Search found 23978 matches

by retiredjg
Sat Feb 06, 2016 5:21 pm
Forum: Investing - Theory, News & General
Topic: Is there a rule of thumb for 50/50 Total Stock/Total Bond
Replies: 17
Views: 1661

Re: Is there a rule of thumb for 50/50 Total Stock/Total Bond

Then this week I discovered that withdrawals from our IRA’s will be taxed at a marginal rate of 27.75%. I had no idea – I thought taxes would be low in retirement. No, no, no….I didn't read the thread, but think there is a misunderstanding. Only a very small portion of your income will be taxed at ...
by retiredjg
Sat Feb 06, 2016 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts
Replies: 23
Views: 1310

Re: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts

I think you are headed off in the wrong direction. The way to design a portfolio is to pick the best fund or two from your most restrictive account. That's your (admittedly poor) 401k. Then build the portfolio around that using IRAs and taxable. However, you should not be putting money for retiremen...
by retiredjg
Sat Feb 06, 2016 3:00 pm
Forum: Personal Consumer Issues
Topic: upgrade OS on older MAC?
Replies: 15
Views: 612

Re: upgrade OS on older MAC?

Space and RAM notwithstanding (my 2011 MBP has plenty of both), you are leaving yourself open to a security nightmare by not running the latest version of OSX. I'm not sure that is correct as long as I'm still able to do updates and my version is still supported. I'm not saying you are wrong, but I...
by retiredjg
Sat Feb 06, 2016 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for Advice / Guidance Please
Replies: 5
Views: 336

Re: Looking for Advice / Guidance Please

- Are there more suitable alternatives to the above-mentioned ETF’s given my expatriate, non-tax paying status? The choices seem fine to me. - Does my intention to relocate to the US in the long term present any difficulties? Or conversely, any opportunities? At some point would I need to re-struct...
by retiredjg
Sat Feb 06, 2016 1:05 pm
Forum: Personal Consumer Issues
Topic: upgrade OS on older MAC?
Replies: 15
Views: 612

Re: upgrade OS on older MAC?

I don't know if this is smart or not, but when I upgraded, I didn't go all the way to El Cap (10.11).

My late 2010 MacBook Air is running fine (I guess) on 10.8.5 (Mt. Lion). I can't remember why I didn't go all the way to El Cap, but I think I felt like it just needed too much space.
by retiredjg
Sat Feb 06, 2016 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: TSP asset allocation
Replies: 6
Views: 491

Re: TSP asset allocation

Do I really need bonds in my portfolio? My pension is pretty much a fixed income asset. It seems I can go with an all equity allocation. If you had a fair amount of money invested in 2007 when the last big downturn started and if you simply didn't notice the drop in value of your investments…sure 1...
by retiredjg
Sat Feb 06, 2016 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Missing Out on Available Retirement Investment Options?
Replies: 2
Views: 296

Re: Missing Out on Available Retirement Investment Options?

I don't notice any vehicles that you have overlooked. Well, maybe I Bonds could be considered. The tax is deferred until you cash them in or 30 years, whichever is first. I suppose you could replace the SEP IRA with a 401k, but I suspect the costs might be prohibitive. However, Her tIRA might be rol...
by retiredjg
Sat Feb 06, 2016 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Refinancing - what to ask?
Replies: 3
Views: 250

Re: Refinancing - what to ask?

Be careful of refinancing all the way back to 30 years unless his mortgage is very recent. For example, if he has already paid 10 years on a 30 year mortgage, don't go back to 30 years. This can cost more in the long run. Make sure he considers shorter terms - 10, 15, 20 year mortgages will have a l...
by retiredjg
Sat Feb 06, 2016 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Help
Replies: 4
Views: 347

Re: 401k Help

1. Given my investment options, do you feel I am making the right choice? I think you have picked the best choices. Even if the stable value fund is not paying much. But it would be nice to know what it is paying this year. Note that your portfolio only contains US stocks. If you want foreign stock...
by retiredjg
Sat Feb 06, 2016 11:46 am
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

Sorry, I am a bit dense. 7% is the minimum to invest to get the match in my 403b. Right now my future allocations are set at: 403b: 100% Stock ($21,600 annually) 401a: 80% Bond, 20% Global ($7200 annually) Roth: 100% REIT ($11,000 annually) Sorry. When you asked if you should send less money to His...
by retiredjg
Sat Feb 06, 2016 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Help with investement decisions. Both teachers and two babies
Replies: 7
Views: 410

Re: Help with investement decisions. Both teachers and two babies

the other questions that have are regarding my husband's assets. I would really appreciate your insight and feedback. We don't have much experience in this and there are always people that tell us different things. Have you found the 403bwise? http://www.403bwise.com I think (not positive) this is ...
by retiredjg
Sat Feb 06, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Help with investement decisions. Both teachers and two babies
Replies: 7
Views: 410

Re: Help with investement decisions. Both teachers and two babies

Which one would you recommend 457b or 403? It depends. A 457b plan is available to use without penalty when you leave the employer (but you would pay tax). A 403b is available without penalty if you retire in or after the year in which you reach 55 years old (again, you do pay tax). So the 457b pla...
by retiredjg
Sat Feb 06, 2016 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to ROTH or 401K
Replies: 3
Views: 348

Re: Contribute to ROTH or 401K

I agree with your plan. There is no sense in paying 28% now. Many couples pay on 15% in retirement.
by retiredjg
Sat Feb 06, 2016 9:46 am
Forum: Investing - Theory, News & General
Topic: Is there a rule of thumb for 50/50 Total Stock/Total Bond
Replies: 17
Views: 1661

Re: Is there a rule of thumb for 50/50 Total Stock/Total Bond

This recent video from Vanguard might be helpful. There are expecting 4.3% to 4.5% REAL return (after inflation) for a 60% stock/40% bond portfolio over the next 10 years. They go on to say this is lower but not disastrously lower than in the past. https://personal.vanguard.com/us/insights/video/353...
by retiredjg
Sat Feb 06, 2016 9:36 am
Forum: Investing - Help with Personal Investments
Topic: suggestions to start using backdoor ROTH
Replies: 3
Views: 331

Re: suggestions to start using backdoor ROTH

...but that would mean paying taxes at a higher bracket than what they were originally put in. Obviously, anyone would want to avoid this. But if the tIRA is tiny and she is never going back to work and there are many years to use the back door method to contribute to Roth….it might be worth it. Wh...
by retiredjg
Sat Feb 06, 2016 9:23 am
Forum: Personal Consumer Issues
Topic: Sell truck and buy SUV?
Replies: 13
Views: 806

Re: Sell truck and buy SUV?

I would not do anything until you decide on the size and weight of the RV - that will pretty much determine your towing vehicle. I feel your pain. I had to get rid of a perfectly fine 12 yo 4-Runner with about 68k miles to get something to pull an RV. Unless you get a small RV, I think your choices ...
by retiredjg
Sat Feb 06, 2016 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 12
Views: 638

Re: Roth IRA withdrawls of contributions - how to account/track?

This link might be helpful. https://www.irs.gov/Individuals/Get-Transcript You can get transcripts (line by line info from your return, but not a copy of the return) from the IRS for free. The last 3 years is available through one easy process and earlier years are available through a different form...
by retiredjg
Fri Feb 05, 2016 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

How much money should I invest into the new 457b versus the 401a and 403b? You already have the 401a contributions listed and that can't be changed if I understood correctly. How much do you need to contribute to the 403b to get your entire match? Anything over that should go to the 457b to access ...
by retiredjg
Fri Feb 05, 2016 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

Have done conversions since 2011. Only year with a loss was 2014. HR Block has never filled out part 1. They do for some reason for 2015. Perhaps someone, maybe an unknown Boglehead :happy , reported a problem and they have fixed the software? I find it very odd that they didn't use part I of form ...
by retiredjg
Fri Feb 05, 2016 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 12
Views: 638

Re: Roth IRA withdrawls of contributions - how to account/track?

This is a groaner, but the worksheet you need to document what Alan is talking about is included in this document. https://www.irs.gov/pub/irs-pdf/i8606.pdf There is a worksheet for basis from regular contributions and a worksheet for basis from rollovers. See the end of the document although you pr...
by retiredjg
Fri Feb 05, 2016 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Please help me form this equation for Employer/Employee 53K Max contribution
Replies: 7
Views: 277

Re: Please help me form this equation for Employer/Employee 53K Max contribution

The 53k limit is for the: -employee contributions -elective deferrals of $18k which can go to pre-tax or Roth 401k -after-tax contributions if allowed by your plan -your employer contributions -forfeitures. I think Forfeitures has something to do with amounts forfeited by employees who didn't stay l...
by retiredjg
Fri Feb 05, 2016 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts
Replies: 23
Views: 1310

Re: Overwhelmed - Asset Allocation Questions Between 401K, Roth IRA, and Taxable Accounts

I've been debating back and forth between so many options that I've found myself utterly confused. This issue is very confusing at first. Then suddenly, all the puzzle pieces fit together when you figure out which of the guidelines comes first, which second, etc. Then, it is surprisingly easy. One ...
by retiredjg
Fri Feb 05, 2016 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

Dumb question: is there any reason that I would need bonds in my 403b? Not a dumb question at all. In fact, almost all of the recommendations I make have a bond fund in the 401k/403b. In your case, that is happening in the 401a/457b, not the 403b. So any rebalancing between stocks and bonds would b...
by retiredjg
Fri Feb 05, 2016 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

I don't know if TC has time limits or not, but I don't recall hearing that.

I did wonder why there is no TC Traditional mentioned. It would be a good substitute for the expensive bond if you end up needing bonds in His 403b. And I still think an international fund is missing on Her 401a list.
by retiredjg
Fri Feb 05, 2016 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity or iShares for total stk market?
Replies: 21
Views: 1186

Re: Fidelity or iShares for total stk market?

From personal experience, I was surprised to see the tax burden for the Spartan Total Market Index fund was much greater than the Vanguard equivalent because capital gains distributions were declared at Fidelity and a small percentage of the dividends were not qualified. I think livesoft may have r...
by retiredjg
Fri Feb 05, 2016 10:14 am
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

Sorry about the delay. Here's an idea to consider. You would exchange what you have into this and then maintain it with contributions. His 403b 68.8% 68.8% CREF Stock (this fund is 70% US and 30% foreign) 0% unless needed CREF Bond Market Her 401a and 457b (not yet opened) 26.9% 6.9% Blackrock Globa...
by retiredjg
Fri Feb 05, 2016 8:49 am
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

Now the question is it worth the hassle of filing an amended return to recover the $20. Hmmm You don't have to amend the return to send in a corrected Form 8606. I'd consider printing it out and doing it by hand if necessary and send that in. Then use the 2014 corrected version and carry over the $...
by retiredjg
Fri Feb 05, 2016 8:44 am
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

HR Block says on 2014 Form 8606: If there were contributions to your traditional IRAs for 2014, * Skip parts I and II on this Form 8606 :shock: If you didn't report the non-deductible contribution in Part I and you didn't report the conversion in Part II….did they just not get reported at all? I do...
by retiredjg
Fri Feb 05, 2016 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity or iShares for total stk market?
Replies: 21
Views: 1186

Re: Fidelity or iShares for total stk market?

According to Morningstar, the 9-style boxes are the same and the "growth of $10k" charts are almost indistinguishable. I don't see that either is a clear winner over the other.

Seems to me it boils down to whether you like mutual funds or ETFs better.
by retiredjg
Fri Feb 05, 2016 7:35 am
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

If you made a non-deductible contribution of $6,500 to tIRA for 2014, I don't know why the software would have skipped part I. Can you check to be sure you actually told it you made that contribution? Come to think of it, is the Form 8606 the only place you tell the software you made that contributi...
by retiredjg
Thu Feb 04, 2016 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

Are you saying that the tax software showed $0 on line 14 of your 2014 Form 8606?
by retiredjg
Thu Feb 04, 2016 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

Isn't H&R Block what TaxCut morphed into?
by retiredjg
Thu Feb 04, 2016 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation (AA) help with 401k
Replies: 2
Views: 228

Re: Asset Allocation (AA) help with 401k

Can someone help me understand why some would say a total market fund is adequate while others show that it's cap-weighted and under-representing the higher performing small caps? "Higher performing small caps" is the stumbling block. There is academic evidence that small caps have outper...
by retiredjg
Thu Feb 04, 2016 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

H&R Block TaxCut carries no basis forward. However, it's never been a bug free program. My question was more in the line of whether TaxCut SHOULD HAVE put the $50 on line $14 and carried the $50 over. I'd like to understand what this means. The way I understand it, your 2014 Form 8606 should ha...
by retiredjg
Thu Feb 04, 2016 8:21 am
Forum: Personal Finance (Not Investing)
Topic: IRA Basis After Roth Conversion following TIRA loss
Replies: 21
Views: 919

Re: IRA Basis After Roth Conversion following TIRA loss

Edited.

My understanding is that you have a carryover basis of $50 from 2014. This will offset part of the $100 gain in 2015, leaving you with $50 taxable for 2015.
by retiredjg
Thu Feb 04, 2016 7:03 am
Forum: Investing - Help with Personal Investments
Topic: First Post, two questions.....
Replies: 9
Views: 947

Re: First Post, two questions.....

I would not consider using the 403b if the 457b has better choices. They often do.
by retiredjg
Thu Feb 04, 2016 6:30 am
Forum: Investing - Help with Personal Investments
Topic: Roll over my TIRA to a Roth?
Replies: 7
Views: 503

Re: Roll over my TIRA to a Roth?

And the interesting news is that it looks like the value of my TIRA has decreased such that my cost basis is actually greater than the current value of the account -- so I think I might not have to pay gains. Maybe this is a chance to even tax loss harvest? It means you can convert to Roth without ...
by retiredjg
Wed Feb 03, 2016 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

TIAA Real Estate (.87): 15% CREF Equity Index (.61): 50% CREF Stock (.69) (for Intl): 25% **Bonds:10% CREF Equity Index is total US stock. CREF Stock is US stock and foreign stock. It's not a helpful overlap unless you are seeking a specific dilution of the foreign stock (which it does not look lik...
by retiredjg
Wed Feb 03, 2016 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Would love input on retirement investing strategy for a novice trying to make deep strides.
Replies: 31
Views: 1392

Re: Would love input on retirement investing strategy for a novice trying to make deep strides.

I need to read up on the bathdoor roth method. I've heard of it, no idea how to do it. Funny what our computers say for us sometimes. :oops: Sorry, just could not let that one pass. A few things I noticed on the way here… -expense ratios of .4% or .6% are not high (although they may be higher than ...
by retiredjg
Wed Feb 03, 2016 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH IRA Process.
Replies: 42
Views: 4489

Re: Backdoor ROTH IRA Process.

I see that what I just said was already pointed out by Hastibe upthread in 2014.
by retiredjg
Wed Feb 03, 2016 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH IRA Process.
Replies: 42
Views: 4489

Re: Backdoor ROTH IRA Process.

The CPA said that the software did not populate lines 6-12 and that's OK. We have seen this before. This is beyond my understanding, but this is how I remember it. 1) If you follow the instructions on the form itself and do it by hand, you end up with those lines populated and your wife ends up wit...
by retiredjg
Wed Feb 03, 2016 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH IRA Process.
Replies: 42
Views: 4489

Re: Backdoor ROTH IRA Process.

That "few stray pennies" thing has been showing up a lot lately. Some people call and have it converted. Some just ignore it. Technically, you are supposed to include that on lIne 6 next year (if you don't call and get it converted over) but since it is less than 50 cents, it rounds down t...
by retiredjg
Wed Feb 03, 2016 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH IRA Process.
Replies: 42
Views: 4489

Re: Backdoor ROTH IRA Process.

I wondered that too Duckie. I think there was $10 basis carried over from last year. Then with this year, exactly $5,500 was contributed and exactly $5,500 was converted….leaving the $10 basis still on the books. This will keep happening until the contribution grows at least $10 before conversion. T...
by retiredjg
Wed Feb 03, 2016 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads: Portfolio advice please
Replies: 21
Views: 1319

Re: New to Bogleheads: Portfolio advice please

Loved doing this exercise, have a much better understanding of my investments now. People frequently comment that they learned a lot. I don't recall many saying they "loved doing this…" :happy I agree you have too many funds. and there's non-sensical overlap between them. To get you start...
by retiredjg
Wed Feb 03, 2016 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: Would love input on retirement investing strategy for a novice trying to make deep strides.
Replies: 31
Views: 1392

Re: Would love input on retirement investing strategy for a novice trying to make deep strides.

There is apparently also a stable value fund in the 457b plan that is paying a decent amount (over 2%). You could use that in addition to the PIMCO bond fund in the same plan. I didn't look at the 403b plans because the 457b is almost certainly a better plan. The 403b plans seemed to be mostly insur...
by retiredjg
Wed Feb 03, 2016 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: SIMPLE 401k company?
Replies: 11
Views: 550

Re: SIMPLE 401k company?

But this poster is looking for SIMPLE 401k. :wink:
by retiredjg
Wed Feb 03, 2016 11:44 am
Forum: Investing - Help with Personal Investments
Topic: SIMPLE 401k company?
Replies: 11
Views: 550

Re: SIMPLE 401k company?

Several people have found people to run small 401k plans. Check out threads for Employee Fiduciary, Ubiquity, and Assencia (not sure on that last name, but something like that).

Giving up the back door is a disappointment, but certainly not fatal to your retirement plans.
by retiredjg
Wed Feb 03, 2016 10:22 am
Forum: Investing - Help with Personal Investments
Topic: First Investment Outside of Retirement Account
Replies: 10
Views: 885

Re: First Investment Outside of Retirement Account

Sounds like you've got things very squared away, especially for such a young person. What you do with this money depends on what you want to do with it. -If you want to invest for long term goals, you could put it in stock index funds and adjust your TSP and Roth IRA accounts accordingly. -If you ar...
by retiredjg
Wed Feb 03, 2016 10:13 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 322
Views: 84251

Re: The Mega Backdoor Roth IRA

George, you are headed in the right direction. A couple of suggestions. 1) You probably do not want to do this 12 times a year, and there really is little need to do that. But you can if your plan allows it. 2) You almost certainly do not want to move the money to tIRA and then to Roth IRA. There ar...

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