Search found 28753 matches

by retiredjg
Wed May 24, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Questions & Check Up
Replies: 9
Views: 731

Re: Portfolio Questions & Check Up

Livid408, I need to know about how much money is going into each account in a year. Also, do you think of the taxable account as part of your retirement money, might be house money, probably will be house money, some of each or unknown? When you decided on your 75% stock/25% bonds asset allocation, ...
by retiredjg
Wed May 24, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: Understanding a Post Tax 401k
Replies: 18
Views: 1458

Re: Understanding a Post Tax 401k

Now you got me thinking and I am once again confused about this. I thought the ROTH concept was, Already taxed contributuion grows tax free and the whole thing is distributed tax free. Is this not the case? Or is that just not the case in ROTH 401(K)? But I also don't have that option anymore so it...
by retiredjg
Wed May 24, 2017 7:00 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 36
Views: 3478

Re: IRS tax letter triggered by Turbotax's 8606

Sophi, I can't figure one thing out. If TT didn't do the conversion (lines 16 - 18), then how did lines 13 - 15 come out right? Seems like they would have been wrong if the conversion step got skipped. I think it's because 13-15 apply to all distributions, including conversions. If there is a 1099-...
by retiredjg
Tue May 23, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: After tax money in 401k rolled over to IRA in 2004
Replies: 8
Views: 340

Re: After tax money in 401k rolled over to IRA in 2004

With your 2004 tax return, the $74k should have been added to line 2 of form 8606 and it would have carried itself forward on subsequent 8606's that you filed. Line 2 If this is the first year you are required to file Form 8606, enter -0-. Otherwise, use the chart below to find the amount to enter ...
by retiredjg
Tue May 23, 2017 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: First attending level job but no 401k offered. What are the options?
Replies: 14
Views: 1229

Re: First attending level job but no 401k offered. What are the options?

I don't know the costs, but if their experience was 10 years ago, things may be very different now. You might have to do the legwork to "show them the way" though.
by retiredjg
Tue May 23, 2017 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Best 401k for small companies?
Replies: 7
Views: 401

Re: Best 401k for small companies?

Employee Fiduciary is a name that has popped up many times with good reviews. A few others have looked promising, but floated on by. I'd like to think that Employee Fiduciary is not the only one out there with low cost plans for smaller businesses. Someone with an interest might start checking out t...
by retiredjg
Tue May 23, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: New-ish Investor--Advice on strategy
Replies: 9
Views: 767

Re: New-ish Investor--Advice on strategy

Hey @retiredjg: I fall into the 15% tax bracket. Unrealized gains in my taxable account: FBRGX: + $60 (most gains are long-term) <----long term gains, as long as you remain in the 15% bracket, are taxed at 0% TRVLX: + $196 (short-term gains) <--short term gains would be taxed at 15% VHDYX: - $79 (s...
by retiredjg
Tue May 23, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Questions & Check Up
Replies: 9
Views: 731

Re: Portfolio Questions & Check Up

Thanks for the update. Taxable 18.82% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) - $22,500 (expense ratio: 0.04%) His 401k at Vanguard 39.50% Target Retirement 2055 Trust I - $47,400 (expense ratio: 0.07%) 3.58% Company Corporation Stock Fund - $4,300 His Rollover IRA at Charles S...
by retiredjg
Tue May 23, 2017 8:15 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 36
Views: 3478

Re: IRS tax letter triggered by Turbotax's 8606

Sophi, I can't figure one thing out. If TT didn't do the conversion (lines 16 - 18), then how did lines 13 - 15 come out right? Seems like they would have been wrong if the conversion step got skipped.
by retiredjg
Tue May 23, 2017 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Investing Strategy
Replies: 11
Views: 1303

Re: Investing Strategy

Just a quick reply right now. More later. My wife and I both work at Apple and they give significant portion of our overall compensation in AAPL stock. Yes I know I need to diversify even more. Earlier this year we sold AAPL and put the money in the managed account to start the diversification proce...
by retiredjg
Tue May 23, 2017 6:36 am
Forum: Investing - Help with Personal Investments
Topic: Is Schwab Intelligent Portfolio OK for taxable accounts???
Replies: 27
Views: 1586

Re: Is Schwab Intelligent Portfolio OK for taxable accounts???

confusedinvestor wrote: You could choose a Muni version IP for your taxable IP.

So, they do have something more appropriate for a high income investor.

I have been unable to find the different lists. I guess you have to sign in or something. What does a muni version look like? Could a person use a state muni?
by retiredjg
Mon May 22, 2017 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is Schwab Intelligent Portfolio OK for taxable accounts???
Replies: 27
Views: 1586

Re: Is Schwab Intelligent Portfolio OK for taxable accounts???

Fixed Income 21.5% US Corporate High Yield Bonds 8% International Emerging Market Bonds 7% US Securitized Bonds 3% International Developed Country Bonds 2.5% US Investment Grade Corporate Bonds 1% Surely Schwab is not offering this as appropriate for a taxable account for anyone who is not in one o...
by retiredjg
Mon May 22, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Missed window for selling Fairholme Fund (FAIRX)?
Replies: 33
Views: 1438

Re: Missed window for selling Fairholme Fund (FAIRX)?

Take a look at this "periodic" table. https://www.callan.com/wp-content/uploads/2017/01/Callan-PeriodicTbl_KeyInd_2017.pdf The asset class closest to your Fairholme fund is Russell 2000 Growth - a gold color. Note that it is sometimes near the top, sometimes near the middle, and sometimes ...
by retiredjg
Mon May 22, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Can you take these Core funds and Create a Three Fund Portfolio?
Replies: 29
Views: 2663

Re: Can you take these Core funds and Create a Three Fund Portfolio?

One of us has interpreted the plan backwards.

I took it to mean the poster wanted to increase bonds in the 401k and Keough to balance out the lack of bonds in taxable.
by retiredjg
Mon May 22, 2017 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Missed window for selling Fairholme Fund (FAIRX)?
Replies: 33
Views: 1438

Re: Missed window for selling Fairholme Fund (FAIRX)?

The Fairholme Fund is a poor choice for anyone's portfolio. It captures a small part of the investing universe (a black hole by the way) at an elevated cost. The fact that it is 50% of your current portfolio is scary. Get rid of it. Until you get the hang of it, these types of investor behavioral pr...
by retiredjg
Mon May 22, 2017 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Can you take these Core funds and Create a Three Fund Portfolio?
Replies: 29
Views: 2663

Re: Can you take these Core funds and Create a Three Fund Portfolio?

It's not odd at all. It's smart.

Every few years, you'll need to see if the target fund is migrating too quickly or too slowly toward bonds. You might need to adjust part or all of your account to the next oldest or youngest fund periodically.
by retiredjg
Mon May 22, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: IRS says I owe..I don't
Replies: 29
Views: 3588

Re: IRS says I owe..I don't

fishboat, since you feel like it was TT that messed up your Form 8606, see if the post by Chip on this thread might clear things up for you. According to Chip, you can think you entered the conversion step right but it is possible to answer one of the questions wrong and that results in nothing on l...
by retiredjg
Mon May 22, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 36
Views: 3478

Re: IRS tax letter triggered by Turbotax's 8606

Chip, I'm impressed!

That could be the elusive answer to the two or three posters this year who said "I DID report it and TT messed it up!"

As for the others....not so much. :D
by retiredjg
Mon May 22, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio help - 403b and Roth IRA investments
Replies: 7
Views: 572

Re: Portfolio help - 403b and Roth IRA investments

I am considering narrowing to perhaps these 3 index funds given their low expense ratios. - LargeCap S&P 500 Index Inst Fund (PLFIX)- ER: 0.16% - MidCap S&P 400 Index Inst Fund (MPSIX) - ER:0.20% - SmallCap S&P 600 Index Inst Fund (PSSIX) - ER: 0.21% No brainer. I'm also debating whethe...
by retiredjg
Mon May 22, 2017 9:12 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 36
Views: 3478

Re: IRS tax letter triggered by Turbotax's 8606

There have been several threads in the last week about Form 8606 mess ups. Most seem to be operator error, not TT error. So I'd say this is not the "exact same error" although it is the exact same issue with getting the IRS letter. I reported both the nondeductible IRA contribution and the...
by retiredjg
Mon May 22, 2017 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Should I Leave a Free Investment Advisor?
Replies: 23
Views: 2057

Re: Should I Leave a Free Investment Advisor?

Thanks, Abyan, for the advice - it totally didn't occur to me to transfer everything before selling (but it obviously makes total sense). Since it sounds like you were perhaps in a similar situation, I'm wondering how you (or others in a similar situation) dealt with one issue I'm struggling with. ...
by retiredjg
Mon May 22, 2017 6:29 am
Forum: Investing - Help with Personal Investments
Topic: Convert a Betterment taxable portfolio to a 3-fund portfolio
Replies: 5
Views: 633

Re: Convert a Betterment taxable portfolio to a 3-fund portfolio

If they have been tax loss harvesting all this time, you may not have much in the way of gains to pay tax on. But what gains you do have are likely to be short term, not long term. Two things you need to do before you get started. 1) Figure out your tax bracket. 2) Gather information for the gain or...
by retiredjg
Sun May 21, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Ready to pull the trigger. So how does this look?
Replies: 7
Views: 942

Re: Ready to pull the trigger. So how does this look?

I'll be adding to my current 401k and my taxable account. The backdoor Roth will be a one-and-done each year, so that's easy to account for. So, if I'm rebalancing once a year, can I compensate now for contributions (known) and growth (best guess) so that the AA hits my desired distribution at, say...
by retiredjg
Sun May 21, 2017 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Ready to pull the trigger. So how does this look?
Replies: 7
Views: 942

Re: Ready to pull the trigger. So how does this look?

It's probably ok. In fact, it looks good, but if you don't already know how money will flow into it, it may not work. I don't mean that about your idea, it's true for all portfolio ideas.

If you have not hammered that out yet, you should do it before implementing. You may have to tweak something.
by retiredjg
Sun May 21, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Leave a Free Investment Advisor?
Replies: 23
Views: 2057

Re: Should I Leave a Free Investment Advisor?

If one expects a pension, there is a reasonable argument to use Roth TSP instead of traditional TSP because the pension may mean the person never drops to a lower tax bracket. I believe this is especially true for single people, but that's just my own thoughts. https://thefinancebuff.com/most-tsp-pa...
by retiredjg
Sun May 21, 2017 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Consolidating vendors
Replies: 8
Views: 401

Re: Consolidating vendors

You like Fido better so you should use them. However, I would NOT buy Vanguard funds at Fido. I've heard it is $50 a transaction or $75 a transaction - don't know which is right, but there is no reason to pay even $1 in transaction fees because you can use Fidelity Funds. Paying a transaction fee, e...
by retiredjg
Sun May 21, 2017 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Need help deciding between 401k Intl fund or 401k brokerage Intl Fund
Replies: 4
Views: 286

Re: Need help deciding between 401k Intl fund or 401k brokerage Intl Fund

Cost for trading in or out of the fund $75.00

There is no need to pay this cost. The other fund is just fine.
by retiredjg
Sun May 21, 2017 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Should I Leave a Free Investment Advisor?
Replies: 23
Views: 2057

Re: Should I Leave a Free Investment Advisor?

I think it is a fine idea. Pick your Target Fund by the stock to bond ratio, not the date in the name. Another choice would be to buy the LifeStrategy Growth Fund which is 80% stocks and 20% bonds and which contains the same stuff that is in the Vanguard Target funds. The difference is that the Life...
by retiredjg
Sun May 21, 2017 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Before I do the Portfolio Review...(Update: Portfolio Review. Ha.)
Replies: 12
Views: 821

Re: Before I do the Portfolio Review...(Update: Portfolio Review. Ha.)

P.S. If the brokerage link is free and if the ERs are also very low, there is no reason to avoid using the BrokerageLink either. But do get the more complete international fund if you do.
by retiredjg
Sun May 21, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Investing Emergency Fund
Replies: 30
Views: 3064

Re: Investing Emergency Fund

Don't mean to bite a newbie :P , but having 12 funds in an emergency fund sounds a little bit nuts to me. Even using 40% bonds and cash does not make this a good idea - the only thing you could depend on in an emergency would be that 40% of your "emergency fund". Keep in mind that your eme...
by retiredjg
Sun May 21, 2017 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Quick Backdoor Roth IRA question
Replies: 3
Views: 330

Re: Quick Backdoor Roth IRA question

I was hoping you would get back to us on this question. Looking at your older threads, you apparently opened a Roth IRA recently and realized you will be over the limit so you have recharacterized and are now using the back door. I'm assuming this means you have never made any direct contributions t...
by retiredjg
Sun May 21, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Before I do the Portfolio Review...(Update: Portfolio Review. Ha.)
Replies: 12
Views: 821

Re: Before I do the Portfolio Review...(Update: Portfolio Review. Ha.)

Late to the party....but a comment or two. BusDriver34, you have excellent options available in your 401k. I can't see a reason to use the Brokerage link. In fact, the Fidelity international fund mentioned is less complete than the Vanguard fund offered in your 401k - a step backwards in my opinion....
by retiredjg
Sun May 21, 2017 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Questions & Check Up
Replies: 9
Views: 731

Re: Portfolio Questions & Check Up

Holding Total Stock and Total International in taxable is considered to be a good idea. Holding Total Bond in taxable may or may not be a good idea depending on your tax bracket. You said you planned to open an IRA for your spouse, but then you talked about putting two funds into a taxable account. ...
by retiredjg
Sun May 21, 2017 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Where to open taxable account?
Replies: 9
Views: 1036

Re: Where to open taxable account?

You can link your checking or savings account to Vanguard as well so I can't see that Merrill Edge offers anything you need. I suppose transactions might be one day faster, but I don't think that is very important.
by retiredjg
Sun May 21, 2017 8:15 am
Forum: Investing - Theory, News & General
Topic: Understanding a Post Tax 401k
Replies: 18
Views: 1458

Re: Understanding a Post Tax 401k

I later found out that there was another option at my previous employer a ROTH 401(k) that would have sheltered the after tax contributions completely. If "sheltered the after tax contributions completely" means you would not have paid tax on the earnings, that is not correct. If you had ...
by retiredjg
Sat May 20, 2017 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: My Portfolio - Please provide input regarding tax efficiency
Replies: 11
Views: 960

Re: My Portfolio - Please provide input regarding tax efficiency

I would not hold LifeStrategy Growth in taxable because it is not tax efficient. Also, it does not allow you to sell bonds without selling stocks and vice versa.
by retiredjg
Sat May 20, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: 401k fund allocation re-examination
Replies: 1
Views: 141

Re: 401k fund allocation re-examination

I would not use the Fidelity bond fund - it is an actively managed fund with a higher ER. Use the other one which is a total bond index fund. What's in the TR Price New Horizons fund? Seems like you don't need it and it is spendy. The order of investment you mentioned is fine. Some would fill the 40...
by retiredjg
Sat May 20, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: IRS asking me to pay the tax on full Traditional to Roth Conversion : 1099-R
Replies: 20
Views: 1657

Re: IRS asking me to pay the tax on full Traditional to Roth Conversion : 1099-R

It would appear that the IRS match-o-matic has finished its run. :oops: It took me some hours before it dawned on me what this meant. Yes! Yes! I recall the same thing happening in the past. One of those past events was the final straw - it caused me to decide I would no longer suggest that people ...
by retiredjg
Sat May 20, 2017 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: IRS asking me to pay the tax on full Traditional to Roth Conversion : 1099-R
Replies: 20
Views: 1657

Re: IRS asking me to pay the tax on full Traditional to Roth Conversion : 1099-R

The key to proper handling of backdoor into Roth IRA is to enter both steps of the backdoor. 1) Contribution to Traditional IRA and 2) 1099-R for the conversion step. This is such a pivotal point, that I think it needs to be repeated. If you tell TurboTax what you did, it will spit out the forms co...
by retiredjg
Sat May 20, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Should I switch my Vanguard funds to lower cost Schwab funds?
Replies: 38
Views: 2427

Re: Should I switch my Vanguard funds to lower cost Schwab funds?

- The $25,000+ difference I calculated was using this calculator -- http://www.begintoinvest.com/expense-ratio-calculator/ I entered $800,000 as the current balance, and the expense ratio of 0.03% vs 0.04%, $60,000 additional annual contributions, 7% return, and 30 years. The calculator shows a dif...
by retiredjg
Sat May 20, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Forgot to file 1099R- IRS sent me a big bill to pay
Replies: 5
Views: 1328

Re: Forgot to file 1099R- IRS sent me a big bill to pay

You need to fill out 2 Forms 8606, one for each year you made a non-deductible contribution. For the 2nd year, you also need to fill out the roth conversion part on the back of the Form 8606. Forms for old tax years are available on the internet. I do not know if you need to amend your tax return or...
by retiredjg
Sat May 20, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: IRS asking me to pay the tax on full Traditional to Roth Conversion : 1099-R
Replies: 20
Views: 1657

Re: IRS asking me to pay the tax on full Traditional to Roth Conversion : 1099-R

I don't think you need an amendment. I think filing the appropriate Form 8606 will do and they will just bill you the tax for the extra $84. Or, maybe you'll need to amend since you probably need to pay the tax on $84. Apparently you did not know how to tell TT that you had done the back door. Here ...
by retiredjg
Sat May 20, 2017 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Forgot to file 1099R- IRS sent me a big bill to pay
Replies: 5
Views: 1328

Re: Forgot to file 1099R- IRS sent me a big bill to pay

You should have filed Form 8606 with your 2013 taxes and another one for 2014 taxes. The 2014 Form 8606 would cover both the second contribution and the conversion of all of it to Roth. Your 2015 tax return is not involved at all. Tell us what you did and if you filed the two Forms 8606 and we'll te...
by retiredjg
Sat May 20, 2017 8:22 am
Forum: Investing - Theory, News & General
Topic: Understanding a Post Tax 401k
Replies: 18
Views: 1458

Re: Understanding a Post Tax 401k

Sounds like you are ready to go. :happy I'd suggest you consider doing the distribution out to Roth IRA in January since your last paycheck may be bumping up on the last day of the year and the contribution may not even post until the following year. There is no rush and no benefit that I know of to...
by retiredjg
Sat May 20, 2017 8:10 am
Forum: Investing - Help with Personal Investments
Topic: New-ish Investor--Advice on strategy
Replies: 9
Views: 767

Re: New-ish Investor--Advice on strategy

Exchanging from one fund to another inside the Roth IRA does not trigger any taxes. You might check for frequent trading or minimum holding periods though. You can reduce taxes in the taxable account by using losses to offset gains. I'm not sure you would have any losses since the market is high, bu...
by retiredjg
Sat May 20, 2017 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard or Betterment
Replies: 10
Views: 1218

Re: Vanguard or Betterment

If you are avoiding Vanguard because you think you don't know enough about investing, that is unnecessary. They (and others) have some excellent all in-one-funds that you can buy - all you have to decide is how aggressive you want to be. And you'll have to decide that at Betterment too if you use th...
by retiredjg
Sat May 20, 2017 6:52 am
Forum: Investing - Help with Personal Investments
Topic: Should I switch my Vanguard funds to lower cost Schwab funds?
Replies: 38
Views: 2427

Re: Should I switch my Vanguard funds to lower cost Schwab funds?

At your present "near $1 million", I calculate you will save $100 a year if you switch to Schwab's Total Stock and their new Total Bond funds. I would not switch to the considerably less comprehensive international fund. Even making a lot of contributions and throwing in 30 years, I'm not ...

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