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by retiredjg
Sun Aug 28, 2016 6:25 am
Forum: Investing - Theory, News & General
Topic: The Core Four
Replies: 290
Views: 166426

Re: The Core Four

Bumping this topic to see if we can get some current comments on using- Vanguard Target fund and add REIT to the mix to simplify the portfolio selection for the Core 4 or is individual ETF/fund selection still the way to go? In theory, it could be fine because the amount of REIT is not going to thr...
by retiredjg
Sat Aug 27, 2016 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: is IRR worth it for me
Replies: 1
Views: 250

Re: is IRR worth it for me

To me, IRR means "in-plan Roth Rollover". With an IRR, you would roll your after-tax contributions into Roth 401k, not out to Roth IRA. With plan fees that high, that does not look very attractive to me, especially if the money has to stay there for 5 years with high management fees and a ...
by retiredjg
Sat Aug 27, 2016 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Past Transfer from TIRA to TSP - Included Basis
Replies: 2
Views: 179

Re: Past Transfer from TIRA to TSP - Included Basis

I think you are out of luck. In order to get your money into the TSP, you almost certainly signed something that said all of the money was pre-tax. Of course, you still have basis on paper. I don't know if it disappears or not and I suspect that opinions might vary on that. If you keep the paperwork...
by retiredjg
Sat Aug 27, 2016 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: What to do next with "extra" money
Replies: 18
Views: 1543

Re: What to do next with "extra" money

I think I'd loosen up a little, but maybe just $200 a month or one nice trip a year 'cause you won't be happy getting too loose. I'd pay a little extra on the mortgage, maybe $500 a month. And I'd stockpile the rest because when your 10 year old Honda starts failing, you might want to get a car fast...
by retiredjg
Sat Aug 27, 2016 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 41
Views: 3729

Re: $50M+ - Need a sounding board/advice

I think your problem is going to be getting out of what the money managers have you invested in. Capital gains taxes could be significant. If the cap gains are short term, your ordinary tax rate will apply. Do you know your tax rate or is it too soon to tell? Are these funds you can transfer to anot...
by retiredjg
Sat Aug 27, 2016 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 1010

Re: Roth IRA conversion at 28% tax rate.

No, this is much better than contributing to the taxable account; it is equivalent to contributing $23K directly to a Roth IRA, which will grow tax-free for the rest of your life. Thanks David. I see what you are saying and it is better! But, like you said, not better enough to be doing Roth conver...
by retiredjg
Sat Aug 27, 2016 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Evanson 10x10
Replies: 14
Views: 1089

Re: Evanson 10x10

My first impression is that it looks very well diversified, but a nightmare to rebalance. Any opinions? If you consider "diversified" as owning the market weight of everything available, this is less diversified than the total market. All of those asset classes (except maybe part of Micro...
by retiredjg
Sat Aug 27, 2016 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 1010

Re: Roth IRA conversion at 28% tax rate.

I will of course keep the max 401k contributions going while employed. This does not make sense to me. If you put $23k into 401k and convert $23k of IRA to Roth IRA, it is like not making any contribution to the 401k. One "cancels out" the other. It would just be simpler to stop contribut...
by retiredjg
Sat Aug 27, 2016 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 1010

Re: Roth IRA conversion at 28% tax rate.

I'm not sure why you want to get into Roth conversions at all. What is your motivation?

It would help to know what you expect your income to be in retirement. Will it all come from IRA or is there a pension as well?
by retiredjg
Sat Aug 27, 2016 10:07 am
Forum: Investing - Help with Personal Investments
Topic: 401K - Opportunity to Roll Over to my personal VG IRA
Replies: 2
Views: 155

Re: 401K - Opportunity to Roll Over to my personal VG IRA

There are two potential downsides that I know of. Not sure if either applies to you. If you wanted to use the "back door" to contribute money to Roth IRA, the IRA would get in the way. But that would happen anyway since you already have the IRA. Some states may have more protection for a 4...
by retiredjg
Sat Aug 27, 2016 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Want to re-balance my 457()b)
Replies: 16
Views: 718

Re: Want to re-balance my 457()b)

Something to think about... :happy

viewtopic.php?t=193665
by retiredjg
Sat Aug 27, 2016 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Managing a windfall: DIY or hire an advisor?
Replies: 23
Views: 1952

Re: Managing a windfall: DIY or hire an advisor?

...but I know I'm not a finance expert and the right advisor would (ideally) put me on a good plan and help me stay the course. This is not necessarily true. It might be helpful to pay an advisor to help you set up a good plan, but investing is easy enough to do yourself once you sort out what is i...
by retiredjg
Fri Aug 26, 2016 7:10 pm
Forum: Investing - Theory, News & General
Topic: Fidelity competing harder w/Vanguard
Replies: 28
Views: 2858

Re: Fidelity competing harder w/Vanguard

I'm glad they are working at competing because that means they are offering better products that before. It may be that their expense ratios are lower, but it is a difference that is so small as to be totally insignificant. However, if it gets people out of actively managed funds and into index fund...
by retiredjg
Fri Aug 26, 2016 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else getting nervous and converting to cash as a short-term move?
Replies: 115
Views: 9825

Re: Anyone else getting nervous and converting to cash as a short-term move?

I suppose I wasn't aware one had to fill out 8606 to remove contributions that don't need to be taxed. How annoying. I'll just try not to withdraw contributions prior to age 59.5 8-) I'm not positive I'm right. That's just what I think it right. It is annoying, but how else would you be able to doc...
by retiredjg
Fri Aug 26, 2016 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: How did I do?
Replies: 34
Views: 2340

Re: How did I do?

Now that being said..what are the cons about my two picks? Neither has a low expense ratio (if what you posted is correct) and neither is a broad market fund. I think it is great that you are investing $20 a month. It will get you started on good habits. If I only had $20 a month to invest, I'd use...
by retiredjg
Fri Aug 26, 2016 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: spreadsheet [to organize a portfolio]
Replies: 23
Views: 1901

Re: spreadsheet [to organize a portfolio]

Oh……I feel SSSSSOOOOOOOO old! :?

I use a pencil and paper and it is about as fast as entering the values into a spreadsheet.
by retiredjg
Fri Aug 26, 2016 4:45 pm
Forum: Investing - Theory, News & General
Topic: Schwab now offering low cost Target Date funds
Replies: 16
Views: 1180

Re: Schwab now offering low cost Target Date funds

Good for them! Appears to be a good product. The $100 minimum is especially attractive. Downside - if you later move an IRA to another custodian, there is an account closing fee. Not sure if that applies to taxable accounts or not. If that is going to be an issue for you, just save the $1k to open a...
by retiredjg
Fri Aug 26, 2016 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Option A or Option B?
Replies: 18
Views: 840

Re: Asset Allocation Option A or Option B?

You've got the right idea, but I think you are using the wrong funds to achieve it. The Fidelity International fund does not contain emerging market stocks or small cap stocks. Unless that was intentional, I'd put the international allocation in the Roth IRAs and use a total Total International inst...
by retiredjg
Fri Aug 26, 2016 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else getting nervous and converting to cash as a short-term move?
Replies: 115
Views: 9825

Re: Anyone else getting nervous and converting to cash as a short-term move?

I am not a tax professional either. This is how I understand what to do. So say I put in $3,000 into my Roth IRA this year that already had $500 in it (so the account is at least 5 years old). Then in 4 years I want to withdraw my contributions, and want to pull out $3,000. Do I need to fill out an ...
by retiredjg
Fri Aug 26, 2016 10:28 am
Forum: Personal Consumer Issues
Topic: Sites/Blogs for Perpetual Travelling Vs. Travel from Home Base
Replies: 6
Views: 412

Re: Sites/Blogs for Perpetual Travelling Vs. Travel from Home Base

Not directly an answer (you asked for pros and cons) but Technomads might have something for you. They are full time working travelers. Not sure if there is a home base or not. My own experience was full time, no home base for a year. That meant I had to have everything all the time. Summer clothes....
by retiredjg
Fri Aug 26, 2016 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Fear and Trembling (Aug. 31st is my last day at work)
Replies: 55
Views: 5002

Re: Fear and Trembling (Aug. 31st is my last day at work)

Small Law Survivor wrote:Thanks - I have plenty else to do

Yes, you do! With all those interests out there, I think it will take you about a week to decide that retirement is the best thing ever!

Caution….bridge is very addictive.
by retiredjg
Fri Aug 26, 2016 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Should I invest ANYTHING right now?
Replies: 28
Views: 2801

Re: Should I invest ANYTHING right now?

I'd put $5,500 in a Roth IRA for 2016 and 2017 (if you can) and save the rest in high interest savings to help you move, settle, etc. at the end of this fellowship. Whatever is left will be the start of your emergency fund and/or your next home downpayment. You will never have another opportunity to...
by retiredjg
Fri Aug 26, 2016 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Fear and Trembling (Aug. 31st is my last day at work)
Replies: 55
Views: 5002

Re: Fear and Trembling (Aug. 31st is my last day at work)

"Find something else" is good advice. :happy Don't be in a hurry. Dabble here and there. Your something else will appear if you just let it be. I retired in mid 2007 with a small fraction of your assets. Went right into the the Great Recession, spending from the portfolio, and came out the...
by retiredjg
Fri Aug 26, 2016 7:43 am
Forum: Personal Finance (Not Investing)
Topic: High income, confused, trying to get a plan in place.
Replies: 25
Views: 3035

Re: High income, confused, trying to get a plan in place.

I really like your idea of the Vanguard Personal Advisor Service, and very well may switch to this once I learn more about it. I will gather my portfolio information and share when I can. This might take me some time. The information that Vanguard will want is likely similar to what we ask for. If ...
by retiredjg
Fri Aug 26, 2016 5:52 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 344
Views: 103484

Re: The Mega Backdoor Roth IRA

I guess basis wasn't quite the correct word. What I meant was, if I do say 4 rollovers throughout the year: 1. $10 profit 2. $15 profit 3. $10 loss 4. $10 loss Meaning I had $25 in gains, and $20 in loss aggregated across the rollovers. Do I have to pay taxes on $25, or $5? If the former, I guess i...
by retiredjg
Fri Aug 26, 2016 5:38 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 344
Views: 103484

Re: The Mega Backdoor Roth IRA

In my understanding, there is no "basis" when it comes to an after-tax sub-account in a 401k. The after-tax contributions are the basis, just like non-deductible contributions in a traditional IRA. In my mind they are different. If a rollover from an after-tax account is done when the val...
by retiredjg
Thu Aug 25, 2016 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 344
Views: 103484

Re: The Mega Backdoor Roth IRA

I think gronnie means there is no option to use only money market or a stable value fund in the after-tax account. The after tax account must be invested as the rest of the 401k in this case. Gronnie, if you are asking this question, you may not understand how the after-tax account works and you mig...
by retiredjg
Thu Aug 25, 2016 5:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Recommends Stocks in Taxable; Bonds in Tax-advantage accounts
Replies: 27
Views: 3110

Re: Vanguard Recommends Stocks in Taxable; Bonds in Tax-advantage accounts

That's unfortunate that even Vanguard is looking at it so superficially. Luckily, it doesn't matter all that much for most. Maybe that is their point. Maybe they are recommending what they think is best for most people for most of the time, knowing most people are not the optimizing segment of Bogl...
by retiredjg
Thu Aug 25, 2016 4:46 pm
Forum: Investing - Theory, News & General
Topic: BSV for Emergency Funds?
Replies: 8
Views: 795

Re: BSV for Emergency Funds?

If you can afford (and are willing) to lose some small amount of value for awhile in your emergency fund (when interest rates rise), I don't see a problem with using a short term bond (although I'd probably keep some of it in cash I can grab in 12 hours). If you are in a higher tax bracket, it shoul...
by retiredjg
Thu Aug 25, 2016 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else getting nervous and converting to cash as a short-term move?
Replies: 115
Views: 9825

Re: Anyone else getting nervous and converting to cash as a short-term move?

It is easy to take direct contributions (not earnings) out of Roth IRA, but it does require paperwork and sometimes people find that form (Form 8606) confusing. Suggest you take a look at the form before doing it.
by retiredjg
Thu Aug 25, 2016 9:53 am
Forum: Personal Consumer Issues
Topic: Seeking advice on what to do about recent property survey/neighbor's driveway
Replies: 34
Views: 3010

Re: Seeking advice on what to do about recent property survey/neighbor's driveway

I once owned a property that included 2 parcels. One was large - probably 98% of the lot. The other parcel was a little triangular sliver between two yards. It was that way when I bought it. I was told there was a transfer between neighbors some time in the past. It appeared to me that a fence had g...
by retiredjg
Thu Aug 25, 2016 9:40 am
Forum: Investing - Help with Personal Investments
Topic: How to determine the % of equities in a joint portfolio.
Replies: 11
Views: 610

Re: How to determine the % of equities in a joint portfolio.

I'm sold on Bogle's idea of using 100 - age because it is mechanical, forces one to re-balance yearly, and gradually reduces risk and avoids having to do self evaluation of our needs, ability, and willingness to buy equities. I'm sure I couldn't make these determinations accurately. Bogle's rule ha...
by retiredjg
Thu Aug 25, 2016 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Decisionmaker asking if we're in correct investment lineup
Replies: 12
Views: 960

Re: Decisionmaker asking if we're in correct investment lineup

My first thought was trying to get them to go from R3 to R6 share classes - that would change the S&P 500 cost from 0.72% to 0.31%. Well, obviously, the ER's are better in R6, but what about other costs? I suspect the "tiers" are simply different ways for the 401k provider to end up a...
by retiredjg
Thu Aug 25, 2016 7:21 am
Forum: Investing - Help with Personal Investments
Topic: 401k Rollover to Employee Fiduciary
Replies: 16
Views: 1199

Re: 401k Rollover to Employee Fiduciary

Glad to hear it went well. Thanks for the update.
by retiredjg
Wed Aug 24, 2016 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse Rollover Process
Replies: 7
Views: 333

Re: Reverse Rollover Process

Alan S. wrote:This also does NOT count toward the one rollover limit because it is not an IRA to IRA rollover.

Alan S is correct. I was thinking it only had to start with an IRA, but the limit refers to IRA to IRA rollovers.

https://www.irs.gov/retirement-plans/ir ... -year-rule
by retiredjg
Wed Aug 24, 2016 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: State Street Real Asset Fund ???
Replies: 3
Views: 188

Re: State Street Real Asset Fund ???

A lot of people invest a little extra in REIT funds. Some REIT is already included in the total stock market index, but some people want more. It is rare to have a usable REIT fund in a 401k/403b plan because they often have high costs. The notable exception is the real estate fund in TIAA CREF 403b...
by retiredjg
Wed Aug 24, 2016 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: High income, confused, trying to get a plan in place.
Replies: 25
Views: 3035

Re: High income, confused, trying to get a plan in place.

Welcome to the forum. I can't help with the predictions, but might help with other things. 1) To assess my current situation, how much should I have saved by now? This is not knowable and it doesn't matter anyway. If you've been paying off large education loans, you could be very far along in your f...
by retiredjg
Wed Aug 24, 2016 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse Rollover Process
Replies: 7
Views: 333

Re: Reverse Rollover Process

Between the two responses I'm thinking it's just me misunderstanding the form having never done it before. It asks you to mail your paperwork along with a check, which in every other context of my life has meant getting out my checkbook and and a pen. But sounds like the check in question will like...
by retiredjg
Wed Aug 24, 2016 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: MFJ this year - thinking ahead - 457/Roth 457
Replies: 3
Views: 325

Re: MFJ this year - thinking ahead - 457/Roth 457

Best guess is that you will be in the 25% tax bracket when married. My guess is that is about where you are now as an individual because it does not take much income to get a single person into the 25% bracket. But it is certainly possible you could be in the 15% bracket instead. In the 25% bracket,...
by retiredjg
Wed Aug 24, 2016 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse Rollover Process
Replies: 7
Views: 333

Re: Reverse Rollover Process

When going the other way, they send you a check made out to the new custodian FBO you (for the benefit of you). They send it to your last address and then you mail that check to the new custodian. I don't know if it can work the same going from your IRA to a 401k but if so, that is what you want to ...
by retiredjg
Wed Aug 24, 2016 6:18 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 344
Views: 103484

Re: The Mega Backdoor Roth IRA

The earnings that occur after money is in Roth 401k are tax free when Roth 401k is rolled to Roth IRA. If you can avoid the $20 fee by using in-plan-rollover (IRR) and if you have a good 401k plan, that might be a good choice. I wonder if you can also avoid the $20 fee by distributing your after- ta...
by retiredjg
Tue Aug 23, 2016 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: 401K vs ROTH 401K-for my situation
Replies: 8
Views: 662

Re: 401K vs ROTH 401K-for my situation

I vote for option 1 if you are really in the 15% tax bracket rather than have 15% as your effective rate. It is certainly possible that you are in the 15% bracket, but your savings rate ($18k to a 401k plus $11k in Roth iRA plus HSA = $34k) is higher than what we usually see for couples in the 15% b...
by retiredjg
Tue Aug 23, 2016 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: Managing AA with target date funds... or not?
Replies: 18
Views: 938

Re: Managing AA with target date funds... or not?

I’m wondering if it would be easier to manage the AA if, say, we just used the Fidelity 500 index fund plus the Vanguard total bond index fund. This way I can manage the AA manually without having to keep track of what allocation the target date retirement fund is in currently, since it adjusts per...
by retiredjg
Mon Aug 22, 2016 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones offering of Mutual Funds in Retirement Accounts
Replies: 9
Views: 945

Re: Edward Jones offering of Mutual Funds in Retirement Accounts

Didn't read the article, only the headline. I think you should give serious consideration to NOT using Edward Jones. Their business model is suspect and profit driven. They are very friendly people and very good salespeople, but their products and practices are designed to make money for the company...
by retiredjg
Sun Aug 21, 2016 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Rick Ferri Portfolio Review
Replies: 34
Views: 3969

Re: Rick Ferri Portfolio Review

Interesting point that I had not considered. I was assuming it had more to do with valuations around the planet - and international and EM are definitely down right now. But I think what you have pointed out is probably a bigger difference.
by retiredjg
Sun Aug 21, 2016 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion or Not?
Replies: 45
Views: 2914

Re: Roth Conversion or Not?

Hmmm.., It seems like it's time for you to start a new thread for yourself so you can get the best ideas. Here is what we usually need: https://www.bogleheads.org/forum/viewtopic.php?t=6212 :shock: I'm not asking a question. I was just trying to point out that whether a person does Roth conversions...
by retiredjg
Sun Aug 21, 2016 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion or Not?
Replies: 45
Views: 2914

Re: Roth Conversion or Not?

You don't have to pay out of taxable. Just pay the same way you pay the rest of your taxes. Increase your withholdings from SS or carry over your tax refund from the previous year. Paying from traditional or Roths should be the last choice. This is a good idea and I had not thought of it. However, ...
by retiredjg
Sun Aug 21, 2016 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: transferring from 457 to traditional IRA vs simple ira vs 401k
Replies: 4
Views: 240

Re: transferring from 457 to traditional IRA vs simple ira vs 401k

My thoughts are that it is not even clear if you can roll your 457b into any kind of IRA. It is also not clear if you can deduct any contributions to tIRA in 2016 - your income may be too high. Since you are going to be higher income, you might be interested in using what is known as the "back ...
by retiredjg
Sun Aug 21, 2016 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: inexpensive safe harbor 401k?
Replies: 20
Views: 1316

Re: inexpensive safe harbor 401k?

Somebody recently mentioned that one of the larger robos offers a 401k plan. I don't remember if it was Wealthfront or Betterment. Might be worth a call.
by retiredjg
Sun Aug 21, 2016 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: inexpensive safe harbor 401k?
Replies: 20
Views: 1316

Re: inexpensive safe harbor 401k?

The one company that has gotten consistent praise for low cost 401k plans for small businesses is Employee Fiduciary. I do not know if they offer a safe harbor plan or not. You should give them a call. You can also enter their name in the google box (upper right) and find past discussions of their s...

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