's coverage as a total loss of our house would only deplete our portfolio by about 12%, far from catastrophic. When you can afford to self-insure, it's usually the best way to go. I guess that's one way to look at it. My homeowner's premium might be ...
by nps
Wed Feb 22, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: What to do w/ the extra???
Replies: 2
Views: 332

Re: What to do w/ the extra???

I have a 401k that I max out & employer matches up to 6%. I contribute based on a %, and after reviewing this I think I might be doing this in error, due to some paychecks are much higher based on quarterly commissions. You definitely might be doing that in error. Maxing contributions via a per...
by nps
Wed Feb 22, 2017 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Getting Serious About Retirement Savings/Investments
Replies: 15
Views: 1211

Re: Getting Serious About Retirement Savings/Investments

You're carrying debt up to 13.49% and say you plan to invest beyond tax-advantaged maximums while you work to pay down the loans? This makes no sense. Skip the investing and pay off the high interest loans.
by nps
Wed Feb 22, 2017 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Life Changes - What Should My Next Monetary Goals/Objectives Be?
Replies: 17
Views: 1818

Re: Life Changes - What Should My Next Monetary Goals/Objectives Be?

I would spend some time with Form 1040 and the instructions. You can learn a lot about the options for legally avoiding income tax by going through them. Are there specific tax breaks you have in mind? BTW, having a kid is certainly one of them, so you're covered there. Unless DW leaves work or mov...
by nps
Wed Feb 22, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Life Changes - What Should My Next Monetary Goals/Objectives Be?
Replies: 17
Views: 1818

Re: Life Changes - What Should My Next Monetary Goals/Objectives Be?

I thought it was fairly common to have life insurance through your employer? They pay based on my salary amount, and for chipping in an extra $1 or $2 per month it will double/triple/etc... the coverage amount. Though I've been told that term-life non-group policies are overall the better option si...
by nps
Wed Feb 22, 2017 7:10 am
Forum: Investing - Help with Personal Investments
Topic: Thanks for AA advice - new to the game
Replies: 14
Views: 788

Re: Thanks for AA advice - new to the game

With a retirement account balance lower than your income at age 50 you might have a need to take greater risk. Are you sure you can handle it? Much worse than a conservative AA is panicking and selling during a stock market crash. Note that you can add an additional $6k in catch-up to your 401(k) co...
by nps
Wed Feb 22, 2017 6:43 am
Forum: Investing - Help with Personal Investments
Topic: First Post. IRA vs TSP
Replies: 14
Views: 1313

Re: First Post. IRA vs TSP

Looks like you want to contribute around the IRA limit. If I were you I would just put it in a Roth IRA. Far fewer limitations than the TSP.

I'm assuming you're not getting a TSP match, that would change things.
by nps
Tue Feb 21, 2017 10:27 pm
Forum: Investing - Theory, News & General
Topic: Is a 4% plus CPI withdrawal rate actually aggressive?
Replies: 232
Views: 10534

Re: Is a 4% plus CPI withdrawal rate actually aggressive?

That's true, but if start combining risks, we quickly realize that that some risks aren't worth addressing. For instance, if there is a 5% likelihood of a portfolio failing to last 30 years, and we only have a 5% chance of one of us being alive at that point, then the total risk of 'failure' is .00...
by nps
Tue Feb 21, 2017 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan repayment Amortization - seems incorrect
Replies: 6
Views: 433

Re: Student Loan repayment Amortization - seems incorrect

Even though it is a fixed rate, the number of days between your payments is not fixed. Your total interest paid is based on the number of days between payments.
by nps
Tue Feb 21, 2017 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: 20% bonds: why bother at 48?
Replies: 131
Views: 6833

Re: 20% bonds: why bother at 48?

Not sure if it's in this thread, but I don't usually see anyone citing that 80/20 produces higher expected return than 100/0. I do often see posts claiming it is a higher "risk adjusted" return or the optimal point on the "efficient frontier."
by nps
Tue Feb 21, 2017 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Life Changes - What Should My Next Monetary Goals/Objectives Be?
Replies: 17
Views: 1818

Re: Life Changes - What Should My Next Monetary Goals/Objectives Be?

Check HSA options if you're looking for more tax advantaged space. It's simpler to manage all long term funds as a single portfolio, taxable or not, though you might re-allocate them to reduce taxes in the taxable account. You should get life insurance ASAP, don't wait for the baby to arrive. Your w...
by nps
Tue Feb 21, 2017 7:08 pm
Forum: Investing - Theory, News & General
Topic: Is a 4% plus CPI withdrawal rate actually aggressive?
Replies: 232
Views: 10534

Re: Is a 4% plus CPI withdrawal rate actually aggressive?

btw one caution when looking at mortality tables, survival probabilities, etc. is that outcomes are dependent on a number of factors and the probabilities conditioned on your circumstances may be higher than actuarial tables suggest (or lower, depending). Life expectancy is notably higher among the...
by nps
Mon Feb 20, 2017 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall, investing, insurance?
Replies: 41
Views: 3784

Re: Windfall, investing, insurance?

You're in good shape even without the inheritance. Have you considered using it to pay all your debt, including the mortgage? Lots of threads lately on 80/20 vs higher. What's your current AA? Did the windfall inheritance increase or decrease your need to take risk to achieve your objectives? Whole ...
by nps
Mon Feb 20, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement on the Horizon & Asset Allocation
Replies: 8
Views: 924

Re: Retirement on the Horizon & Asset Allocation

You're currently around 30 percent in bonds heading into retirement. When you say your husband wants to be more aggressive, do you mean more aggressive than that? That would put you in the minority, I would suspect, although you do have a large amount of cash reserves. I would put your portfolio thr...
by nps
Mon Feb 20, 2017 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: 20% bonds: why bother at 48?
Replies: 131
Views: 6833

Re: 20% bonds: why bother at 48?

Remember that the typical American is an extremely poor money manager. You'll find no argument from me there. However, you believe that they're not so poor at managing money that they would reach into a retirement account for emergency funds. Another thought - I believe the percentages you cite fro...
by nps
Mon Feb 20, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: 20% bonds: why bother at 48?
Replies: 131
Views: 6833

Re: 20% bonds: why bother at 48?

A fair number of people make early withdrawals, but the overwhelming majority appear to be people who just want to spend their money now on Starbucks and Cadillacs. I assume that's an opinion? For instance, early withdrawals from retirement accounts only increased by about 2% from 2004 to 2010. Dur...

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