Search found 353 matches

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: 618

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: 618

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: 2
Views: 214

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: 1
Views: 175

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: 618

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: 271

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: 13
Views: 1226

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: 9663

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: 303

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: 1091

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: 1693

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: 1693

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: 6
Views: 309

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: 4
Views: 331

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: 9663

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: 392

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: 6272

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: 1693

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: 9663

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: 39
Views: 1699

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: 854

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: 6272

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: 6272

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...
by nps
Mon Feb 20, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: 20% bonds: why bother at 48?
Replies: 131
Views: 6272

Re: 20% bonds: why bother at 48?

He views that you should be ready at a moment's notice to begin making early withdrawals from your accounts in order to meet your immediate financial needs. It's fine if someone wants to do that, but very few people have ever had to do that (there's data supporting that by the way), and you should ...
by nps
Mon Feb 20, 2017 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy more insurance?
Replies: 2
Views: 420

Re: Should I buy more insurance?

Agree your wife should have more insurance. You're saying you only have the $450k in group life now, and are considering a 20 or 30 year $1.5M term policy to begin at the end of next month? I would drive very carefully until then! It might give you greater peace of mind to bump up the LTD amount and...
by nps
Sun Feb 19, 2017 3:21 pm
Forum: Investing - Theory, News & General
Topic: TSP Expense Ratio jumps to 0.038%
Replies: 57
Views: 5242

Re: TSP Expense Ratio jumps to 0.038%

My question (do not know answer) is a comparison of how the payroll administration cost, promotional and educational costs, etc. between the TSP and a "typical" private sector 401k plan. For example, there are enrollment forms, web site access, enrollment information documents, for any ki...
by nps
Sun Feb 19, 2017 8:12 am
Forum: Investing - Help with Personal Investments
Topic: What to do? [fearful of potential losses]
Replies: 6
Views: 647

Re: What to do?

We always could be in for a considerable period of market volatility with the potential for significant loss of portfolio value. If your ability to stomach that has changed it would make sense to switch to a more conservative allocation, particularly if it would still serve your retirement needs.
by nps
Sun Feb 19, 2017 7:56 am
Forum: Investing - Help with Personal Investments
Topic: Help with overall review
Replies: 4
Views: 372

Re: Help with overall review

On your life insurance you might look to outside term for the entire amount if your health is good. You would get level premiums for the entire term and would own the policy, even if you switch jobs at some point.
by nps
Thu Feb 16, 2017 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice on time frame for changing investments to 3- or 4-fund portfolio: all at once or bit by bit?
Replies: 8
Views: 571

Re: Need advice on time frame for changing investments to 3- or 4-fund portfolio: all at once or bit by bit?

Do it all at once. After you're convinced that your new portfolio is superior to your old one, what's the point in dragging it out? I don't put much stock in the benefit of dollar cost averaging (other than perhaps a psychological benefit) but in any case I don't recall seeing it applied to moving f...
by nps
Thu Feb 16, 2017 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: IRA for just one year?
Replies: 16
Views: 682

Re: IRA for just one year?

Actually, should have noted that your spouse could also do a deductible IRA for 2016 as an alternate.
by nps
Thu Feb 16, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: IRA for just one year?
Replies: 16
Views: 682

Re: IRA for just one year?

trunkelectric wrote:Just to be clear, this means creating two roth IRA accounts?


Yes, if you want to maximize your contributions
by nps
Thu Feb 16, 2017 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: 1098 - Student Loan Interest Received Error?
Replies: 2
Views: 288

Re: 1098 - Student Loan Interest Received Error?

The 1098 is definitely wrong. You wouldn't hit that amount even if you were making interest only payments on your original loan balance for a year.

I would bet on them sending a corrected 1098 at some point. If I were you I would just use the amounts from your statements and call it a day.
by nps
Thu Feb 16, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage fees- Is this reasonable?
Replies: 10
Views: 1041

Re: Mortgage fees- Is this reasonable?

You could try getting out of escrow. I don't notice anything out of whack except attorney fee. Does NJ require an attorney for RE transactions?

As far as what's missing, I don't see title insurance but I'm sure your bank requires it and you probably want an owner's policy as well.
by nps
Thu Feb 16, 2017 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: HSA record-keeping mechanics
Replies: 2
Views: 241

Re: HSA record-keeping mechanics

If your online account doesn't display it already in a format resembling a bill I would think that asking for and retaining the paper bill would be enough. Believe some around here only hold EOBs. If there's data indicating that either one would not be acceptable to the IRS I'm not aware of it.
by nps
Thu Feb 16, 2017 8:05 pm
Forum: Investing - Theory, News & General
Topic: Static AA and the long run?
Replies: 10
Views: 867

Re: Static AA and the long run?

Thanks, was curious if those who held less aggressive static AAs in accumulation tended to delay or eliminate the step down compared to those with more aggressive AAs.
by nps
Thu Feb 16, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: IRA for just one year?
Replies: 16
Views: 682

Re: IRA for just one year?

Make a contribution for 2016 for you and your spouse, if you have the funds to do both, and use Backdoor Roth for future years if needed.

https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
by nps
Thu Feb 16, 2017 6:45 am
Forum: Investing - Theory, News & General
Topic: Static AA and the long run?
Replies: 10
Views: 867

Static AA and the long run?

For those of you who maintained a static AA for your accumulation phase, when did you change it (+/- years from retirement or planned retirement) and what was your before and after AA?
by nps
Mon Feb 13, 2017 9:25 pm
Forum: Investing - Theory, News & General
Topic: Tsp contribution question (contribute bi-monthly)
Replies: 12
Views: 1056

Re: Tsp contribution question (contribute bi-monthly)

What you're doing sounds incredibly complicated. You're saying you overweight C and S contributions at 75 and 25 then reallocate your entire TSP portfolio to a lower allocation of 45 and 15 for C and S when those funds get "well above" those numbers?
by nps
Mon Feb 13, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 328
Views: 17633

Re: Why go with an 80% stock / 20% bond portfolio?

Well you made the point many times (including in your OP) that there's no real difference between 100/80/70 % equities, historically. I would say that the OP made the opposite point - that historically there is a substantial dollar difference in ending portfolio value between 80/20 and 100/0. His a...
by nps
Sat Feb 11, 2017 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Brothers's auto liability levels?
Replies: 5
Views: 573

Re: Brothers's auto liability levels?

Second the umbrella recommendation. Or he could look at 500k/1M liability if offered.
by nps
Sat Feb 11, 2017 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R recharacterization year
Replies: 5
Views: 259

Re: 1099-R recharacterization year

What tax software are you using? I've used both TurboTax and HRBlock, and they both do it properly. You just have to be very careful that you answer every question correctly in the interview process--it's not hard to make a mistake here. Kevin I am using TaxAct. There are two options for entering 1...
by nps
Sat Feb 11, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R recharacterization year
Replies: 5
Views: 259

Re: 1099-R recharacterization year

Thanks Alan, makes sense on not needing to correct the explanatory statement from 2015. My 2015 Form 8606 did correctly report the converted amount that remained following the partial recharacterization. I can see now in the Form 8606 instructions that I shouldn't include the 1099-R amount on Line 1...
by nps
Sat Feb 11, 2017 11:23 am
Forum: Personal Finance (Not Investing)
Topic: 1099-R recharacterization year
Replies: 5
Views: 259

1099-R recharacterization year

Seeking help from Alan S. or other Form 8606 experts In 2015 I made a conversion from Traditional IRA to Roth. In 2016 I recharacterized part of that amount back to Traditional. On my 2015 tax return it looks like I mistakenly stated in the "Recharacterization Explanation" that the rechara...
by nps
Sat Feb 11, 2017 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Tires for an old car
Replies: 42
Views: 2617

Re: Tires for an old car

I would be surprised if the mechanic couldn't recognize worn tires. Have you checked the tread depth? It's not complicated:

http://www.tirerack.com/winter/tech/tec ... ?techid=51

Advance Auto, AutoZone, etc should be able to read your OBD code for free.
by nps
Fri Feb 10, 2017 9:02 pm
Forum: Investing - Theory, News & General
Topic: Tsp contribution question (contribute bi-monthly)
Replies: 12
Views: 1056

Re: Tsp contribution question (contribute bi-monthly)

It sounds like you have some level of discomfort with your asset allocation. Perhaps you could explain how you reached your current allocation in the first place (including the funds in your signature block). If you are now convinced that S and C will gain the most, ask yourself why you are not sell...
by nps
Fri Feb 10, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 328
Views: 17633

Re: Why go with an 80% stock / 20% bond portfolio?

I'm not determined to prove a point, but I have yet to hear a convincing argument that the typical investor, who is not remotely a BH, is significantly more likely to stay the course with 80/20 compared to 100/0. In fact, many in this thread have agreed with this assertion. That being said, a BH is...
by nps
Thu Feb 09, 2017 4:33 pm
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 328
Views: 17633

Re: Why go with an 80% stock / 20% bond portfolio?

I'll be the first to acknowledge that my job is more secure than most others, but probably not 99.9%. Did your job get less secure since your post on Tuesday? I tend to agree with HomerJ, but it's not like this is really a resolvable argument. You should consider that some (possibly many) people ar...
by nps
Tue Feb 07, 2017 6:34 am
Forum: Personal Finance (Not Investing)
Topic: Haven Life for life insurance? Thoughts on switching providers?
Replies: 7
Views: 504

Re: Haven Life for life insurance? Thoughts on switching providers?

I looked at Haven recently. They don't offer coverage if you state that you are replacing an existing policy. Yea I saw that too - but what difference does it make, for a few weeks i'll have coverage with both companies and then I'll just let my Prudential one lapse I am probably more paranoid than...
by nps
Mon Feb 06, 2017 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Haven Life for life insurance? Thoughts on switching providers?
Replies: 7
Views: 504

Re: Haven Life for life insurance? Thoughts on switching providers?

I looked at Haven recently. They don't offer coverage if you state that you are replacing an existing policy.
by nps
Mon Feb 06, 2017 8:53 pm
Forum: Investing - Theory, News & General
Topic: TSP Expense Ratio jumps to 0.038%
Replies: 57
Views: 5242

Re: TSP Expense Ratio jumps to 0.038%

I am not (nor have ever been) a TSP participant. I am a taxpayer and participant in various retirement programs. I see NO reason that the employer (federal government, taxpayers) should further subsidize the TSP. It's part of the full compensation package to Federal employees. There's no "subs...

Go to advanced search